Heavy Equipment Division (HED) This memo is to identify and analyze the key issues of Detroit plant in Heavy Equipment Division and provide reasonable solutions to the management team. 1， Background Heavy Equipment Division (HED) of the Wriston Manufacturing Corporation is a large axle and brake manufacturer‚ which accounted for approximately 11.2% of the Wriston’s total revenues. There are 9 on-stream plants in the division and a new one is still under construction. The Detroit plant‚ the first plant
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TO: Richard Sullivan‚ Vice President of HED‚ Wriston From: FT28312 Subject: Wriston Manufacturing Corporation Case Analysis and Summary Date: January‚ 1992 Summary The Heavy Equipment division of the Automotive Supplier group of the Wriston Manufacturing Corporation is a large axle and brake manufacturer having three broad product lines which are being manufactured in its nine plants. The Detroit Plant
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Wriston Manufacturing S. Chopra/Operations/Strategy 1 Wriston Manufacturing Burden Rates (total overhead cost / direct labor cost) 7 6 5 4 3 2 1 0 Sanduski Detroit Lima Lebanon Saginaw Essex Tiffin Freemont Tiffin Freemont Maysville Free capacity and Throughput 160 140 120 100 80 60 40 20 0 Sanduski S. Chopra/Operations/Strategy Detroit Lima Lebanon Saginaw Essex Maysville 2 Wriston Manufacturing Corp: OH Burden rates: Economies of Scale? Sales vs. burden 7 Detroit (20
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division within Wriston Group‚ which almost all division products could trace their roots from‚ cannot achieve an acceptable level of profitability for years even we raise the prices or cut wages. The morale of Detroit is poor and it has been plagued by problems such as absenteeism and high turnover rate. Additionally there is coming the pressure of unionization by UAW which may aggravate our burden of employment obligation when Detroit Plant will be sold out. After 6 months’ study‚ the force proposed
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Memorandum To: Sam Sullivan Subject: Detroit Plant Wriston Manufacturing’s Heavy Equipment Division (HED) Detroit plant has been performing below its plant peers and its operations can no longer be sustained long term. Profitability of each HED plant is measured on a standalone basis‚ which has distorted the Detroit plant’s profitability metrics. Detroit is a job shop‚ tasked with production of low volume products and prototyping. Once a product becomes profitable it is moved to another‚
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OPERATIONS STRATEGY Ist Case Submission On Michigan Manufacturing Corporation: The Pontiac Plant Submitted to 12th July 2013 Submitted by Group 13 Nikhil Majhi 1111045 Overview of Michigan Manufacturing Corporation: Michigan Manufacturing Corporation’s Heavy Equipment Division (HED)‚ headquartered in Pontiac is a large scale manufacturer of axles (both on-highway and off-highway applications) and brakes
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Case Study: The Corporation 1. In the mid 1800s the corporation emerged as a "legal person" by way of maneuvering in the legal system. For the next 100 years we saw the rise to dominance of the corporation. The corporation created unprecedented wealth but at what cost? The externalities of corporate operations are responsible for countless cases of illness‚ death‚ poverty‚ pollution‚ exploitation and lies. Voice your opinion on this. Who Is Responsible for regulating these Corporations?‚ The Government
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Riordan Manufacturing is a global plastics manufacturer. Their products include plastic beverage containers produced in Albany‚ Georgia‚ custom plastic parts produced in Pontiac‚ Michigan‚ and plastic fan parts produced in Hang Zhou‚ China (UOPX‚ 2013‚ p. 1). Riordan’s research and development is in San Jose‚ California (Corporate Headquarters). Riordan ’s main customers are automotive parts manufacturers‚ aircraft manufacturers‚ the Department of Defense‚ beverage makers and bottlers‚ and appliance
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references I identify manufacturing costs when buying and making the product in this case study. Then‚ based on the manufacturing costs‚ I calculate the differential cost and the differential profit and decide whether to buy or make the product. The process of each calculation is described in as follows. Firstly‚ in case of buying the product‚ subassembly costs are $128‚000 ($ 16 × 8‚000 Units). Fixed factory overhead applied are $48‚000 ($ 6 × 8‚000 Units). Through these studies‚ Total costs are considered
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Introduction The vice presidents of Brazos Manufacturing‚ Inc. had needed to cut down on their budgets. The company was a $550 million automotive parts supply company. Troy Sozuko had been with BMI for the past 30 years and was the highest-ranking officer in North America. Jack was the controller of the multi-million-dollar company. Then one day Troy came to Jack and asked him to change his W-2 form intentionally to show that he used his car for personal use. Jack understood that this was a really
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