Chris Maynard, one of Heath Metal Products’s three customer engineers, is reviewing the costs of the radar housings for Lingle Aerospace (LA). LA is one of Maynard’s largest accounts and the radar housing is a fabricated piece of sheet metal LA uses to assemble an aircraft’s radar system installed in the nose of the plane. In reviewing the detailed cost record for this job, Maynard is concerned that the direct labor posted to the job appears too high. He estimated the direct labor in the welding department to be six hours per batch of 130 units. But the job sheet reports that 9.5 hours were used.

a. Identify various problems at Heath.
b. What improvements would you suggest Heath implement?

  • CreatedDecember 15, 2014
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