...additive manufacturing is beginning to take hold where material is aggregated together rather than formed in a mold or cut away. Additive Manufacturing (AM) is defined as “the process of joining materials to make objects from 3D model data, usually layer up on layer ,as opposed to subtractive manufacturing methodologies, such as traditional machining” (ASTM Standard). The lack of tooling makes RM economically suitable for low and medium production volumes. Using additive techniques, an assembly of parts made...
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...Assignment II – Blue Ridge Manufacturing INTRODUCTION: Blue Ridge Manufacturing produces and sells sport towels in the USA market. The firm knits all the towels it sells and tracks costs for towel production separately from the cost to customize the towels. Seventy-five percent of its orders include logo design, while the balance are print only and require the payment of a licensee fee for the logo used. Towels are made in four different sizes: Regular, hand, mid-range and hand. The normal production cycle for an order of white towels is three days. If a customer wants a colored towel, the basic white towel made by Blue Ridge is sent to a dyeing firm for 3 days more. The company sells its products to 986 different customers, which are divided into 3 types of groups: Large (8), medium (154), and small (824). They use different approaches to serve different customers: Large Customers, primarily national chains, are supported by a small in-house salespeople; Medium Customers, which are small chains, large single store, licensing, sport teams, are supported by independent representatives (on commissions); and Small Customers, primarily single stores, attracted by Advertisements in magazines and newspapers, who call or mail in their orders. Blue Ridge does not give discounts and ships all orders FOB point of origin. GENERAL ASSUMPTION: 1. We do not take into consideration the value of 85 units for other process as stated in the table 2 since there is no sufficient...
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...period costs. b. merchandise inventory. c. raw materials. d. manufacturing overhead. 73. Into which one of the following accounts would the work of factory employees that can be physically and directly associated with converting raw materials into finished goods be categorized? a. Direct labor b. Indirect labor c. Manufacturing overhead d. Indirect materials 74. Which one of the following would not be classified as manufacturing overhead? a. Indirect materials b. Insurance on factory building c. Indirect labor d. Direct materials 75. Which one of the following is a product cost? a. Indirect labor b. Office salaries c. Sales person’s salaries d. Advertising costs 76. A company uses sandpaper in its production process. How is the cost of the sandpaper classified? a. Miscellaneous expense b. A direct material c. A period cost d. An indirect material 77. In which classification would the wages of a factory payroll clerk be classified? a. Raw materials b. Indirect labor c. Period cost d. Direct labor 78. Which one of the following is not a manufacturing cost? a. Advertising costs b. Cost of goods sold c. Manufacturing overhead d. Direct materials 79. What effect do current technology changes have on managerial accounting? a. Creation of the middleman b. Increase in product costs c...
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...market, cost reductions, productivity enhancement and lean organizations have become today’s mantra s for survival.Folllowing are the key area where you can implement cost reduction methods with significant results. 1. Raw material procurement: 2. Logistics- Inbound and Outbound: 3. Warehouse and Stores: 4. Manufacturing Process (Production) : 5.Energy, fuel & Water 2 6.Information Management 7. Finance 8. Human Resources 8. Sales & marketing 3 FEW BASIC IDEAS PROCUREMENT IT CAN BE DIVIDED INTO TWO MAJOR GROUP A. PRODUCT B. SERVICES Raw material purchases constitute around 60-65% of the cost of product; hence any savings on this front would be significant for profit of the organization. 4 1. BULK BUYING: A. The company which has units spread across the geography can negotiate better price when the volumes are high, instead of buying for individual units its recommended to have central buying policy. B. You can negotiate better price if you can put your entire annual consumptions to a vendor and ask him for annual rate contracts. Bulk buying should be supported by bulk handling and storage system. 2. OPPORTUNITY BUYING: Most of commodities and raw material has seasonal Cycle of prices they peak and fall in intervals hence you have to look for the lowest price to buy in bulk and get the price advantage. 5 3 LOCAL VENDORS: Vendors should be located in close vicinity of the manufacturing area that...
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...Various costs and expenses associated with its operations are as follows. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead and (d) period costs. | | 1. | Property taxes on the factory building. D | 2. | Production superintendents' salaries. B | 3. | Memory boards and chips used in assembling computers. A | 4. | Depreciation on the factory equipment. D | 5. | Salaries for assembly-line quality control inspectors. B | 6. | Sales commissions paid to sell personal computers. C | 7. | Electrical components used in assembling computers. A | 8. | Wages of workers assembling personal computers. B | 9. | Soldering materials used on factory assembly lines. A | 10. | Salaries for the night security guards for the factory building. C | | | List the items (1) thru (10) for each item, indicate the cost category to which the items belong. Rapid Delivery Service reports the following costs ands expenses in June 2011 Indirect materials$5400 Product cost Drivers' salaries $11,000 Product cost Depreciation on delivery equip $11,200 Product cost Advertising$1,600 Period cost Dispatcher's salary $5000 Product cost Delivery equip repair$300 Product cost Property taxes on office building$800 Period cost Office supplies$600 Period cost CEO's salary$12,000 Period cost Office utilities$900 Period cost Gas &...
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... Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2010, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job No. 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account. During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month. Purchased additional raw materials of $90,000 on account. Incurred factory labor costs of $65,000. Of this amount $16,000 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $15,000; depreciation expense $19,000, and various other manufacturing overhead costs on account $20,000. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $10,000 $ 5,000 51 39,000 25,000 52 30,000 20,000 Calculate the predetermined overhead rate for 2010, assuming Garcia Manufacturing estimates total manufacturing overhead costs of $1,050,000, direct labor costs of $700,000...
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...and Mass Customization Introduction: Timbuk2 was founded in 1989 by Rob Honeycutt, a San Francisco bike messenger. Honeycutt wanted to develop a messenger bag that was rugged enough for everyday wear and tear, but chic enough to set a fashion trend. The company founded its success based on its lean manufacturing and mass customization principles. With many of the American companies now outsourcing their manufacturing processes to China, it became hard for Timbuk2 executives to ignore the labor cost benefits that Chinese manufacturing would provide. Dealing with different channels (wholesale/retailers, e-commerce, etc), Timbuk2 also had to find a way to improve their mass customization processes and determine if it was feasible for them to offer their clients more choices (colors, sizes, patterns, etc). In this case, Timbuk2 has two very distinct problems. The first problem is concerned with Mass Customization of their products. Should the company offer its clients more variety of choices when customizing their very own bags? The second problem is concerned with whether or not Timbuk2 outsource its manufacturing production to China due to it’s significantly low labor costs? Analysis: Mass Customization: Timbuk2 sells its products through different channels, such as the traditional domestic wholesaler and retailers, e-commerce, corporate and international channels. The most profitable channel for the company is the e-commerce channel, with an average of $96.75 per...
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...Life Science Journal 2013;10(4s) http://www.lifesciencesite.com Managing Competitiveness using Production Volumes - Product Variety Model for Automobile Industry Mirza Jahanzaib, Syed Athar Masood, Khalid Akhtar, Khurram Ali Industrial Engineering Department, University of Engineering & Technology, Taxila, Pakistan * jahan.zaib@uettaxila.edu.pk ABSTRACT: The manufacturing industries can be classified into process industry (PI) and discrete parts manufacturing industry (DPMI). Process industries have dedicated product line with fixed processes, routings and planning, whereas while discrete parts manufacturing industries are more flexible in terms of production volumes and varieties. For economic manufacturing, the optimum combination of Volume – Variety exists i.e. job shop, batch production system or mass production. In this paper, we have looked at the typical production volumes and varieties and have argued that there exist very low variety and low to medium production volumes for this particular sector. This calls for investigating ways and strategies to effectively cope with this situation. By taking a case of automobile part vendors triple strategy approach is adopted. Three strategies are not mutually exclusive – a subsequent strategy assumes that the previous strategy has been executed earlier and its benefits/ results still exist when the subsequent strategy is implemented. Strategies are, Good Governance Strategy (GGS), an Automation Strategy (AS) and an Export...
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...Abstract Just in Time (JIT) inventory management has its benefits and setbacks which leads to the question on its eligibility to be adopted in organizations. It has some of the benefits of being cost effective and ensuring quality production. However, it faces unpredictability in the supply chain and meeting demand, both setbacks realized in adopting it. The magnitude of the benefits and setbacks can vary depending on the industry. The current study provides details on the advantages and disadvantages of employing the policy in the manufacturing industry with implementation examples specific to the car manufacturing industry. With the policy being pioneered by Toyota, and later used by Ford, the evidence that the two organizations have benefited substantially from the policy are obvious. They have had increased profits, customer satisfaction and the quality of their products. All while reducing costs associated with the storage of excess inventories, defective production, and waste. Strategies maximizing the use of a just in time policy and avoiding some of the disadvantages will also be discussed. Just in Time Just in time production first surfaced just after World War II in Japan’s Toyota Company. Modeled after Henry Ford’s continuous flow manufacturing, it focused on eliminating waste in the postwar Japanese market (Rona, 2013). Today just in time still emphasizes the reduction of waste, but also production and resource efficiency. These efficiencies are gained through...
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...CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 The budgeting cycle includes the following elements: a. Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is expected. b. Providing a frame of reference, a set of specific expectations against which actual results can be compared. c. Investigating variations from plans. If necessary, corrective action follows investigation. d. Planning again, in light of feedback and changed conditions. 6-2 The master budget expresses management’s operating and financial plans for a specified period (usually a fiscal year) and includes a set of budgeted financial statements. It is the initial plan of what the company intends to accomplish in the period. 6-3 Strategy, plans, and budgets are interrelated and affect one another. Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. Strategic analysis underlies both long-run and short-run planning. In turn, these plans lead to the formulation of budgets. Budgets provide feedback to managers about the likely effects of their strategic plans. Managers use this feedback to revise their strategic plans. 6-4 We agree that budgeted performance is a better criterion than past performance for judging managers, because inefficiencies included in past results can be detected and eliminated in budgeting. Also, future conditions...
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...manufacturer, by installing a flexible manufacturing system, has reduced the number of machines in one facility from 68 to 18, the number of employees from 215 to 12, space requirements from 103000 square feet to 30000 and processing time from 35 days to a 1.5 days. “Ford has poured $4,400,000 into overhauling its Torrence Avenue plant in Chicago, giving it flexible manufacturing capability. This will allow the factory to add new models in as little as two weeks instead of two months or longer. The flexible manufacturing systems used in five of Ford Motor Company's plants will yield a $2.5 billion savings. By the year 2010, Ford will have converted 80 percent of its plants to flexible manufacturing.” (www.ford-motorcompany.com) Looking at local FMS systems, we have Nissan in Sunderland and Greggs in Longbenton. Both these companies have fantastic FMS systems, with virtually no human input, loading- manufacture-unloading is all completed by FMS, this removes the need for human input, which greatly improves quality and output. There are more benefits to FMS, using humans for repetitive work can be dangerous for the body, fatigue is a large part in human operation and if done for long periods of time (i.e. a 10-20 years of work) the human body begins to shut down, creating problems such as arthritis and repetitive strain injury. Industrial Robots and Engineering systems Task 2 One Japanese manufacturer, by installing a flexible manufacturing system, has reduced the number of...
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...Patel OPS/GM 571 September 2, 2013 Margaret Stocker Keyless Entry FOB Flowchart A major manufacturing firm expected to produce new version of automotive keyless entry fob, which will be supplied to major automotive manufacturers. The manufacturing of the new product requires that individual parts are sourced from foreign nations to an assembly point where the product is completed to specs. Efficiency in the manufacturing process will determine the firm’s profitability and competitive advantage. The following essay will discuss factors by which a particular location is selected to obtain required materials. Furthermore, a process flowchart will be developed to illustrate the flow of materials through various processes, which will also serve as a tool to measure performance (Chase, Jacobs, & Aquilano, 2006). Finally, the essay will discuss elements that are considered in the process design to attain desired results. Location Requirements The nation that is chosen for supply of the respective part has to fit certain manufacturing requirements. Souring requirements include, cost per unit, international trade costs, quality, and reliability among several other external factors. The cost per unit depends on how efficient a manufacturing firm is, in execution of its processes. Additional factors of labor, cost of raw materials, or even intellectual property can affect the cost per unit. Factors of production affecting the suppliers are unknown as are the prices per...
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...Electronics Contract Manufacturing: Global Production and the International Division of Labor in the Age of the Internet Boy Lüthje Institute of Social Research Johann Wolfgang Goethe-Universität Senckenberganlage 26 60325 Frankfurt Germany E-mail: luethje@soz.uni-frankfurt.de Submitted for publication to Industry and Innovation – special issue on “Global Production Networks, Information Technology and Local Capabilities”, coordinated by Linsu Kim and Dieter Ernst Comments welcome, please do not quote December 2001 2 The role of information technology for production networks in developing countries cannot be assessed without an analysis of the profound changes in the productive structure of global capitalism. In contrast to the general perception of the “informational economy” (Carnoy e.a. 1993, Castells 1996) as service- or science-based, it has to be stressed that in the "new economy" manufacturing continues to matter (Cohen/Zysman 1987). In the electronics industry, a new model of outsourced manufacturing has emerged as a centerpiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production closely linked to the emergence of the “Wintelist” (Borrus/Zysman 1997 model of competition and the rise of “fabless” product design companies in key sectors of the information technology (IT) industry. Our analysis of electronics contract manufacturing explores three interrelated...
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...Cost Sheet For the period ended…………….. Raw Material Inventory, Beginning Add: Purchase of Raw Material Less: Purchase return & allowances Less: Purchase discount Net Purchase Add: Trade in or Freight in Cost of Goods purchased Cost of raw material available for use Less: Raw material inventory, Ending Cost of raw material used/consumed Add: Direct Labor Prime Cost Add: Factory Overhead: Indirect Material Indirect Labor Other indirect expenses Total manufacturing cost Add: Beginning W-I-P Cost of input put into the process Less: Ending W-I-P Cost of good manufactured Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending Finished goods inventory Cost of goods sold Add: Operating expenses: Selling and Distribution Administrative Expense Cost of sales Net Profit Sales xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Excercise2-3 CyberGames Income Statement Sales ....................................................... $1,450,000 Cost of goods sold: Beginning merchandise inventory ............ $ 240,000 Add: Purchases...................................... 950,000 Goods...
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...Airbus vs. Boeing Airbus and Boeing both compete in the highly competitive industry of manufacturing commercial aircraft. Over the years they have each controlled the market at differing times due to competitive advantages – an ability to create value through a company’s strategies and operations that its competitors cannot (ref – Strategic Management textbook , pg 22) Boeing, formed in 1916 by William Boeing and George Westervelt, dominated the industry until the 1970’s, when Airbus was organized through a collaboration between Britain, France and West Germany. Airbus began manufacturing the A-300 series which enabled them to capture 10% of the market share by 1975 (ref article), no small feat considering they were competing against the giant Boeing. Airbus’s ability to compete with Boeing and gain market share will be analyzed using the following business models: PESTEL Analysis, SWOT Analysis, Porter’s Five Forces, VRINE Analysis and Porter’s Model of Competitive Advantage. PESTEL ANALYSIS Political – Airbus was a product of a merger between three European countries; Britain, France and West Germany. In the 1970’s the political climates of all three were relatively stable. The three countries worked together in order to compete with the US. They did have to adhere to international trading policies and agreements (NAFTA, GATT). Economic – As they were competing largely in the US market, Airbus needed to constantly...
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