...You are presented with a 52-year-old female patient. She is experiencing acute discomfort from gall stone symptoms for the fourth time in 8 years. The condition has responded to nonsurgical treatment in the past, but each subsequent time is a slower and more painful recovery. She is underinsured, and the cost of a surgery would be beyond her means without some sort of write-off or assistance. However, her family makes too much to qualify for Arizona Health Care Cost Containment System (AHCCCS). Examine this case, using each of the following principles in turn as a possible guide to your actions: 1. The principle of utility: Bring about the greatest good with the least harm. The principle of utility is determined by the rightness of the act on someone’s happiness. Therefore, after examining the case and using the principle of utility, I would make sure that the action I perform should in turn make the patient happy. Furthermore, if the female patient wanted me to perform surgery to fix her gall stone condition, I would try to come up with the best possible solution to get her the surgery she wants. The surgery would improve the well being of the patient and she will be more comfortable after the surgery is over knowing that she will no longer have to deal with her gall stones. 2. The principle of equality: Everything is distributed equally. `The principle of equality means that everyone gets treated equally, and no one person should be favored. Thus if I were dealing...
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...I personally and carefully will examine a patient’s case that is suffering from gall stone pain. I will examine her case by analyzing six chief principles that include; the principle of utility, equality, need, contribution, effort, and autonomy. To begin with, this patient is fifty-two years old and has been dealing with gall stone issues for eight years. It is her fourth visit to the hospital because she is suffering acute discomfort. Fortunately, she has been treated with medicine in the past and has not had to undergone surgery. Unfortunately, each time she is treated the process takes longer and the pain is intensified. Due to the fact that her family makes sufficient money, she is not eligible for Arizona Health Care Cost Containment System (AHCCCS). For the reason being that she is underinsured, if she partook in surgery it would be extremely expensive without obtaining any type of write-off or assistance. Now that we comprehend her case, it is time to determine how one can decide which treatment option is best. In more detail, it is essential to comprehend the principle of utility. This principle focuses on conveying the maximum good with the least harm. In this instance, the best solution for the patient would be to not undertake surgery. Yes, recovering from the acute discomfort she is feeling may be a longer process but eventually she will fully recover. And when she does, she will not be in debt and avoid any stress or worry to pay it off. It is also vital...
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...Works Background: John Deere Component Works (JDCW), subdivision of John Deere and Co, was in charged specifically of the manufacturing of tractor component parts. The demand for JDCW’s products had problems due to the collapse of farmland value and commodity prices. By the mid 1980’s, JDCW found that the available excess capacity was increasing, it decided to take advantage of the efficiencies of the newly acquired automatic turning machines by bidding on parts offered from within the country. But ultimately, JDCW only bid successfully for 58 parts out of 275 parts, worse still, the 58 parts were all low volume parts, contrary to its aim to attain the bids that offered the higher volume parts. The failure in its competition for bids made management question about its current costing system. As a result, we have to analyze the current costing methods to determine the validity and to help the company adopt a more reasonable costing system. Assignment Questions: Q3: JDCW was established as the subdivision of John Deere Company during the 1970’s when the demand was increasing. JDCW had been structured to be a captive producer of parts for Deere’s equipment divisions, particularly tractors. During the mid 1980’s, the Gear and Special Products Division of JDCW decided that the complex machined parts would make full use of the excess capacity, then more automated machines developed leading to the increased manufacture overhead costs. As a result, the company changed its production...
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...seorang ahli besi yang pertama kali sukses dalam mengembangkan bisnis baja. 100 tahun kemudian, Deree & Company adalah salah satu dari tujuh perusahaan manufaktur peralatan ternak di dunia dan pada tahun 1963 menggantikan International Harvester sebagai produsen nomor satu di dunia. Perusahaan John Deere telah beroperasi di industri peralatan pertanian selama 162 tahun. John Deere Component Works didirikan sebagai sebuah divisi yang terpisah dari perusahaan John Deere itu sendiri selama tahun 1970 untuk meningkatkan kapasitas peralatan Deere, terutama traktor. Oleh karena itu harus menghasilkan berbagai macam suku cadang yang volumenya relatif sedikit. Karena kapasitas rendah selama pertengahan 1980-an, Divisi Gear dan produk khusus JDCW memutuskan bahwa produk suku cadang mesin yang kompleks menawarkan sesuatu yang menjanjikan. Karena proses ini membutuhkan mesin yang lebih terotomatisasi, akan menambah biaya overhead yang terjadi. Sebagai bagian dari strategi Divisi Gear dan Produk Khusus, suku cadang mesin ini ditetapkan untuk dijual ke pasar luar negeri. Component Works memiliki 120 mesin otomatis yang berbaris dalam empat baris panjang di dalam gedung dengan luas 80.000m2. Mesin ini masing-masing terkait dengan chip dan sistem pendingin pemulihan. Sistem ini dibangun di bawah lantai dan dirancang untuk terus mendinginkan dan melumasi mesin sekaligus mengeluarkan chip limbah dari mesin. Tahun 1984, Divisi Gear dan produk khusus telah mengeluarkan strateginya yaitu memasarkan...
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...A3. Reading through the case study, a few issues caused the cost failure that John Deere Component Works (JDCW) experienced in the 1980s. First, in the 1970s, John Deere spent over $1 Billion in plant modernization, expansion and tooling hoping to meet higher demand levels - profits were rising John Deere began to explore product expansion, which led to the $1 Billion spent on manufacturing plants. Instead, the external factors like falling commodity prices and collapsing farmland values left a demand void - a macro level viewpoint. Internally, JDCW struggled to remain competitive as it produced parts for less than half the tractors it was making in the 1970s. Departments viewed each other as competitors and only looked at price relations rather how well the corporation would act. JDCW failed to keep full costs manageable and outside competition (the $10 JDCW cost against the $7 outside bid example) was able to leverage for a cheaper bid. Parts were made, but too expensive to sell between departments. Also, JDCW was extremely involved and concerned about efficiency (family the parts), but never looked at the individual cost per part. The non-competitive parts used tremendous ACTS hours per hundred parts, which contributed to a high percentage of DL$/Material$ - the huge volume was worthless, because customers were not buying (Exhibit 8). Finally, JDCW’s incentive labor rate of 125% was excessive. The rate hurt the bottomline against the budget allocated to each department...
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...produksi perkebunan dan pertamanan terbesar di dunia. Sejarah mencatat kehancuran agribisnis yang dimulai dengan turunnya nilai tanah pertanian dan harga komoditas yang menurun tajam yang mengakibatkan Deere untuk mengatur tingkat pelaksanaan operasi semakin ke bawah, pemotongan biaya, menekankan pembuat keputusan dilakukan secara desentralisasi, dan rekstrukturisasi pada proses manufaktur. Deere juga melakukan pengurangan tempat produksi, mengurangi karyawan, mendorong agar karyawan pensiun dini, dan tidak melakukan penggantian untuk karyawan yang keluar dari perusahaan. Untuk menghasilkan tempat produksi yang lebih luas, pada tahun 1970an, Deere berhasil split off parts of tractor production. Pada tahun 1983, John Deere Component Works (JDCW) dibagi menjadi tiga divisi, yaitu The Hydraulics Division, The Drive Trains Division, dan The Gear and Special Products Division. Pembagian tiga divisi ini bertujuan untuk mengembangkan operasi perusahaan dan untuk membuat perusahaan lebih efisiensi dalam...
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...Operations Team 4 Consultants 5/20/2011 Paul Cusack Brian Goh Robert Fletcher Lynn Chen Shayne Dube 2 1.0 Executive Summary Gears and Special Products Division is one of three divisions under John Deere Component Works. The division has been conducting a study on replacing their current traditional cost system with an activity based costing system. The study, which is centered around turning machine operations, indicates that implementing the ABC system across JDCW will allow operations to run more smoothly and efficiently. However implementing the ABC system alone will not yield the full benefit from the system. Management in the GSP division must utilize the data to make decisions that will result in cost reductions and better product pricing. Therefore we recommend for GSP management to utilize the data from ABC to : 1) Implement layout changes to enjoy cost reductions through activity elimination 2) Improved process planning and cell arrangements to enjoy cost reductions through efficiency 3) Analyze product mix for efficient manufacturing Additionally, we recommend GSP to utilize ABC data to prepare more accurate and competitive bid prices and to extend the ABC system to other operations and to the Hydraulics and Drive Train Divisions. 3 Contents 1.0 Executive Summary 2 2.0 Introduction 4 3.0 Layout Changes 5 3.1 Process Planning 6 3.2 Cell Arrangements 7 3.3 Product Mix : Low Value Added Parts 8 3.4 Bidding 9 3.5 Extending ABC 11 3.0 Conclusion 12 4.0...
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...in order to adjust |costing system because it will result in more| |fall and manufacturing cost of balloons will |as per changing business environment. For |accurate product cost, labor cost etc. This | |decrease due to increase in product demand, |e.g. Sky’s the limit needs to establish |will also result in one rate for cost | |hence attracting new competitors entering New|separate departments for manufacturing |allocation for each manufacturing overhead | |Zealand market. |customized and standard balloons. Also in |activity. | | |order to maintain high quality of balloons, a| | | |separate quality control unit should be | | | |established within the factory. | | |Deregulation of service sectors such as |Training and development of existing staff |Performance measurement system is needed for | |banks, transportation, communication, tourism|members, to introduce incentive schemes to |Sky’s the limit, this will help them to | |etc will benefit Sky’s the limit as a company|motivate them. Market awareness within the |monitor operations and management costs and | |because it can utilize...
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...the Strengths and Weaknesses of the existing cost system at JDCW? The Weaknesses are as given below: • The current costing system followed at JDCW is not effective for individual parts bidding and costing. • The allocated Machine Hours are not supported by the product unit which thus leads to improper allocation of costs. • By using only three overhead rates the current costing system doesn’t calculate the true production costs as the other activities of the production process are not taken into consideration. • The current costing system doesn’t compute material variances which doesn’t honor the accuracy of the costing structure. For more accurate measure, the variance calculations should be included in the weekly report. • The costing system has not been changed or modified since its inception. Initially it was designed for direct labor intensive production process with minimal overhead costs. Now the company has changed its production process to automated system which has increased the overhead costs. The increase in overhead costs is due to more supervision, maintenance etc. • Using the current costing system the JDCW management continually under-costs its low volume parts and over-cost its high volume parts. The Strengths are as given below: • The existing system is strong, simple and easy to maintain. The allocation of overhead is done on the basis of direct labor and direct machine hours. • The existing system was working satisfactorily at the aggregate...
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...must management accounting systems provide to support effective decision-making in these different environments? The change in the competitive environment greatly influenced JDCW. The early 70s were the end of the post WWII boom period, during which time JDCW was expanding its operations and operating many of its manufacturing plants at capacity. However, there were multiple economic factors in the early 80s that negatively affected the demand for JDCW products. The effect of these economic factors is evidenced in the case study by the fact that during the 1970s JDCW’s operations and equipment had been arranged to support tractor production of 150 units per day and by the mid-1980s, JDCW was producing parts for less than half of that number. One of the reasons for this negative demand shock was the collapse of farmland values and commodity prices. This left farmers with little capital through which they could purchase farming equipment. The collapse of land values had two effects. First, it caused the demand for JDCW equipment to shrink because farmers were no longer aggressively expanding. Secondly, the foreclosure of farms led to an increased supply of repossessed equipment that further reduced the market demand for JDCW’s new equipment. Additionally during this time, the high dollar value reduced U.S exports, which hurt the profitability of American farmers and therefore hurt their ability to purchase farm equipment. Management costs systems should be accurate and actionable...
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...farm equipment producers. Farmers had been encouraged to go into heavy debt to expand and buy land, consequently when land values and farm prices plummeted, the number of farm foreclosures skyrocketed. Few farmers were in a position to buy new equipment, and resale of repossessed equipment further reduced the market for new equipment. Due to this, Deere adjusted its level of operations downward, cut costs where possible, increased emphasis on pushing decision making downward, and restructured manufacturing processes. Deere wanted its captive component divisions to supply other companies and industries to add production volume. However, nearly all of John Deere Component Works (JDCW) sales were internal. Deere equipment producing factories were required to buy internally major components that gave Deere a competitive advantage. Corporate policy specified that transfers between divisions would take place at full cost. Corporate also had a make-buy policy that when excess capacity was available, buying divisions should compare component division’s direct costs, rather than full costs, to...
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