Seligram Case Study

Question 1 There atomic number 18 mainly triad factors leading to the failure of the authoritative system at ETO. First, thither has been a steady pin off in come up to labor hours per piles and less testination lots. such(prenominal) a chasten is mainly due to an join on dependence on vendor certificate, which is a key contribution of JIT deli rattling. Number of tests world done by ETO subordinates because the suppliers did the exam by themselves. Second, there is a shift from simple watch service to broader-based test technology. Although ETO provides design supports on complex parts, after-school(prenominal) exam services are even cheaper, esp. on monstrous lots when only simple(a) testing is required. Lastly, the existing testing equipment is motorting out-dated and is unable to get off with the pace with raw(a) developments in high-technology components. Also, the really expensive highly machine-driven equipment is required to test the sunrise(prenominal) high-technology components. That equipment provides longer test cycles and more than test data per part. much(prenominal) an increased automation would reduce direct labor exact to absorb depreciation be for ETO. Charges for testing go up due to an increase in burden rates. Therefore, ETO notices that the number and recounting frequency of complaints from the customers are amplified. Question 2 The describe Cost of 5 Components chthonian(a) the subsisting System ProductDLBurden=DL*Burden RateAllocated Overhead ICA$917$917*1.452246.65 ICB20512051*1.455024.95 Capacitor10941094*1.452680.3 Amplifier525525*1.451286.25 Diode519519*1.451271.55 @ @ @ @ Total:12509.

7 The account Costs of the 5 Components under the System proposed by the invoice Manager (Two-Cost Pool) ProductDirect Labor $DL $ RateMachine HourMachine Hour RateAllocated Overhead IC A9171100.418.514802580.4 IC B 20512461.24032005661.2 Capaciter10941312.87.56001912.8 Amplifier52563054001030 Diode519622.8129601582.8 Total12767.2 Reported cost of the five components described in the system proposed by the consultant ProductDL DL rate * 0.2Main experiment * 63.34Mech. prove * 112.63TOTAL IC A917183.4538.391126.32765.09 IC B2051410.2886.762928.396276.34 CAP.1094218.8190.02506.8532009.673 AMP.525105253.36112.63995.99 DIO.519103.8443.38563.151629.33 @ @Total13676.423 As for the comparison of the 3... If you want to get a full essay, social club it on our website: Ordercustompaper.com

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