Computer-Based Training: Article Questions

The week four individual paper addresses the implementation of Activity Based Costing (ABC) by Super Bakery, Inc., a virtual corporation founded by Franco Harris. Specifically, management strategies, the reasoning behind an ABC system, and the alternatives of a job order cost system or a process order cost system are assessed for this enterprise.

The week four individual paper addresses the implementation of Activity Based Costing (ABC) by Super Bakery, Inc., a virtual corporation founded by Franco Harris. Specifically, management strategies, the reasoning behind an ABC system, and the alternatives of a job order cost system or a process order cost system are assessed for this enterprise.

How would you, as a manager, implement the PDS from Lincoln Electric into a retail business such as in case 19, the stockroom?

One of the best aspects of the way the time-driven ABC system was put into place at Kemps was how efficiently and accurately management determined the main issues with the current cost system and responded with appropriate and relevant solutions. For example, one of the greatest problems the company was facing was that many of its operating costs were spread out equally over a customer base that was growing more diverse and demanding more personalized and varied service, effectively cutting or potentially eliminating entirely Kemps’ profit margins for a product. Therefore,

Computer-based instruction, or CBI, is widely used to deliver content to learners of all ages. Although this form of instructional delivery has become nearly ubiquitous, levels of effectiveness of CBI vary, particularly when considering computer-based instruction for adults. In 2005, researchers Janis Lowe and Elwood Holton, III developed a theory regarding the elements necessary for an effective CBI experience with adult learners and then drew five conclusions based on their investigation. Lowe and Holton (2005) acknowledged a need for both external support and instructional support if an adult learner’s CBI experience will be deemed positive. Of their five conclusions, this one was of particular interest to me based on the different computer-based instruction experiences I have had.

Learning is a process that is influenced significantly by the combination and interactions of three main areas of influence: agent, activity and world. A number of writers have used other descriptions for these influencing factors. In the succeeding discussion of computer-based learning environments, we have found it useful to describe learning using a framework of three mutually constitutive elements based on these factors which represent the actions and activities of the different elements in the learning process: the learner, the teacher and the learning materials [Herrington & Oliver, 1996].

The biggest of those challenges concerns the danger of losing the existing OCS business due to a possible disruption of the unique distribution channels that the company relies on for OCS. The management also has to decide on the appropriate pricing scheme for its new brewer, which is further complicated by the proprietary nature of the coffee cup (aka

What is your evaluation of the Total Supply Chain Cost (TSCC) program developed by Owens & Minor and Virginia Mason?

With this system each customer’s order cost the same amount to complete causing orders with high profit limits to subsidized orders with low profit limits making it difficult for Super Bakery to know the true cost for an order. The company changed to the activity-based costing (ABC) system allowing the managers the ability to recognize the cost and profit margins for each sale. The ABC system associates the costs with the activities allowing managers the opportunity to access a system that allocates overhead costs that uses multiple bases. Costs can be traced back to each individual’s account regardless of the product provider letting managers know which products are profitable and which ones are not. The traditional costing system allocates cost to departments or jobs instead of overhead cost pools. The traditional costing system makes it difficult to know which activity or product is making a profit.

The new (JITD) system needs to be addressed in a manner that all departments can understand the importance of implementing such a program and how it will benefit the overall success of the supply chain. Overcoming Resistance at Barilla SpA Before trying to convince the distributors, one has to convince everyone at Barilla that the JITD system will be a success. If everyone within the company is convinced and they provide a single front to the distributors, Barilla has a better chance of convincing the distributors. Some of the steps that Barilla will have to take in this situation are: * Convince and use the Upper Level Management: if they are convinced of its feasibility, they will offer full support in trying to convince the Sales department. It will make a lot of difference if the Upper management talks to the Sales people than if just their Logistics department talks to them. * Involve the Sales Department in all stages: To make the Sales people feel important and wanted, Barilla should involve them in all stages of the JITD proposal. They should be made to feel that they would have lots to do even after the system comes into effect. * New Compensation System: The Sales department should be informed that they would still be rewarded for good performance, except that in this case it was the performance of the entire company as a whole and not just they individually. The new system would award a percentage of Barilla’s profits to the

It consists of weighting and combining the weights of the ten factors and to evaluate implementing ABC. The potential benefits of ABC can be analyzed in advance along two separate dimensions. And there are ten mediating factors (Pricing Diversity, Support Diversity, Common Processes, Cost Allocation, Growth of Indirect Costs, Pricing Freedom, Fixed Expense Ratio, Strategic Considerations, Cost Reduction Effort, Analysis Frequency) can guide management in determining the answers. The fist five factors (PD, SD, CP, CA, FG) based on the probability. The second dimension of the model seeks to establish decisions. lY axis potential for ABC due to cost distortion---PD.SD.CP.CA.FG lX axis proclivity to use cost information in decision---PF.FE.SC.CR.AF To start management must analyze and responses to two key questions: 1. For a given organization, is it likely that ABC will produce costs that are significantly different from those that are generated with conventional accounting, and does it seem likely that those costs will be "better"? 2. If information that is considered "better" is generated by the system, will the new information change the dependent decisions made by the management? After finish these questions managers of company can discuses the ten factors that support or reject implementation. Finally, the combined weighted scores are plotted as a point on one of the four quadrants of a graph.Plotting the Answers--- Use Contingency Grid Method The steps in the

The ABC system will help management analyse the profitability of each customer and restore the profitability of the company. Allied needs to offer benefits such as modified compensation plan focused on growing customer revenue and profitability to help encourage sales behaviour. TFC is able to significantly improve profits by concentrating on individual account management which SBP is capable of by identifying service costs and calculate the contribution for each account and then rank the accounts according to profitable ones. TFC should charge its customers based on their service usage by using cost plus pricing. The customers would be charged based on the cost of product plus service charge based on SBP systems plus a mark-up so that it will be fair to customers that have the same sales but different level of service.

Upon analysis, it came to the fore that the current system had some obvious drawbacks which motivated the need for a new system. Under the old system, it was assumed that all customer orders placed the same demand on the resources of Kanthal. This was not accurate as customers differed by: the level of technical and commercial service they required, whether they demanded standard or non-standard products and by their ability to forecast their demand. Because of these discrepancies, under the old cost system an order which placed fewer demands on Kanthal's resources would be overcosted and appear to be unprofitable or less profitable than it was. This order would represent a hidden profit. Whereas, an order which placed a disproportionately large burden on the company's resources would appear to be more profitable than it was. This was a hidden loss order. Due to these hidden loss situations, many of Kanthal's resources were employed towards unprofitable products and customers.

Technology provides many benefits to the retail industry and its managers; it also has drawbacks. Implementing new technologies presents learning curves for managers, staff, and team members and introduces new areas of risk (Davis, 2007). Some team members can be resistant to changes causing retailers to lose time

However, the benefits seem to outweigh these initial costs. B&B would be in a position to handle more volume and could make far better use of their existing resources. Orders would have a better chance of being completed on time and the elimination of waste would allow for more competitive quotes. Ultimately, this would put B&B in a more competitive position to win business and become more profitable.