Decidion Analysis Task 3

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

The amount of extra sales that would be required to cover this cost of 300,000 would be

investing in plant upgrade options A and C and also consolidating the production of 500 models/styles of branded footwear in a single 12-million pair plant in the Asia-Pacific (to only incur the payment of $14 million in production run setup costs one time).

There are more outgoing costs in the production process for the Nike hoodies than the ‘Tesco Value Bread’ as the clothing’s going to more places, and costs a considerable amount more to make than the bread.

Going into 2004, Bob Moyer planned to produce 10,000 bicycles at Mile High Cycles. Construction of his bicycles includes the utilization of three departments, frames, wheel assembly, and final assembly. During this year, Mile High Cycles ended up actually producing 10,800 bicycles to meet higher than expected demand. Bob is curious as to whether or not he was successful in maintaining costs to meet these higher levels of demand.

* Continued investing in TQM quality control to reduce manufacturing costs of Extreme Kicks’ footwear.

a. Assuming the most current operational cost levels, what sales must it generate to recoup the above investment?

The case is based on an insurance service company which traced back to 1994. The company was facing problems in controlling and improving service quality and operation performance. This essay will stress on introducing the SPC (statistical process control) to DAV and providing suggestions on improving both the SPC and the company’s operation performance. The five questions required are covered and allocated

Johnson’s Shoe Emporium & Repair Shop (“Johnson’s”) is a high-end retail shoe store for men. The store will sell dressy and casual shoes, ankle boots and other accessories for men. The purpose of Johnson’s is to sell non-athletic shoes of the highest quality so that

A process that monitors standards by take measurements and corrective action as needed. It is in control when only variation is natural, if variation is assignable then discover cause eliminate it. Take samples to inspect/ measure- reduce inspection time, reduce opportunity of bad quality. Control charts graph of process data over time-show natural and assignable causes. Control charts for variable data (characteristic that is measured, length,height, etc) are X-chart (average) and R-chart (range)must use x and r to get correct results. central limit theorem follow normal curve. When we know . When we don’t know . Control charts for attributes (categorical-defective, good/bad) P-chart (percent) or C-chart

2. What is the total cost? How much of the total cost are labor costs? Capital costs?

Quality Associates, Inc., a consulting firm, advises its clients about sampling and statistical procedures that can be used to control their manufacturing processes. In one particular application, a client gave Quality Associates a sample of 800 observations taken during a time in which that client’s process was operating satisfactorily. The sample standard deviation for these data was .21; hence, with so much data, the population standard deviation was assumed to be .21. Quality Associates then suggested that random samples of size 30 be taken periodically to monitor the process on an ongoing basis. By analyzing the new samples, the client could quickly learn whether the process was operating satisfactorily. When the process was not

Control charts are used to study the process variation with respect to time. Typically, control chart has a center line, upper control limit and lower control limit, which are abbreviated as CL, UCL and LCL respectively. If the plotted data point is above or below the control limits (UCL or LCL) then the process is considered as an out of control process. Also, out of control point is also an indication of special cause variation. Special cause variation can easily be detected by using control charts and hence control charts are used to detect special cause variation in any aspect of the enterprise system.

1. What control charts should be used to determine whether the process is in control or out of control?

Main objective of this case study is to optimize the functioning of the Puff Shoes manufacturing unit with the objective of maximizing profit through the optimal order and resource allocation to the three production units (machines) while ensuring that the demand is met in a timely manner.