The division has recognized the inadequacies of its existing, traditional cost system for estimating product costs. Describes the innovative activity-based system that was developed to more accurately trace overhead costs to individual products. Provides students with the opportunity to critique a standard cost system and to assess the characteristics of the proposed system that traces costs to production activities.

Describes Manufacturing Resource Planning (MRP II), a production technique designed to couple business and financial plans with manufacturing plans. It is an important tool for aligning manufacturing with a company's overall strategy and goals. Describes MRPII, distinguishing it from its predecessor, Material Requirements Planning (MRP); discusses the technique's basic elements; and reports survey results that show the factors distinguishing the ...

Having installed an activity-based system, the division is now exploring the insight provided by that system. In particular, it is studying the economics of lot-size process planning and product mix management.

Deals with the issue of an entrepreneur in a very successful company deciding whether to stay through a period of great growth or to sell. What are the entrepreneur's responsibilities to the organization, to his employees, to the public? As subtopics, the issues of marketing versus having a strong product that sells itself, patents and the legal issues involved, manufacturing problems, and a rising business in a sharply declining market.

Should follow Digital Equipment Corp.: The Endpoint Model (B1). A new plant manager has been hired; the case describes her experience, management philosophy, goals in the plant, and handling of a production problem.

Describes a comprehensive manufacturing strategy designed to reduce substantially the cycle time of orders (i.e. the time between the placement of an order by a customer and its delivery to the customer). To launch the strategy Digital has adopted manufacturing resource planning (MRP II). The case allows students to assess the pros and cons of the strategy which requires rapid information flows and tight manufacturing discipline, the usefulness o...

To follow Digital Equipment Corp.: The Endpoint Model (B2). The division has just received a request for dramatically increased production. If it complies with the request, it will have to expedite production, override the MRP II system and the planned schedule. Should it accept the order? The case forces students to consider the tensions between an uncertain market and environment and disciplined manufacturing plans.

To follow Digital Equipment Corp.: The Endpoint Model (C1). Students must assess what their next steps would be as plant manager and group manufacturing manager.

Schulze Waxed Containers has recently lost 20% of its business. The firm's cost accounting system spreads fixed costs over the volume produced. The 1987 costs reflect the lower production volume and are higher. The firm has recently adopted a minimum mark up. The result is increased minimum prices and lost business. The firm introduced a capacity-based cost system that identifies the cost of excess capacity. The case analyzes the design of this n...