Grey Brothers Consulting has issued a report recommending changes for its newest manufacturing client, Energy Motors. Energy

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Grey Brothers Consulting has issued a report recommending changes for its newest manufacturing client, Energy Motors. Energy Motors currently manufactures a single product, which is sold and distributed nationally. The report contains the following suggestions for enhancing business performance:

a. Add a new product line to increase total revenue and to reduce the company’s overall risk.

b. Increase training hours of assembly line personnel to decrease the currently high volumes of scrap and waste.

c. Reduce lead times (time from customer order of product to customer receipt of product) by 20% in order to increase customer retention.

d. Reduce the time required to set up machines for each new order.

e. Benchmark the company’s gross margin percentages against its major competitors. Link each of these changes to the key success factors that are important to managers.


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Cost Accounting A Managerial Emphasis

ISBN: 978-0132109178

14th Edition

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

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