...face value of the coins being produced. In order to follow that unique cost ceiling, the researchers follow the concept of simultaneous design by being involved in initiatives to improve materials being used in both coins and dies. Then due to high inflation rate, the face value of the coin is exceeding the cost base of the raw material and with the help of using the concept of simultaneous design, the Royal Mint quickly mitigated the risk by changing the composition of the 2 Pound and 1 Pound coins to a steal core with an electroplated copper outer layer and has significantly reduced the unit cost and it added expected lifetime by using a less expensive metal base. II. Background The Royal Mint has a cost ceiling that the cost base of the material must be less than the face value of the coin being produced. In order to follow that unique cost ceiling, the Royal Mint implemented the Concept of Simultaneous Design to research on how to further improve the materials being used by both coin and die to extend its period of use and to mitigate the risk of high inflation rate of the raw materials. III. Key Problem Based on our findings, we found out that the Royal Mint is a “Asset-Intensive Business” because the minting industry requires a lot of assets like money, raw materials, and equipment to operate. Also, the Royal Mint can be...
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...minor design differences. These products require the same basic raw materials and are processed on the same set of machines. DEMAND The orders are received by the marketing department and are cumulated into three categories (A, B and C). The demand forecast for year 2011 is given in Table 1. Table 1: Demand for 2011 in Thousands of Units | Product | Jan | Feb | Mar | Apr | May | Jun | July | Aug | Sept | Oct | Nov | Dec | A | 7 | 8 | 7 | 5 | 3 | 5 | 9 | 10 | 12 | 15 | 10 | 8 | B | 4 | 5 | 4 | 3 | 2 | 3 | 5 | 6 | 8 | 9 | 6 | 4 | C | 3 | 3 | 3 | 2 | 1 | 1 | 4 | 4 | 5 | 6 | 4 | 3 | Product A has the highest demand among the three products while B has the second highest demand. The product demand rises around the second half of the year and even surpasses the total maximum production capacity of the company which is 19,000 for 2 shifts. The amount of raw material required for each product is the same. Therefore, it is assumed that one unit of raw material is required for each one unit of finished product. The cost of raw material is $ 6.00 per unit. In addition to the basic raw material, the cost of other supplies is $ 1.00 per unit of finished product. The ordering cost is $ 1,500 per order and the inventory carrying cost is $ 0.15 per unit per month. There are 15,000 units of raw material in stock at the start of the year and there are no outstanding orders.The lead time for receiving the material is one month. This means that an order placed in any month will be...
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...repare a 3 –Sigma chart for both production processes using the new and standard material (use of quality report in “Delta Plastics, Inc, Case A.” chapter 5. See attached excel Charts for this answer. Discuss whether or not both processes are in control and what conclusion may be drawn. I tried to put the statistics together to have an overall perspective of the defects since most of them fall in the category of attributes rather than variables. I then took into consideration the 20 days as the period of observation rather than the four weeks. A P-chart methodology would rightly describe the products presented as good or bad because it is not a quick fix quality management system. After developing control limits with control P-charts to be able to understand the overall proportion of defects, I noticed curiously that both processes seem to be in control whereas from a first glance at the figures of the defects of the two materials, one has the impression that the new material is completely out of place for any serious business venture. Our problem was to determine whether there is a major shift in the process that is resulting in the alteration of that process. When we consider individual items, as for example, the cracks or the air bubbles, the process appears not to be in control. These particular defects virtually double with production from the new material. This is the source of the trauma that Jose is now experiencing. In the final analysis, we can conclude that...
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...sales@rooppolymers.com Purchase Order (Raw Material & Components) ECC_NO.: AACR7268JXM002 Division.: II Range: IX Vat Tin No: 06651909285 PAN: AACR7268J Vendor Name : 3M INDIA LIMITED (V3-0001) Address : 48-51,ELECTRONICS CITY HOSUR ROAD PO No Amd.No W.E.F. : : : RM213-14/92 0 30/04/13 PO Date Amd. Date : : 30/04/13 31/05/2013 Email : Phone : Yours Ref : mr Fax : Dear Sir, We are glad to issue our Purchase Order for the following item/s. Sl. No. 1 Quot Ref. ITEM Code RRMVITOX0005 Description VITON RUBBER 2181 : Valid Upto Our Contract Person : KARAN SINGH Phone : Email : Process UOM Qty Weight 50.00 As Finished. KG Rate Desc. (Rs)/ Unit (%) Matl / Pros 1471.50 Amount Rs 73,575.00 Amount Rs Seventy-Three Thousand Five Hundred Seventy-Five Only Freight Packing/Forwarding Insurance Delivery Type Excise Remarks Payment Term Paid At Party own expense Nil Urgent Basic Excise Cess Hcess Vat/Cst Surcharge 73575.00 @% 2.00 @% 1.00 @% 0.00 @% 0.00 @% V 0.00 0.00 Dispatch Instruction By Road D.D. CHEQUE As Applicable ADVANCE Grand Total : 73575.00 Remarks For ROOP RUBBER MILLS LTD.(IDC) Checked By ( SURESH SINGH ) ISO Documnet No. -: FMT/PUR/03 Verified By ( SURESH SINGH ) Authorised Signatory ( SURESH SINGH ) Instructions: Any Discrepancy in Order should be communicated within 24 hours. Else it will treated as "Accepted by You". Material to be supplied alongwith Dimensional Inspection...
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...in giving the competitive advantages. Mission Statement Fortune Mobility Solutions is a mining corporation in hopes of becoming successful in the mining industry. The corporation mission is to mine resources for customers needing it for building material. Our goal is to find and mine the best material that will reach our customers high criteria and needs. We are based highly around our customers and the resources we mine. Fortune Mobility Solutions sees everyone in the corporation, from management, to employees, and customers as family. We keep our values as a family and take the time to get to know our customer. We want to be able to provide our customer the best material we can offer. The love of finding materials to be used and turned into something wonderful such as, buildings, tools, transportations, and more. Here at the Fortune Mobility Solutions, we mine to change the world. Vision Statement Fortune Mobility Solutions goal is to become the number one raw material provider. There are many ways to achieve that goal, but out is to become that number one without losing sight of our mission statement. Fortune Mobility Solutions provide raw materials and continue to mine what customers need. We also provide other raw material customers may find...
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...Sample Exam Question Answer Q3 The classification of industrial products can be classified into materials and parts, capital items and supplies and services. Materials and parts are industrial goods that become part of the buyer’s product. It consist of raw material such as farm products and natural products and manufactured materials and parts such as component material that need to be processed further and component part that is a finished product with no further change in form. Capital items are industrial goods that contribute to the production of the finished product. It includes installations such as buildings and fixed equipment’s which are the major purchases of the business and accessory equipment, which aid in the production process such as portable factory equipment and office equipment. The last classification of industrial products is the supplies and services. Supplies are made up of operating supplies which is the convenience product in the industrial market and services is made up of business advisory services and maintenance and repair people. Q6 One of the four characteristics that distinguish services from physical goods in the context of products is the intangibility aspect of service. It cannot be tasted, heard, felt, seen before the purchase of the product. For example, the result of cosmetic surgery can only be seen after the surgery is done. Next, service has the characteristic of inseparability. The service cannot be separated...
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...PROC5000/Anthony Vatterott/SPARTAN HEAT EXCHANGERS, INC/Dalton 1 SPARTAN HEAT EXCHANGERS, INC. Rick Coyne is the Materials Manager at Spartan, Inc. Until recently, the company has benefitted from excellence in customization and specialized research & development of design with full-service custom unit fabrication. This has historically allowed Spartan to maintain a positive rapport with clients, as their approach allowed for meeting the client’s specific needs. However, the industry trend has changed and competition from international sources has pressured Spartan’s Executive Management to revise the fiveyear development plan to compete with Korean and European firms. The standard for the industry has shifted from customized solutions to a low-price, highly-standardized market. This is not in line with Spartan’s current initiatives and Max Brisco, vice president of manufacturing, has solicited Rick to provide a detailed plan on how to achieve savings and efficiency in a transition to a more competitive manufacturing structure. The most critical step in this reformation is to redesign workflow and job order processing from a job order/job ticket method to a more streamlined and standardized process. This will require re-engineering the workflow of the manufacturing workforce, and offers an opportunity for the research & design component to redirect their efforts away from customized products and toward a working internal manufacturing process. The use...
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...INTRODUCTION In October 2005, top management of Southern Recreational Vehicle Company of St. Louis, Missouri, announced to relocate its manufacturing and assembly operations by constructing a new plant in Ridgecrest, Mississippi. The firm, a major producer of pickup campers and camper trailers, had experienced 5 consecutive years of declining profits due to production costs. The costs of labor and raw materials had increased alarmingly, utility costs had gone up sharply , and taxes and transportation expenses had steadily climbed upward. In spite of increased sales, the company suffered its first net loss since operations were begun in 1982. When management initially considered relocation, it closely scrutinized several geographic areas. The importance to the relocation decision were the availability of adequate transportation facilities, state and municipal tax structures, an adequate labor supply, positive community attitudes, reasonable site costs, and financial inducements. The management of Southern Recreational Vehicle Company was impressed by the efforts of the Mississippi Power and Light Company to attract “clean, labor-intensive” industry. Two weeks prior to the announcement, management of Southern Recreational Vehicle Company finalized its location plans. An existing building in Ridgecrest’s park was selected; initial recruiting was begun through the state employment office; and to lease or sell the St. Louis property were initiated . Among the inducements...
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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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...What are the issues staring at Joseph Ziggundu? What should he do? How should he go about doing them? General issues: * He is a management trainee and this is his first operating assignment. * There is a lack of information of UCC’s previous production or sales volumes, profitability, raw material needs, sales outlets etc. * KIDB did not specify an operating budget as it was recently saddled with extra businesses like UCC. * He is not aware of the processes followed in manufacturing the candles. * The quality of the candles depended on the precision of the manufacturing process. A small error in measurement would damage the candles. Hence care had to be taken during the manufacturing process. Finance issues: * The daily operating costs were not known. * Uncertainty about the value of the assets such as the mould frames, property etc. * The candles were under-priced compared to the surrounding areas as the Government had fixed the sales price of the candles. * Ascertaining the profitability of the company(and hence if the business is sustainable). * Determining the requirement of capital investment in the business. HR issues: * Details of the workforce like number and their skill level etc. * Relegation of roles and responsibilities. * Fixing daily working hours and the rigor of labor expected from the employees. * Fixing the daily wages of the workers. Marketing and distribution issues: * Meeting the high demand...
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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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...lack of professional techniques that take place not only in the company studied, which affect the efficiency of the business. THE REAL STRATEGIES IN SHOE MANUFACTURING Nowadays there are many different approaches and methodologies that can be used for industrial systems’ optimization and analysis. Among these techniques are the ones for production and inventory management and industrial plant distribution, which are mainly used for reducing the company’s cost. According to APICS Dictionary, production management consists of “planning, scheduling, executing and controlling the process of converting inputs into finished goods.” In addition APICS Dictionary defines inventory as “those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service (finished goods and spare parts).” (2) For many businesses it is very important to maintain certain number of goods in inventory because their capacity it is not enough to fulfill clients’ orders. Each product in inventory represents money, an investment tied up until finished products are delivered to clients. It is important to select the best techniques depending on the type of industry and the goals of the company. ZEBRA SHOES The company Zebra Shoes is located in the metropolitan area of Mexico City, Mexico, and they produce and sell sneakers. Those shoes are manufacture in seven different colors and eight ...
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...create a social movement for environmental change. We believe awareness leads to advocacy, which leads to action - helping perpetuate innovation and green technology. With TZOA, we want to bring air quality data to every person on Earth - whether you're concerned about the air in your home, on your commute, or in your community. b) 5 Forces Analysis * Threat of New Entrants Since it has insert laser sensor device, it has high capital requirements so that TZOA team doesn’t have enough capital to establish their own production line; Plastic raw materials makes low cost for products, so it allows TZOA has high cost advantage; TZOA is unique because of large market lack and portable and wearable. And it also focuses on specific small scar; TZOA has it own patent and it has high legal and regulatory barriers. * Bargaining Power of Suppliers We’re sorry that we haven’t found TZOA’s supplier yet. But we think that materials are common and suppliers are not in lack. So we assume that TZOA has low bargaining power of suppliers. Btw we’ll keep on contacting with TZOA team. * Bargaining Power of Buyers We think that our target consumers are majority individuals so it has lower bargaining power of buyers. Buyers can not switch to another product without high switching cost because they don’t have other alternative options. * Threats of Substitute Product Now our substitute product is large size household equipment and TZOA is unique because of portable and wearable...
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...leather manufacturing? Full Scale Bench marking Prototype Ramp-up Laboratory Production Product Development (R&D) Design Leather Manufacturing Shoe Production Distributing Raw hides Tannery Operations Post Tannery Operations Finishing Operations Discontinue-"blow it up" Sell it ECCO Value Chain What is the future of ECCO's leather manufacturing? Full Scale Bench marking Prototype Ramp-up Laboratory Production Raw Material Procurement Product Development (R&D) Design Shoe Production Distributing But let's stop to reconsider......... ECCO Value Chain What is the future of ECCO's leather manufacturing? Full Scale Bench marking Prototype Ramp-up Laboratory Production Raw Material Procurement Product Development (R&D) Design Shoe Production Distributing Leather manufacturing Value Add Global top five leather producer Leather centre developing leading technology Supplies automotive and furniture industry Quality Materials Resources Leather Manufacturing Strategy Quality Products VRIO Analysis Leather Manufacturing VRIO Analysis Valuable R are Imitable Organization Leather Manufacturing VRIO Analysis Reframe Resources Leather Manufacturing Bolster Brand Recognition P Q R U O A D L U I C T T Y S M QA UT AE L R I I TA Y L S Leather Manufacturing Increase Perceived Consumer Value ECCO...
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...beginning of the year ; Finished goods 7000 :Work in progress 4000 Purchase of material 110000 Material – At the beginning of the year 3000 * At the end of the year 4000 Direct labour 65000 Factory overhead 60% of the direct labour cost Inventory at the end of the year: Work in progress 6000 : Finished goods 8000 Other expenses: Selling expenses 10 % of sales and administrative expenses 5% of sales . Answer – 224000 2. Prepare a cost sheet and cost per unit Raw materials consumed Rs. 200000 Direct wages Rs.80000 Factory overheads Rs. 20000 Direct expenses Rs.50000 Office overheads 10% of factory cost Selling overheads Rs. 5 per unit Units produced 4000 units Units sold 3600 units Selling price Rs. 120 per unit 3. X has furnished the following information relation to the production of 1000 discs manufactured by it during the year 2002 Cost of materials 100000 Direct wages paid 70000 Cost of power and consumables stores (20% fixed) 15000 Factory indirect wages paid (40% fixed) 20000 Cost of lighting in the factory (fixed)10000 Office expenses paid (70% variable) 30000 Selling expenses paid (70% variable) 50000 Depreciation of plant 10000 Entire output was sold at Rs.350 per unit For the year 2003, it is estimated that the production will be increased by 50% by utilizing the spare capacity and the rates for materials and direct wages will increase by 10%, 20% respectively. The expenses of the company...
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