Mantkelow (2014) explains lean manufacturing as based on "finding inefficiencies and removing wasteful steps that don't add value to the end product." Lean operations helps to reduce waste in production by using resources to only produce what the customer is demanding. A company that is using lean operations has measurable throughput. “Every minute that a product is not sold the cost accumulates and the competitive advantage is lost, this is the manufacturing cycle time” (Heizer and Render, 2010) this analysis could have been used to scale down production in the third and fourth quarter when it became obvious there was excess inventory. For starters, there is no value in holding 60 days' worth of inventory, to adopting lean principles would immediately help us to commit to inventory reduction and better alignment between production and demand.
Merck will license the drug as long as the expected payoff is greater than the alternative option of not licensing the drug, i.e. 43.3*P1+(-30)*(1-P1)>0 P1>0.41 Therefore, as long as the probability of success in phase 1 is between 0.41 and 1, the decision to license the drug remains the same. Question 4: When the launching cost is $225M, Merck will still choose license the drug. The new decision tree is updated and shown in Exhibit 2. The expected present value of potential cash flow is $10.76 if the drug is licensed.
There is only a 1.28% chance that b = 0, which is better than the 10 percent level required by the marketing director. d. The exact level of significance of is 0.0927. There is a 9.27% chance that rivals’ spending on advertising does not affect Vanguard’s sales (i.e., b = 0), which is just barely better than the 10 percent level required by the marketing director. e. About 78 percent of the variation in sales remains unexplained. Find additional explanatory variables that have a significant affect on S. The manager might try adding the price of its detergent and the
Six Sigma Project S I X S I G M A D M A I C T Reduce “Dimensional” Rejections Related to Grinding Process on Precision Aerospace Fasteners Son D Tran, Director of QA, AFS - Industry Operations 1 Reduce Dimensional Variation - Define D M A I S I X S I G M A C T DMAIC REVIEW CONTROL DEFINE IMPROVE MEASURE ANALYZE Develop charter Map the process Understand the voice of the customer 2 Reduce Dimensional Variation - Define D M A I S I X S I G M A C T Project Overview : Business Case Internal rejections of Titanium products cause significant scrap, rework and customer returns. This level of rejection has affected our Key Performance Indicators (KPI), customer backlogs, and Quality and Delivery Performance ratings to major OEM (Original Equipment Manufacturer). Reduction of Internal rejections will increase customer satisfaction and improve our KPI. Problem Statement Dimensional rejections related to the Grinding process(es) of Titanium Hi-Lok in Cells 131, 132 and 133 attributed to about 2% rejections of total pieces completedto-store the last seven months (Sep 01- Feb 02). This attributed to monthly scrap loss, plus significant rejections at subsequent processes (i.e., Thread Roll), and increased in rework and customer returns costs.
The restructuring of Auto World will have an impact on their current earnings and the store closures need to be properly disclosed. FASB ASC has specific guidelines that must be followed to report discontinued operations. According to numerous ASCs, Auto World’s closures of the Pit Stop Centers should not be reported as discontinued operations in Auto World’s second quarter financial statements. Rather than being reported as discontinued operations, the Pit Stop Center stores should be considered as continuation of operations. An entity that is classified as disposed or held for sale, under ASC 360-10-45-9, should be reported as discontinued operations, under ASC 205-20-45-3, when the two conditions under ASC 205-20-45-1 are met.
A recent economic downturn has seriously affected the auto industry and your company, as well. Your company has merged with two other brake component companies in an effort to gain production efficiencies and lower unit costs. You are the lead HR person for the new entity. Based on your analysis of the three previous executive compensation approaches, you have decided with board approval to redesign the executive compensation for the new combined organization. Describe the components of an executive compensation plan.
The guidelines and provisions set within the Ford Motor Company’s agreement with the UAW would bind them legally to fulfilling their obligations. The impact the economy would have on the Ford Motor Company was significant labeling the company, the weakest of the three automakers with affiliation to the UAW (Lucas & Furdek, 2010). During this timeframe, the Ford Motor Company would undergo changes which would present obstacles in regards to legality. In terms of downsizing to cut cost, the company would consider laying workers off and employment termination. However, these lay-offs and terminations would need to be upheld with evidence that would support and justify letting an employee go or the Ford Motor Company could potentially experience
Probability Distribution Research Simulation Team A Res/341 February 14, 2012 Melanie Schulte Memorandum To: Aquine Stakeholders From: Team A Date: February 14, 2012 Re: Probability Distribution in Research simulation Aquine has made the decision to purchase additional machinery in an effort to reverse the sudden drop in sales which Aquine believes are due to the strict certification guidelines of the SOCC. Aquine will purchase a new temperature testing unit and upgrade the current timing and poising machine. The new temperature testing unit will simulate the different temperatures under which the watch can be worn and the current poising and timing machines will be upgraded to newer more efficient models. The purchase of the new machinery will provide more rigorous testing of the watches prior to SOCC certification and will focus on the main causes of rejection by the SOCC, minimizing the average 60% of failures. The reasons for the decision to purchases then new machinery is because Aquine believes that investing in quality machinery will ultimately reduce the number of defective products being returned as inadequate by the SOCC resulting in a better quality watch with a higher potential for return.
SUMMARY In this case, I will be providing a cost analysis of a replacement valve for Mr. Fingold, a supply management supervisor at Frich Turbo Engine Company, to determine if the prices being charged by the suppliers are fair and reasonable. First, I will exam the cost breakdown submitted by Bayfleet Machining and Union Stamping. I found the fact might have caused variance between Bayfleet Machining and Mr. Fingold’s estimation is subcontracting. It decreases the manufacturing overhead. Also, a low profit margin decreases the price they proposed.
Be sure to check with multiple lenders before deciding on one. Find out all the particulars of every loan and lender you look into as well. You want to choose a loan that will not only pay off your existing bad loan, but help improve your financial situation as well. Whether this means a better interest rate, lower payments, or a different loan term, make sure you can manage the refinanced loan before agreeing to it. Sell The Car Another, less desirable way to get rid of a bad car loan is to sell your car at a loss.