Struggling Operations in a Manufacturing Organization

Thus my recommendation would be for him would involve the utilization of Activity Based Costing to allocate all indirect costs, direct costs, and overall manufacturing time into each and every product he is currently selling. His current method of splitting overhead between each line is inefficient and an incorrect picture of where all his resources are going. Going back to the Wrapped Tumblers example, Giberson would need to allocate more costs towards this product as its high levels of demand are utilizing more resources than he currently realizes. Realizing the true costing amounts of each product in this fashion will allow him to either drop inefficient products or increase/decrease the current prices of his products to match what he is truly spending on them. Given that his business is currently under distress, he also needs to focus on the effects of him completing his custom “made-to-order” products as they will bring in further revenue since manufacturing capacity is not at

Due to the recession the company is experiencing a decline in profits, however, the business remains profitable. Potentially, the recession could continue and business may decline further. A proactive plan is better than being reactive in regards to addressing the declining profits. Layoffs are the quickest and easiest solution to the issue.

In this task I’m going to analyse the figures on cash flow that I created in P3 and justify why you think the business might have problems also provide range of solutions.

Senior management initially predicted the timescale of each strategy by benchmarking against similar projects in

Operations refers to the transformation of raw materials(inputs) into finished products(outputs). The operations process is one of the key business functions and is a crucial component to business success. Like every business, Qantas is affected by many internal and external influences requiring it to have effective strategies to respond to these influences. Businesses that are able to adopt and utilise effective operational strategies are able to quickly adapt and either reduce or take advantage of these influences that impact the business. The effectiveness of these strategies can measured by Qantas’ performance and whether or not it is able to hold it’s competitive advantage. How well these strategies respond to the influences on

Northwest Canadian Forest Products Limited is a company that owns and operates five saw mills in British Columbia and Alberta, Canada. They produce lumber for construction in a few different countries. The President of the company is dealing with a tough situation with one of her mills in Jackson, British Columbia. The mill in Jackson is her least productive mill and she soon has to make a decision that could cost the company a substantial amount of money. She has the choice of either investing 50 million in the weak Jackson mill or to invest more that 50 million in a new mill high demand area. The president has been informed of the many complaints from the managers and supervisors, but nothing seems to be the right solution.

Alex comes up with the consensus that the “Goal” of his business and many others is to increase net profit while simultaneously increasing return on investment and their cash flow at the plant. This basically means to make money. These three measurements can be achieved by looking closer into his second set of measurements. Alex specifically must find a way to increase throughput while at the same time decreasing it inventory and operational expenses. All three of these measurements must be cautiously monitored since they all rely on each other to be obtained in balance. Factors that cause throughput, inventory, and operational expenses to become unbalanced are excess manpower and balance capacity of the demand of resources in the market.

6. Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

Based on your analysis above, make at least two (2) recommendations as to how each company could improve its working capital positions. Provide support for your recommendations.

6.) The Wilkerson Company original case is not effective and accurate without including an ABC analysis. ABC allowed us to assess the business performance of each of its businesses including: Valves, Pumps and Flow Controllers. This enabled us to realize that the Flow Controllers business is not profitable with a Gross Margin of -11.31%. I recommend specifically solving the problem of pre-tax margin going from 10% to less than 3%. The strategic decisions that need to be made are improving the unprofitable Flow Controllers business unit, while simultaneously increasing the sales of the more profitable Valves and Pumps business units. I would capitalize on the highest margin business of the Valves. Specifically, I would develop marketing strategies on how to grow market share in this business. I would assess what we are doing in this business and I would reapply it to our other businesses. This would include evaluating and eliminating costs in the other business units,

Victoria Heavy Equipment’s most recent organization has been lacking effective communication practices amongst all of its divisions. The company has been suffering from lack of clear goals in measurable terms, for its divisions. The idea of each division functioning as an independent unit, whether it being cost or profit center, is a remarkable beginning. However, clear goals and key measurable need to be set for each center, which in our case have been overlooked. As a result, many of these centers have over spent, resulting in over expenditures, something we can definitely not afford with anticipated slower market.

Scenario 3 shows us what would happen if he fails and looses market share. According to the case, Miller would make the visit to the dentist more pleasurable and stress-less. The only way this scenario can happen is if new competition come in or he does a bad job in fixing teeth. Just to show the “worst case scenario,” I set growth rate at 0% and the rest of the years decline 5%. We would hope that after declining of sales, Miller would liquidate the firm in 2009. As we can see, change in working capital is increasing as sales are decreasing, which means he can’t pay off the debits. If we look at the cash flow forecast, if Miller decides to liquidate the firm in 2009, then the book value of the fixed assets would be 14,836 and the salvage value would be 10,385. This scenario is unlikely to occur

The company’s debt ratios are 54.5% in 1988, 58.69% in 1989, 62.7% in 1990, and 67.37% in 1991. What this means is that the company is increasing its financial risk by taking on more leverage. The company has been taking an extensive amount of purchasing over the past couple of years, which could be the reason as to why net income has not grown much beyond several thousands of dollars. One could argue that the company is trying to expand its inventory to help accumulate future sales. But another problem is that the company’s

Rapid Repair’s profitability appears good but their cash balance has shrunk. Write a report that provides a financial analysis

The main problem is with Woodson Chemical Company is the lack of management and communication across all divisions within the organization creating bottlenecks