Case Jetta Plastic Mouldings.pdf

# Regarding the recommended solution 2 each solves the

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Regarding the recommended solution (2% each): Solves the problem? Uses the analysis? Is derived from alternatives? Is based on theory? Makes business sense?

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Case: Jeta Plastic Moulding (ADMS3510 Winter 2008) Student: Case Approach (5%) format, spelling, grammar, sentence structure Introduction (15%) All relevant facts describing the company and its situation Problem and Issue identification (10%) . short term bid to Levine Controls (4%) . long term issue related with bidding process (6%) Analysis (45%) Description of the limitations off the current system (15%) a. The fixed processing rate is based on full capacity b. 70% of capacity: under-allocation of fixed costs. c. The costing of rejects is inappropriate: only variable costs d. “Standards” based on prior period costs are inappropriate. e. Learning curve: unit variable costs for large jobs < for small jobs. d. Inappropriate to use a single markup rate for all sizes of jobs e. Estimate competitors’ cost behaviour patterns and capacity. f. Using probabilities and contributions for preparing bids Determine the price of the bid (20%) a. price based on contribution margin (10%) or based on full costs (5%) b. Proper use of probabilities of outcome to determine the expected value (10%) Assess the changes in the future system (10%) Alternatives (10%) At least 2 mutually exclusive alternatives in terms of bidding process, calculation or price. Recommendation (5%) Clearly state what the company has to do immediately Tests of the recommendation (2% each for a total 10%) Solves the problem? Uses the analysis? Is derived from alternatives? Is based on theory? Makes business sense? Subjective evaluation after comparing with other reports Total
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