danshui plant no . 2

 danshui plant no . two Essay

п»їIntroduction and Key Issue

Danshui was a contract manufacturer in Southern Cina that assembled electronic products for corporations wishing to preserve labour cost. Manufacturers like Danshui set up parts in large plants using assembly line techniques in accordance to technical specs of the worldwide companies that contracted with them to get assembly and final tests. Danshui includes a one-year agreement with Apple computers. to assemble installment payments on your 4 , 000, 000 iPhones4 in Plant No . 2, which in turn assembling laptop hard drives over a contract that was happy at the end of May 2010. However , inside the first 3 months of the contract, the plant is unable to assemble numerous phones as expected and is working at damage. Wentao Chen, manager of Danshui Flower No . two, called Jianye Ma, flower controller, to request a summary of monthly businesses for September. The record was displayed that the earnings was listed below budget, materials usage appears good, and labour costs were over budget. For plant revenue, the budget was $100, 1000 but actually had a loss of $672, 500. The plant manager must analyse the budget and prepare a overview of monthly operations to help identify the origin of performance problems. Additionally , the assembly procedure for the iphone is challenging, with 150 steps involving over 100 components. The plant manager looks at whether a adaptable budget can be more useful for uncovering problems than the static budget currently being used. The key issue just for this case is definitely the break of contract between Danshui and Apple. The contract needed Danshui to assemble 2 . four million iPhones4 in the length of one year. However , now inside the third month of the deal, production was only one hundred and eighty, 000 models per month. It had been shown that they can were unable to produces two hundred, 000 models of apple iphone4 in any in the three months that have been worked on this kind of contract. This can be happen mainly because they cannot find qualified time to hire


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