Pinnacle Manufacturing Case Study

order to get the job done efficiently and cost effectively. It is hard to motivate factory workers who work on a

We can also see appraisal costs benefits when looking at the QA department and how they monitor the raw materials entering our plant. Every time they prevent poor quality material from making it into our production environment, this is our way of making sure that our clients are receiving the best materials we have to offer. Although there is a cost there for that department, the gains we see from increased sales and customer satisfaction can be partially attributed to them.

Forecasting activity being carried on by the principals of Fantastic for their business of ceiling fans marketing and assembling that was rapidly growing. Basic purpose behind making the forecasts was the decision on assembling and importing ceiling fans. The idea was to find a low priced, “assemble it yourself fan” from Taiwan and Hong Kong. These ceiling fans were cost effective as they reduced cooling cost during summer and heating cost during winter.

The amount of work in progress is minimized. Fewer tools are needed. The parts do not have to travel between the work stations. The control systems becomes redundant, everything takes place in the garage.

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

Synopsis Crosby Manufacturing is a $250 million/year electronics component manufacturing firm that needs new systems in order to even meet the current competition, let alone grow the business, improve projects, and increases their quality and customer base. Wilfred Livingston, President of Crosby, wants to computerize project financial reporting and replace their current system with more advanced technologies. While everyone in the company realizes this is a necessity, the issues surround the manner in which the plan was initiated and rolled out. There are three main issues surrounding this situation:

MTC initially needed to obtain substantial investment capital due to two main factors: a research-heavy industry, and the need to create most of the markets for its products. Although the founders' goal was to become a major manufacturing company, they did estimate that the company would need $50 million in capital before it would become self-sufficient. Their initial financing model was to first recruit a superior technical team, use that to attract additional equity investment and development funding from interested corporations, and then develop manufacturing capabilities. Commercial sales began 2.5 years after inception, and MTC is nearing the break-even point in 1990.

Do you agree with Water’s decision to keep product 103? Continue Production End Production Sales (Net) $ 26,670,000 $ - (Less) Rent $ 1,882,000 $ 1,882,000 Property Taxes $ 401,000 $ 401,000 Property Insurance $ 534,000 $ 534,000 Compensation Ins. $ 458,000 $ - Direct Labor $ 6,879,000 $ - Indirect Labor $ 2,309,000 $ - Power $ 302,000 $ - Light and Heat $ 106,000 $ - Building Service $ 75,000 $ 75,000 Materials $ 4,851,000 Supplies $ 350,000 $ - Repairs $

After news of the exploding battery on Samsung’s Note 7, the South Korean company has decided to issue a recall of all 2.5 million phones. The company may have to spend nearly 1 billion dollars to replace all the defective battery. After the success of Samsung’s Galaxy S7 the timing of this recall couldn’t have been worse. However, this recall may be worth the $1billon as it could potentially save the company’s reputation in the long run. Still, the $1 billion will only represent less than 5% of the projected $20.6 billion in net income.

Toyota Motor Manufacturing, U.S.A. (TMM) is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects. This deviation has contributed to the inability to identify the root cause of the problem, which has led to decreased run ratios on the line and an excess of defective automobiles in the overflow lot for multiple days. If this problem isn’t fixed quickly, an increased amount of waste will continue to be incurred and customer value will be threatened.

Assuming that many of the display issues are caused by faulty components, such as the main board, it is important to identify where in the process these faulty components are coming from whether it be internal manufacturing processes or suppliers. Since suppliers happen to be at the beginning of the supply chain it would be necessary to begin there. Sarni, along with cross-functional teams from Samsung must immediately schedule a visit to their main suppliers of components such as the main board. Once the visits are scheduled, Sarni and the cross-functional teams will conduct extensive audits of the supplier’s processes and systems. The audits will consist of detailed examinations of the supplier’s equipment, process capability, facilities, and personnel. Each supplier they visit, Sarni along with another manager, will be responsible for grading each supplier. The grading metrics should consist of defects per day, damage, flexibility, responsiveness, and communication. Grades will be recorded on a supplier scorecard and then electronically documented upon return to Samsung’s office. Dependent on the findings, Sarni may be faced with choosing another supplier, that is, one who is consistently able to meet design specifications. Eventually, once a quality supplier is developed within Samsung’s network of partners, Sarni must direct significant effort in monitoring their performance. To monitor the supplier’s performance overtime, Sarni

A product will fail based on its inferiority alone. When a consumer goes to a business to purchase a product, the consumer, to their understanding, is that the product is in the best possible shape and ready for sale. The product is of high quality and meets all standards and regulations. This not always the case, there are some businesses out there produce low grade items just to obtain quick revenue (Bethel University,

This type of computerized technology can help streamline the process of creating these watches and will eliminate most of the errors that are created by humans with precision that is unprecedented. . The tradeoffs would be that this technology is not inexpensive. It is in fact very expensive and will cost this company a large amount of money. The other side of this trade off is that the company will need not worry about defective products as this automated assembly has excellent precision and will be assembled with little to no defects. The other trade off will be the fact that employees will lose their jobs at the hands of this new technology as their jobs will become obsolete because of this new robotic technology.

Furthermore, spoiled work, damages, and accidents to equipment and machinery can be kept to a minimum by well trained employees, continued training helps employees develop their ability to learn by adapting themselves to new work methods, learning to use new kinds of equipment, and adjusting to major changes in work relationships and job content, also, through training, new employees learn to measure up to standards for performance, thereby satisfying their human need for personal growth and increasing their value to the organisation (Pigors and Myers 1977).

Samsung is one of the biggest smartphone manufacturers in the world. They also sell all kinds of other products. Their focus is of course on their Android smartphone/tablet/wearables business. Samsung grew at an incredible rate over the years to become what it is now. They outsell even Apple when it comes to smartphone/tablet sales. The company pivots and produces quickly, coming out with a variety of devices. It sees what the market responds to, pushes successes, and kills failures. And now, rather than just providing a cheaper and lesser iPhone, it 's differentiated itself with larger screens, different features, successful marketing, and delivering what consumers want. The Note is a perfect example. The company found through market research that Asian-language speakers wanted a device that they could hand-write on, because drawing characters is easier with a pen. The result was a combination phone/tablet ("phablet") that 's been an unexpected hit. However, there are some setbacks this year with the production of the Samsung Galaxy Note7. Samsung produced the Galaxy Note 7 in August expecting to deliver a smartphone that could take on and take down the iPhone 7. Before long, unfortunately, buyers reported that the device was heating up and for some, exploding. Samsung is blaming the malfunction on a manufacturing problem with batteries at one of its suppliers. In September, Samsung began a recall and reproduced its second-run Galaxy Note 7 device. But again, reports