Strengths Of The Neo Valves Company

In using the ABC system, Valves and Pumps are matching the company’s target of 35% of gross margin apart from Flow Controllers. With the use of TAC, the gross margin on pump sales is 19.5% that well below the company's target gross margin of 35%. This indicates that the current overhead cost allocation practice did not reflect the real costs incurred on the products. The lower actual gross profit obtained was mainly due to wrong cost allocation on the pump product.

The management of the company had taken an innovative approach to earn their required return on investment. They had emphasized on customer service and the employee training programs to gain

The manufacturing manager now feels that the competitors’ valves are of equal quality as that of Wilkerson. Currently, the competitors have not changed their prices and GM has been maintained at 35%.

While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas

In early May 2008, talk began between president of Flinder Valves, Bill Flinder and Tom Eliot, chairman and CEO of RSE about a possible acquisition of Flinder Valves by RSE. The industrial manufacturing industry had taken a hit due to rough economic times and the acquisition made sense. Both leaders were very concerned about the challenges and risks of the deal. Flinder was a company that engineered and manufactured specialty valves and heat exchangers. These products required extensive research and development and they were one of very few firms working in these types of applications. A bullk to FVC’s sales came from defense and aerospace applications. They were known for their

found out that despite this cost reduction in material cost, the costs of producing the low -end units for

This diversification approach allows them to enjoy economies of scale and also economies of scope, by offering differentiated products of a similar or even in the same category to answer different customer needs. Operational efficiency logistics to reach nearly 100% first-pass line fill and expanding global presence help the company improve and expand with their customers. The acquisition of brand name products, changing in cost structure to improve operation margins to minimum of 15% and achieving critical mass protecting its shelf space at each category. Many of the retail customers will ask Newell competitors if they ship like Newell, this proves the level of customer service and efficiency that Newell reached and all these results in decrease of cost; however increase in WTP.

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

3.) The estimated product costs for valves, pumps, and flow controllers using ABC for overhead activities (primarily Ex. 1 & 4) and direct cost data from the Exhibits are:

When considering the situation the Orion Controls faces, however, I should reconsider my decision. Orion has established its reputation in leading-edge technology, product reliability, customer relations and willingness to design customized products. For such reputation, Avion Chemicals approached to Orion and asked them to develop a new valve

The valves that the company makes are produced using four different machine components and are produced and shipped in large lots. Scott feels as if the competitors are now able to match their quality but have yet to try and gain market share by cutting the prices of their valves. Additionally, the pumps are made using five components from machines and then assembled into the final product. These are then shipping to the industrial companies that have purchased these pumps. One issue is that competitors keep lowering their prices on their own pumps, so Wilkerson has to match these and lower their prices as well. This makes it hard for Wilkerson to keep their gross margin profits up since their prices continue to lower. Last, the flow controllers need more labor and machining components than either the pumps or the valves. Additionally, there are many other alternatives that are used in the industry so more product runs are needed for these versus the pumps or valves. Also, more shipments are needed for these since there are shipped to industrial companies. The flow controllers were doing better than the valves or the pumps since Wilkerson was able to raise their

Faced with the challenge of continuing to remain the leader in industrial valve systems, Orion Controls is required to decide whether or not to carry out product improvement redesigns. A successful redesign will secure the company an initial level of sales of 50 or 90 units to two new customers followed by the benefits of enjoying an innovator’s reputation.

The company depicts no stress in acquiring raw materials as well as problem with marketing plans since; the raw material is

Engineering Project Manager responsible for exceuting $1M Project to supply automated choke valves by means of electric actuators to increase the efficiency of flow lines. Provided total surveillance responsibility, beginning with the inquiry, technical evaluation of the bid, to delivery and installation. Prepared technical and commercial bid evaluation proposals. Conducted Pre-assessment study (with customer collaboration) of the pilot project associated with equipment design and testing. Completed pre-qualification phase, established work scope, schedule and completed principal qualification report for the project.. Designed valves with advanced trim to optimize flow conditions by analyzing existing flow data for increased pipeline throughput. Provided engineering support in all phases of the project. Resolved conflicts arising in shop floor through effective delegation and communication. Accomplished major deliverables within scheduled timelines including design validation reports, engineering documents, product data books. Provided customer support in resolving field related engineering issues concerning installation and commissioning of choke valves.

In the next phase of this project, the running of the power plant HG should employ someone whose main function is to be a liaison between the corporate culture and the