Using efficiently of balancing the lines in assembling process also helped Toshiba ends up increasing productivity and lower costs, at the meantime caused introduction of new models. Toshiba enacted the strategy through below changes: a) Rebalancing lines, Toshiba reorganized the working areas and trained assemblers to handle different tasks at stations, which lead to shortening the assembly lines and caused reduction of labor required per unit. b) The assembly lines were organized to promote specialization while retaining flexibility. In four assembly lines, one was an overflow line. This line was available any time to help other lines especially while there is an increase in demand for the products.
Cost savings can be computerized accounting programs reduce staff time doing accounts and reduce audit expenses as records are neat, up-to-date and accurate. This system allows them to record business transactions accurately and generate financial reports quickly for management review. However if Rumble carry less transactions this means they won’t need to have computerised accounting system because it is very expensive for them to use. In this case it is best for them to have manual accounting system because it is reliable, cheap and easy to use. They can easily do their transaction without problems.
Truckload volumes would be more easily gathered to and from distribution centers, lowering transfer and customer freight costs. However, the effect of using third party warehousing and transportation on transfer and customer freight costs is less obvious. 2- What impact would warehouse consolidation have on inventory carrying costs, customer service levels and order fill rate? Inventory carrying Costs would be reduced with better utilization of facilities and less duplication of effort. The company operates two warehouses in Newark, NJ and Los Angeles, CA.
Meanwhile, as OEMs tend to primarily outsource ‘commodity technology’, EMSs and ODMs are increasingly competing for the same client base. b. Low switching cost for OEMs. OEMs often contract manufacturing partnerships among many other ODMs. The switch is easy and cost-efficient.
Defining the Issues: Ruth Chris was offered as a newly public organization (IPO) back in 2006 and needed to develop a new business strategy focused on continued growth local and or international. Current stores were seeing consistent revenue growth but the stakeholders needed to see business exposure on the international level for increased revenue. Ruth Chris was challenged with Wall Street expectations for revenue growth and the direction of which it will take next. Foreign expansion plans were identified in Ruth’s Chris senior management team which created interest in international opportunities. Ruth Chris had the following issues on hand; First, Dan Hannah had to decide which countries offer the greatest growth potential with the least risk.
Controls need to be in place to prevent fraud and error from occurring. The number of vendors a company purchases goods or supplies from should be limited. Repeat purchases from the same vendors and suppliers will provide routine transactions that are much easier to track and will provide a faster cycle time. Using the same vendors will provide familiarity of the company to the vendor allowing more accurate quantity. When the vendor is familiar with the needs of the company it will reduce fraud and the number of transactions, which will make purchasing goods easier to track.
Agreeing to the terms and not going for a hostile take over will also allow Nestle to maintain positive relations with the Rowntree management and the government. This will help a smoother integration of business once a takeover of business is completed. Integrating the new business will be a challenge for Nestle. Nestle will have to restructure some of its operations and how the organization is structured. It is a costly and time-consuming process.
ABC Chemical Company Goes Global* Driven by competitive pressures, and the attractiveness of the industry’s fastest growing market in the world, a U.S.-based chemical manufacturer, ABC Chemical Company (name changed to maintain confidentiality) considered expansion into Asia, specifically, China. William Smith is the International Marketing manager for ABC Chemical Company. William has been tasked with expanding ABC’s manufacturing and distribution to the Asia Pacific region. Many changes in the powder coating industry have forced ABC to reconsider its their global strategy. To date, they have exclusively manufactured and exported from the Americas.
Do you think Altera’s new strategy will be successful? What are some advantages and disadvantages of the new strategy? Yes, I think their new strategy will be successful, because their new strategy offsets some of the risk associated with carrying too much inventory, since they only build finished products to customer orders and build die banks to stock. The intent of this strategy was to improve visibility into customer information, inventories and build plans, facilitate product development collaboration, and improve Altera’s inventory management. This allows them to reduce safety stock levels and inventory holding costs as well.
It also empowers and allows them to improve their performance by being able to act to improve deficient or inefficient areas immediately without approval from the top of the organization. In other words, it helps in motivating the managers to act in an entrepreneurial way, and gives them the freedom to order or stock the products that suits the need of local and regional customers. Inventory management system is also better at the bottom level. (b) Centralizing – The centralized organization structure which lead to the success of home depot, helps to consolidate power and decision making abilities at the top of the organization chart. It helps to coordinate the employees, streamline and centralize activities so that the organization is stable and is helpful for companies which are facing a crisis/problem.