Precision Worldwide

We decided to decrease the price of mountain bike production from $134 per bike to $108. The difference of $26 for 11,000 units results in a saving of almost $300,000. In the meanwhile, we also decided to dump our finish goods inventory, incurring a loss of $175,000. We decided to increase our capacity from 20,000 to 27,500 and efficiency from 1,000,000 to 2,000,000. We want to avoid increasing capacity significantly in order to avoid low efficiency. At the same time we want to keep our wastage at a minimum. We reduced our retail margin for the bike and sports store to 20% while reducing the discount stores to 27%. These new retail margins

| The Purpose of this project is to increase overall sales by developing new products, increasing productivity and national presence and reducing dependence on equipment suppliers. To accomplish this creation of a new manufacturing plant is required. The plant will be built in a

The benefit of gaining one more hrs of production time in coating and sharpening is illustrated in the contribution margin per hr.

Recommendation:1. Improve Just-in-time systemSpartan Plastic Limited need to improve Just-in-time system, it is control aims to maintain inventory level at zero, with an immediate objective of reducing the capital tied to the inventories. It is an important principle that able to eliminating waste throughout the production system. The waste can occur, through excess inventories and overly large lot sizes, both of which can cause unnecessarily long customer lead times. Let's explain the role of the core JIT practices in enhancing manufacturing performance. JIT manufacturing requires the establishment of JIT supplier relationships with suppliers; Spartan in this case, that is able and willing to deliver the needed quantities of parts as the needs arise and without any defects.

In this paper, we will focus on the case study, which discusses about the plant capacity and Beck Manufacturing. In addition, after reading the case study it becomes evident that we need to help Beck’s Manufacturing, president in making the best decision possible in regards to determining his facilities capacity. Therefore, we need to note that Beck’s Manufacturing is a major producer of steering gears in the auto industry. Nevertheless, we also need to know how the manufacturing process is being done, thus allowing us to

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

This report provides an analysis and evaluation of constraints in the production process for the Model C210 and the Model D400 of the Five Star Tools product line. The significant growth the company has experienced in recent years has led to a strain on the firm’s production capacity. This report seeks to determine how to loosen constraints on production and identify the most profitable product line given current production limitations. Incremental analysis is used to determine both the benefit of one additional hour of production time in the coating and sharpening process and the incremental yearly profit associated with adding a new inspection station.

Option A. Use up all the steel before pressing the plastic rings. Let all the buyers know that in the near future we will be switching over to plastic. How much steel is used for the steel rings? 34, 500 rings can be made with the steel they have. This is late May timeframe. 100 rings $786 from labor and overhead for 1107-material cost = Calculate cost per 100 rings – sell just above that. Start at 1350 and if people run to the plastic rings then adjust the price as needed.

Fraser Company has been the supplier of metal and plastic fabricated parts for Boeing Aircraft and has recently celebrated its 50th anniversary. In the 1960s, in order

1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12,500 units per month. Pumps currently have the lowest gross margin among all products, because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with Wilkersons cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Our conclusion is, that they should not adopt

I hope you are doing well. Please see attached Chilean Rolling Inventory; it looks like we are expecting three lots between today (779), Thursday (783)and Monday of next week (782). Let us know when its best for you to come in and If we do not see you this week, the Index team wishes you a Happy & Prosperous New Year!

We are still losing money after the second year. However, my group realized that new tooling was an important cost. Therefore, we start thinking how to reduce it. We find out that if the demand stays between 300,000 to 345,000 units, the supplier will not need new tools. Then, it will bring the cost of new tooling to 0 for the coming years. Let’s take the worst case scenario and try to compute the savings for year 3, if the pistons are outsourced.

  1. The Nicholson will be able to reduce the Cost of Goods Sold from 69% to 65% of Total Net Sales as efficiency in manufacturing and inventory can be achieved.

Precision Plus Manufacturing (PPM) is a start-up manufacturing company that will specialize in high precision, low volume, prototype and production components for larger manufacturing customers. This business will specialize in traditional and additive manufacturing for metal fuel systems components and high precision surgical applications. Traditional manufacturing consists of lathes, mills, grinders, hones, edm machines, and more. Additive manufacturing primarily consists of metal 3D printing machines. PPM will manufacture parts of steel provided by the customer, or out steel that comes from our suppliers. This will provide our customers an option of reducing their costs by providing their own steel.

impact of the decision on the cost structures and the resultant margins for each of the