...esign out’ direct labour by using machine technology. Yet over the past years as we have had less and less direct labour, the overhead rate keeps going up and up. I won’t be surprised if next year the rate is $2,500 per direct labour hour. I’m also concerned because small errors in our estimates of the direct labour content of a job can have a large impact on our estimated costs. Just a 30 minute error in our estimate of assembly time is worth $1,000. Small mistakes in our direct labour time estimates can really swing our bids around. I think this puts us at a disadvantage when we are going after business.” What is the engineers concern about the OH rate going up? What is the issue about placing bids and seeking new business? What do you think is a possible solution? 2 Lecture 4 – ABC and Process Costing 1 ACCT7107 Background: what are the relevant...
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...progress It seems like common sense: the more work is dumped in the hopper, the more work gets done. But when the number of resources remains static, increasing volume of WIP merely increases confusion, increases conflict – and decrases real productivity. While everyone looks busy, the true picture often remains obscure until deadlines approach, when the failure to complete projects becomes all too visible. Failure to establish an effective mechanism to limit WUP remains a major cause of delays and even failures for many projects. Most project managers assume that an early finish requires an early start (or to finish on time, start as soon as possible). As a result, project teams get pushed to start work as soon as they receive the green light, regardless of resource availability and timeline. In practice, however, this assumption never works out. Starting early results in overloading resources, confusion about work priorities, and hence an inefficient work environment. This constant overload results in frustration. In the long run, overloading will result in increased staff turnover as personnel “burn out” in the struggle to stay on top of complex and ever-changing workloads. This overloading of the system is the primary driver of the most inefficient practice in project management: the project review meetings. What are those meetings, but little more that “resorting” of the work in the system? Projects get started before the organization is ready In an effort to take advantage...
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...Back to "Search By Author" Comparing lean and agile logistics strategies: a case study Ruth Banomyong* & Nucharee Supatn Thammasat Business School Thammasat University BANGKOK 10200, THAILAND Abstract The purpose of this paper is to compare the effect of lean and agile strategies on the manufacturing process of an aquarium manufacturer. Numerous studies has demonstrated the benefits of lean and agile strategies in enhancing the competitiveness of firms but none has really discussed or compared how performance differed when utilizing either strategies. Lean strategy can reduce, or even eliminate waste in the production process but lean might not be able to respond to fluctuation in customer demand while agile strategy enhance the responsiveness of the manufacturer. The results of this research show that both strategies provide different types of impact for the manufacturer. The findings also suggest that the manufacturer should not select either a lean or agile strategy but rather to combine both strategies. Keywords: lean, agile, manufacturing strategy, case study, Thailand * Corresponding author. He can be contacted at: Banomyong@thammasat.net 1 Back to "Search By Author" Background The aquarium industry and in particular an aquarium manufacturer in Thailand has been chosen in this paper as the study object for the implementation of a lean strategy versus an agile strategy. The purpose of this paper is to compare the effect of lean and agile strategies...
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...Back to "Search By Author" Comparing lean and agile logistics strategies: a case study Ruth Banomyong* & Nucharee Supatn Thammasat Business School Thammasat University BANGKOK 10200, THAILAND Abstract The purpose of this paper is to compare the effect of lean and agile strategies on the manufacturing process of an aquarium manufacturer. Numerous studies has demonstrated the benefits of lean and agile strategies in enhancing the competitiveness of firms but none has really discussed or compared how performance differed when utilizing either strategies. Lean strategy can reduce, or even eliminate waste in the production process but lean might not be able to respond to fluctuation in customer demand while agile strategy enhance the responsiveness of the manufacturer. The results of this research show that both strategies provide different types of impact for the manufacturer. The findings also suggest that the manufacturer should not select either a lean or agile strategy but rather to combine both strategies. Keywords: lean, agile, manufacturing strategy, case study, Thailand * Corresponding author. He can be contacted at: Banomyong@thammasat.net 1 Back to "Search By Author" Background The aquarium industry and in particular an aquarium manufacturer in Thailand has been chosen in this paper as the study object for the implementation of a lean strategy versus an agile strategy. The purpose of this paper is to compare the effect of lean and agile strategies...
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...Module in ERP for L&T Kansbahal Works, Kansbhal, Orissa : A Case Study 1 Seema G. Bhol, 2Arun Mishra & 3Srikanta Patnaik Sambalpur University, Burla, Orissa, India, 2Head (IT Services), L&T, Kansbhal, Orissa, India, 3 Department of Computer Science ITER , SOA University , Bhubaneswar, Orissa, India E-mail : guptaseema@hotmail.com, arun-kbl@kbl.ltindia.com, patnaik_srikanta@yahoo.co.in 1 Abstract - One need to be very accurate in what the products and services are costing. Inaccurate cost components could cost an organization more dearly. So, to full fill our present and future requirements and ambitions in all respect of life, it is essential enhance our expertise to link the power of today's information technology with the tools of economic theory and business strategy.[2] This paper aims at throwing new lights on various developments and formulate strategy for their implementation. Keywords— Business Mapping Report (BMR), Product costing, Dataflow Diagram, Enterprise Resources Planning (ERP), cost overhead, cost centres, Cost variance report, WIP. . 1. INTRODUCTION businesses, non-profit organizations and governments now all utilize ERP systems. The use of erp module saves time and money without sacrificing accuracy and control. Product costs are analysed quickly and accurately, which empowers the organization with the ability to perform minute analysis and projections of product cost. Few of the many advantages of product costing are: • • • • • Streamlined integration Enhanced...
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...16-08-2012 ACKNOWLEDGMENT I want to take this opportunity to thank all the PharmEvo personals for taking the time to share their expertise and knowledge of the field during our internship experience with PharmEvo. The experience was more than i could have expected and allowed me the freedom to develop and maintain individual accounts as a professional member of the team. Working for PharmEvo helped me use the knowledge i have acquired over the past four years as a university student. 1 PREPARED BY MOOSA KAZIM 16-08-2012 TABLE OF CONTENTS Overview of PharmEvo ...................................................................................... 3 Departmental Structural Chart ........................................................................... 4 Technical Services ............................................................................................. 5 Supply Chain ..................................................................................................... 6 Quality Control (QC) ......................................................................................... 7 Quality Assurance (QA)..................................................................................... 8 Quality Compliance ........................................................................................... 8 Production ......................................................................................................... 9 Regulatory Affairs .................
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...commonly thought of as a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished.[1] In American English, the word stock is commonly used to describe the capital invested in a business, while in British English, the word share is more widely used in the same context. In both British and American English, stock is the collective noun for one hundred shares as shares were usually traded in stocks on Stock Exchanges. For this reason that the word stock is used by both American and British English forms in the context of the term Stock Exchange. Inventory is usually seen as being a sin in businesses and it is theoretically possible that none could be carried. But in reality, variation exist and inventory is necessary in most organizations. Not all inventory is bad. Excess Inventory is the evil sin. It also leads to others of the 7-Wastes (handling, storage). There is a difference between Inventory and Excess Inventory. One is planned and explained (while improvement still exists) and the other is a result of out-of-control inputs leading to waste and other side effects such as tying up a machine to make another product due. Inventory Valuation Product value increases as it is transformed into products throughout the process. Adding value to the material as it is processed results in higher inventory value. One piece at the beginning of the value stream IS NOT the same as a piece in Finished Goods (FG)...
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...QUALITY LEADERSHIP UNIVERSITY UNIVERSITY OF LOUISVILLE - PANAMA MASTER IN ENGINEERING MANAGEMENT EM 613 OPERATIONS MANAGEMENT GROUP PROYECT “OPTIMIZATION OF HAM PRODUCTION PROCESS IN PROCESSED MEAT INDUSTRY ALIMENTOS CÁRNICOS DE PANAMÁ S.A.” MEMBERS: CRUZ, ESTEFANÍA Id. 8-831-2043 CRUZ, JOSÉ Id. 8-785-79 CHANIS, NICOLE Id. 8-837-172. PALMA, MANUEL Id. 8-845-2054 IBAÑEZ, ROBERTO Id. PE-11-1044 PROFESSOR: JOHN S. USHER, PhD, PE JUNE 19, 2015. 1 INDEX INTRODUCTION............................................................................................................................... 3 BUSINESS: ALIMENTOS CÁRNICOS DE PANAMÁ S.A. ....................................................... 3 Processed Meat Business within Grupo Nutresa ......................................................................... 3 Alimentos Cárnicos de Panamá S.A. .......................................................................................... 3 Goals: Process Optimization ....................................................................................................... 4 PROJECT OBJECTIVES ................................................................................................................... 4 General Objectives: ......................................................................................................................... 4 Specific Objectives: ..............................................................................
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...Bargill, Abhishek Bhattacharya, Gyusub Chung Part One - Mahou 1.1. What is typical flow at this facility? 1.2. What is the capacity at the various processes? Process Maceration Filtration Boiling Fermentation Maturation Bottling Capacity (L / hour) 150,000 75,000 150,000 335,714 167,857 212,300 -1- Operational Management – Asaf Bargill, Abhishek Bhattacharya, Gyusub Chung 1.3. Is there a throughput time here? Process Capacity (L / hour) Cycle Time (hours) Maceration Filtration Boiling Fermentation Maturation Bottling 150,000 75,000 150,000 335,714 167,857 212,300 TOTAL 1 2 1 168 336 2.45 1 * 4 batches = 4 2 * 4 batches = 8 1 * 4 batches = 4 168 hours 336 hours 520,000 / 212,300 = 2.45 526.45 (21.93 days) Effective Time (hours) Note: 4 batches of Maceration, filtration and boiling are used to fill up the tank before the next step (fermentation) can start. So the time taken for 1 batch has been multiplied by 4 for 4 batches. Also, we note there is some time taken to fill up the tanks. We know that each fermentation tank takes up 16 hours to fill up but we don’t have similar data about the pre filling tanks so we have ignored this from our calculation. Our calculations can be further optimized if we receive the tank fill up duration for all the processes. 1.4. What are the inventories held in this facility? The raw materials used in the process – Water, Hops, Malt, Yeast are inventory. WIP is also considered inventory which is when the beer is held in the pre...
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...IMSE 4310 – Homework 1 1. Why do you think large systems are often organized and managed as a group of interrelated subsystems as opposed to one large, complete model? What are the implications of this organizational structure for model building? As stated by the Third Law: The Larger the System Scope, the Less Reliable the System. As a system becomes larger understanding its intricacies increases in importance. Without fully understanding each of the sub-systems the whole business may blindly step into huge pit falls. Therefore, it is essential for large system to become a group of smaller interrelated subsystems. In this manner each subsystem will be thoroughly understood by the people in it therefore, become more reliable. However, this can lead to vertical thinking in each sub-system. It is essential that communication be the pineal driver for the overall larger system to function effectively. Each sub-system must communicate frequently and fully with one another to drive forward the business as a whole. Otherwise, it will be a bunch of highly effective sub-systems but an overall poor performing business. 2. You are the manager of a plant. You have a choice of using a heuristic solution to a model that realistically describes most of your operation or an optimal solution to a model that does not include several interactions within the plant that might be important. Discuss the implications of each decision and suggest a course of action. A heuristic model will...
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...UNIT 13 Production Control CONTENTS Unit summary Learning tools The RADAR question The 6-Point Structure Texts 13.1 Prepare production and shipping plans 13.2 Ensure that production keeps to plan – Part One 13.3 Ensure that production keeps to plan – Part Two 13.4 Deal with fluctuations in production 13.5 Plan and maintain inventories 13.6 Inspect finished products, deal with abnormalities and seek continuous improvement Test Relationship with ISO Unit summary Production control is the management of the production processes to ensure that the company produces goods of the quality that the market wants, in the right quantity, and ready for delivery at the right time - and that it continues to improve the efficiency with which it does so. The six texts of this unit present the key actions to take to achieve these goals: 13.1 Prepare production and shipping plans There are three key plans that the production department must prepare in order to have effective production control: a. An annual production plan, based on the sales plan. b. A daily or monthly production plan. c. A shipping plan. The daily or monthly plan is essential to ensure that production follows the annual plan. The shipping plan ensures that products are delivered from the production site to the delivery site on time 13.2 Ensure that production keeps to plan – Part One When the monthly production plan has been agreed, there are several important actions...
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...Production Planning with Load Dependent Lead Times and Sustainability Aspects Institute of Information Systems Department of Business Sciences University of Hamburg In Partial Fulfillment of the Requirements for the Degree of Doktor der Wirtschaftswissenschaften (Dr. rer. pol.) Cumulative Dissertation submitted by Julia Pahl Head of board of examiners: Prof. Dr. Knut Haase First examiner: Prof. Dr. Stefan Voß Second examiner: Prof. Dr. Hartmut Stadtler Date of thesis discussion: 18. May 2012 Contents Table of Contents 1 I Framework of the Thesis 2 1 Production Planning with Load-Dependent Lead Times and Sustainability Aspects 1.1 List of Related Research Articles and Reports . . . . . . . . . . . . . . . . 1.2 Course of Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Conclusions and Research Directions . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 5 7 9 2 Cumulative Doctoral Thesis 2.1 Three Thematically Related Research Articles and Reports . . . . . . . . . 2.2 Co-Authors and Substantial Contribution of Candidate . . . . . . . . . . . 2.3 Publication of Research Articles and Reports . . . . . . . . . . . . . . . . 10 10 11 12 3 Curriculum Vitae 13 II Literature 21 1 Part I Framework of the Thesis 2 Chapter 1 Production Planning with Load-Dependent Lead Times and Sustainability...
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...Theory of Constraints In today’s economic climate, many organizations struggle with declining sales and increasing costs. Some choose to hunker down and weather the storm, hoping for better results in the future. However, layoffs and workforce reductions jeopardize future competitiveness. However, organizations that have implemented the Theory of Constraints (ToC) continue to thrive and grow in difficult times, continuing to achieve real bottom line growth, whether by improving productivity or increased revenues. Since 1985, the Theory of Constraints has been delivering startling tangible results to companies worldwide. An independent study of Theory of Constraints implementations around the world found that huge results were consistently achieved: Lead Times Reduced 69% Cycle Times Reduced 66% Due Date Performance Improved 60% Inventory Levels Reduced 50% Revenue / Throughput Increased 68% This is a system improvement tool, which states that every system has one goal and it is achieved by many linked processes and out of those processes, one process acts like a bottleneck. So, this theory is utilized in order to remove that bottleneck and ultimately achieve higher productivity. Commonly these bottle necks can be easily understood by the example of assembling operation. There are 5 stations; each station has different times for assembling e.g 40 minutes, 50 and 60 minutes. Out of these stations, station with maximum operation time will be considered as bottleneck...
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...Towards the end of the nineteenth century and at the beginning of the twentieth century, philosophers like William James and Henri Bergson came up with theories, which opposed the idea of time as an objective reality. According to them, time is never objective because it always depends on private experience of an individual. They claimed that time, like human consciousness, cannot be seen as linear, moving from one moment to the next, because time in human mind changes constatntly. It moves without any logic or reason from present to past and future. Simply, in our mind past, present and future can be experienced at the same moment. In his theory of duration, Henri Bergson explains that there are two times: private, or internal time, which is the real authentic time, and standard, public or clock time, which is, in fact, a mere social, artificial construct.[1] Modernist writers, such as James Joyce or Virginia Woolf were fascinated by the theories of time, which influenced greatly their works. In Mrs Dalloway, (1925), which may be considered 'the first important work of the literary period initiated by Ulysses'[2], Woolf is concerned with both, public and private time. In Mrs Dalloway, the public, or the clock time, is represented by the striking of Big Ben, the symbol of England and the precise time. The striking of the hours is repeated throughout the novel as a reminder of time, which restricts the lives of the characters, reminding them constantly of the time and...
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...ACCT102 MANAGEMENT ACCOUNTING Heineken & SATA CommHealth 18 November, 2013 AY 2013/2014 Term 01 Prepared for: Dr. Jennifer Koh Prepared by: G8, Group 5 Julius Denarro Roberts Zheng Ming Junious Lim Yi Jun Lim Chee Yang Mohammad Hazwan Bin Mohammad Hanafiah Neo Wei Ler Tristan ! ! ACCT102 Management Accounting G8, Group 5 Executive Summary Introduction of Beer Business Costing Technique Chosen PROCESS COSTING 1 2 2 2 Assumptions Processes of Manufacturing Beer DEPARTMENT ONE: STAGE 1 - MIXING DEPARTMENT ONE: STAGE 2 - BREWING DEPARTMENT TWO: PACKAGING 3 4 4 4 5 Process Costing DETERMINING FIGURES CALCULATING COST PER EU 6 7 8 Cost Reconciliation Recommendations CAPPING & LABELLING BOTTLES & UTILITIES TRANSPORTATION 9 10 10 11 11 Introduction of Outpatient Business Costing Technique Chosen ACTIVITY BASED COSTING (ABC) JUSTIFICATION 12 12 12 12 Assumptions List of Activities and Cost Drivers Traditional Costing COMPARE AND CONTRAST WITH ABC UNDER ABC METHOD UNDER TRADITIONAL COSTING METHOD 13 13 14 14 16 16 Recommendations Conclusion Learning Points Reflections Bibliography Appendix 1 (Heineken) Appendix 2 (SATA CommHealth) 18 20 21 23 24 25 27 ACCT102 Management Accounting ! G8, Group 5 EXECUTIVE SUMMARY ! Our project aims to apply costs concepts in the beer manufacturing and hospital service industry. The companies we will be using for our case studies will be Heineken and SATA...
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