...favourable | There may have been a decrease in the number of competitors in the market or they could have advertised really well. | Nov | £45,000 | £47,000 | £2000 adverse | There may have been an increase in competition in the marketAnd a decrease in demand for the products | Dec | £52,000 | £56,000 | £4000 adverse | There may have been an increase in competition in the marketAnd a decrease in demand for the products | Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Raw materials | | | | | Oct | £6000 | £5,700 | £300 favourable | They could’ve found a cheaper supplier or there may be a drop in sales | Nov | £8000 | £8,100 | £100 adverse | They may have overspent on raw materials or made more sales meaning they needed to use more electricity and raw materials | Dec | £8000 | £8,500 | £500 adverse | They may have overspent on raw materials or made more sales meaning they needed to use more electricity and raw materials | Item | Budget | Actual | Variance favourable/ adverse | Possible reason for variance | Wages | | | | | Oct | £6000 | £5,600 | £400 favourable | This could be because they didn’t need seasonal staff in October meaning that they didn’t need to give employees as many hours as they thought. | Nov | £6,500 | £6,350 | £150 favourable | This could be because they didn’t need seasonal staff in November meaning that they didn’t need to give employees as many hours as they thought. | Dec | £6,500 | £6,559...
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...assets increased up to P12M as of 1983 which consisted of a dozen vehicles, a few pieces of real estate in the Central Luzon Region, an office, a modest amount of inventory and cash. The company’s product line started with pressed tablets, capsules, and some syrups. When the American principal does business with the company it leads them to become the leading inventor of raw materials in the country. David, himself was able to recover the mismanagement of the company under Rafael Buenaventura. In 1988, the American principal offered his plans to David of GPC engaging in the contract manufacturing of pharmaceutical products for both domestic and export markets. The proposed project was to compound locally all products that it will manufacture and sell, importing only the active ingredients and bulk materials that is unable to produce locally. Heavy locally available raw materials, health foods, fibers, food supplements, and other over-the-counter products. GPC was also reorganized in 1988 and it has several divisions; pharmaceutical distribution division, Agrovet Division, Cosmetics Division, Raw Materials Indenting Division, and contract manufacturing division. The...
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...The first section of my website purpose contains the communication of my site purpose, my target audience and my content needs. My website will be called Storybook.com. This website will have the accessibility to download books for purchase or view online for a lesser fee. The purpose of this website is for children and teenagers alike to utilize the website for educational purposes as well as obtain different reading materials for their personal use. My target audience would be different ages of children as well as parents who may want to use the educational part of this website to help educate their children who enjoy the computer. They can use this website for the educational needs as well as needs for other books children may like. The website will contain books for reading, handwriting, math, and foreign languages. In addition, it will have the links to enter fictional as well as non-fictional reading material. The teenager will have the luxury of viewing teen reading materials. As far as the educational materials, it will allow access to all the basic materials that are used today in the school system. All subjects from English, math, and foreign languages as well as study guides for all classes and the SAT and ACT. The contents that are needed at the present time would be programs such as Adobe Flash and HMTL to create an interesting interactive navigation site. This site would not have to have the three click rule because of the fact having children or parents navigating...
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...concerned with money and future plans. They prepare accounts, e.g. invoices, management accounts, financial accounts for shareholders and inland revenue Preparing wages and salaries Obtaining capital and resources, e.g. money for expansion or to pay for such as equipment and materials. |Marketing professionals determine the products that their companies introduce to the marketplace, often using marketing research surveys to determine what consumers need and want. The marketing department determines the right distribution channels for the company's products. For example, a consumer products company may sell its products in grocery stores and mass-merchandise outlets. |Production is the functional area responsible for turning inputs into finished outputs through a series of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable. |Customer-service representatives answer calls or in-person requests from customers. Some customers may want additional information about a product or service; others have problems related to the products they purchased. Part of a customer-service representative's job is to determine where to route calls or inquiries, according to the Bureau of Labor Statistics. |The sales department is responsible for...
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...Introduction VBF Tubing is the largest steel producer in the Netherlands. VBF produces welded steel tubing plants in three of its plants. These tubes find application in various fields ranging from structural components to gas, steam & liquid transmission. The major concern for VBF is their low inventory ($ 4.5 million) turning rate. Process i. Raw material preparation: Flat rolled steel is used as raw material, which is wound into rolls, unwounded, and then the start of one coil is welded against the end of previous coil. Continuous steel strip is then fed to tube forming & welding operation. ii. Tube formation: Two basis sizes called as ‘Mother Tubes’of 4 & 3 inch diameter. 4 inches in diameter accounted for 90% production. 3 inch mother tube produced over a 5 day period, only 3 times a year because it required a major changeover. iii. Stretch-reduction: Vast majority of 4 inch tubes are stretched & reduced in SRM machine into smaller dia. (0.5-2.5 inch). There is a production loss of 10 days when 4 inches are being cut. Production rates are minimum for smaller dials. iv. Finishing operations: Cost of storage of semi-finished tube is $400/ton. Various operations performed in finishing include zinc plating, threading tube ends, and adding caps before shipping to the customer. Problem Statement i. The inventory turnover is very low in spite of increasing demand. Excess holding of 3000 tonnes of finished goods indicates major problems in the sales operations. ii. 15...
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...taking in taking orders. Not all of the necessary information such as tolerances or finishes is obtained at the time that the order is placed. Also, at the time the order is placed is when the raw materials are ordered which adds an additional 1-2 weeks of processing time. Aside from the additional processing time from not keeping raw materials on hand, production time has increased from 2 weeks after receiving materials to 4 weeks. The increase in production time is due to recent addition of processing large orders, which subsequently increases the amount of time needed for smaller orders. Time management is critical in managing efficiency. There are bottlenecks and they may vary from different machine centers. 90% of the time is spent waiting for a machine to become available and the other 10% is spent actually using the machine. In addition the layout of the facility allows for additional travel time than what is necessary. Each problem is described more in depth below. Problem #1 – Issues with the order taking process. There is only one person who takes orders. And when the order is taken sometimes all the necessary information is not obtained, such as tolerances or finishes. When all of the information is not taken at the time the order is placed, someone has to take additional time during the processing time to call the customer and get the rest of the required information. Also, if there are a lot of orders, the process can be bottlenecked because only...
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...customers, suppliers, and the Company’s associates. In conducting my research, I looked into the Company’s financial data for 2011, by utilizing additional year-end data of 2010. The data consisted of purchases of raw material, ending work-in process inventory, and indirect labor. Determining the impact of the Company’s profitability, a sensitivity analysis in cost of goods manufactured, cost of goods sold, and identifiable variable changes, impacted costs and the Company’s net income. The Company’s management team provided three scenarios that illustrate my objective. Significance of the Sensitivity Analysis Sensitivity analysis is a technique that addresses how changes in variables affect the uncertainty of a given set of assumptions. The results will illustrate how the analysis determines the estimates, upon which it is based. To better demonstrate how the analysis will work for Twisto Pretzel Company for December 31, 2011, I have conducted three separate analyses that demonstrate how each analysis impacts the Company’s profitability: 1. Case 1 – Sensitivity Analysis Purchases of Raw Materials increases by 15% Assuming that all other inventory balances remain the fixed, the value of purchases of raw material, will be increased by 15% for the current year. Purchases of raw material increased from $39,000 to $44,850, the total cost of goods...
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...inventory can be defined as an idle resource which has an economic value. It is however, commonly used to indicate various items of stores kept in stock in order to meet future demands. * In any organization, there may be following four types of inventory: (a) Raw materials & parts-- These may include all raw materials, components and assemblies used in the manufacture of a product; (b) Consumables & Spares -- These may include materials required for maintenance and day-to-day operation; (c) Work in progress -- These are items under various stages of production not yet converted as finished goods; (d) Finished Products -- Finished goods not yet sold or put into use. 13.1.1 Need For Inventory : Many of the items we need for our day-to-day maintenance and operation are required to be specially manufactured for the Railways. The time to procure these materials, therefore, is longer due to various reasons and it is not possible to procure these materials when instantaneously required. It is, therefore, necessary to keep stocks of such items. * Even for those items which are readily available in the market, it may not be economical to buy these items every time as buying in piecemeal involves additional costs to the administration. Therefore, we may find it cheaper to buy in bulk and to stock some of these items and supply our indentors through such stocks. * There are always some...
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...To Hedge or Not To Hedge - Raw material price management and added value from treasury by Wolfgang Frontzek, Director of Group Treasury/Corporate Finance, Wilo I For years, treasurers have been tackling the problems of interest and exchange rates in an analytical and structured manner. n recent years, commodities buyers have had to cope with extreme price increases and price fluctuations. Where it was not possible to cushion or pass on the effects of the price rises, they often had a negative impact on company profits. Rising raw material prices are not the only problem that buyers have, as the buyer is responsible not only for a fixed calculation or price basis but also for ensuring continuity of the production process, certainly over the medium term and thus over a planning period of 12-24 months. Price volatility presents the same problem, as it makes commodity prices genuinely unpredictable. An active financial risk management process is necessary, to answer the following questions: How high is the exposure? What percentage of the production costs do raw material costs account for? What effect does the price fluctuation of raw materials have on total profits? Can price fluctuations be passed on? What is the competition doing? Based on this peak, the company is exposed to a price movement risk of USD 1.700 per tonne or a total of USD 5.1m. Accordingly, the price opportunity on the basis of the record low in 1997 of USD 1.000 is relatively small at USD 150 around...
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...Introduction H&M, a clothing company from Sweden. Being popular with its fast-fashion clothing, it is divided into three departments for men, women and children. And it has become the second largest clothing retailer and producer in the world. H & M wants to contribute to the society and the environment, so it implemented many projects and took many measures. For example, it has cooperated with UNICEF setting a project to protect the rights of some poor children all over the world (H&M and water. n.d.). Although H&M asserts that it is an ethical firm, there are still controversies exposed by the news. A Greenpeace campaigner, Frauzel, (2011) wrote a report to expose that H&M’s suppliers discharge toxic water into China’s rivers, and that H&M’s clothing contains hazardous substances and chemicals, even the children’s clothes. The following paragraphs will analyze the unethical issue and give the solutions and evaluations. The case The situation and key fact H&M has become a second largest fashion retailer, but it is criticized by the campaigners many times, such as in 2011, Frauzel (2011) reported that the clothes from H&M contained an amount of hazardous substances, such as nonylphenol, ethoxylates (NPEs) and the toxic nonylphenol (NP). Because these clothes contain chemicals, the water which is used for washing clothes would also contain chemical substances at the same time . And then the suppliers discharged the polluted water into China’s rivers, which can devastate...
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...very easily become the sole scapegoat for blame. However, upon analyzing the underlying causes, Maria lacked 100% support from the two most senior members of the engagement team. First, David Hendry, Partner had just accepted additional responsibilities of bringing in new business. This meant that he would have competing demands with a less proactive focus and attention to SKS Manufacturing as a client during the initial engagement. Secondly, Annette Wattley-Davis, Senior Manager, assigned to the SKS Manufacturing engagement was working on another concurrent project in Dallas. She was in Texas for 2-3 days per week overseeing a project with another client with limited oversight to the SKS engagement during a lucrative period (first six weeks) of the engagement. Thirdly, Maria Chen was a fairly new consultant and inexperienced to lead a vague and difficult situation on her own. Her lack of experience coupled with the lack of support from David Hendry and Annette Wattley-Davis was detrimental and derailing. She was assigned specifically to lead and address the production scheduling processes and synchronize production operations with purchasing while working along side Ben Rohan. He was tasked to lead the material and procurement processes and raw material levels. Maria and Ben were assigned to work in conjunction with each other. Maria had her own challenges given the scope of her assignment with the production line and her working relationship with Stan Janovich. In addition...
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...S. department stores and specialty ski shops. • Although it has a global supply network, most production is done in Hong Kong and China by its partner, Obersport. Sport Obermeyer Supply Chain Management MGT 690 June 5, 2010 2 Obersport The Supply Chain Shell Fabric • Established in 1985. • It is a joint venture between Sport Obermeyer and a Hong Kong based partner. • Obersport handles the raw materials and production for all of Sport Obermeyer’s production in the Far East. • Production is done in independent subcontractors located in Hong Kong and China. Lining Fabric Insulation Materials Cut/Sew Distribution Center Retailers Snaps Zippers Others Textile Suppliers Obersport Obermeyer Retailers 3 4 Planning Cycle Planning Cycle Cont. • Design begins in February of the year before the garments will appear in stores. • As soon as designs are finalized, samples are produced and shown to retailers during the Las Vegas show. The show is usually held in March. • Concurrently, materials and components are ordered for the initial production order. • Usually receive 80% of the annual order volume the week after Las Vegas show. • During June and July the garments are transported to Obermeyer’s Denver warehouse. This takes approximately six weeks. • Around the end of August, Obermeyer ships orders to retailers. • Products go on sale during September. Peak times are December through January. ...
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...PACKAGING MATERIALS SAFETY EHA Consulting Group, Inc. Baltimore, MD 21208 www.ehagroup.com Overview A broad range of substrates comprise the list of approved food contact (direct and indirect) packaging materials FDA considers, controls and regulates direct contact packaging materials in the same manner as food ingredients Assumptions are that packaging substrates and all contacting substances can and may be consumed along with the food Manufacturers of packaging raw materials and finished, converted packages alike are expected to understand, apply and validate their processes for consistency, quality, safety and adherence to required methods and protocols Contact Material Regulations Direct and indirect contact packaging materials, substances, processing aids, coatings, adhesives and adjunct substances controlled and conditionally approved for use are described and referenced in 21CFR sections 173-182. Additional information, directives, procedures and controls may be found in sections of 21CFR dedicated to the specific food type (i.e., package fill level control for certain food categories) Additional sections of 21CFR control and direct GMP (110-111), while others control the packaging of specific food categories and systems (e.g., 113, thermally-processed low acid foods and 129, bottled water) 21CFR may categorize foods, ingredients and materials by type, processing method, packaging methods and other qualifiers. Manufacturers and suppliers are strongly...
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...eliminates costs, which increases profits. Of course this is only applicable if the shop produces high quality products the first time everytime. JIT enables the shop to produce products efficiently and quickly from raw materials. As with everything there are negatives as well, in this case the skill level of the workers must be considered. Unskilled or untrained workers may not be able to produce quality products. This can effect the business due to a shortage of items, this could lead to price increases due to the competitive nature of providing needed products. This can lead to disagreements between vendors who have a history with each other as they compete for products or raw materials. This can have a negative effect on business relationships. 2. You operate a dairy farm, raising cows for the production of raw milk products. Briefly identify the levels of vertical integration that you would anticipate being possible for such an operation (include both backward and forward integration in your response). A look at the dairy farm business shows that there is a highly competitive environment. Challenges are distribution, and the level of expertise necessary to understand the business of dairy farming. Also a consideration is the storage of materials and inventory, large areas are...
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...customer complaints. The firm may revamp the product raw materials and assess if it is due to quality or equipment issues. Also data will be collected and analysis on the most common complaints to reduce /eliminate the problem. Also explore if additional training and/or hire/replace some employees for assistance with the consumers complaints. B. 6 types of cost Management Cost- Cost management is the process by which companies control and plan the costs of doing business. This can be translated as reducing costs of production for products or services, in addition to improving value being delivered to the customer. Manufacturing cost - Manufacturing costs flow through three basic responsibility centers: the raw materials storeroom, the factory, and the finished goods storeroom. These inventory accounts are usually provided to accumulate costs as they relate to the three responsibility centers: raw material inventory, work-in-process inventory, and finished goods inventory. When goods are sold, costs are transferred from the finished goods inventory account to the cost of goods sold account. The flow of costs through the manufacturing process Utility cost - The cost of usage of utilities such as lighting, water, and heat. Labor cost – training, hours worked, health benefits etc Material cost- The amount of money invested in the production of a product. Likethe parts of a machine would be things that incur material cost Production cost- The costs related to making...
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