The automotive component & Fabrication Plant, ACF, was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive industry. All of the ACF’s production was sold to the Big-Three domestic automobile manufactures. Its main competitors were local suppliers and other Bridgeton plants. This company did very well but recently it became less effective when foreign competition and scarce, expensive gasoline caused domestic loss of market share. For boost its selling, it made four criteria, quality, customer service, technical capability, and competitive cost position to evaluate three classifications of products. Question 1 According to Exhibit 2, Model Year Budgets for the ACF, we can know the …show more content…
Therefore, we can guess why direct labor costs and material costs went down faster than overhead. Question 3 | Production 1 | Production 2 | | 1988 | 1989 | 1988 | 1989 | Expected selling price | 62 | 62 | 54 | 54 | Standard material cost | 16 | 16 | 27 | 27 | Standard labor cost | 6 | 6 | 3 | 3 | Overhead allocation rate(OAR) | 434% | 577% | 434% | 577% | Overhead(OAR*DLC) | 26.04 | 34.62 | 13.02 | 17.31 | Gross margin per unit | 13.96 | 5.38 | 10.98 | 6.69 | Gross margin/Sales | 22.5% | 8.7% | 20.3% | 12.4% | Question 4 In my opinion, the four criteria, quality, customer service, technical capability, and competitive cost position, are very appropriate to classify its products because this company considered most all of aspect of products to catalog and classify and this way can help this company to find out which type product should use which method to reduce its costs. Question 5 Model 1: the criterion is no additional products are dropped. So, we can assume no additional products will be dropped in 1991 from 1990. The change in overhead allocation rate from 1990 to 1991 will be similar to the change from 1987 to 1988. The differences in 1987 to 1988 are fairly not important. If we assume that change in overhead from 1990 to 1991 will also be omitted because the product line has not changed; therefore, the 1991 overhead allocation rate will be the same as the 1990 overhead allocation rate of 563%. Model 2: the
In the case “Metalcraft Supplier Scorecard”, the author uses an example of a decision-making problem regarding to which supplier should Metalcraft choose to lead to the topic of the Metalcraft supplier scorecard. Metalcraft, as a component designer and manufacturer, supplies a few largest automobile manufacturers with vehicle parts all over the world. As one of the tier 1 suppliers, Metalcraft offers and ships finished parts and components using in the automobile production process to automakers.
The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and
The automotive industry is one of the most competitive industry in the world. Amongst many companies in the industry, Ford Motor is one of the oldest car manufacturer and Toyota Motor is the leading and the largest player in the industry (MarketLine, 2011). This essay will discuss how Toyota Motor and Ford Motor create value for their customer.
The largest floor covering product is carpet and rugs followed by ceramic tile, vinyl, hardwood, stone, laminate and rubber floorings.
Farmington Industries is a small, publicly traded U.S.-based corporation, which produces programmable control instruments. With high interests in Mexico, the company has expanded to four Mexican-related businesses, which are listed below along with their specific function:
However, as a new member with a new product, electronic product in North American market, the reputation is also an important attribute. Especially, quick delivery time is a key attribute for this company, due to the demand of quick delivery in all markets. Moreover, the manufacturing process of the new product, electronic product, on which our company will definitely focus, has a lot demands. Such as, technology, innovation and quick delivery time even the ability to make the product be the first one appearing in the market (other company, which is developing the same product, may become our competitive opponents). Especially, technology is predicted to play the most important role in the manufacturing process. On the other hand, the traditional cost system has a lot of limitations. Traditional costing system focuses on the cost reduction and the efficiency, particular the products with relatively few standardized components; Clifton, however, produces a wide range of airplane components. In addition, nonfinancial aspects of
Daily life was hard for peasants in the 1500’s. Farmers woke up at three o’clock in the morning to harness the oxen and maids retrieved the fresh morning's milk. The porridge and bread was ready at four o’clock and children were out the door ready for school at six o’clock. City folks slept in late and then prepared for the day's trade and work. Shopkeepers opened their shops for the day’s trade and beggars stationed themselves at the highway (Ashby 61-62). Queen Elizabeth and the citizens of England worked very hard to maintain the country. Industry produced many goods for England. Farmers provided food, guilds provided salesmen and workers and trade provided clothes and necessities to the people of England. Industry reformed the way that humans worked and lived in the old world as people’s lives evolved with the new changes. Industry was the concrete foundation in the Elizabethan
The purpose of the report is how good BlackBerry run in the radio and television broadcasting and wireless communications equipment manufacturing industry in Canada in terms of revenues, market share, and the corporation’s Strength and weakness. Also, the report will analyze the BlackBerry’s three corresponding competitors’ market share in the hope of predicting the firm’s future performance.
Companies can differentiate their product from competing products by using the product classification system. This will allow them to see exactly where their product is at regarding the competition and from there are able to work our any issues or make changes to enhance their products and surpass the competition.
3 Classes of Optimization Problems Unconstrained Optimization Interior Solution Boundary Solution How to solve unconstrained optimization problems Concave and convex functions
This case study emphasizes GM’s Gravatai plant and the Brazilian Auto Industry to sell cars that were made-to-order for customers and connect assembly line and the internet-based sales system. Its purpose is to help bring a revolution to the automotive industry and the establishment of a new production model.
The automobile supply chain needs an efficient supplier, a powerful production line, and distribution network along. The quality and delivery of supplies is a critical part of supply chains and the suppliers needs to be evaluated properly before selection. It’s important for the sourcing mechanisms to fulfil the requirements of the firm.
This report covers marketing and management issues of car start-up Diamond’s. The first section concerns micro and macro environmental factors, which can influence the business in automotive industry. There are also mentioned some opportunities and threats. In section B are defined company goals for three years and organisational structure. Section C discuses an appropriate model of management to achieve the goals. In the last section is described segmentation, targeting and positioning and characterized the
This work is done to study the improvement of the quality in automobile industry. This chapter consists three sections named as “Problem definition”, “Objectives” and “Methodology of the study” respectively. The section 3.1 named as “Problem definition” describes the challenge or difficulty that is to be solved. The solution may be achieved after fulfilling the objective by using some sub-objectives that are described in section 3.2 named as “Objectives”. The methodology described in section 3.3 in details. This methodology has been devised keeping in mind the view of “Problem definition” and the “Objectives” that are suggested for the fulfilment of the solution for the problem.
The requirements will lead to change the profile of the company even all the automotive industry has thin or less profits due to over capacity of the problem the industries provide integrated system, operate globally raise quality manage warranty costs and engage in replacement of market.