...backwards when allocating costs between costs of goods sold and inventories, with no separate accounting for work in progress. According to ACCA article, in back flush accounting costs are not associated with units until they are completed or sold. Back flush accounting is also called delayed costing, as costs are not allocated to production until after events have occurred. From view by other author, back flush accounting is a costing system that omits recording some of all of the journal entries relating to the cycle from purchase of direct materials to the sales of finished goods (Robert, 2011). According to Grahame Steven, Financial Management 2006, an approach called back flush accounting has been developed to meet the requirement of JIT manufacturing which on it is not a sequential tracking system and does not account for individual transaction. Backflush accounting meshes well with Just-In-Time production system because, according to the Tax Shield Education, both Just-In-Time production and the process of backflush accounting work backward to account for cost incurred during the production process, but it does require accurate bills and records as well as controlled production yields, according to the Federal Accounting Standards Advisory Board (FASAB).Theoretically, the usual inventory accounts in backflush accounting are replaced with a simplified...
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...working with analytics for input and output. as well as the This statement regarding a choice to expand production in North America was made by Coca-Cola 10K (2010) financial assessment. “Our international operations are subject to certain opportunities and risks, including currency fluctuations and government actions. We closely monitor our operations in each country and seek to adopt appropriate strategies that are responsive to changing economic and political environments and to fluctuations in foreign currencies. We use approximately 60 functional currencies. Due to our global operations, weaknesses in some of these currencies are often offset by strengths in others. In 1999, 1998, and 1997, the weighted-average exchange rates for foreign currencies, and for certain individual currencies, strengthened and weakened against the U.S. dollar (Coca-Cola 10K, 2010). Using Just in Time (JIT) inventory management methods, as current Toyota Distribution Centers do in North America and globally, means that the a state of the art inventory software is utilized. To ensure inventory dashboards are available when and where needed a equally powerful backup system is needed. A recommendation to ensure current inventory ordering and tracking software is backed up by an additional system in North American Distribution Centers. Mcrill (2012) states that one "downside to...
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...quality and safety reforms (Kozaki, Oura & Amasaka, 2012). Specifically, this included one of the new marketing initiatives included an international computer database being able to track all repairs, while decreasing customer complaints from months, to days (Jacobs & Chase, 2014). Additionally, Toyota accommodated the advertising strategy by eliminating national advertising campaigns for which they promoted the cars for safety, dependability, and reliability. The automaker also reorganized its just-in-time (“JIT”) and the Toyota Production System (“TPS”) production processes (Amasaka, 2009). Toyota announced a new managing director to restore and overlook all safety-related concerns, in addition to the company building Swift Market Analysis Response Teams (“SMART”), teams responsible for finding safety defects and determining the cause of accidents in the US and internationally (Jacobs and Chase, 2014). It is crucial that Toyota utilize the strengths, weaknesses, opportunities, and threats (“SWOT”) analysis moving forward to have the ability to analyze the current state of the company after the recall setback. Toyota’s New Marketing Strategies to Rebuild the Company’s Image For many years,...
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...American Connector Co. (ACC), a US supplier of electrical components, has been forced to re-evaluate operations at its plant in Sunnyvale, California, in response to the plans of a Japanese competitor (DJC Corp.) to construct a rival plant in the United States. The essential issue at hand is whether American Connector’s customization manufacturing strategy should be modified or replaced to meet the threat posed by DJC Corp.’s low-cost manufacturing approach. The situation is particularly critical as ACC’s Sunnyvale plant has recently been experiencing rising costs and deteriorating product quality. Consequently, the present analysis will examine the manufacturing strategies of American Connector Co. and DJC Corp. from a SWOT (Strengths, Weaknesses, Opportunities, and Threats) perspective in order to determine the potential impact of JDC’s entry into the US connector market. American Connector Company Mass Customization Manufacturing Strategy • Strengths DJC Corporation Product-Focused Manufacturing Strategy • • • ACC’s Sunnyvale plant produces a large variety (4,500) of connectors. This allows the company to provide just about any kind of connector that a customer could want. Products are customized and stateof-the-art. They also exceed customers’ expectations. Batch processing and automated assembly facilitate production of large quantity of products (600 million units per year). ACC is committed not only to product variety and quantity but product quality as...
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...critical to adopt lean principles to create a more efficient system. This paper will also be discussing what a change to a Just- In- Time inventory system would have if adopted by Target and Financial ratios will be calculated and the ratios will be compared with the appropriate industry. Assume According to "Just In Time Vs Traditional Inventory System." (2014), “Traditional inventory systems, seek to have enough inventory on hand so that production may continue even in the face of unexpected shortages or shipping delays. The ideal goal of JIT (Just in Time) manufacturing is to have precisely the right amount of components or materials on hand at any given moment, with as little idle inventory as possible. In a factory run perfectly according to the JIT model, every component delivered to the factory would go directly from the loading dock to the assembly line”. ("Just In Time Vs Traditional Inventory System.", 2014). If adopted “JIT manufacturing is extremely sensitive to supply shortages, since one missed shipment of a particular component may be enough to shut down an assembly line until the next shipment arrives. A traditional factory would continue to work under these circumstances, using components from the warehouse until the next shipment”. ("Just In Time Vs Traditional...
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...recalls and lawsuits that ensued threatened to damage Toyota’s image; thus, to rectify this the company should organize its decision processes more efficiently. Keywords: organizational change, recall, total quality management Introduction For decades, Toyota set the standard for quality and reliability in the automotive industry. In fact, the Toyota brand has been touted as the pinnacle of automotive excellence by rating industries and industry consultants (Piotrowski & Gray, 2010). The automaker founded in 1937, has strived over the years to manufacture superior quality automobiles (Rajasekera, 2013). Toyota has built a global reputation for engineering affordable, quality vehicles, capitalizing on the principles of Just-In-Time (JIT), the Total Production System (TPS), and the Japanese concept of Kaizen, or continuous improvement (Rajasekera, 2013). Known...
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...Reduced layers of management as a part of restructuring. * Leaner and less costly management. | * No separation of oversight and execution. * The board retains responsibility for execution. | Operational & Financial Issues | * Even though Ford had applied for government loans it opted not to seek government loans. * It is now having a positive net profit. | * Toyota has superior supply chain management with JIT in place. * Toyota is not making a positive profit. | Analysis of Strategic Intent | * Ford wants to be profitable by 2011. * It wants electrification of its cars. | * Achieving a larger global market share. * Serving the nation of Japan. | External Challenges: | * Widening political environment in the US * Sluggish economic recovery in the US. | * Aging global population, not interested in new car models. * Weakening power of the Yen. | Current Manufacturing | * Lean and lower cost after workforce reduction. * Focused on electrification of cars. | * Advantage from JIT and supply chain management. * Modular design of cars makes manufacturing flexible. | Facilities & Distribution System | | * Global distribution networks. * Continuous Improvement in manufacturing. | Market Demand & Demographics | * Weak demand for cars...
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...BASELINE SCIENCE WWW.BASELINESCIENCE.COM “ Education, Training & Research are of No Significance Without Contribution” For citation information, to read or leave comments, view ratings, converse with the author and/or reviewer(s), etc., please visit www.BaselineScience.com B a s e l i n e S c i e n c e , I n c . • w w w. b a s e l i n e s c i e n c e . c o m Matching Dell: A Strategic Case Analysis Dan Demers GS 604, Thursday 5:00 – 7:20 Matching Dell: Dell’s Key Strategic Issues At the close of the case, Dell is presented with two key strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry: Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either...
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...GLOBAL SUPPLY CHAIN Term Paper : Proton Supply Chain Challenges Table of Contents 1.0 Company Background 1-4 2.0 Problem Statement 5-7 3.0 Significant of Study 8-10 4.0 Proton Supply Chain Weaknesses 11-18 5.0 Recommendation 19-29 6.0 Conclusion 30 7.0 References 31-32 1.0) Company Background First national car, Proton Saga project was formed embark from the Look East Policy. Perusahaan Otomobil Nasional Sendirian Berhad (PROTON) was formed in 1983 as a company of national car to manage the operation of the national car project. "The Proton Saga is more than just a quality automobile. It is a symbol of Malaysians as a dignified people" quoted by Tun Mahathir Mohammad during the launched of the first model of national car, Proton Saga in 1985. Anyhow, PROTON facing the downfall when Perusahaan Otomobile Kedua Sendirian Berhad (PERODUA) launched in 1993, producing minicars and superminis models which target the different market segments as Proton. For example in 2002, Proton become the 1st of the car supplier in Malaysia, acquired 49.43% of the market share. Anyhow, in 2006, Perodua overtake Proton as the 1st car supplier in Malaysia with 42% of market share, and Proton was 10% behind it. This trend maintain consistently until latest statistic in 2011, Perodua still become the 1st supplier in Malaysia acquired 34% of the market share while Proton maintain the 2nd place with 33% market...
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...JIT Introduction JIT in time concept was initiated in Japan making the Toyota as its mater piece. JIT is system whether company starts manufacturing/purchasing once the customer orders the good effectively making zero inventories. In other words, in a JIT environment materials are purchased and produced as and when it is needed. The whole idea is based on the phrase provide the goods just in time as promised when the order is placed by the customer. The opposite of the JIT production is known as JIC (Just in case) system where it produces goods for inventory with the intention of having goods just in case a customer places an immediate order. JIT production system identifies the hidden problems in the value chain and reduces the production waste of the system while increasing the throughout (Sales- Raw Material Cost). Even though the JIT system seems to be interesting and less complicated it requires lot of coordination with supply chain to avoid delays in the production schedule. The whole concept of the JIT is differentiated from traditional productions systems using push vs. pull systems ofproduction. The push system of production pushes materials to the next stage of the production irrespective of whether time and resources are needed at the next level of production creating lot of inventories at each level of the production flow. The traditional manufacturing organizations adopt push system where they produce for inventory and work in progress. The pull system of production...
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...BASELINE SCIENCE WWW.BASELINESCIENCE.COM “ Education, Training & Research are of No Significance Without Contribution” For citation information, to read or leave comments, view ratings, converse with the author and/or reviewer(s), etc., please visit www.BaselineScience.com B a s e l i n e S c i e n c e , I n c . • w w w. b a s e l i n e s c i e n c e . c o m Matching Dell: A Strategic Case Analysis Dan Demers GS 604, Thursday 5:00 – 7:20 Matching Dell : D ell’s Key Strategic Issue s At the close of the case, Dell is presented with two key strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry : Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers...
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...UNIT 5: INDUSTRIAL DEVELOPMENT BUSINESS PLAN Set of documents prepared by a company’s management to review its operational and financial objectives for the future (usually one to three years) and to show how they will be achieved. It serves as a plan to guide the firm's policies and strategies, and is continually modified as conditions change and new opportunities and/or threats emerge. The business plan process is simply the steps you go through and actions you take when producing a business plan. In effect, it describes how you produce your business plan. While most people focus on the ‘final output’, i.e. the business plan itself, the business planning process is extremely important for entrepreneurs. PROCESS OF BUSINESS PLAN The process of producing a business plan forces entrepreneurs to examine areas of their business that typically may not be subject to much scrutiny. For example, entrepreneurs do not tend to routinely produce cash flow forecasts, so the requirement to produce one as part of the business planning process forces them to consider the impact of cash on their business. The business plan process typically begins with an event, be it the need to produce a business plan when seeking investment, or to obtain short-term financing from a bank. Once a business plan is needed, the entrepreneur has to then decide how they are going to go about producing the plan. They will need to undertake the following: 1. Decide who is going to write the plan (if not...
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...A RESEARCH PROPOSAL OF COLLABORATIVE BUYER - SUPPLIER RELATIONSHIPS AND JUST IN TIME (JIT STRATEGY) STRATEGY A CASE STUDY OF CROWN BEVERAGES LIMITED UGANDA BY SATURDAY BONAVENTURE 09/U/8578/PLE/PE A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF MANAGEMENT AND ENTREPRENEURSHIP OF THE IN AWARD PARTIAL OF A FULFILMENT BACHELORS OF DEGREE THE IN REQUIREMENT PROCUREMENT AND LOGISTICS MANAGEMENT Collaborative buyer - supplier relationships and JIT strategy 09/U/8578/PLE/PE CHAPTER ONE 1.0 Introduction This chapter introduces the background of the study, problem statement, objectives of the study i.e. the main objective and the specific objectives, research questions, scope of the study and the significance of the study. 1.1 Background to the study In recent years, increasing attention has been paid to buyer-supplier relationships and just in time strategy in general. Views of buyer-supplier relationships have evolved from the old school of the 1980s, where buyers and suppliers were viewed as part of a zero-sum game, to the more collaborationist outlook of the 1990s, which claimed that buyers and suppliers could cooperate to the benefit of both, to the more network-oriented view of the 2000s, where buyers and suppliers are parts of organic business ecosystems. Today these relationships have become “strategic” and the process of relationships development is accelerated as firms strive to create relationships to achieve their goals. In this stressful environment of relationships...
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...Product Strategy of the U. S. Postal Service Dwaynell Lowe Strayer University Operations Management Dr. Phyllis Parise November 15, 2015 Product Life Cycle Product life cycle refers to the stages that a product. Changes in demand for the product is the factor that delineates the changes from one cycle to another (Daft & Sanders, 2012). The typical product life cycle has four identifiable stages; * Introductory Stage-characterized by the launching of a new product. * Growth Stage-highlighted by strong growth and profits. * Maturity Stage-the product is well established and the organization seeks to maintain market share. * Decline Stage-the market for the product shrinks. The United State Postal Service (USPS) is service organization as opposed to being a manufacturing entity. As such it does not produce a tangible product. While it uses products such as postage stamps, boxes, and envelopes in the course of providing the service, postal delivery is its product. Therefore, to consider its product life cycle one must consider the life cycle of the organization itself. The organization current finds itself in a state of decline. One factor that contributes to a product going into decline is shrinkage due to market saturation or “because the consumers are switching to a different type of product” (http://productlifecyclestages.com/). Both factors have had a marked impact on the decline. The rise of the internet and its ability...
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...6. Herman miller’s Internal Environment- SWOT (B-6) Strengths * Employee loyalty and empowerment * Strong brand recognition * Strong Human Resources Management * Geographic Coverage * R&D, innovation * High quality Product * Lean Manufacturing and JIT * Environment friendly | Weaknesses * Badly impacted by the weak economic * Cutting benefit and lay off employees * Raising Debt to Equity Ratio * The company has a financial problem due to the global recession * High price products | Opportunities * The need for ergonomically correct office furniture had increased * The increasing demand for environmental friendly products * Innovation for new products to attract new customer group | Threats * Telecommuting had decrease the need of office equipment * Cost of raw materials and competition from over seas * Low price competitors may take over the market shares | Value Chain and Competitive Advantage Primary ActivitiesSupply Chain Management – Agreement with suppliers to deliver parts to Herman Miller production facilities in a just-in-time process. Also, the company outsources component parts to suppliers in order to reduce the fix production cost. (C-326) Operations – Maintain efficiencies and minimizing the inventory cost by purchased direct materials and parts as need to meet demand. Distribution – Herman Miller has manufacturing operations located in different countries, and it produces the products and delivers to the local...
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