Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
MLC, which was established in year 1998, manufactures a range of garden sheds and summerhouses using timber purchased from a various suppliers.The recently appointed managing director has expressed increasing concern about the falling in sales volumes, rising costs and hence declining profits over the last two years.
Discuss how business process re-engineering could help to improve the profits of MLC.
Business process re-engineering involves examining business processes and making substantial changes to the way in which an organisation operates in a manner. It requires the redesign of how work is actually done through activities. A business process is a series of activities that are linked together in certain manner to achieve the desired objective. E.g - material procurement might be viewed as a business process which could impact on the separate activities of production scheduling, storing materials, processing purchase orders, inspecting materials & payingsuppliers.
Main aim of business process re-engineering is to enhance organisational performance by achieving the improvements in business processes by focusing on simplification, improved quality, enhanced customer satisfaction & cost reduction. What MLC needs is to be able to reduce its selling prices in order to compete in the market. This selling price reduction can only be sustained by a reduction in the MLC’s unit costs, however such a reduction must not be achieved by compromising on quality of product. Business Process re-engineering can be applied not only to the manufacturing processes but,also to an extensive range of administrative activities. In the case of material handling of MLC might re-engineer the activity of processing purchase orders by collaboration with suppliers of timber & other components for their products by integration of their production planning system with suppliers. This would help to enable purchase orders to be sent directly to their suppliers thereby obviating the need for any intermediate administrative activity. Additionally scheduled orders might be agreed with suppliers which would reduce the need to hold inventories of timber & other components. In circumstances where suppliers are working in close collaboration with MLC, it may be possible to roll the quality back down the supply chain and agree quality control procedures with suppliers which would reduce the need to inspect incoming deliveries of timber and components. Thus savings in material handling costs could be achieved via reduced storage, processing and inspection costs. It must be recognised that such costs do not add value to the final product and thus are of no benefit to the customer. In conclusion business process re-engineering may be useful to MLC because they should may enable them to identify cost savings that do not directly affect their products and so would not have any effect on their customers View of the quality or value of the products.
behavioral aspect of standard costing
Break-Even Calculations As they say, a picture is significance a thousand words, and this is undoubtedly true for the CVP graphic just presented. Though, everyone is not an art
sums with solution of marginal costing
WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS
A company started with $0 in direct materials, purchased $5,000 of materials, and ended with $300 in materials. Direct labor equaled $4,000. The applied overhead for the period was
Flying High Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each one used an average of 6.5 direct labor hours and an average of 1.5 sheet
Methods of Labour Remuneration There Labour remuneration methods can be broadly classified into two factors as: i. Time rate or on the basis of the time spend in the factor
Cost Benefit Approach - Terms Used in Cost Accounting Is the primary criterion for selecting with alternative accounting approaches? There is a direct relationship in a co
fifo method
A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of d
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd