Premium Essay

Case Study of Siemens Electronic Motor Works

In:

Submitted By davidjccy
Words 997
Pages 4
Background of Siemens Corporation, focused on EMW
Siemens Corporation, one of the world largest corporations, specializes in electrical and electronic products. Electronic Motor Works (EMW) is a part of Energy and Automation group, which is one of 7 major groups of Siemens Corporation. It had a wide range of production which contained 200 different types of motors and produced approximately 230,000 motors annually. The standard A/C motors took 80% volume of sale and the rest 20% was from customized motors. Due to an intense competition with a relatively lower price for the standard A/C motors from eastern countries, EMW was losing the advantages. The reason for this situation was high labor rates and inefficient costing system. EMW used to applies the traditional costing system; it functioned very efficiently till the management changed the strategy and moved the core products to customized A/C motors. After changing strategy, for the purpose of enhancing production efficiency, EMW’s production process was upgraded to highly automated equipment with controlled machines, flexible machining centers and robotically fed production processes.
Problems and issues identified
Main problem caused by changing strategy because of less competitive is that the traditional cost system is unable to illustrate the relationship between the support related overhead costs (non-manufacturing costs) and the change in product mix. Since EMW moved the focus from common A/C motors to customized A/C motors, the allocation of non-manufacturing overhead costs changed significantly.
Analysis of the reasons for problems
Firstly, the old cost system is basically a simple traditional costing system. The material costs and labor costs are directly allocated to products, which respectively take 29% and 10% of total cost. Overhead costs are categorized to manufacturing overhead and

Similar Documents

Free Essay

Creativity Support Systems

...competition increases the relevance of innovation for companies, institutions and even countries in order to stay competitive. It could be shown that any human being is capable of creative thinking and that results of creative processes can be improved both in quantity and quality by applying creativity techniques (Isaksen, 1998) (Diehl et al. 1987). Computer-based Creativity Support Systems (CSS) are being developed in order to level out some drawbacks of group creativity processes, such as production blocking, evaluation apprehension or social loafing (Nunamaker et al. 1991). While there is reasonable amount of research that clearly reveals the performance benefits from the usage of electronic creativity support tools (CST), they have not yet displaced nor joined the usage of non-electronic creativity support tools and in particular verbal brainstorming (Dennis et al. 2004). Alan R. Dennis and Bryan A. Reinicke (2004) point out that there are a variety of stakeholders with different interests, goals and incentives on the usage of creativity support systems, such as the organization as a whole, group leaders, managers or the participants of creativity processes. They present arguments and empirical evidence that not all users are primarily concerned with the productive performance (for example the number of ideas generated) when deciding on the method and tools for idea generation but other criteria as group and individual wellbeing are taken into account. Therefore, they...

Words: 1868 - Pages: 8

Premium Essay

Case Study

...CASE 2: Developing an Organizational Structure Prepared By: GROUP 10 (Management 1) Course: Business Administration Major in Marketing Management Executive Summary The case study being conducted is primarily to give emphasis on decentralized form of authority among departments of an organization. It discuss about effective use of an organization. It discuss about effective use of an organizational chart to see true segregated authority of members of an organizational distinguishing difference authority given to each member of the organization is within the premise of organizational chart. A question has been drawn, “How is Departmentalization differ from Organizational Structure?” It simply defined the two parties. Departmentalization is the process of grouping similar activities into the same department. It can be based on functions of the company, product, customer, process and geographical departmentalization. Organizational Structure, on the other hand, refers to the division of total activities of an organization into related groups to be performed by the prescribed authority. It shows the hierarchy of activities in an organization according to work and the reporting relationships. To support the whole case study, a literary review had been conducted. Three related cases in the main case had stated. Cisco’s implementing of organizational structure was pinpointed as a good guide in understanding the main case. Its lifestyle methodology had been...

Words: 3225 - Pages: 13

Premium Essay

Manufacturing Execution System

...Manufacturing Execution System (MES) Sai Srinivas Sriperumbudur Department of Manufacturing and Mechanical Systems Integration Rochester Institute of Technology, Rochester, NY 14623, USA Sandeep Mohan Department of Manufacturing and Mechanical Systems Integration Rochester Institute of Technology, Rochester, NY 14623, USA Abstract Manufacturing Execution System (MES) came into existence with the need of managing various disciplines in an industry such as production planning, personnel and quality assurance. These various disciplines are interdependent and need to be integrated using a Manufacturing Execution System (MES). Nowadays MES is mainly being integrated with Enterprise Resource Planning (ERP) in the Computer Integrated Manufacturing System (CIMS) to reduce the complexities encountered in the production environment. This paper analyses the various functions of an MES used in the present-day industry and how it addresses the responsibilities of the shop floor of an industry. Keywords Manufacturing Execution System (MES), Enterprise Resource Planning (ERP), Computer Integrated Manufacturing System (CIMS) and Shop floor 1. Introduction Manufacturing is best defined as transformation of materials into items of greater value by means of one or more processing and/or assembly operations. A system that integrates all the operations of a manufacturing process right from processing the raw material to the completion of the final product is called a Manufacturing...

Words: 3485 - Pages: 14

Premium Essay

Hiya

...the end of your programme of study you will have achieved the following goals: * Goal One: Be independent, reflective critical thinkers * Goal Two: Be culturally and ethically aware * Goal Three: Have developed leadership and management capability * Goal Four: Have developed and applied knowledge of international business and management theory * Goal Five: Have developed a range of research skills and project capabilities * Goal Six: (Specialist programmes only) Have developed specialist knowledge about the theory and practice of your programme of study All of the learning that takes place within modules is designed to enable you to achieve the above goals and your assessment tasks are mapped directly to these goals as outlined in each assessment brief. OUTLINE STUDY PLAN 2012/2013 | | Global Supply Chain Management MO0255 | S01 | Week | Lectures | Lecture Topic | Seminar | Recommended Reading | Directed study | 1 | Lecture 1 | Module Introduction | Making the groups of 4-5 studentsCase Study ReviewIntroduction to operation management (Operation Objectives in the Penang Mutiara Hotel) | Slack, N. (2010), sixth Edition, Chapter 2 | -Reading the TLP carefully-Reading stipulated chapters 1, 2 and 3 of the Slack, N. (2010). | | Lecture 2 | Introduction to Global Supply chain and management | | Slack, N. (2010), sixth Edition, Chapter 13 | -Evaluate the supply chain performance in “Siemens”-Evaluate the global sourcing...

Words: 3348 - Pages: 14

Premium Essay

Introduction to the Third Edition

...convinced many nations to reconsider their energy policy. Despite all of this, globalization, even though criticized, is still active. Firms are moving to the new emerging economies in order to capture the consumption appetite of the growing middle classes. It is still relevant and important to put together all aspects of global strategic management. This third edition is still about global firms and global management. Its objective remains to help undergraduate and graduate students, as well as company executives, to understand the main issues that companies and their managers confront when they ‘go global’ or ‘manage globally’, and to cope with these issues. Data have been updated and several new cases and examples added. At the end of each chapter there are now one or two new ‘Mini-Cases’ that students may discuss in class. The book...

Words: 2794 - Pages: 12

Premium Essay

Bob Knowlton

...BOB7024 Organizational Behavior & Design, Stephen P. Robbins & Timothy A. Judge, Organizational Behavior, 14th edition, 2011, Pearson Education Chapter 1 Case Incident 1: “Data Will Set You Free” Ford CEO Alan Mulally is known for starting meetings by saying “Data will set you free” and for trying to change Ford’s culture to one that is based on increased accountability, more information sharing, and hard metrics. “You can’t manage a secret,” he is also fond of saying. Although it’s not clear whether Mulally’s approach will work at Ford, which is known for its self-contained fiefdoms where little information is shared, some companies have found that managing people according to hard metrics has paid off. Consider Freescale Semiconductor, a computer chip manufacturer based in Austin, Texas. Freescale has discovered that in order to have the right people at the right time to do the right job, it needs an extensive and elaborate set of metrics to manage its 24,000 employees in 30 countries. Of particular concern to Freescale is retention. “There’s no greater cost than human capital, especially in the technology industry,” says Jignasha Patel, Freescale’s director of global talent sourcing and inclusion. “When you’ve got a tenured employee that decides to walk out the door, it’s not just one person leaving, it’s that person’s knowledge and network and skills.” To manage talent and prevent turnover, Freescale holds line managers accountable for recruiting, hiring, and...

Words: 6926 - Pages: 28

Free Essay

Student

...Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfilment of the Requirements for the Degree MASTER OF SCIENCE IN MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA © Salvador Barragán, 2005 ii Abstract It has been ten years since the signature of the NAFTA agreement among Canada, U.S., and Mexico. For Mexico, this was a decisive step away from a protectionism model toward a free trade market. One of the main purposes for Mexico in joining NAFTA was to increase the competitiveness of its manufacturing sector, especially the automotive industry. In this paper, Porter’s Diamond Model of national competitiveness and some critiques that attempt to extend the usefulness of the model are analyzed. The Doubled Diamond and the role of MNEs in a host country are both examined through a case study research of the foreign-owned automobile industry in Mexico. The findings of this study show evidence of a broader role of MNEs than in the original framework, as well as the usefulness of the doubled diamond extension to explain alternative sources of competitiveness in early stages of development. iii Acknowledgments The culmination of this thesis can be seen as a successful project. An analogy with Porter’s Model, one of the premises to have a successful industry is to have supporting and related industries. In the case of this thesis is not the exception. There has been...

Words: 29762 - Pages: 120

Premium Essay

Global Electronics, Inc.: Abc Implementation and the Change Management Process.

...activity-based-costing (ABC) systems have become a standard part of managerial accounting texts. While ABC implementation issues are the focus of a number of articles, these issues are often not addressed in a typical textbook. This case is designed to familiarize you with the behavioral and technical variables that can aid or impede successful ABC implementation. Anderson's (1995) factor-stage model provides a template to organize the discussion of ABC success factors. In this case, you will be cast in the role of a business consultant. You are asked to synthesize the case study's key "change management" insights into a report that could be shared with co-workers in an intranet-based knowledge management system. In addition, you may be expected to prepare a formal presentation of the report for your peers. Implementing change in an organization is about ninety percent cultural and ten percent technical. This is because the organization dynamics, politics, and search for a champion that go on are the real issues that make or break the project. One of the reasons we were able to implement ABC successfully was because the right people became champions. Chris Richards, Director of MIS, Global Electronics, Inc. BACKGROUND Global Electronics, Inc. (GEI), headquartered in Sarasota, Florida, designs, manufactures, and markets discrete power semiconductors and analog, digital, mixed-signal, and radiation-hardened integrated circuits for signal-processing and power-control applications...

Words: 10116 - Pages: 41

Free Essay

Universal

...Report 2012 What sets our integrated technology company apart Introduction – page 1 Proximity How Bangalore’s new airport is driving progress across an entire region Global presence – page 8 Ideas How our Biograph mMR scanner is enhancing patient care Technology and innovation – page 20 Strength How efficient technologies are shaping the future of energy Portfolio management – page 34 Networking How intelligent IT solutions are creating unimagined value Cross-business activities – page 54 Diversity How our employees’ wealth of experience is inspiring us Employees and management culture – page 66 How our strategy is pointing the way to the future One Siemens – page 78 COVER PHOTO – James D. Palasek and Amber Sherman, two of the 370,000 Siemens employees working together in our global network of trust. To learn more, please see: SPECIAL REPORT: DIVERSIT Y, PAGES 66-75 When a new international airport is being planned, when a doctor recommends a treatment to a patient, when political leaders and society want to ensure reliable energy supplies for the future, when a company wants to offer tailor-made service solutions, when the development of innovative products demands the creativity, experience and dedication of a wide range of experts, that’s when tough decisions have to be made – far-reaching decisions based on a strong sense of responsibility. The success of our integrated technology company rests not only on our technological...

Words: 83405 - Pages: 334

Premium Essay

High Spped Internet

...PART 5 CASES CASE 1 Robin Hood C1 CASE 2 The Movie Industry in 2008 (Case A) C3 CASE 17 Merck: Open for Innovation? C228 CASE 3 The Movie Industry in 2011 (Case B) C11 CASE 18 LEGO Group: An Outsourcing Journey C249 CASE 4 Better World Books: Social Entrepreneurship and the Triple Bottom Line C18 CASE 16 IBM and the Emerging CloudComputing Industry C207 CASE 19 healthymagination at GE C261 CASE 20 Siemens Energy: How to Engineer a Green Future? C281 CASE 5 Tesla Motors and the U.S. Auto Industry (Case A) C32 CASE 6 Tesla Motors and the U.S. Auto Industry (Case B) C50 CASE 21 Infosys Consulting in the U.S.—What to Do Now? C303 CASE 7 Rogers’ Chocolates C56 CASE 8 Numenta: The Age of Truly Intelligent Machines? C72 CASE 22 Cemex: The Southdown Offer C327 CASE 23 Cola Wars Continue: Coke and Pepsi in 2006 C344 CASE 9 GEOX: Breathing Innovation into Shoes C87 CASE 24 Cola Wars in China: The Future Is Here C368 CASE 10 InterfaceRAISE: Raising the Bar in Sustainability Consulting C107 CASE 25 Embraer: Shaking Up the Aircraft Manufacturing Market C382 CASE 11 Netflix C125 CASE 12 Best Buy after Circuit City: What’s Next? C137 CASE 26 UPS in India—A Package Deal? C395 CASE 27 Genentech: After the Acquisition by Roche C415 CASE 13 JetBlue Airways: Managing Growth C157 CASE 28 Corporate Governance in Three Economies: Germany, Japan, and the United States C441 CASE 29 United Technologies Corporation: CASE 14 Bank of America...

Words: 5368 - Pages: 22

Premium Essay

Operations

...born in Frankfurt–Oder, Germany, and moved to the United States in 2002. He is currently pursuing a Bachelor of Science degree in Electronics Engineering Technology at the University of North Texas in Denton. Winter is a member of the Institute of Electrical and Electronics Engineers (IEEE) student branch at UNT, currently serving as the chairperson. He is also a member of the UNT Honors College, Tau Alpha Pi, Phi Kappa Phi, and the Golden Key International Honor Society. He was chosen for Who’s Who Among Students at American Colleges and Universities in 2004–2005. Winter received the Outstanding Electronics Engineering Student Award for the 2004–2005 academic year. On graduation, Winter plans to pursue a Master of Science in Electrical Engineering at the University of Texas at Dallas. He currently works as an engineering intern at Sanmina-SCI in Allen, Texas. According to the Goal 3 Abstract: Eliyahu Goldratt’s Theory of Constraints has helped companies around the world improve their profit margins by effectively managing business processes. Goldratt first introduced his theory in 1984 in the book, The Goal: A Process of Ongoing Improvement. This essay summarizes Goldratt’s book and explains the business model he proposes. The model is expanded in his later book, The Theory of Constraints. Goldratt’s business model is examined in a case study of i2 Technologies. i2 Technologies is one of the fastest-growing companies in the world and supplies software to businesses to help...

Words: 3612 - Pages: 15

Premium Essay

Eliyahu Goldratt’s Business Model

...born in Frankfurt–Oder, Germany, and moved to the United States in 2002. He is currently pursuing a Bachelor of Science degree in Electronics Engineering Technology at the University of North Texas in Denton. Winter is a member of the Institute of Electrical and Electronics Engineers (IEEE) student branch at UNT, currently serving as the chairperson. He is also a member of the UNT Honors College, Tau Alpha Pi, Phi Kappa Phi, and the Golden Key International Honor Society. He was chosen for Who’s Who Among Students at American Colleges and Universities in 2004–2005. Winter received the Outstanding Electronics Engineering Student Award for the 2004–2005 academic year. On graduation, Winter plans to pursue a Master of Science in Electrical Engineering at the University of Texas at Dallas. He currently works as an engineering intern at Sanmina-SCI in Allen, Texas. According to the Goal 3 Abstract: Eliyahu Goldratt’s Theory of Constraints has helped companies around the world improve their profit margins by effectively managing business processes. Goldratt first introduced his theory in 1984 in the book, The Goal: A Process of Ongoing Improvement. This essay summarizes Goldratt’s book and explains the business model he proposes. The model is expanded in his later book, The Theory of Constraints. Goldratt’s business model is examined in a case study of i2 Technologies. i2 Technologies is one of the fastest-growing companies in the world and supplies software to businesses to help...

Words: 3612 - Pages: 15

Premium Essay

B2B Brand Management

...B2B Brand Management Philip Kotler ´ Waldemar Pfoertsch B2B Brand Management With the Cooperation of Ines Michi With 76 Figures and 7 Tables 12 Philip Kotler S. C. Johnson & Son Distinguished Professor of International Marketing Kellogg School of Business Northwestern University 2001 Sheridan Rd. Evanston, IL 60208, USA p-kotler@kellogg.northwestern.edu Waldemar Pfoertsch Professor International Business Pforzheim University Tiefenbronnerstrasse 65 75175 Pforzheim, Germany waldemar.pfoertsch@pforzheim-university.de ISBN-10 3-540-25360-2 Springer Berlin Heidelberg New York ISBN-13 978-3-540-25360-0 Springer Berlin Heidelberg New York Cataloging-in-Publication Data Library of Congress Control Number: 2006930595 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer is a part of Springer Science+Business Media springeronline.com ° Springer Berlin ´ Heidelberg 2006 Printed in Germany The use of general descriptive names, registered...

Words: 104254 - Pages: 418

Premium Essay

Project

...“BHARAT HEAVY ELECTRICALS LIMITED & THE STUDY OF MARKET POTENTIAL FOR CONTROL EQUIPMENTS AT BHEL” Dissertation Submitted to the ALAGAPPA UNIVERSITY in partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY CHAKRAPANI AWASTHI Enrollment No:-083173871 [pic] Project Guide Mr.-Manohar Ramesh MBA NIILM School of Business Bangalore-560025 DIRECTORATE OF DISTANCE EDUCATION ALAGAPPA UNIVERSITY KARAIKUDI – 630 003 JUNE 2010 DECLARATION I hereby declare that the dissertation market potential for control equipment’s at BHELsubmitted for the MBA (General) degree is my original work and the dissertation has not formed the basis for the award of any Degree, Associate Ship, Fellowship or any other similar titles. Place:-Bangalore Date:-30 June 2010 Signature of the Student GUIDE CERTIFICATE This is to certify that the dissertation entitled “THE STUDY OF MARKET POTENTIAL FOR CONTROL EQUIPMENTS AT BHEL” is a bonafied research work carried out by CHAKRAPANI AWASTHI & ENROLLEMENT NO. 083173871 of MBA (General) in partial fulfillment of the requirements for the award of the degree of Master of Business Administration ( General ) and that the dissertation has not found the basis for the award...

Words: 15756 - Pages: 64

Free Essay

Has Managerial Enterprise Contributed to the Success of Leading Economies Read More: Http: //Www.Ukessays.Com/Essays/Economics/Has-Managerial-Enterprise-Contributed-to-the-Success-of-Leading-Economies-Economics-Essay.Php#Ixzz2Ppwabzf1

...The business literature is overflowing with concepts. Some of these, usually only a few, manage to stay ‘in the spotlight’ for longer; Chandler’s (1962; 1990) ‘managerial enterprise’ is among them. His theory links strategic decisions, internal structures and corporate performance and despite its criticism, it is still used to explain corporate success (and failure) of the late19th, 20th and even the 21st century (Gospel, 1988:105). In contrast to the contingency approach, Chandler (1990) advocates the American way of organisation as the ‘one best way’ for all countries [1] . Yet, can one size fit all? We shall refer to different country examples, industries and time periods to find out. Chandler argued that large managerial enterprises have managed to prosper through the years due to a basic economic logic, which he named ‘three-pronged strategy’ [2] (Chandler, 1995). According to this concept, firms should invest heavily in both their production and distribution functions in order to fully exploit economies of scale and scope at a national and international level (Chandler, 1990; 1995). This can only happen when the firm relies on the accurate judgment of skilful professional management. The aim was to create organisational capabilities and benefit from first-mover advantages via ‘related diversification’ (Chandler, 1995; Whittington et al., 1999). The implemented structure can best be described, using the author’s own words, as ‘centralised and functionally-departmentalised’...

Words: 3449 - Pages: 14