Capacity utilization

Metric #1 - Approval on time The first metric would be the approval on time of each minister quarterly report. This metric will monitor the step one through eight of the transformational process value added flow. An approval on time metric will identify the number of department that submitted their report on time or not on time after approval by the minister. This metrics would be a good indicator if the first solution implemented to the bottleneck was successful. For example, after the change to

5. This helps in cutting the waste by cutting the excess capacity or inventory and removing the non value-added activities. 6. This will develop a close relationship with their suppliers, in a way they will get suppliers as a partner in the venture. 7. This will also encourage the suppliers to get themselves

Chapter 18 ADDITIONAL ASPECTS OF PRODUCT COSTING SYSTEMS Changes from Tenth Edition Chapter 18 was modified to include discussions of customer-related and business-related cost drivers and recent evidence about the usage and success of activity-based cost systems. Approach Our treatment of job costing and process costing is as brief as we can make it and still get the general points across. Students do need to understand the general idea of these cost accumulation procedures; otherwise

of $1 billion. The company produces plastic containers, custom plastic parts, and plastic fan parts in Albany, Georgia, Pontiac, Michigan and Hangzhou, China (Apollo Group 2005 – 2008). In the following sections, team C will discuss the strategic capacity planning, the lean production for a new process

manner into oem channel device, along with ,job and bundle catalogs, car records documents ,assurance systems, and so forth. Carrier monitoring and evaluation will increase the visibility in ordinary constant operations and helps increases carrier capacity usage, efficiency and decreased operating fee. Endeavor automobile provider technician investigate, test, provider, and replace every machine mounted in a recreation vehicle except for the

bottleneck in the process. The MRI machine and the time it takes perform a scan is the bottleneck of the process. Each scan can have different times associated with it depending on the type of scan that will be performed. This will limit the capacity of the overall process. For example, a scan without contrast will usually take 30 minutes. A scan that requires contrast will double that time to 60 minutes. According to exhibit # 2, in order to break even annually, the clinic will have to cover

surplus capacity. BioPharma produces and sells two chemicals in bulk. Each plant they currently have is capable of producing both chemicals. They are willing to idle production at the Germany and Japan plants on one or both chemicals in order to reduce

20 Fixed manufacturing overhead 1.60 Variable selling0.80 Fixed selling1.13 Total $8.30 The ties normally sell for $22 each. Strangle Company has received a special order for 2,000 ties at $10.00 per tie. Strangle Company has excess capacity. Required: Compute the amount by which the operating income would change if the order were accepted. Answer: Additional sales (2,000 x $10.00)$20,000 Relevant costs: Direct materials (2,000 x $0.60)$1,200 Direct labor 2,000 x $3.00) 6

Customers d. Labor e. Infrastructure 18. Which of the following is NOT one of the conditions that fixed-capacity firms may face? a. Excess capacity. b. Demand exceeds desired capacity. c. Demand and supply are well-balanced. d. Ideal demand exceeds capacity. e. Excess demand. 19. Which of the following is the correct action for a firm to take that wants to reduce demand and has insufficient capacity? a. Take no action. b. Consider override for most desirable segments. c. Consider priority systems for

Case Study 2 – ‘Will the steel companies develop global strategies?’ Questions 1. “In the 20 years to 2000, the world’s 40 largest steel companies made cumulative losses before tax of US$10 billion, in spite of investing around US$75 billion in new capital equipment. In the following five years, profitability increased but the return on capital was still low (…)”. What were the reasons for this trend? The first factor that I will appoint is a political/legal issue, according to PESTLE