...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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...http://ocw.mit.edu ____________ MIT OpenCourseWare 15.963 Management Accounting and Control Spring 2007 For information about citing these materials or our Terms of Use, visit: ________________ http://ocw.mit.edu/terms. 15.963 Managerial Accounting and Control Spring 2007 Prof. Mozaffar Khan MIT Sloan School of Management Main Line vs. Basinger Selected Filmography Kim Basinger Sherilyn Fenn Novel Romance (2006) Dream Warrior (2004) Darkness Falls (1999) Outside Ozona (1998) Boxing Helena (1993) Backstreet Dreams (1990) The Wild Life (1984) 2 The Sentinel (2006) Cellular (2004) 8 Mile (2002) L.A. Confidential (1997) The Getaway (1994) Batman (1989) Hard Country (1981) 15.963 [Spring 2007] Managerial Accounting & Control Main Line vs. Basinger Evaluate the defense argument that Mazzocone “has a duty under the law to minimize his loss, and this does not include going out and making a picture knowing you are $2m short. At what stage in the negotiations did Basinger withdraw? If late, it is possible some costs were contractual obligations (such as rights to script) at the time, and these obligations were assumed with the presumption of Basinger participating. Managerial Accounting & Control 3 15.963 [Spring 2007] Main Line vs. Basinger What were Mazzocone’s options following Basinger’s withdrawal? Do not make movie – this assumes all costs sunk. Make with another...
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...9-197-103 REV: MAY 21, 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...
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...industry. Knowing and understanding customer needs is at the center of every successful business, whether it sells directly to individuals or other businesses. Once you have this 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...
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...Precision Worldwide Inc. (PWI) manufactures equipment and parts. PWI has a large quantity of specialized steel wire in stock to make a steel retainer ring for its own and its competitor’s equipment. The steel rings last two months and cost $1,107.90 per 100 to make, they sell for $1,350 per 100 at a demand of 690 rings per week. A competitor in a single market (10% total market) has introduced a plastic rings that last four times as long (eight months), cost $279.65 per 100 to make and sell for the same $1,350 per 100; it can be inferred that demand for the plastic rings will be one fourth that of the steel ring (690 rings per week divided by four, 173 rings per week), due to the longer life. PWI can retool their plant for $7,500 and begin producing the plastic rings in four months. There are currently 34,500 steel rings in stock and, if manufacturing of the steel rings stops immediately, and if demand remains constant, there will be 15,100 rings remaining when the manufacturing of the plastic rings begins. Under normal circumstances, due to cyclical demand, the plant would not be operating to full capacity during the next two to three months. Management is concerned with the steel stock on hand, it cannot be sold or used for any other purpose; its cost to PWI was $110,900 and would produce 34,500 additional steel rings. Management has initially indicated that it does not want to scrap this material for a total loss. Also, another sales organization within PWI manufactures...
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...Assignment #2 Precision Worldwide, Inc Summary Precision worldwide Inc is currently in the dilemma of determining how to go about the introduction of a new French and Japanese prototype of their steel ring. The French 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 actions are not taken. Related Business Issues 1. Excessive inventory levels of steel rings Hans thorborg carries large quantity of steels rings and special steels inventory, which values about $390,000. The special steels couldn’t even sale as scrap as it described in article. The article also indicates that hans thorborg will cost $110,900 to convert special steels into 34500 steels rings. Hans thorborg needs to take in to account the sunk cost of the steel ring and how to be effective with the production of the plastic ring. The sunk cost fallacy is that sunk costs are sunk whatever your decision is and only the future matters. The fallacy in thinking about the sunk costs is precisely that people feel completed to get their moneys work even if it makes them suffer Whether or not the steel rings sell. The second aspect that will influence han`s decision is the will still have over 15000 units when the date of plastic rings roll out. 2. Cost of Steel Rings and Manufacturing Facilities The total cost of 100 steel rings is $1107.90, which is about 3 times...
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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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...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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...Práctica 1 1.- Descripción del aparato y principio de funcionamiento. [pic] • 1. Mordazas para medidas externas. • 2. Mordazas para medidas internas. • 3. Sonda para medida de profundidades. • 4. Escala con divisiones en centímetros y milímetros. • 5. Escala con divisiones en pulgadas y fracciones de pulgada. • 6. Nonio para la lectura de las fracciones de milímetros en que esté dividido. • 7. Nonio para la lectura de las fracciones de pulgada en que esté dividido. • 8. Botón de deslizamiento y freno. El calibre, también denominado cartabón de corredera o pie de rey, es un instrumento para medir dimensiones de objetos relativamente pequeños, desde centímetros hasta fracciones de milímetros (1/10 de milímetro, 1/20 de milímetro, 1/50 de milímetro). En la escala de las pulgadas tiene divisiones equivalentes a 1/16 de pulgada y en su nonio de 1/128 de pulgadas. El inventor de este instrumento fue el matemático francés Pierre Vernier (1580 - 1637 ), y la escala secundaria de un calibre destinada a apreciar fracciones de la unidad menor, se la conoce con el nombre de Vernier en honor a su inventor. En castellano se utiliza con frecuencia la voz nonio para definir esa escala. Consta de una "regla" con una escuadra en un extremo, sobre la cual desliza otra destinada a indicar la medida en una escala. Permite apreciar longitudes de 1/10, 1/20 y 1/50 milímetro utilizando el nonio. Mediante piezas especiales en la parte superior y en su...
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...emergency disasters efficiently but also uses donations to rebuild hospitals, educational centers and places of refuge (for food, medicine and shelter), making them more structurally stronger allowing them to withstand damage and inevitably fulfill the purpose of construction. Our Mission Human Help Worldwide Mission Statement: “Our aim is to eliminate poverty with the support of the public, not only tackling the vital crisis but maintaining communities which are being rebuilt from the effects of disasters. We aim to do this by always aiming high to excel in our mission”. Our Aims • Our aim is to create an awareness of support needed in areas which are being rebuilt from disasters. • Our aim is to give the people in need the advice, tools & continuous support they need to start a new life. • We aim to fulfill the needs of those suffering by providing clean water, food & clothing, which will allow them to survive. • We will build hospitals, schools & community centers allowing these people to become educated, healthy and succeed in life. We will gain sponsorships for families, orphans & students helping them to succeed Human Help Worldwide Limited (HHW) is a UK-based charity providing international relief to The victims of poverty, which may have been caused by natural disasters and humanitarian crisis. We strive to do this by organizing projects and programmers with the general public designed to benefit generations in creating...
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...What were the outcomes of your MyFoundationsLab Path Builder? The outcomes to MyFoundationsLab path builder were, I mastered 5 of 16 topics. One of the topics I mastered was the craft of writing which I mastered on assessment. There are five topics on the craft of writing which I mastered all. Not really too sure what it means but I received a gold star in study skills, which I’m guessing means I mastered a topic. How do the skills apply to your academic life? Well if I was fortunate enough to have been a master at the craft of writing, I can see that being very good in everything I do academically. I have always been a neat freak and like my words spelled right and my sentences readable which is why I probably am proficient in this area. In everything I do on the phoenix college courses I have to write to communicate, so being able to be clear and correct will be beneficial in my grades and clarity of substance. How do the skills apply to your professional life? I am a Military Policeman my duties are that of any civilian policeman except we wear the Army uniform and only have jurisdiction on post. Every day I use my writing skills on a slow day I still take a journal of the events throughout the day. On a busy day I would have to make a case which involves taking statements from subjects, witnesses, and victims and I would also have to make a statement. All that work has to be precise and good enough to present in a court of law. It is a lot of detail and accuracy to...
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...Chapter 1 student learning objectives (SLOs) Goal/Benchmark A: Students will be able to use dimensional analysis using appropriate SI and non SI units and apply their understanding of significant figures * Knowledge Focus A.1: Essential concepts Objectives-Students will be able to: * [Retrieval] * Define chemistry * Define and list each of the steps of the scientific method * Define physical and chemical properties * Define extensive and intensive properties * Define density * [Comprehension] * Explain in their own words or represent symbolically the meaning of: * Chemistry * Steps of the scientific method * Physical and chemical properties * Extensive and intensive properties * Density * [Analysis] * Identify and explain similarities and differences between the different steps of the scientific method * Analyze errors with the application of the steps of the scientific method * Identify and explain the similarities and differences between physical and chemical properties * Identify and explain the similarities and differences between extensive and intensive properties * Use the concept of density to solve chemical problems * Knowledge Focus A.2: Dimensional analysis Objectives-Students will be able to: * [Retrieval] * List/recognize the SI units...
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...itEyewitness Testimony - Evidence given by a witness to a significant event such as a crime or serious accident. - The evidence usually takes forms of personal identification or verbal account of what happened. - Problems can occur at any point in the memory process: 1) Acquisition: Information the person perceives Poor viewing conditions Focus on weapons 2) Storage: Information the person stores in memory Misleading information Source misattribution errors 3) Retrieval: Information the person retrieves at a later time Best guesses in line-up identification Leading questions - Inaccurate eyewitness testimony can have very serious consequences leading to wrongful convictions. - Why eyewitness testimony may be unreliable? * The role of anxiety: Baddeley 1997 reported that 74% of suspects convicted in 300 cases where eyewitness identification was the only evidence against them. Anxiety may lead to unreliable remembering depends on number of factors. * Research on ‘weapon focus’ Loftus 1979: P were exposed to one of the 2 situations; 1- They overheard a low-key discussion about an equipment failure. A person then emerged holding a pen with grease on his hands. 2- They overheard a heated and hostile exchange between people in the lab. After the sound of breaking glass and crashing chairs, a man emerged from the lab holding a paper knife covered in blood. P were then given 50 photos to try and identify the person. Findings: 1- Accurately identified...
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...areapplying for the open position, 26 are female and 26 are male. If the company assume that each of the 52 possibilities is equally likely, it is reasonable to expect that the company would select a male applicant that is qualified for the open position 0.50 of the time of a period of time ( 26/52 = ½ = 0.50 ). This illustrates the basic rule for obtaining probabilities in situations in which each of the possible outcomes is equally likely, the probability of the occurrence of an event is equal to the proportion of the possible outcomes characterized by the event. In the case of hiring a qualified male employee, 26, or 0.50, of the 52 possible outcomes will be characterized by the event “a qualified male employee.” Tradeoffs in accuracy and precision Conclusion References Duan, Li. “The uncertainity sensitivity index method (USIM) and its extension’, Naval Research Logistics, 1988. Haimes, Yacov Y. "Defining Uncertainty and Sensitivity Analysis", Risk...
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...Annual Performance Review Employee Name | Cathy Smith | Title | HR Receptionist | Date of Review Period | 2010 | Supervisor Name | Tiffany Reynolds | Department | Human Resource | Exceeds Expectations = 5[employee has exceeded objective, time and quality] | More Than Satisfactory = 4[employee has slightly exceeded either time and/or quality] | Satisfactory = 3[employee has met objective, may be just under objective on time and quality] | Less Than Satisfactory = 2[employee has not met objective on either time or quality] | Needs Improvement = 1[employee far below on both time and quality] | Task | Objective/Measurement | Results | Comments | Ranking | Typing | 96% accuracy | 90% | This is an opportunity for improvement. The required results are 96% and the your final result is 90%. | 2 | | Complete within 48 hours of submission | Within 24 hours | This is an area that you have continued to excel in. Continue to use best practices and efficient methods of concentration. You consistently provide service with 50% less of the required timeframe. Great job | 5 | Filing | 98% accuracy | 82% | This is an area of opportunity. It is important to ensure the quality of formatting information to provide productive services. The required goal is 98% and you obtained a final score of 82%. | 1 | | Complete by end of the day | By end of each week | The required assignments have a due date of the end of business.. In this metric you are not able to complete...
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