...In response to your request, I have analyzed potential legal actions we, Precision Inc., can take against Supplier, whom failed to deliver the right medical devices on time. I am pleased to share the following analysis, which summarizes considerations for each legal action. First legal action that Precision Inc. can take is to file a lawsuit alleging that the Supplier never delivered the 5,000 medical devices, which rendered our company to issue a loss of $4 million. If we decide to file a lawsuit against Supplier, we will resolve the dispute in a formal way at a courthouse. In litigation, there will be a discovery, depositions, and interrogations taking a place, which can be beneficial for our company to prove the promises and losses that...
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...Precision Worldwide, Inc. Managerial Accounting BUS 5431 Group 2 Kimberly Albino Candace Hampton Frances Kately Husein Khan Daniyell Payne Hayley Romine July 19, 2015 Table of Contents Abstract 3 Key Issues and Problems 4 Decision Alternatives… Resolutions and Solutions… Recommendations… References… Abstract The purpose of this case study is to examine, classify; analyze critical concerns as well as difficulties that are impacting Precision Worldwide, Inc.’s organization. Notably, Precision Worldwide, Inc. has several competitors who are well-disposed in the market due to their reduced pricing and product substitutions. The method in which this case study observation is arranged will explore findings and opportunities related to price and production cost; the ramifications of demand in other markets. The assessment of this case study, in conjunction with arriving to an appropriate cost for materials and freight, will help determine the recommended best course of action for Precision Worldwide, Inc. and Hans Thorborg in deciding the preferred product for the organization. Key Issues and Problems Precision Worldwide, Inc. (PWI) is faced with a business decision that will potentially affect the organization’s continuity and profitability. The organization recently held meetings to discuss the introduction of a substitute product into the marketplace by a competitor. In making a business decision to ensure...
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...Precision Part Inc. is looking to do business with other international companies. One of the countries that Precision part is interesting in is Germany. In order to do business in Germany, it is important to understand their business ethics and laws. By understanding the law at hand, it would give Precision Part Inc. a better understanding on how Germany conduct business and also to make sure the company is ethical. A few international countries believe in corruption. Corruption can consist of bribery and nepotism. Bribery is more common in underdeveloped countries that are looking for additional income to bring in. Bribes are expected in many countries, the United States’ 1977 Foreign Corrupt Practices Act prohibits payments made to foreign government officials with the aim of gaining or maintaining business (Here Comes the Bribe). The Foreign Corrupt Practices Act was updated in 1998 after bribery was banned from Germany. Now the Foreign Corrupt Practices Act applies to foreign firms and persons who cause an act in making such a corrupt payment within the United States territory (Foreign Corrupt Practices Act). Bribery is another way of saying extorting money from someone. Bribery is when money or something value is promised to, given to, or taken form an individual or company in attempt to sway someone decisions. Nepotism is more of a government corruption. Government will use their powers for dishonest gains or illegal means. German engineering conglomerate Siemens...
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...The ABC’s of Failure – Getting Rid of the Noise in Your System For the past 40 years, I have observed many companies, including DuPont (where I spent 27 years) pursuing planned maintenance with the standard tools of planned maintenance: inspections, planning, scheduling, materials procurement, CMMS systems, etc. with the same results. They succeed for a while and get their percent planned and scheduled maintenance up to the 80+ only to see that drop back later to 60 I am amazed how many of the companies we work with have had this experience. This pattern of behavior has led us to conclude that the reason for this experience is that only 60% of the normal work of maintenance is inherently plannable. The rest of the work is created by random acts of what we are now calling care-lessness. The sites where we see people break this pattern and achieve 92% to 96% planned maintenance for the long term without regressing, are the ones who eliminate the inherently unplannable work. Of course, this cannot be done by maintenance alone. Everyone who does work at a site contributes to the defects that create the unplannable work, and therefore everyone must participate in eliminating the defects that create the 40% of the work that is unplannable. In the diagram below we attempt to more clearly articulate the true significance of Defect Elimination by outlining the ABC’s of failure. Fundamentally, failures happen because things that exist are not perfect. To reduce failures we must eliminate...
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...2004 WILLIAM J. BRUNS, JR. Precision Worldwide, Inc. In late May 2004, Hans Thorborg, the general manager of the German plant of Precision Worldwide, Inc. (PWI), scheduled an afternoon meeting with his sales manager, accountant, and development engineer to discuss the introduction by the French firm Henri Poulenc (a competitor) of a plastic ring substitute for the steel retaining rings presently used in certain machines sold by Precision Worldwide. The plastic ring, new to the market, not only had a much longer life than the PWI steel ring but also apparently had a much lower manufacturing cost. Thorborg’s problem stemmed from PWI’s large quantity of steel rings on hand and the substantial inventory of special steel that had been purchased for their manufacture. After a thorough survey, he had found that the special steel could not be sold, even for scrap; the total book value of these inventories exceeded $390,000. For nearly 90 years PWI had manufactured industrial machines and equipment for sale in numerous countries. The particular machines involved in Thorborg’s dilemma were made only at the company’s plant in Frankfurt, Germany, which employed more than one thousand people. The different models were priced between $18,900 and $28,900 and were sold by a separate sales organization. Repair and replacement parts, which accounted for a substantial part of the company’s business, were sold separately. As with the steel rings, these parts could often also be used on similar...
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...Precision Worldwide,Inc (PWI) Precision Worldwide,Inc (PWI) is a manufacturing company of industrial machines and equipment for almost 90 years. One of their plants located in Frankfurt, Germany, produces a particular model at a price ranging from $ 18,900 to $ 28,900. Moreover, the plant has another department that manufactures steel retaining rings. These rings are considered as an integrate part of the machines they are actually manufacturing. This department can sell their rings either internally or externally because they are a large market and demand for this product. The general manager of the German plant, Hans Thorborg has been considering the introduction of plastic rings as a substitute for the steel rings. His idea comes from one of his competitor, Henri Poulenc who has already implemented this new product in the market. Precision Worldwide Inc is currently in the dilemma of determining how to go about the introduction of a new Japanese prototype of their steel ring. The Japanese were able to reinvent this plastic ring at a lower cost and more durable at the same time. This is extremely detrimental to the steel ring market and will force Precision Worldwide out of business if action steps are not taken. Some of the factors that Precision Worldwide will be facing are how to deal with their excessive inventory levels of steel rings and how to strategically enter the plastic ring market. Hans Thorborg needs to take into account the sunk cost of the steel...
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...Precision Worldwide Inc. Precision Worldwide, Inc. (PWI) has a plant located in Germany which manufactures industrial machines, equipment and replacement parts for sale in numerous countries. Repair and replacement parts, which accounted for a substantial part of the company’s business is now facing a dilemma, a new competitor has entered the market with a replacement part, a plastic ring, which PWI had in the past used a special steel to produce. During a meeting with the general manager, Hans Thorborg, the general manager of PWI’s plant in Germany, wanted to discuss with his sales manager, accountant and development engineer the introduction of the competitor, a French firm Henri Poulenc and the plastic ring substitute they produce (Bruns, 2004). The plastic ring produced by Henri Poulenc is created at a fraction of the cost of the steel rings that PWI currently produces, and was found to last four times longer than the steal ring (Bruns, 2004). Many strategies were discussed by PWI’s management team on how to respond to this new competitor along with discussions regarding what to do with the special steel the company has on hand. Analysis The main topic of discussion and concern is the company losing on profits if they do not begin manufacturing their own plastic ring. Which leads to the next questions how to market and price a new line of plastic rings and the big question what to do about the special steel they use to produce steel rings. If PWI sells on a new line of...
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...knowledge, you can use it to persuade potential and existing customers that buying from you is in their best interests. However good your product or service is, the simple truth is that no one will buy it if they don't want it or believe they don't need it. Don’t be afraid to let go of what you have today for tomorrow’s success if you have all the right tools to make the right choices for the business. Hans Thorgorg the general manager of Precision Worldwide Inc (PWI) has to face this dilemma utilizing some of his key personnel to devise the right plan to cut company loses in order to get ahead of his competitors or continue to press forward with business as usual. Precision Worldwide,Inc (PWI) is a manufacturing company of industrial machines and equipment for almost 90 years. One of their plants located in Frankfurt, Germany, produces a particular model at a price ranging from $ 18,900 to $ 28,900. Moreover, the plant has another department that manufactures steel retaining rings. These rings are considered as an integrate part of the machines they are actually manufacturing. This department can sell their rings either internally or externally because they are a large market and demand for this product. The general manager of the German plant, Hans Thorborg has been considering the introduction of plastic rings as a substitute for the steel rings. His idea comes from one of his competitor, Henri...
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...FIN 370 Complete Class Click Link Below To Buy: http://hwcampus.com/shop/fin-370-complete-class/ FIN 370 Week 1 Assignment lake of Egypt Marina, Inc. Review the financial statements for Lake of Egypt Marina, Inc. Complete the following problem sets from Chapter 3 in Microsoft® Excel®: • 3-29 Spreading the Financial Statements • 3-30 Calculating Ratios Format your assignment consistent with APA guidelines. • FIN 370 Week 2 STRATEGIC PLANNING The topic is Boeing. Find the company selected for the Week 2 assignment's annual report from SEC.gov or the investor relations section of the company's website. Be careful not to use quarterly reports. Write a 350 word paper in which you describe the relationship between strategic and financial planning. Include the following: • How the initiative affects the organization's financial planning • How the initiative affects costs and revenues of the supply chain. Paper must be in APA style and please include references • • Website resources for Boeing http://finance.yahoo.com/q?. FinStatements_2012_2013_2014_Boeing.docx (591k https://finance.yahoo.com/q/is?+Income+Statement&annual FIN 370 Week 2 financial markets and institutions report In Week 2, the students will explain the difference between organized and unorganized, primary and secondary, and money and capital markets. They will describe the role of the various financial institutions and financial markets in the economy. Create a 1,050-word report...
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...Precision Worldwide, Inc. Case Study Involved Parties: Competitor-French Firm: Henri Poulenc Precision Worlwide, Inc.-German Firm Hans Thorborg-General Manager Gerhard Henk-Sales Manager Bodo Eisenbach- Development Engineer Patrick Corrigan-Parent Company Spokesman Background: Precision Worldwide, Inc. (PWI) manufactures industrial machines and equipment for sale in numerous countries. Repair and replacement parts account for a substantial part of the company’s business. The replacement part in question, steel rings, occur in the machines manufactured only in PWI’s Frankfurt Germany plant, but can also be used on some competitor’s machines. The steel ring manufactured by PWI has an average normal life of about 2 months. Machines require between 2 and 6 rings to operate. Individual rings are replaced as they wear out. Over the years, competition had increased and now a competitor company, the French firm Henri Poulenc, has entered the market with a superior plastic ring that replaces the steel ring. The plastic ring is less costly to manufacture and has a longer life. Situation: The PWI sales manager, Gerhard Henk, is asking when this product will be available for him to sell that his competitor already has on the market, particularly in France where the competitor is the strongest. Bodo Eisenbach, the PWI development Engineer, estimates the plastic rings can be produced in about 4 months at a tool and equipment cost of about $7,500. PWI currently has about $390...
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...purchases short-block castings. These castings are used to build there R-208 tractor engines. The short-block castings are the major component for building these engines and are responsible for thirteen percent of the purchase price. Temko Earthmovers is currently experiencing Quality issues with their current supplier regarding these castings. Approximately 10 out of 100 units are being repaired and 40 percent of the blocks are being scrapped. This is causing Temko a lot of time and money in trying to repair these defective parts, so Temko’s purchasing manager has released a request for quote for the short block castings. Unfortunately they only had one supplier who was interested that came back with an offer. The supplier that came back with the offer is ACE Manufacturing Inc. ACE is a small start-up company that is looking for work and is willing to invest their time and money in purchasing the precision machinery that will have to be used to make this part for Temko. Could Temko be the right company, to get ACE Manufacturing up and going? And could this supplier be the right fit for Temko in eliminating there future defective issues as well as save the company money? Advantages and Dis-Advantages in Single/Sole Sourcing Advantages * Increased co-operation and communication which improves a win-win relationship between buyers and sellers (This was strongly emphasized in the first video we watched). The less people involved the better, that way the bond is stronger...
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...Precision Worldwide, Inc case study. Begin by talking about the issues ….. Substantive Issues Raised. The primary issue at hand involves the relevant cost of a set of replacement parts. The parts, however, range from those that are totally manufactured and ready for sale, to those that have not yet been manufactured but for which raw material is on hand, to those that have not yet been manufactured and for which no inventory of raw material exists. The case solution turns in large part on the use of contribution analysis. However, the concepts of sunk costs, opportunity costs, and product substitution are prominent aspects of any reasonable analysis. The product in question, a steel ring, is used as a replacement part for industrial machines manufactured and sold by both Precision Worldwide, Inc and their competitors. It sells for $1,350 per hundred rings with annual sales of approximately 36,000 rings. One competitor, Henri Poulenc, has introduced a plastic ring. This ring lasts up to four times as long and is priced at about the same level as PWI’s product. Mr. Thorborg, the gm of the German plant of PWI, must analyze the data, the conflicting views of his sales manager and his development engineer, and make a decision as to whether PWI should begin the manufacture of a plastic ring. In addition, a plan needs to be designed as to the pricing policy to follow for both the steel and the plastic rings. Finally, some consideration should be given to the effect of the...
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...University Linkages INTRODUCTION The Bataan Peninsula State University - Industry Consortia was institutionalized since the first year of offering of the College of Industrial Technology program by the year 1975-1976 up to present with a vision to recognize as the leading provider of motivated, practical, technically motivated, globally competitive and spirited Filipino workers. One of the key function as an eminent college is to bridge the gap between academic and industry to make CIT more relevant for the industry and the global community which also brought mutual benefits between and among them in terms of faculty, staff and student exchange, research activities and other important collaborative programs and benefits. The University has been known in the Philippines and even in other countries for its quality academic programs, researches, projects and technologies. . A pre-requisite for any such effort is to bond with industry. Keeping this in view, CIT has set the following two goals to systemize efforts. The Bataan Peninsula State University (BPSU) with the cooperative efforts of its six (6) campuses continued to reinforce its consortia and linkages with national/local and international agencies and institutions which brought mutual benefits between and among them in terms of The College of Industrial Technology (CIT) faculty members in particular are tapped as TESDA assessors, consultants, trainers, OBJECTIVES To meet the University’s...
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...: aaequipment@tri-isys.com Member since: August 2006 Representative: RICARDO LUMBRE, JR. President& General Manager MARYLENE LUMBRE, Treasurer PRODUCT LINES/SERVICES Trading, Machineries for metal sheet fabrication, Design softwares Accessories fro electrical and industrial enclosures/Metal pannel accessories 2. ABCOR INDUSTRIAL CORPORATION No. 6 Fatima Lane, La Milagrosa Village Marikina Heights, Marikina City Metro Manila T – 941-2515 Fax: 941-0073 E-Mail : abcor_ind_corp05@yahoo.com.ph Member since: August 2001 Representative: JOSEPH ALAN T. ABRENICA Production Manager PRODUCT LINES/SERVICES Motorcycle parts / automotive components/ assembly of wire house racks Fabrication & Machining of tooling Requirements like Copper, Welding Tip & Crimping Tools for the Electronics Industry 3. ACME TOOLS MFG. CO., INC. 105 E. Delos Santos Avenue Mandaluyong City, 1554 Metro Manila T – 531-4906 * 531-5458 Fax: 532-1037 * 531-3968 * 534-5231 E-Mail : acme.ohco@quickweb.com Member since : October 1988 Representative: ALBERT YU General Manager PRODUCT LINES/SERVICES Manufacturer of bolts and nuts, forging & cutting tools 4. ACT MACHINERIES & METAL CRAFT CORPORATION. Turayong Cauyan City Isabela T- (078) 634-5587 or (02) 277-9883 * 293-4393 Fax: (078) 652-2990 Mobile: E-Mail: act.metalcraft@yahoo.com Website: Members since: June 2013 Representatives: MARITES M. SANDO Production Manager PRODUCTS...
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...Module 3 1.In going through the plan it is my observation that the plan lacks in testing some areas, specifically the sales revenue and accounts receivable. Via info from the previous module we know there is no pre numbering for bills of lading and no other method to which these are accounted for. There are several things that could result from this weakness. We can conclude that there may be discrepancies in items shipped and items billed to customers. As well because of a lack of numerical reference, sampling can have a lack of effectiveness. () 2 & 3. (Refer to Attached Excel Document) 4. Upon analyzing the sampling results, it could be said that when it comes to cases of missing bills of lading there is significant evidence provided to conclude that because of the outlying beyond the allowable deviation, there has to be an unallowable amount of billings without shipment. I think these results would lead a skeptical auditor to conclude that there is possible inflation of earnings via conjured up sales recordings. () Module 4 1.The objective of performing this test is to determine if the factory equipment accounts are materially unstable or overstated from misclassification of certain items pertaining to regular maintenance. The unit being sampled here would be the all of the amounts debited to the factory equipment accounts (ie. the dollar amount). The population would be the total debits of $12,600,000, this is what is left after ($89860000-$772600000). By...
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