Epd Case Study

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

JJ has complained on behalf of the performance measurement system because currently his bonus is based off of production cost being less than 43 percent of sales. JJ believes that the production facility is operating as efficiently as, if not better, than it has before the expansion. Due to this performance measurement JJ’s ownership when from 25 percent to 8 percent and he is losing bonuses and annual dividends.

As noted, brokers and innovators are the leadership roles associated with this model. The role of the broker is to build and maintain a power base, negotiate agreements, and present ideas. The innovators role is to be creative, initiate change, and sustain new ideas and changes. In this case, Langley exemplified leadership roles by single handily changing the mentality of the department soon after he took the position. Although this was a much-needed change for the departments personal, he did not show innovative characteristics by failing to create change regarding the production of tubes. Major change is needed in the process of the tube production. It has been noted by Harold Singer, “ The products and process here now are what they’ve traditionally been from almost the start”. This indicates that Langley needs to innovate and create new tactics and processes for the tube assembly. This would help American Radiotronics Corporation reach its goal of making the department a model show play for the company. Langley’s ability to quickly change the mentality is proof that he has innovative managerial skills. He must keep using these skills to help develop the department.

A typical Gross profit margin depending on the industry may be 25 to 30%. Nucor’s Gross profit margin ratio indicates that industry is intense and cost of goods is one of the main of factor in profitability. After examining the five year

Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.

For this report there were 2 managers interviewed for this topic, Scot Carpenter Director of System Engineering at Teledyne controls and Masood Hassan, Vice President and General Manager of Teledyne Controls. Scot was brought in as the director of System engineering on May of 2016 to oversee the System Engineering group and to handle change for a couple items within the group, mainly the restructuring of the group from 2 functional managers to a 6 distinct groups within the group. Scot has worked with the company as Program Managers which has required him to oversee program with multiple groups while working with individual employees to ensure the success of his product lines. Masood has been with the company for over 20 years and has been the Vice President for more than 15 years. In that time frame he has to work through down turn in the aviation do to the events on 9/11 and other events. He has made changes to the structure of the company, creating System Engineering group, deciding the correct course of action to bring products to production and other aspects of running a company with 500 or more employees.

While it is true that Ms. Forthright had always exceeded her budgeted sales, the extent to which she diverts away from the managers projections does not necessarily means that she is violating honesty and integrity. Her decision on what her budgeted sales for the year is highly relevant to the data available to her. Her projections tends to lie between the field manager and the marketing manager’s predictions, which can be reasonable because in the past years, the field manager’s projections tend to be over what the actual sales of the year will be.

Within the case, The Carbondale Clinic, it is apparent that a scheduling problem exists which has then resulted in patients being unsatisfied with the amount of time they must wait to be seen for his or her scheduled appointment with the physician. It is also evident that physicians prefer to have a full schedule without taking into consideration the possibility of emergencies that may arise throughout the day that will contribute to patients having to wait even longer. It is pertinent that the manager sits down with the staff to determine what is the most logical solution to help resolve the scheduling problem, taking into consideration what the physicians want along with ensuring patient satisfaction.

In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the

Gadsden is located in the northeastern corner of Alabama and is the county seat of Etowah County. It is 60 miles

Return on assets has declined from 19 % to 14 % in six years. The decreasing efficiency is mainly attributed to international operations. High employee satisfaction scores, both domestically and internationally, indicates a highly motivated work force. Turnover rate of 25 % is pointing in a different direction. Training and internal recruitment provides good environment for learning, innovation and growth.

1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12,500 units per month. Pumps currently have the lowest gross margin among all products, because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with Wilkersons cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Our conclusion is, that they should not adopt

Operating profit margin figures in the table above show the return from net sales[13]. However profit margin ratios are high enough for the 3 years, there is a fall from 12.86% to 11.26% during 2011-12. Sales revenue increases with a higher rate than gross profit so there is a poor

Another important change after the organizational transition was the establishment of many Temporary and Permanent Cross-unit Groups. These groups include:

OD – Organizational Development is clearly the main focus here at DuPont. Tom had a vision to improve the organizational standards at DuPont not focusing on any problems that may have been present. The projected outcome for DuPont’s organizational structure was improving for the better of the company and the employees. Tom wanted to development to increase productivity for the company and its employees which would allow to company to be in a better stable place in the near future. Tom was building a strong foundation for the company which would benefit everyone involved. Tom