Central Issues
When looking at the Donner Company in 1987, there are some initial concerns. The company as a whole does not have a true sense of how long it takes them to do what they do, and their process flow table is made up of "guesstimates", as throughput time at individual processes have not been formally taken. The company appears to be operating below capacity based on their need to rework their products often, find things for people to do, and meet deadlines that are based on fuzzy estimates, which only adds to the chaos. In short, there are three main issues facing the Donner Co.:
iming and delivery discrepancies
Lack of quality control
Need for labor utilization improvements
The addition of a new building in
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Quality Control Errors & Missed Processes
The highest of standards demanded should be set, and an additional inspection area should be added behind the most sensitive portion of the process, the Dry Film Photoresist(DFPR). This would allow items to be caught before the entire process has been completed. Additionally, upgrades in the air filtration systems of the company, and the amount of time spent cleaning the machines would likely aid in the reduction of production errors, such as the reported nicks and scratches found on reworked and returned items. Processes that run the potential of contaminating each other could also be further separated through the addition of barriers. For example, the tin striping process, which utilizes special corrosive chemicals, has the potential to contaminate the boards and should be performed in a separate room (see Exhibit XX) so that the air within that area is kept localized and filtered, and the corrosive materials in the air are removed.
Labor Utilization Improvements
The labor utilization rate is currently at 15.78%Q7 and could be improved dramatically by reassigning people to the various tasks mentioned in the examples above. Additionally, the lower cycle times would improve utilization, but a closer look at the overall process might indicate that not as many people are needed to work at any particular time. We question the need for 22 employees and feel that with a better understanding
Based on the 3 types of quality costs that have been discussed and reviewed above, I recommend that we look at doing more appraisals and inspections during the manufacturing process, this will limit the number of design changes that happen early in the process but it should help in cutting down our external failure costs and help limit
Each of Janet’s approaches offers advantages and disadvantages. If cost is the principal criterion, all three plans can be improved. For example, rather than paying overtime wages to permanent employees during the busiest months, Janet could hire “temporary” workers (who will work for at most a few months but earn regular wages and
Beginning in 1990, the “Danish Clog” was brought to life in the United States. It began as a small company selling the shoes at horse shows but quickly grew larger than was imagined. Expansion of the product went from a single closed back clog to over 3000 products being sold in over 3,500 retail locations. During the past fifteen years there have been many offers to sell interest in the company. You are now becoming concerned that the company that was such as success all of these years may not be structured appropriately to promote further growth. You are now faced with a decision on how to can move forward. Should you consider a merger that will allow growth and a more conventional way of operations?
Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items available through a special order program. Lowe’s provides a onetime stop for all home improvement needs, for both the Do-It-Yourselfer, and the ever-expanding market of the Commercial Business Customer.
This is the method to solve the problem at the end result. This will help company get rid of employees who have an unethical attitude. Keeping these people will have negative influence for company in the future as occurring now. In addition, company might lose the most talented person in company as a disadvantage.
Brita was founded in 1966 by Heinz Hankammer. A German company that specializes in water filtration products. The Clorox Company here in the United States entered into a licensing-and-distribution agreement with Brita in 1988 and soon after acquired the sole rights to the brand in North America but in 2008, Brita returned to the North American market under the brand Mavea. Brita’s products include water jugs, tap attachments and kettles. Brita’s main headquarters are located in Taunusstein, Germany and other than in Germany, the company has major production facilities are in Switzerland and the United Kingdom. Brita’s products are distributed worldwide, reaching more than 60 countries and are sales partners in more than 45 countries. The filtering mechanism that makes Brita’s products so effective is their silver-impregnated activated carbon and ion-exchange resin disposable filters. That means that the filters have a double action force that first the carbon removes substances that may impair taste (chlorine and chlorine compounds) and then the ion exchange resin is used to reduce the carbonate hardness (limescale) found in tap water. This reduces metals that can be found in tap water such as copper and lead.
On January 13, 1986 Dozier Industries, an American based firm, received notice that a bid on a project in the United Kingdom had been accepted. The project was to bring in £1,175,000 in revenue. Therefore, the revenue received for this project will need to be transferred into US dollars. When Dozier issued the bid on December 3, 1985 the project the exchange rate was $1.4820/£. This rate would have provided Dozier with the desired 6% profit on the project. On January 13, the day the bid was accepted, the exchange rate had changed to $1.4480/£. On January 14 the rate had change again to $1.4370/£. This inflation in the dollar to the British pound has severe implications for the profit potential on this
Harnischfeger’s corporate recovery plan was a four pronged approach that involved (1) changes in top management, (2) cost reductions to lower the break-even point, (3) reorientation of the company’s business and (4) debt restructuring and recapitalization. These changes at first glance appear to have allowed Harnischfeger to improve its financial performance from a net loss of $3.49 per share in 1983 to a net gain of $1.28 per share in 1984. In addition, Harnischfeger has appeared to have achieved a majority of its desired outcomes from each of its four changes as shown below.
Sears began as a small retailer but as the years have gone by, they have become
Columbia Plastics division of Fraser Company, the major manufacturer of skylights in the Pacific Northwest, is facing a severe competition from Vancouver Light which has just announced a further price cut of 10%. Alice Howell, president of the Columbia Plastics is unsure of which options to implement – 1) cut the prices at a level that just cover the costs, or 2) continue the current pricing policy and lose market leadership. Fraser is facing the erosion of its market share.
The accounts receivable from artists is significantly higher than last year. With 165 artists charged $40 per month, you only have about $6,600 in revenue monthly. However, your accounts receivable from artists is $15,000. This represents more than two months of website revenue. Your revenues doubled by raising the price which has resulted in quadruple the amount of receivables. This leads us to believe that some of these receivables may be uncollectable. According to GAAP, a loss must be recognized when the
Process Flow - One of Donner's major problems lies in their process flow. There are many bottlenecks and employee downtime which arise from poor process flow setup and unforeseen problems.
There are several weaknesses in the process that Carter used for decision making. Perhaps the most severe of them all was the lack of sight with respect to the strategy of the Webster Industries. The financials for the company clearly show that by October 1975 the company was probably recovering from the downturn. If that was indeed the case, Carter should requested an adjustment to the anchoring bias of 15% downsizing target and examined the list of criteria that Stevens’ laid out in the light of sustained growth. Healthy growth requires people who are competent in their current job as well as people with potential. Consequently the group should have
The company analyzed that the way their products were designed using the cradle-to-grave process released toxic material
However, this move is not always a wise one because when an enterprise has fewer workers it would reduce its productivity which would mean more