Lean is a methodology, a philosophy and a strategy. Lean is a different way of looking at production in today’s economic times and requires a decision making system that supports this. Standard cost accounting presents a problem for lean companies. Orry Fiume, one of the pioneers in Lean, in his article on Lean Accounting and finance states, “…in order to successfully implement Lean, everything the company does has to support it, and whatever doesn't has to be changed. Thus, product development processes, sales terms and marketing programs, human resource policies and procedures, and accounting systems have to be examined in order to insure that they do not contain elements that contradict the Lean strategy” (Fiume, 2002).
In supply chain management, strategic capacity planning controls the demand of new opportunities at minimal cost (Chase, Jacobs, and Aquilano, 2006). Strategic capacity planning is essential in establishing the permanent capacity capability a business needs to maintain or improve its market share. Poorly planned capacity needs can help the competition, costing the business customers (Chase, Jacobs, and Aquilano, 2006). Performing a break-even analysis would assist Riordan in calculating the proper capacity needs of their
Understanding the concepts and principles of microeconomics and macroeconomic and how they affect supply, demand, and equilibrium are necessary for the health of any business. Microeconomics focuses on supply and demand, and using data from supply and demand curves can help a business look for ways to decrease pricing, which would increase production, and keep the business competitive. Macroeconomics focuses on the economy as one; using national inflation data and aggregate income data can help a business keep costs down which will keep consumer prices down, all the while keeping production
Develop and document, on behalf of an organisation for which you do or might work, a detailed process whereby it will be possible to investigate, identify, assess, and include the needs of customers in planning processes. Activity 1.docx How can quality, time and cost requirements be balanced? It's all about the expectations of the customer and what they intend on using it for. If they pay a premium price for a product then they expect it to be of premium quality and a quick turnaround. If the product is of low value, then the quality expectation isn't so great.
Both strategies failed, therefore it is necessary to analyze what were their mistakes. • Core Competencies: Trexel has the know-how to development of different product better than its competitors (lower production cost), so it is necessary to consider the cost savings of the different alternatives. • Competitive Advantage: Because of Trexel has the know-how to produce high-quality products at low production cost, they are better positioned that its competitors. Also Trexel have protected their intellectual property through patents, which allow maintaining a sustainable competitive advantage in the time. For these reasons, it is necessary to analyze the competitive advantage of the different options presented.
They make their own prices, which would in most cases be more of a benefit to the producer. Both structures make it very difficult for others to enter the industry, limiting and sometimes blocking entry and competition. Industrial Regulation seeks to prevent unfair practices of restricting market entry, opening markets up for competition. Ideally, prices with regulate themselves in a fair competition, preventing one or a few companies from setting the prices that would be deemed as inappropriate. It also works to prevent the practices of unfair pricing and charging higher prices to consumers while the companies produce less product, limiting choices for consumers.
These types of conditions keep firms from monopolizing the market. The final regulation ensures awareness of organizational goals which provides insight regarding how organizations will react to different price levels. Regulations for the perfect competitive market directly correlate supply to marginal cost methods. Without these regulations for the competitive market the formal concept for supply will be obsolete. Insights from the
• The cost for each transportation • The actual usage of the raw material. • The labor costs (remuneration) This is because the primary role of a value stream map is to reduce wastage of resources. For this to happen then individual costs should be looked at. Question #2 • Where is there risk for supply chain disruptions
Q2 What cost savings do you predict from the Charlotte Pilot? The centralization pilot program has advantages over the usual decentralized structure in terms of saving cost. In declining economic environment and increased competition, centralization has the potential to reduce the dormant staff especially the multiple credit managers who are allocated the same branch office. In addition, centralization will ensure that Ferguson rides on the informal performance ranking. Duplication of duties occasioned by decentralization consumes much of Ferguson revenue and thus the intended centralization will eliminate this weakness.
2. I would recommend working closely to address the problematic trend with the seats on two fronts: the quality control with KFS and the discovery of the reason for the differences between the first and second shift. The recommended actions related to KFS would be on incoming inspection. It is unclear if the material flaws are directly related to the manufacturing process at KFS, the transport, or the transfer process into the TMS line. This can be easily