Motorola Inc Case Study

The JIT approach to manufacturing involves timing the delivery of resources so that they arrive just when needed. Inventory optimization models help the firm determine how many of which items in which sizes should be delivered to each specific store during twice-weekly shipments, ensuring that each store is stocked with just what it needs. Trucks serve destinations that can be reached

In this assignment, I will summary the analysis done for the Bob Galvin and Motorola, Inc. case of study. This analysis includes the history of the company, arising problems, cause and effects, and alternative solutions that lead the Motorola organization to succeed through cultural and structural changes. This study argument out the organizational systems affected such as: operational, psychosocial, practical, decision-making, goals and moral values. The analysis will show how the cultural and structural changes affected the organization. Discussion will recommend alternative solutions and implementation plans.

Lastly, the just-in-time (JIT) approach is an operating philosophy that requires that all resources, including materials, personnel, and facilities, be acquired and used only as needed (Mazumder, 2007). The JIT approach works great for manufacturing companies because of their common classes of material that they use which are raw materials, work-in-process, and finished goods (Mazumber, 2007). According to JIT concept raw materials are received just in time to go into production, manufactured parts are completed just in time to be assembled into products, and products are completed just in time to be shipped to customers (Mazumber, 2007). The

Using ABC also allows the company to use the Just in Time (JIT) system. This system allows ensures materials are purchased just in time to produce the products, and products are completed just in time for delivery. JIT uses the demand-pull system to receive the order, schedule production, delivered materials, and finished product delivered to the customer. This lessens the amount of excess parts and inventory saving the company money as well.

Traditional Cost method is defined as “The traditional method of cost accounting refers to the allocation of manufacturing overhead costs to the products manufactured. The traditional method (also known as the conventional method) assigns or allocates the factory 's indirect costs to the items manufactured on the basis of volume such as the number of units produced, the direct labor hours, or the production machine hours. We will use machine hours in our discussion. By using only machine hours to allocate the manufacturing overhead to products, it is implying that the machine hours are the underlying cause of the factory overhead. Traditionally, that may have been reasonable or at least sufficient for the company 's external financial statements. However, in recent decades the manufacturing overhead has been driven or caused by many other factors. For example, some customers are likely to demand additional manufacturing operations for their diverse products. Other customers simply want great quantities of uniform products. If a manufacturer wants to know the true cost to produce specific products for specific customers, the traditional method of cost accounting is inadequate.” AccountingCoach. (n.d.).

Number of skus was considered driver for Technical Support. The product weight was considered driver of resource consumption only for General & Administrative costs. Moreover, materials and direct labor were allocated based on the bill of materials and routings (exactly the way they were allocated in Standard Costing system). Finally, Material Handling & Setup, Order Processing and Production Planning were driven to products using number of orders. Consequently, ABC solves the major issue regarding the Standard Costing system: the assumption that all overhead costs can be included into one cost pool. All the drivers are summarized in exhibit 3. Exhibits 4 and 5 present respectively the ABC drivers and allocation rates.

Just In Time (JIT): A just in time approach maintains only required inventory in demand; it uses previous year’s statistics to dictate the amount of inventory to be kept on hand (Business.com). The benefits of a just in time approach are that it reduces inventory, shipping fees, depreciation, and doesn’t waste product.

Microsoft is a multinational corporation of the United States; It specializes in developing, manufacturing, trading software licenses and supporting a wide range of computer related products and services.. In terms of revenue, Microsoft is the world's largest software maker. It is also called "one of the most valuable companies in the world".

Verizon was created on June 30, 2000 by Bell Atlantic Corp. and GTE Corp. and was based in New York City and Incorporated in Delaware (“Bell Atlantic and GTE Complete”, 2014). The mergers that formed Verizon were among the largest in the U.S. history. On July 3, 2000 Verizon began trading on the NYSE and begin trading under NADAQ on March 10, 2010. On April 3, 2000 the new brand of Verizon was launched which was the GTE wireless operations became a part of Verizon which then created the nation’s largest wireless company (“Bell Atlantic and GTE Complete”, 2014). In 2004 Verizon was added the Dow Jones Industrial average. Over the next few months Verizon then became the majority owner of Verizon Wireless with management and joint venture control. As years have passed, Verizon has still continued to flourish with its business and is also a leading provider of advanced communications and information

Verizon Communications, Inc. is based in New York City, incorporated in Delaware, and was formed on June 30, 2000. Verizon allowed for same sex partners of current employees in states where same sex marriage was legal, six months to finalize their marriage before they eliminate future benefits for their partner. They wanted to give an equal opportunity for lesbian, gay, bisexual, and transgender employees to receive benefits for their partners, like their straight co-workers. The policy that Verizon ended up using was that couples that are lesbian, gay, bisexual, and transgender would receive benefits for health insurance if they go through the legal marriage process in their respective state.

As argued by Lubben (1988), JIT allows businesses to have better management since this ensures that there is no loss as there is sufficient number of clients requiring the equipment. This reduces her to deal with huge deliveries when the clients’ numbers are not increasing. (Lubben, 1988, p.4) also suggested the idea of JIT that “... major elements of manufacturing – capital, equipment and labour are made available only in the amount required and at the time required to do the job.” So it is a good practice by utilising JIT approach as it reduces wastes and ensure the correct amount of equipment is available (Lubben,

With JITD, the number of urgent order will be decrease. Barilla can put more focus on managing the standard order with the normal manufacturing setup. Extra work on rearranging the production line will not be required frequently. The whole operation can be more efficient and standardize.

Under the new cost system, two broad sources of costs were identified: manufacturing and SM&A. All costs within these categories were reclassified as either volume driven or order driven. Hence, four cost pools were set up.

Motorola was first founded in 1928, making battery eliminators for household radios. In 1929 the company designed and manufactured and car radios, then a new concept, and subsequent sales kept the company afloat during the Great Depression of the 30s.

This case is about implementation of a new “shared vision” concept within The Analog Division of Motorola Company. In 1993 Analog division was a major manufacturer of analog products in the world and had its divisions in many different countries. In other words the division had strong global presence. In order to create more efficient global company, Alison and John have decided to develop new shared vision within The Analog Division where managers would be involved directly and indirectly in the decision making process. Before the new vision development, Analog Division and its managers was very limited in decision making. Because they had such a strong global presence their