MAIN ISSUE
A part from reading the Danshui Plant No.2 case, we can see that there is no enough information to evaluate the performance of the pant for the first three contracts to assembly Apple iPhone 4.
Analysis of the issue
To get a clear picture a flexible budget was prepared for the month end of August 2010. (Shown in the table below)
From the flexible that is prepared it can seen the performance of Danshui Plant NO.2 is not good enough as what it suppose to be. The budget show that Danshui has unfavorable variance in the assembly the flash memory part, variable tools and supplies, assembly and packing, shipping nad the last one on the supervision.
As for the flash memory it has been stated that Samsung had raised the price by
…show more content…
This because labour plays and important in from early process installation of iPhone 4 parts to the ending process which include the shipping. Thus, any wastage from the labour due to lack of skill or reckless will bring an impact on the budget.
Solution and the justification for the solution that is suggested.
1. Reward to the labour.
When the company, give reward to the labour, they will feel that their are appreciated and valued for their contribution to the company. Other than that, giving reward also can be one of the motivations for the labour to work hard in order to meet up with the target of producing 200000unit Apple iPhone 4 in the next nine months.
The type rewards that can give to the labour are coupon for shopping, free trip, free lunch coupon, certificates and gifts.
2. Training
The training that is given to the labour will improve the skills of the labour especially on the assembly the parts of Apple iPhone 4 since it involve a lot of steps, individual and
Technology has become a huge part of everyday life, and people seem to have one great debate and are fighting over which is the best phone, iPhone or Android. The Apple iPhone is a cellular smartphone that was created and is maintained by Apple Inc. Android is another type of smartphone that is accessible to consumers, but the operating system is powered by Google and many different companies produce Android devices. The different operating systems and interfaces have created a long and carried out debate to which was superior. iPhone is the better phone and there are many reasons as to why it is superior to its rival, Android. The iPhone’s sleek and beautiful design has users’ hands fondling the device and never putting it down. The
5. How much extra are you prepared to pay for an IPhone if assembled in the United States?
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.
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 paper will discuss certain aspects of Apple IPhone. It will also talk about the promotional decisions based on the marketing strategies.
Danshui Plant No.2 is a contract manufacturer locating in southern China and was assembles electronic products for companies wishing to save labor costs and they are using semiskilled labor for less than 1 dollar an hour. In August 2010, Danshui Plant No.2 in southern China has a 1 year contract in the period between 1 June 2010 and 31 May 2011 with Apple incorporation to assemble the Apple iPhone 4. Based on the contract, Danshui need to assemble 2.4 million iPhones within 1 year. However, Wentao Chen, manager of Danshui Plant No.2 was anxious about the plant is not able to assemble 2.4 million as their expected and is operating at a loss when the third month of the contract. Their current production was only 180,000 units
Reward power is the “ability to control the allocation of rewards valued by others and to remove negative sanctions” (Gillnow, 2013). Using rewards is a good way to motivate the employees to put forth more effort towards executing their job, since it can be implied that they would not work as hard for me without them. This is because we have yet to establish trust with one another, as Eyre (2015) says in her article Rewarding your Team, rewards are successful tools that can build trust and loyalty. The type of reward will be determined by the company’s policies, which can be incentives such as: higher pay, promotions, time off, vacation time, and preferred work
I _____________________________________ will adhere to the Apple Iphone 4 Phone phone consignment to Howard TurnerSr. Apple Iphone 4 Phone consignment. The agreement will consist of:
The rewards offered can be extrinsic such as wages, incentives and bonuses, or intrinsic such as job satisfaction, an internal feeling of worth and a sense of well being on the job.
Gadgets like iPhones have become a personal item for most people. The convenience that it has provided in the lives of is users are one great advantage. Most people are buying iPhones not just because this can make them look sophisticated but because this offers a lot of handy application that can be used personally or perhaps in business.
Based on our analysis of the situation, we feel that the number one cause of the shortfall is the labor problems facing the Danshui Plant No. 2. Although the plant has raised the wages by almost 30%, it cannot find enough qualified workers to hire. Although this figure is higher than originally budgeted by the plant, it is still not enough to compete with its competitor, Foxconn, where starting wages for skilled labor have increased by 35%. Even with the current wage increase, the Danshui Plant No. 2 will need to ramp up the production for the remaining nine months to gain profitability. This may be a challenge for
6. The company has three main problems: the first problem is that they may unable to complete 200,000 IPhone 4 units in any of the three months they have been working on the contract. The second problem is they cannot hire more workers. The third problem is the company have problem with the Samsung flash memory installation. We have some suggestions for the company to solve these problems. Firstly, Danshui Company should improve their salary policy. We recommend company should motivate workers to produce more efficiently, for instance, they can set a basic salary for workers and offer them bonus if workers complete target. Secondly, the company should provide professional training for labors. So they can work more efficiently. After workers becoming more professional, the company cannot only use less labor hours, but also save more materials. A third suggestion is that Danshui Company should also improve the quality of production supervision. They should hire a more professional supervisor who is familiar with the production process and is able to build a good relationship with labors, so they can work more efficiently and the company can even save more money on materials.
According to the chief production engineer, the expected cost of launching the product ($55 million) does not depict the uncertainty in manufacturing
A&F was trying to introduce two or three new items in its stores every week. And it launched a new men’s line, Ezra Fitch.
LITERATURE REVIEW Rewards have two broad types; extrinsic and intrinsic rewards are also called financial and nonfinancial rewards and these rewards further Research Paper divided in so many sub categories. Extrinsic rewards relates to financial rewards or cash related like formal recognition, fringe benefits, incentive type payments, pay, promotion and intrinsic relates to nonfinancial or non-cash rewards like achievement, accomplishment feelings, recognition, job satisfaction and growth (Clifford, 1985). Today world balance between employee‟s commitment and performance for the organization is much necessary and rewards are most important tool for employee‟s commitment, job satisfaction,