Kemps Llc: Introducing Time-Driven Abc

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Kemps LLC: Introducing Time-Driven ABC Question 1 I like about the Kemps that Wessanen's sale early 2001, of Crowley and Kemps to NDH delayed the decision on an ABC project, In 2001, Green and Thorpe decided to go ahead with a pilot ABC study, they selected the Northern Division for the pilot. Bob Hakes was experiencing firsthand the pricing pressures from retail consolidation, the demands from large retail customers for more transparent pricing that reflected specific costs to serve, and the escalation in his manufacturing and distribution complexity from private-label accounts, which had grown from near zero to 40% of sales. They are very smart choose to use the ABC model, this must be the easy and clear cost system, and shows the detail about the cost that can control the cost. They have courage to do new things and reform the old model, not everyone have courage to reform the company. I didn't find what I less like, but I think they can develop this model or be more familiar with the ABC concept will be better, but it is about 10 years ago, their cost system maybe more mature and useful. Question 2 Kemps managers developed its time-driven approach with steel and food distribution companies. Kemps would be one of the first manufacturing applications for the new approach. The time-driven relying on interviews and surveys of employees. ABC project, employees had to estimate how they distributed their time among the various activities they performed. Kemps senior management wanted to assign each month's operation expenses to the products and orders processed for customers. Question3 How should Kemps deal with the customer decisions described on page 8 of the case? a. Kemps should places on the concepts of customer centricity, responsible selling, customer support, product quality, and innovation will set in stone the character of the organization. The

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