...Precision Worldwide, Inc. Case Study BUS5431 – Managerial Accounting Summary Precision Worldwide, Inc. (PWI) manufactures industrial equipment and parts for sale in numerous countries. Repair and replacement parts account for a substantial part of the company’s business with the replacement part in question, steel rings, occur in the machines manufactured only in PWI’s German plant, but can also be used on some competitor’s machines. This steel ring has an average normal life of about 2 months. These individual rings are replaced as they wear out and recently competition has increased and now a competitor has entered the market with a superior and less expensive plastic ring that can replace the steel ring. The general manager of the German plant, Hans Thorborg has been considering the introduction of a similar plastic rings as a substitute for the steel rings. There is a lot of potential for this product in this market because there is a lower manufacturing cost and a greater durability compare to steel rings. The company is wondering if it is worth to shift from steel rings to plastic rings, but there are a lot of facts that they need to consider. There has been conflicting views concerning the future of the steel rings departments if they should change to plastic rings in order to acquire competitive advantage in this market and what will they do with the special steel after they have implemented the new product. A decision must be made as whether to start producing...
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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 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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...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 as many imperfections as possible. One of the classes of imperfections is “defects”. Our studies have concluded that all failures of equipment and processes can be traced back to defects (we use bugs to symbolize defects). Therefore, defects are the basic cause of all of our failures and can be classified into three sources: A, B, and C. A. Stands for Aging, which typically generates about 4%...
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...Precision Worldwide Inc. manufactures steel rings, which are used in certain machines. French firm Henri Poulenc competitor of Precision Worldwide Inc is introducing a plastic ring, which is a substitute for the steel retaining rings. Hans Thorborg, general manager of Precision Worldwide Inc. is worried because the plastic rings not only have a longer life than the steel rings but are also manufactured at a lower price. PWI has a large quantity of steel rings and substantial inventory of special steel. In a meeting, the general manager, the sales manager, the accountant and the development engineer discussed the possible problems and alternatives for this problem. For PWI, manufacturing plastic rings was defiantly the best solution for the problem but they still wondered what they would do with the inventory they had. According to the sales manager, customers new about the new plastic rings and were asking if PWI was already selling them. The development engineer calculated that the plastic rings could be by mid-September. The sales manager thought that since the plastic rings could be produced at a really low cost, the inventory problem was irrelevant. He suggested that if the steel rings couldn’t be sold they should just throw them away. Another problem was that Henri Poulenc was selling the plastic rings at the same price that PWI was selling the steel rings. Not manufacturing the plastic rings would be like ignore a considerable profit margin. In the meeting they concluded...
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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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...A Brief Understanding of IBS ‐‐A Case Study of Toyota A Brief Understanding of International Business Strategy --A Case Study of Toyota by Peter LIU, peterliu@acculine‐mfg.com MSc International Business P14B45 International Business Strategy Lecturer: Dr Yee Kwan Tang Sponsored by 10 May 2010 Acculine Precision Manufacturing Company Tel: 0086-574-28887315, Fax: 0086-574-28875303, Web: www.acculine-mfg.com, email: info@acculine-mfg.com A Brief Understanding of IBS --A Case Study of Toyota Page 1 / 12 Content Introduction ........................................................................................................................... 2 Basic Concept of International Business Strategy ................................................................. 2 Brief Background of The World Auto Industry .................................................................... 4 Brief Background of Toyota .................................................................................................. 4 IBS of Toyota ........................................................................................................................ 6 Entry to US Market ........................................................................................................... 7 Americanization as A Way of Localization ...................................................................... 8 Recommendations...
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...Skip to NavigationSkip to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research DocumentsThe Research Paper Factory JoinSearchBrowseSaved Papers Search Video Concepts, Inc In: Business and Management Video Concepts, Inc Executive Summary Whether to remain in the business with increase in Rental to $ 2.49 whereby increasing the profitability of the business due to stiff competition from the Blockbuster or to sell it off or hire a manager for the shop and start doing job at some other place, has to be evaluated on the basic objectives of economics of the firm. The main objective of the firm is to maximize the profit and thereby maximize the return on investment. In order to attain this at the same market share it is suggested to sell the business to the competitors, if they are interested. Word Counts: 102 Table of Content SITUATION ANALYSIS | 2 | THE PROBLEM STATEMENT | 5 | OPTIONS | 5 | CRITERIA FOR EVALUATION | 6 | EVALUATION OF OPTIONS | 7 | RECOMMENDATIONS | 9 | ACTION PLAN | 9 | Situation Analysis Outlook of Video Rental business in Lexington In Research conducted by the Chad Rowan for the business of Video Rentals when it was relatively a new business, it was found that it is profitable enough to earn more than the average rate of return on investments. So it was possible to start with the store of 200 square feet with the 500 video tape library in Lexington, North Carolina, a town of 28,000 people...
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...UPS Supply Chain Solutions SM case study Nikon Focuses on Supply Chain Innovation — and Makes New Product Distribution a Snap Top consumer goods manufacturers now recognize that success requires more than just making market-leading products. Having the right distribution network is just as critical. Nikon Inc. is the world’s leader in precision optics, 35mm and digital imaging technology. So it’s no surprise that when the company saw the next big trend in photographic technology — digital cameras — they were ready to deliver with some of the most advanced product designs in the marketplace. But to ensure that retailers could meet the demand of tech-hungry consumers and professional photographers, Nikon, with the help of UPS Supply Chain Solutions, reengineered its distribution network to keep them well supplied. Nikon R E S U LT S GEOGRAPHIC AREA SERVED CHALLENGE SOLUTION United States, Latin America and the Caribbean Consumer Goods Design and implement new distribution strategy to introduce Nikon product line. Client Challenge To support the launch of its new digital cameras, Nikon knew that customer service capabilities needed to be completely up to speed from the start and that distributors and retailers would require up-to-the-minute information about product availability. While the company had previously handled new product distribution in-house, this time Nikon realized that burdening its existing infrastructure with a new, demanding, high-profile...
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...Unit Title: Descriptive Analytics Unit Code: BSS0014-2 Assessment 1: Part (a) Group presentation (20%) in week 7 – you are required to work effectively as a small team and attempt all the tasks. You will then present your results and I will ask from each group member a number of questions and provide feedback. Part (b) Individual report (30%) in week 9 - You will then need to use the feedback provided accordingly to improve your work and present it individually. It is expected that each student work independently on all the tasks set out in this assignment, applying problem solving strategies and selecting appropriate techniques in data analysis in order to produce an individual report according to the guidelines provided. This individual work must be your own work only with no consultation with others. The individual report must not exceed 2,000 words. Those reports that exceed the similarity index of 25% produced by Turnitin, can only achieve a maximum grade of E. Assignment Title: “Performance Lawn Equipment” Issue date: Week One: Monday 19/10/2015 Submission due date: Week 7: 07/12/2015 Week 9: Friday 08/01/2016: A single report per student should be submitted via the TURNITIN link in the Assessment folder. Assignment must not be e-mailed under any circumstances. Unit co-ordinator’s name: C F Shooshtarian Core learning outcomes | | On completion of this unit you should be able to: | Assessment number | 1 | Investigate and analyse a variety of problems...
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...The Story of AMP 1 Abstract This case study provides an excellent example of the importance of business strategy. It demonstrates how the correct corporate strategy can provide prosperity for a company while a poor strategy can result in dire consequences. The study also highlights how factors such as company size, economic conditions, competition, and corporate culture influence the development and the ultimate success of the business strategy. AMP Incorporated was used as the basis for this case study. AMP Incorporated is a global company that specializes in electronic and electrical connectors. The company, which was started in 1941, quickly grew into the world’s largest manufacturer of connector and interconnection devices. But in 1998, the company’s stock fell, resulting in a hostile takeover bid by Allied Signal and the eventual purchase of the company by Tyco International. History of AMP Founder of AMP Born in Lincoln, Kansas in 1900, Uncas Aeneus Whitaker grew up in a tiny southwestern town in Missouri. He was named after the hero of James Fenimore Cooper’s classic tale, The Last of the Mohicans. In the fall of 1941, Whitaker would start his quest to live the legacy of a hero by taking over a small firm called Industrial Manufacturers in Elizabeth, New Jersey. Industrial Manufacturers was a producer of solderless electrical terminations for the aircraft and shipbuilding industry. Prior to World War II, terminations of electrical conductors were accomplished...
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...[pic] Dharini Giri 12050221051 FC- 3yr Dell Introduction Dell Inc. is an American privately owned multinational computer technology company based in Round Rock, Texas, United States, that develops, sells, repairs and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell sells personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players and also electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its "build-to-order" or "configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications. Dell was a pure hardware vendor for much of its existence, but a few years ago with the acquisition of Perot Systems, Dell entered the market for IT services. The company has since made additional acquisitions in storage and networking systems, with the aim of expanding their portfolio from offering computers only to delivering complete solutions for enterprise customers. History Dell traces its origins to 1984, when Michael Dell created PC's Limited while a student of the University of Texas at Austin. The dorm-room headquartered company...
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...Abstract Dell Inc. is a diversified information-technology supplier and partner, and sells a comprehensive portfolio of products and services directly to customers worldwide. As organizations today are requiring more and more IT services and features to meet the ongoing business demands that Dell face. So, Dell understands the computing needs of business and organizations. The company operates one of the world’s leading Internet site at www.dell.com, which makes Dell to show customers how to take advantage of online tools, information dissemination, market research, and advertising its products and services on Internet. The Use of Dell Internet Dell was founded in 1984 by Michael Dell. The company is based on a simple concept: by selling computer systems directly to customers. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell’s understanding of customer expectations. The direct model allows the company to build every system to order and offer customers powerful, richly-configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory in just five days on average. Today, Dell is the word’s leading computer systems company. The company designs, develops, manufactures, markets, sells, and supports a wide range of computer systems that are customized to customer...
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...Advances in Metal Forming Research at the Center for Precision Forming - Industry/University Cooperation – T. Altan, P. Sartkulvanich, N. Kardes The Center for Precision Forming (CPF), The Ohio State University, Columbus, Ohio, USA Abstract The demand for application for lightweight materials such as Ultra/Advanced High Strength Steels (U/AHSS), aluminum alloys, magnesium alloys and boron steels in automotive industry is increasing to reduce vehicle weight and increase crash performance. The use of these relatively new materials requires advanced and reliable techniques to a) obtain data on material properties and flow stress, b) predicting springback and fracture in bending and flanging, c) selecting lubricants and die materials/coatings for stamping and forging and d) designing tools for blanking and shearing. In addition, designing the process and tooling for a) hot stamping of boron steels, b) warm forming of Al and Mg alloys, and c) optimizing the use of servo-drive presses require advanced Finite Element based simulation methods. CPF is conducting R&D in most of these topics and also in many hot and cold forging related topics. This paper gives an overview of this research and discusses how the research results are applied in cooperation with industry. Keywords: Metal Forming, Sheet metal, Forging, FEM 1 INTRODUCTION The Center for Precision Forming (CPF) has been established with funding from the National Science Foundation (NSF) and a number of companies (www.cpforming...
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...UCLA EXTENSION – BUSINESS VALUATION MGMNT X 430.132 – Professor Walton WALTON DRILLING LLC VALUATION REPORT By James Lin & Lea Jovanovic for ‘Mike’ (a seller) Spring Quarter 2013 TABLE OF CONTENTS 1. Identification of the Interest Appraised page 4 2. Date of the Report page 4 3. Standard of Value page 4 4. Intended Use of the Report page 4 5. Name of Client page 4 6. Names of Appraisers page 4 7. Valuation Approaches Considered and Used page 4 8. Sources of Information Relied On page 4 9. Description of Business & Recent Developments page 6 10. Relevant Economic and Industry Analysis page 6 11. Risk Factors page 7 12. Disclosure Regarding Forward Projections page 8 13. Financial Outlook page 8 14.1 Selected Financial Data from 10K (2008-2012) page 8 14.2 Income Statement (2008-2012) page 9 14.3 Cash Flow (2010-2012) page 9 14. The Income Approach page 10 15.4 Net Cash Flow page 10 15.5 Discounting page 10 15.6 The Build-Up Model page 10 15.7 Risk-Free Rate page 10 15.8 Equity Risk Premium page 10 15.9 Size Premium page 11 15.10 Industry Adjustment page 11 15.11 Company-Specific Risk Adjustment page 11 15.12 Estimated Equity Discount Rate page 11 ...
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