Coffee Maker Supreme solution

Coffee Maker Supreme solution - Coffee Maker Supreme:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Coffee Maker Supreme: Solution notes: Introduction: CMS is a large manufacturer of coffee making equipment with worldwide sales. Manufacturing has recently been rationalized to 2 plants (down from 4). They recently changed most of the product range and many of the work practices. Problem: The superficial symptom is that budgeted earnings of $31.7 mn. have been missed by a substantial margin. The underlying issue is that changes in work practices have given rise to increased costs and reduced customer satisfaction. This is a major issue: if left unresolved the company will fail. Analysis: What is the evidence? Variances (discuss them, particularly): sales variance 2.3 F materials variances 2.1 U manufacturing overhead 16.7 U What were the changes introduced? (more case facts) Global sourcing; Elimination of 100% inspection of incoming goods in favour of random checks; Shifting of responsibility for input quality to suppliers; Workers were made responsible for quality within the process;
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Coffee Maker Supreme solution - Coffee Maker Supreme:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online