Danshui plant no 2 answer. Danshui Plant No. 2, Spanish Version Case Study Solution for Harvard HBR Case Study 2022-12-11

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Danshui Plant No. 2 is a large-scale industrial facility located in Danshui, Taiwan. The plant is known for its production of consumer electronics, specifically smartphones and tablets. It is owned and operated by Foxconn Technology Group, a leading multinational electronics contract manufacturing company.

The Danshui Plant No. 2 facility is massive, covering an area of over 3 million square feet. It employs over 50,000 workers and operates 24 hours a day, seven days a week. The plant is highly automated, with state-of-the-art machinery and equipment used to manufacture and assemble a wide range of consumer electronics products.

One of the key features of the Danshui Plant No. 2 facility is its advanced production line. The production line is designed to handle large volumes of work with a high level of efficiency and precision. It is divided into several stages, including component assembly, testing and inspection, and packaging. At each stage of the production process, the products are checked and tested to ensure they meet the highest quality standards.

The Danshui Plant No. 2 facility is also known for its commitment to sustainability. Foxconn has implemented a number of environmental initiatives at the plant, including waste reduction and recycling programs, energy efficiency measures, and the use of renewable energy sources. These efforts have helped to reduce the plant's carbon footprint and minimize its impact on the environment.

Overall, the Danshui Plant No. 2 facility is a vital part of Foxconn's global supply chain and plays a significant role in the production of consumer electronics products for some of the world's leading brands. Its advanced production line, commitment to quality, and focus on sustainability make it a model for other industrial facilities around the world.

Danshui Plant No. 2 blog.sigma-systems.com

danshui plant no 2 answer

. Not the questions you were looking for? Negative variances included areas where cost rose in Flash memory from Samsung , cost hike in variable supplies and tools, rise in labour cost and supervision cost. Along with this, the variance analysis shows the effective costing strategy that helps to adjust or absorb the costs and help in eliminating the cost related issues and develop the understanding of reconciliation of actual and budgeted income to normalize the actual cost per unit. In this value chain, Danshui is the contract manufacturer and is in charge of assembling 2. Negative variance in flash memory is due to damage of 1,000 units of flash memories during the month of August 2010.

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Danshui Plant No. 2, Spanish Version Case Study Solution for Harvard HBR Case Study

danshui plant no 2 answer

Moreover, the variance related to the labor cost is Adverse which is comprised of the Assembly and packaging and as well as shipping costs. What do you think of this budgeting? Please place the order on the website to order your own originally done case solution. As per the information available in the case there is a need to devise some strategies or to make decisions in order to solve the problems that are related to the iPhone 4 contract in the next nine months. Recommendations for the current situation include: 1 Raise labor wages to hire enough qualified labor to volume up production; and 2 Contact and renegotiate selling price with Apple to cover the unfavorable labor cost variance. .

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Danshui Plant No. 2 [d49o23prq649]

danshui plant no 2 answer

Recommendation: Factors affecting the performance of a company are either controllable or non-controllable. . Please place the order on the website to get your own originally done case solution. Additionally, the fabrication procedure for an iPhone is complex, with 140 measures including over 100 elements. It uses assembly line techniquesto ease the assembling procedure and have large plants to accommodate massive productions.

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Danshui Plant No. 2 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

danshui plant no 2 answer

. The plant has had trouble hiring enough workers despite increasing wages over 30%. This in turn resulted in higher cost incurred for producing 180,000 which is a negative change solely because of usage variance. Evidence for hypothesis: For the purpose of calculation, please refer calculations done in excel sheet. Pupils must perform breakeven and adaptive budget evaluations and compute and use cost variances as they contemplate options for the difficulties of the plant with the iPhone contract. However, Samsung took the responsibility of this damage against which Danshui already received additional revenues.

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Danshui Plant No. 2 Case Study Solution for Harvard HBR Case Study

danshui plant no 2 answer

What is the gross margin? Answer 5: The manager of Danshui should learn the variance strategy, which is one of the effective procedures to make analysis and adjustments with the varied cost of production. LinkedIn Danshui Plant No. Therefore companies all over the world deal with manufacturers in China to get benefit from cheap labor cost. Why would they budget so close to breakeven? Please place the order on the website to order your own originally done case solution Transparent Value LLC Purolator Courier Ltd. Simultaneously, August 2010 variance was studied by JM as well Exhibit 3 of case but she failed to recognised the concept of flexibility in cost per unit for 180,000 units and just compared budget for 200,000 units with actual data of 180,000 units, which caused an issue in her analysis. . However, the procedure that has been applied in order to evaluate the overhead spending variance is comprised of the actual hour worked which are 181,000 hours and the actual plus standard overhead What are some strategies or decisions that Went ao Chen should consider in trying to solve the problems with the Apple iPhone 4 contract in the next nine months? Foxconn was the largest manufacturer in China and had contracts with Dell, Apple, and many other electronic equipment companies.

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Danshui Plant 2 Case Study Solution for Harvard HBR Case Study

danshui plant no 2 answer

The cost of the remaining three materials and fixed overheads have been successfully sustained by Danshui leading to zero variance. We try to find the potential reasons for this loss by doing a flexible budget and variance analysis. However, flexible-actual variance analysis reveals that possible causes for these issues might lie in the direct material flash memory variance and labor cost variance. And the gross margin percentage? The plant manager must identify the root of these problems so that they may be addressed properly and resolved. Answer: 4 The Variance is unfavorable because of the company had used more supplies and tools or spend more money on the purchase of raw materials.

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Danshui plant no. 2 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

danshui plant no 2 answer

. Monthly production target for DC is 200,000 units but three months study reflects that DC may not meet this target in 12 moths and would also overrun the cost barrier thus landing in an unprofitable situation. Should 180,000 units show a profit or a loss? Calculate the direct labor variances. What is their actual cost per unit? What do you learn from the flex-actual variances? This case, which investigates the challenges of outsourcing production, could be put to use an introduction to managerial accounting. PeopleSoft Finally Accepts Oracles Offer B Ping An of China: The Making of an Insurance Giant and a Leading Chinese Integrated Financial Services Group On Becoming a Board Member Restoring Trust at WorldCom Akamais Underwater Options B : The Decision MARTIN BLAIR HUAWEI IN CANADA: CAN IT BECOME A TRUSTED PLAYER? Plant controller, Jianye Ma JM also presented WC her analysis for August production. What is the selling price? However, this has been evaluated by taking account of the difference between the actual hours of 180,000 and the standard hours as per the exhibits are 181,000. How would these change the costs and profitability of Danshui Plant No.

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Danshui Plant 2 Answer

danshui plant no 2 answer

It then faced several issues that included unfavorable production volume variance, unprofitability, and recruitment. Â Â Â Â Â What are some strategies or decisions that Wentao Chen should consider in trying to solve the problems with the Apple iPhone 4 contract in the next nine months? In the long run, Danshui should consider building new plants in areas with a high unemployment rate to maintain low labor costs and prevent labor shortages and invest in new technologies to reduce labor costs and improve efficiency. What are the flexible-actual variances? This is a huge positive impact as it allowed DC to turn cost of total material in to a net position of positive variance. Situation: This report presents an analysis of a case where plant manager of Danshui DC , a Chinese company, Wentao Chen WC , is worried over variances observed actual results obtained versus budget developed in respect of its contract with Apple for assembling 2. . Revenue is assumed to be unchanged as the rise of flash memory cost is adjusted in sales price and hence the net impact is zero. Hypothesis: It is expected that the contract price should be raised in order to be profitable as variances observed in the 4.

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Danshui Plant No. 2

danshui plant no 2 answer

It will help the company to understand the main causes of variance and distribute in categories based on favorable and unfavorable factors. What is breakeven in units? The plant supervisor considers whether a flexible budget would be useful for uncovering issues in relation to the static budget now utilized. What seems to be the critical business issue the plant and Wentao is facing? This is just a sample partial case solution. . . The August report prepared by Jianye Ma suggests that the shortfall in production volume is the main reason for the unprofitable situation of the plant.

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