Kenco Essay

529 Words3 Pages
1) 2) 3) 4) How do Kenco’s manufacturing and reporting systems support its key success factors of product quality, on time delivery, and cost? Kenco events weekly production job meeting to rank all the jobs for the week by profitability, so the least profitable jobs will be analyzed in detailed. Kenco aims to suppliers who could meet restrict price, material specification, and deliver requirement. Base on this plan, Kenco will receive 15% discount on material price if they can guarantee the sale. And the steel deliveries are in a three-day window. Moreover, Kenco implements the cycle counting where 100 items making up 80% of the sales volume are counted every four weeks. What is left in inventory in 12 months is discounted to sell or scrapped. 5) Describe Kenco’s CI system and compare this process change using traditional budgeting Kenco CI system is following four steps: _ Activities for improvement must be selected _ Root causes for the activities performance as it exists must be determined _Modifications must be discovered and implemented _The impact of the change must be assessed. Traditional budgeting always plans and setting a budget for revenues and expenses, and it only focuses on short-term but not planning on long-term vision. Traditional budget doesn’t record all of the accounts, so if problems happened, it is difficult to trace the causes 6) How could cost-plus pricing change continuous improvement at Kenco? Compare and explain fully the strategic and operation implication of cost-plus pricing versus Kenco’s existing pricing approach. Cost plus pricing is a method to calculate the price base on cost of production a product and add a percentage to that price to have the selling price. If Cost plus pricing method is implemented on Kenco, it will not support the continuous improvement plan. Basically, cost plus will

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