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IIBMS – LINCOLN ELECTRIC

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CASE: 3       LINCOLN ELECTRIC   IIBMS – LINCOLN ELECTRIC Lincoln Electric is one of the leading companies in the global market for arc welding equipment. This is a cost-competitive business in which consumers are price sensitive. Lincoln’s success has been based on extremely high levels of employee productivity. The company attributes its productivity to a strong organizational culture and an incentive scheme based on piecework. Lincoln’s organizational culture dates back to James Lincoln, who in 1907 joined the company his brother had established a few years earlier. Lincoln had a strong respect for the ability of the individual and believed that, correctly motivated, ordinary people could achieve extraordinary performance. He emphasized that the company should be a meritocracy where people were rewarded for their individual effort. Strongly egalitarian, Lincoln removed barriers to communication between workers and managers, practicing an open-door policy. He made sure that all who worked for the company were treated equally; for example, everyone ate in the same cafeteria, there were no reserved parking places for managers, and so on. Lincoln also believed that any productivity gains should be shared with consumers in the form of lower prices, with employees in the form of higher pay, and with shareholders in the form of higher dividends. The organizational culture that grew out of James Lincoln’s beliefs was reinforced by the company’s incentive system. Production workers receive no base salary but are paid according to the number of pieces they produce. The piecework rates at the company enable an employee working at a normal pace to earn an income equivalent to the average wage for manufacturing workers in the area where a factory is based. Workers are responsible for the quality of their output and must repair any defects spotted by quality inspectors before the pieces are included in the piecework calculation. Since 1934 production workers have been awarded semiannual bonuses based on merit ratings. These ratings are based on objective criteria (such as an employee’s level and output) and subjective criteria (such as an employee’s attitude toward cooperation and his or her dependability). These systems give Lincoln’s employees an incentive to work hard and to generate innovations that boost productivity—doing so influences their level of pay. Lincoln’s factory workers have been able to earn a base pay that often exceeds the average manufacturing wage in the area by more than 50 percent, and they also receive bonuses that in good years can double their base pay. Despite high employee compensation, the workers are so productive that Lincoln has a lower cost structure than its competitors. Question What kind of control system does Lincoln Electric rely on to generate high employee productivity? Can you think of any possible unintended consequences of an incentive pay system based on piecework? How does Lincoln guard against these unintended consequences? Do Lincoln’s control systems match the strategy of the enterprise? How? IIBMS – LINCOLN ELECTRIC At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses. Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by IIBMS Institute (Institute Indian Institute of Business Management & Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments and case studies within the institute\’s curriculum. Whether in MBA, EMBA, GMS, DMS, or any other programs offered at IIBMS Institute (Institute Indian Institute of Business Management & Studies), our team is equipped to provide expert guidance and meticulously crafted solutions. We prioritize accuracy, originality, and timely delivery; ensuring students receive the necessary assistance to excel academically. We are dedicated to fostering an environment of academic excellence and providing dependable support to the esteemed students of IIBMS Institute (Institute Indian Institute of Business Management & Studies). IIBMS Answer Sheets IIBMS Mumbai IIBMS Bangalore Customized Answer Solutions MBA Assignment Solutions EMBA Case Study Solutions GMS Answer Sheets DMS Assignment Help Professional Writing Assistance Tailored Academic Solutions Comprehensive Answer Sheets Specialized IIBMS Support Academic Writing Services Timely Submission Support Expertly Crafted Answers Personalized Guidance Reliable IIBMS Assistance Get expert assistance with your IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments and answer sheets from our professional academic writing services. Our team specializes in supporting students with IIBMS Institute (Institute Indian Institute of Business Management & Studies) coursework, ensuring top-notch answer sheets and comprehensive solutions. Ace, with our tailored assistance, your IIBMS Institute exams, offering precise guidance and accurate answer sheet preparation. Seeking reliable help for your IIBMS Institute studies? Trust our academic writing services for meticulously crafted answer sheets and exceptional support. Score high in your IIBMS Institute assessments by availing our expert aid in preparing comprehensive and well-structured answer sheets. IIBMS Institute Project Report Writing Services IIBMS Institute Customized Project Reports IIBMS Institute Project Support IIBMS Institute Professional Project Report Assistance Tailored Solutions for Project Reports IIBMS Institute Quality Project Documentation IIBMS Institute Expert Project Report Writers IIBMS Institute Comprehensive Project Analysis IIBMS Institute Structured Project Report Services IIBMS Institute Detailed Project Documentation IIBMS Project Evaluation Support IIBMS Institute Custom Project Report Formats IIBMS Institute Project Research and Analysis MBA/EMBA/GMS/DMS Project Reports IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments, solved papers, and study materials are available through our academic writing services. Seeking assistance with IIBMS Institute coursework? Our professional team delivers accurate and timely solutions for all your academic needs. Our specialized academic writing support simplifies access to IIBMS Institute (Institute Indian Institute of Business Management & Studies) question papers and model answers. Need expert guidance for your IIBMS Institute assessments? Our service offers comprehensive solutions for students seeking assistance. Our academic writing services ensure precise and high-quality answers for IIBMS Institute assignments, aiding students in their educational journey. Academic writing professionals play a crucial role in assisting students with their university assignments, striving to achieve several

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IIBMS – IMPROVING PRODUCTIVITY IN THE AUTO INDUSTRY

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CASE: 2: IMPROVING PRODUCTIVITY IN THE AUTO INDUSTRY   IIBMS – IMPROVING PRODUCTIVITY IN THE AUTO INDUSTRY In 2004 Detroit’s big three care makers—GM, Ford, and Daimler Chrysler—accounted for only 58.6 percent of vehicles sold in the United States, the lowest level ever, down from 76.7 percent in 1984. For most of the last decade strong sales of sports utility vehicles, in which Detroit dominates, have held overall market share losses in check; but now foreign producers such as Toyota, Honda, and Kia are going after that segment too, creating huge potential problems for Detroit. The American automobile makers have responded by trying to reinvigorate their passenger car business, coming out with a host of new designs and cutting the costs of developing and producing those cars. The old rule of thumb in the industry was that it took four years and cost $1 billion to design a new car and tool a factory to produce it. To recoup these costs, Detroit would typically sell a car for seven years before developing a new design. Unfortunately for the American producers, the Japanese have shortened the life cycle of a typical vehicle to five years; and by lowering development and tooling costs, they have been able to make good money on their car models. Now the American producers are trying to strike back. Typical is Ford, which has reduced its product development time by a quarter since the late 1990s and continues to reduce development time by 10 percent per year. Ford now designs almost a third of its models in less than 30 months. One reason for this progress has been the increase in communication among designers at Ford. Ford designers used to work in different teams and did not share enough knowledge about parts and platform design. Now teams get together to see they can share the design work. Moreover, design teams are trying to use the same parts in a wider variety of car models, and where appropriate use parts from old models in new cars. Detroit auto designers used to boast that new models were completely redesigned from the floor up with all new parts. Now that is seen as costly and time-consuming. At General Motors, for example, the goal is now to reuse 40–60 percent of parts from one car generation to the next, thereby reducing design time and tooling costs. At Ford the number of parts has been slashed. For example, Ford engineers now choose from just 4 steering wheels instead of contemplating 14 different designs. Another important trend has been to reduce the number of platforms used for car models. This is something Japanese producers have long done.  Honda, for example, builds its Odyssey minivan and Pilot and Acura MDX SUVs on the same platform and has added a pickup truck to the mix. Currently Chrysler bases its vehicle fleet on 13 distinct platforms. The company is trying to bring this down to just four platforms, reducing the product development budget from $42 billion to $30 billion in the process Ford and General Motors have similar aims. The platform for GM’s new small car offering, the Pontiac Solstice, will also be used for its new Saturn coupe and perhaps one more GM car. As GM develops its next generation Chevy Silverado and GMC Sierra pickups, it plans to reuse much of the existing platform, cutting development costs in half to nearly $3 billion. Over the next eight years Ford plans to use its Mazda 6 sedan platform (Ford owns Mazda) as the basis for 10 new vehicles. The idea, according to Ford’s head of operations, is to engineer it once and use it often. Along with these changes in design philosophy, the Detroit companies are retooling their factories to reduce costs and make them capable of producing several car models from the same line. By doing so they hope to reduce the breakeven point for a new car model. GM’s Solstice, for example, is forecast to sell around 25,000 units a year—too few to recoup fixed costs under the old design and build philosophy. But GM has cut design costs (by using a common platform and parts) and tooling costs (by investing in flexible manufacturing technologies that can produce multiple designs based on the Solstice platform from the same basic line). GM has also worked hard to get unions to agree to changes in inflexible work rules. Assembly-line workers now perform several different jobs, which reduces waste and boosts productivity. Similarly, Ford hopes to have 75 percent of its production built on flexible assembly lines by 2010; if successful, its investments in flexible factories could reduce annual costs by some $2 billion a year. The big problem with the new vision coming out of Detroit, as critics see it, is that not much is new about it. The techniques being talked about will reduce development time and tooling costs; but Japanese automakers have been pursuing the same techniques for years. The critics fear that Detroit is chasing a moving target, and when they arrive in the promised land it will be too late because their global competitors will already have taken competition to the next level. Questions How have lower development and tooling costs given Japanese auto manufacturers an advantage in the marketplace? What steps are the Detroit automobile makers taking to reduce product development time and tooling costs? If they are successful, what are the implications of these initiatives for the number of car models they can sell and breakeven volumes for individual models? Will these initiatives benefit Detroit’s customers? How? The Japanese producers have for years used many of the methodologies now being introduced in Detroit. Why do you think it has taken the Detroit automakers so long to respond to their foreign competitors? IIBMS – IMPROVING PRODUCTIVITY IN THE AUTO INDUSTRY At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies).

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IIBMS – Trials and Challenges For Barrett at Intel

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CASE 3  IIBMS – Trials and Challenges For Barrett at Intel IIBMS – Trials and Challenges For Barrett at Intel Intel Corporation is best known for its processors. The sign “Intel Inside” is familiar to most people using a computer. There is, for example, the Pentium 3 and 4 and the new generation Itanium. For servers and workstations, Intel produces Xeon. The colorful CEO Andy Grove led the company for many years. By 2001,  however, the Chief Executive Officer Craig R. Barrett faces many challenges, including criticism. The new strategy of moving into new markets such as information appliances, communications, and Internet services was costly and so far less than successful. In fact, the move beyond its core businesses may have detracted from its core business of computer chips. These new directions resulted in frequent reorganizations resulting in organizational uncertainties for the managers. While some think that the frequent changes were necessary to adapt to new situations and to keep the organization agile, others disagree. Barrett’s leadership and his moves into various directions is quite different from Grove’s carefully crafted strategy that focused on chips. Barrett’s personal strengths lie in manufacturing. He invested heavily in research and development. But new products such as the Itanium require several years before they show results, and Barrett has only a few more years before his retirement. Investing in new manufacturing technologies with the aim of achieving virtually automated plants results in the reduction of manufacturing costs of chips. But the PC market is stagnated in the early 21st century and wireless communication and cell phones are becoming important in the market. In the cell phone market, for example, Motorola and Texas Instruments are developing new digital signal processors and Intel would have to work hard to catch up. A key to success of Intel may be whether the company can become an important player in the wireless market. Barrett made a number of costly acquisitions, including Level One Communications. But the question remains if the heavy investments in new technologies will result in profitable businesses. This may determine the legacy of Craig Barrett. Question: What is your assessment of Barrett’s performance and his vision for Intel? Is he the right person for the job at Intel? What are some problems associated with frequent reorganization? What are the pros and cons for focusing on the distant futures and the heavy investments in new technologies? IIBMS – Trials and Challenges For Barrett at Intel At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses. Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by IIBMS Institute (Institute Indian Institute of Business Management & Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments and case studies within the institute\’s curriculum. Whether in MBA, EMBA, GMS, DMS, or any other programs offered at IIBMS Institute (Institute Indian Institute of Business Management & Studies), our team is equipped to provide expert guidance and meticulously crafted solutions. We prioritize accuracy, originality, and timely delivery; ensuring students receive the necessary assistance to excel academically. We are dedicated to fostering an environment of academic excellence and providing dependable support to the esteemed students of IIBMS Institute (Institute Indian Institute of Business Management & Studies). IIBMS Answer Sheets IIBMS Mumbai IIBMS Bangalore Customized Answer Solutions MBA Assignment Solutions EMBA Case Study Solutions GMS Answer Sheets DMS Assignment Help Professional Writing Assistance Tailored Academic Solutions Comprehensive Answer Sheets Specialized IIBMS Support Academic Writing Services Timely Submission Support Expertly Crafted Answers Personalized Guidance Reliable IIBMS Assistance Get expert assistance with your IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments and answer sheets from our professional academic writing services. Our team specializes in supporting students with IIBMS Institute (Institute Indian Institute of Business Management & Studies) coursework, ensuring top-notch answer sheets and comprehensive solutions. Ace, with our tailored assistance, your IIBMS Institute exams, offering precise guidance and accurate answer sheet preparation. Seeking reliable help for your IIBMS Institute studies? Trust our academic writing services for meticulously crafted answer sheets and exceptional support. Score high in your IIBMS Institute assessments by availing our expert aid in preparing comprehensive and well-structured answer sheets.   IIBMS Institute Project Report Writing Services IIBMS Institute Customized Project Reports IIBMS Institute Project Support IIBMS Institute Professional Project Report Assistance Tailored Solutions for Project Reports IIBMS Institute Quality Project Documentation IIBMS Institute Expert Project Report Writers IIBMS Institute Comprehensive Project Analysis IIBMS Institute Structured Project Report Services IIBMS Institute Detailed Project Documentation IIBMS Project Evaluation Support IIBMS Institute Custom Project Report Formats IIBMS Institute Project Research and Analysis MBA/EMBA/GMS/DMS Project Reports   IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments, solved papers, and study materials are available through our academic writing services. Seeking assistance with IIBMS Institute coursework? Our professional team delivers accurate and timely solutions for all your academic needs. Our specialized academic writing support simplifies access to IIBMS Institute (Institute Indian Institute of Business Management & Studies) question papers and model answers. Need expert guidance for your IIBMS Institute assessments? Our service offers comprehensive solutions for students seeking assistance. Our academic writing services ensure precise and high-quality answers for IIBMS Institute assignments, aiding students in their educational journey.   Academic writing professionals play a crucial role in assisting students with their university assignments, striving to achieve several key goals: Quality Assurance: Their primary aim is to deliver high-quality content that meets academic standards and fulfills the requirements of the university assignments. This involves thorough research, proper structuring, and adherence to guidelines provided by the educational institution. Originality and Plagiarism-Free Content: Professionals in this field emphasize originality by creating authentic content free from plagiarism. To maintain academic integrity, they ensure that all information is appropriately cited and referenced. Meeting Deadlines: Timely

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IIBMS –   Spirituality in the workplace

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CASE 1:    Spirituality in the workplace   IIBMS –   Spirituality in the workplace  IIBMS –   Spirituality in the workplace Traditionally, the workplace and spirituality did not mix in America. But things are changing. Andre Delbecq, a Professor in Santa Clara University, a Jesuit institution, said: “There were two things I thought I’d never see in my life, the fall of the Russian empire and God being spoken about in a business school.” Now management books and conferences (including the annual meeting of the Academy of Management) deal with the various aspects of how God can be brought into the organizational environment. To be sure, people who want to integrate spiritual dimensions into the workplace are still considered rebels. But ServiceMaster, a Fortune 500 company with some 75,000 employees, created a spiritual organization culture many years ago. Indeed, Peter Drucker, one of the most prolific writers on management, had high regards for the company that is known for its products such as Terminix (pest control), TruGreen, Merry Maids, and others. When people in the US were asked if they believe in God, some 95 per cent said yes. It is in a spiritual context that business people under the daily pressure can discuss their inner feelings. As the baby boomers, now in their 50s, are reaching the top in the organizational life, they begin to wonder what life is all about. They lived through the youth culture of the 1960s and the 1980s that was dominated by greed. They are now questioning the real meaning of life and the ethical dimension of work. Jose Zeilstra, an executive at Price WaterhouseCoopers worked around the world, practicing her Christian principles in different cultures. During her assignment in China, she strongly argued against the practice of giving “very expensive gifts.” As a result the business transaction did not work out. Yet, in the long run, while integrating her personal beliefs with her work, resulted in a very successful career. Academic institutions such a the University of St. Thomas, the University of Denver, and the Harvard Divinity School are following and studying the movement of spirituality. Other schools such as Antioch University in Los Angeles, the University of New Haven in Connecticut, the University of Scranton in Pennsylvania, Santa Clara University in California as well as institutions abroad such as the University of Bath in England and the Indian Centre for Encouraging Excellence in Bombay, India, are conducting research, conferences, or lecture on spirituality. The cover story of Business week (November 1, 1999) discussed how company outlets such as Taco Bell, Pizza Hut, and McDonald’s as well as the Xerox Corporation pay attention to spiritual needs of their employees. Some companies claim an increase in productivity, decrease in turnover, and a reduction in fear. A research study by the consulting firm McKinsey & Co. in Australia showed that firms with spiritual programmes showed reduced turnover and improved productivity. Professor Ian I Mitroff at the University of Southern California even stated, “Spirituality could be the ultimate competitive advantage.” But there is also the concern that cult members and groups with a radical perspective could use the workplace for their own aims. Still, employees in companies that integrate spirituality in their work place count on the potential benefits of greater respect for individuals, a more humane treatment of their fellow workers, and an environment that permeates their organization with greater trust. Question: What is spirituality? Is this topic appropriate for businesses? What are the arguments for and against its inclusion in business? IIBMS –   Spirituality in the workplace IIBMS –   Spirituality in the workplace At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses. Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by IIBMS Institute (Institute Indian Institute of Business Management & Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments and case studies within the institute\’s curriculum. Whether in MBA, EMBA, GMS, DMS, or any other programs offered at IIBMS Institute (Institute Indian Institute of Business Management & Studies), our team is equipped to provide expert guidance and meticulously crafted solutions. We prioritize accuracy, originality, and timely delivery; ensuring students receive the necessary assistance to excel academically. We are dedicated to fostering an environment of academic excellence and providing dependable support to the esteemed students of IIBMS Institute (Institute Indian Institute of Business Management & Studies). IIBMS Answer Sheets IIBMS Mumbai IIBMS Bangalore Customized Answer Solutions MBA Assignment Solutions EMBA Case Study Solutions GMS Answer Sheets DMS Assignment Help Professional Writing Assistance Tailored Academic Solutions Comprehensive Answer Sheets Specialized IIBMS Support Academic Writing Services Timely Submission Support Expertly Crafted Answers Personalized Guidance Reliable IIBMS Assistance Get expert assistance with your IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments and answer sheets from our professional academic writing services. Our team specializes in supporting students with IIBMS Institute (Institute Indian Institute of Business Management & Studies) coursework, ensuring top-notch answer sheets and comprehensive solutions. Ace, with our tailored assistance, your IIBMS Institute exams, offering precise guidance and accurate answer sheet preparation. Seeking reliable help for your IIBMS Institute studies? Trust our academic writing services for meticulously crafted answer sheets and exceptional support. Score high in your IIBMS Institute assessments by availing our expert aid in preparing comprehensive and well-structured answer sheets. IIBMS Institute Project Report Writing Services IIBMS Institute Customized Project Reports IIBMS Institute Project Support IIBMS Institute Professional Project Report Assistance Tailored Solutions for Project Reports IIBMS Institute Quality Project Documentation IIBMS Institute Expert Project Report Writers IIBMS Institute Comprehensive Project Analysis IIBMS Institute Structured Project Report Services IIBMS Institute Detailed Project Documentation IIBMS Project Evaluation Support IIBMS Institute Custom Project Report Formats IIBMS Institute Project Research and Analysis MBA/EMBA/GMS/DMS Project Reports

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IIBMS – “THAT’S NOT MY JOB” – LEARNING DELEGATION AT CIN-MADE

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Case IV: “THAT’S NOT MY JOB” – LEARNING DELEGATION AT CIN-MADE IIBMS – “THAT’S NOT MY JOB” – LEARNING DELEGATION AT CIN-MADE When Robert Frey purchased Cin – Made in 1984, the company was near ruin.  The Cincinnati, Ohi-based manufacturer of paper packaging had not altered its product line in 20 years.  Labor costs had hit the ceiling, while profits were falling through the floor.  A solid quarter of the company’s shipments were late and absenteeism was high.  Management and workers were at each other’s throats. Ten years later, Cin – Made is producing a new assortment of highly differentiated composite cans, and pre-tax profits have increased more than five times.  The Cin – Made workforce is both flexible and deeply committed to the success of the company.  On-time delivery of products has reached 98 percent, and absenteeism has virtually disappeared.  There are even plans to form two spin – off companies to be owned and operated by Cin-Made employees.  In fact, at the one day “Future of the American Workforce” conference held in July 1993, Cin-Made was recognized by President Clinton as one of the best – run companies in the United States. “How did we achieve this startling turnaround ?”  mused Frey.  “Employee empowerment is one part of the answer.  Profit sharing is another.” In the late spring of 1986, relations between management and labor had reached rock bottom.  Having recently suffered a pay cut, employees at Cin- Made came to work each day, performed the duties required of their particular positions, and returned home-nothing more.  Frey could see that his company was suffering.  “To survive we needed to stop being worthy adversaries and start being worthy partners,” he realized.  Toward this end, Frey decided to call a meeting with the union.  He offered to restore worker pay to its previous level by the end of the year.  On top of that, he offered  something no one expected: a 15 percent share of Cin-Made’s pre-tax profits. “I do not choose to own a company that has an adversarial relationship with its employees.” Frey proclaimed at the meeting.  He therefore proposed a new arrangement that would encourage a collaborative employee-management relationship  “Employee participation will play an essential role in management.” Managers within the company were among the first people to oppose Frey’s new idea of employee involvement.  “My three managers felt they were paid to be worthy adversaries of the unions.”  Frey recalled.  It’s what they’d been trained for.  It’s what made them good managers.  Moreover, they were not used to participation in any form, certainly not in decision making.”  The workers also resisted the idea of extending themselves beyond the written requirements of their jobs.  “(Employees) wanted generous wages and benefits, of course, but they did not want to take responsibility for anything more than doing their own jobs the way they had always done them,” Frey noted.  Employees were therefore skeptical of Frey’s overtures toward “employee participation.”   “We thought he was trying to rip us off and shaft us,” explained Ocelia Williams, one of many Cin-Made employees who distrusted Frey’s plans. Frey, however, did not give up, and he eventually convinced the union to agree to his terms.  “I wouldn’t take no for an answer,” he asserted.  “Once I had made my two grand pronouncements, I was determined to press ahead and make them come true.”  But still ahead lay the considerable challenge of convincing employees to take charge: I made people meet with me, then instead Of telling them what to do, I asked them. They resisted. “How can we cut the waste on his run?” I’d Say, or “How are we going to allocate the Overtime on this order?” “That’s not my job,” they’d say. “But I need your input,” I’d say.  “How in the World can we have participative management If you won’t participate? “I don’t know,” they’d say.  “Because that’s Not my job either.  That’s your job?” Gradually, Frey made progress.  Managers began sharing more information with employees.  Frey was able slowly to expand the responsibilities workers would carry.  Managers who were unable to work with employees left and union relations began to improve.  Empowerment began to happen.  By 1993, Cin Made employees were taking responsibility for numerous tasks.  Williams, for example, used to operate a tin-slitting machine on the company’s factory floor.  She still runs that same machine, but now is also responsible for ordering almost $ 100,000 in supplies. Williams is just one example of how job roles and duties have been redefined throughout Cin-Made.  Joyce Bell, president of the local union, still runs the punch press she always has, but now also serves as Cin- Made’s corporate safety director.  The company’s scheduling team, composed of one manager and five lead workers from various plant areas, is charged with setting hours, designating layoffs, and deciding when temporary help is needed.  The hiring review team, staffed by three hourly employees and two managers, is responsible for interviewing applicants and deciding whom to hire.  An employee committee performs both short – and long – term planning of labor, materials, equipment, production runs, packing, and delivery.  Employees even meet daily in order to set their own production schedules.  “We empower employees to make decisions, not just have input,” Frey remarked. “I just coach.” Under Frey’s new management regime, company secrets have virtually disappeared.  All Cin-Made employees, from entry-level employees all the way to the top, take part in running the company.  In fact, Frey has delegated so much of the company’s operations to its workers that he now feels little in the dark. “I now know very little about what’s going on, on a day-to-day basis,” he confessed. At Cin-Made, empowerment and delegation are more than mere buzzwords; they are the way of doing business – good business. “We, as workers, have a lot of opportunities,” said Williams. “If we want to take leadership, it’s offered to us.”   Questions: How were principles of delegation and decentralization incorporated into Cine – Made operations?

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IIBMS – DISNEY’S DESIGN

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Case III: IIBMS – DISNEY’S DESIGN IIBMS – DISNEY’S DESIGN The Walt Disney Company is heralded as the world’s largest entertainment company.  It has earned this astounding reputation through tight control over the entire operation: control over the open – ended brainstorming that takes place 24 hours a day; control over the engineers who construct the fabulous theme – park rides; control over the animators who create and design beloved characters and adventurous scenarios ; and control over the talent that brings the many concepts and characters to life.  Although control pervades the company, it is not too strong a grip.  Employees in each department are well aware of their objectives and the parameters established to meet those objectives.  But in conjunction with the pre-determined responsibilities, managers at Disney encourage independent and innovative thinking.             People at the company have adopted the phrase “Dream as a Team” as a reminder that whimsical thoughts, adventurous ideas, and all – out dreaming are at the core of the company philosophy.  The overall control over each department is tempered by this concept.  Disney managers strive to empower their employees by leaving room for their creative juices to flow.  In fact, managers at Disney do more than encourage innovation.  They demand it.  Projects assigned to the staff “imaginers” seem impossible at first glance.   At Disney, doing the seemingly impossible is  part of what innovation means.  Teams of imaginers gather together in a brainstorming session known as the “Blue Sky” phase.  Under the “Blue Sky”, an uninhibited exchange of wild, ludicrous, outrageous ideas, both “ good” and “ bad”, continues until solutions are found and the impossible is done.  By demanding so much of their employees, Disney managers effectively drive their employees to be creative.             Current Disney leader Michael Eisner has established the “Dream as a Team” concept.  Eisner realized that managers at Disney needed to let their employees brainstorm and create with support.  As Disney president Frank Weds says, “If a good idea is there, you know it, you feel it, you do it, no matter where it comes from.” Questions: What environmental factors influenced management style at Disney? What kind(s) of organizational structure seem to be consistent with “Dream as a Team”? How and where might the informal organization be a real asset at Disney? IIBMS – DISNEY’S DESIGN At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses. Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by IIBMS Institute (Institute Indian Institute of Business Management & Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments and case studies within the institute\’s curriculum. Whether in MBA, EMBA, GMS, DMS, or any other programs offered at IIBMS Institute (Institute Indian Institute of Business Management & Studies), our team is equipped to provide expert guidance and meticulously crafted solutions. We prioritize accuracy, originality, and timely delivery; ensuring students receive the necessary assistance to excel academically. We are dedicated to fostering an environment of academic excellence and providing dependable support to the esteemed students of IIBMS Institute (Institute Indian Institute of Business Management & Studies). IIBMS Answer Sheets IIBMS Mumbai IIBMS Bangalore Customized Answer Solutions MBA Assignment Solutions EMBA Case Study Solutions GMS Answer Sheets DMS Assignment Help Professional Writing Assistance Tailored Academic Solutions Comprehensive Answer Sheets Specialized IIBMS Support Academic Writing Services Timely Submission Support Expertly Crafted Answers Personalized Guidance Reliable IIBMS Assistance Get expert assistance with your IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments and answer sheets from our professional academic writing services. Our team specializes in supporting students with IIBMS Institute (Institute Indian Institute of Business Management & Studies) coursework, ensuring top-notch answer sheets and comprehensive solutions. Ace, with our tailored assistance, your IIBMS Institute exams, offering precise guidance and accurate answer sheet preparation. Seeking reliable help for your IIBMS Institute studies? Trust our academic writing services for meticulously crafted answer sheets and exceptional support. Score high in your IIBMS Institute assessments by availing our expert aid in preparing comprehensive and well-structured answer sheets.   IIBMS Institute Project Report Writing Services IIBMS Institute Customized Project Reports IIBMS Institute Project Support IIBMS Institute Professional Project Report Assistance Tailored Solutions for Project Reports IIBMS Institute Quality Project Documentation IIBMS Institute Expert Project Report Writers IIBMS Institute Comprehensive Project Analysis IIBMS Institute Structured Project Report Services IIBMS Institute Detailed Project Documentation IIBMS Project Evaluation Support IIBMS Institute Custom Project Report Formats IIBMS Institute Project Research and Analysis MBA/EMBA/GMS/DMS Project Reports   IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments, solved papers, and study materials are available through our academic writing services. Seeking assistance with IIBMS Institute coursework? Our professional team delivers accurate and timely solutions for all your academic needs. Our specialized academic writing support simplifies access to IIBMS Institute (Institute Indian Institute of Business Management & Studies) question papers and model answers. Need expert guidance for your IIBMS Institute assessments? Our service offers comprehensive solutions for students seeking assistance. Our academic writing services ensure precise and high-quality answers for IIBMS Institute assignments, aiding students in their educational journey.   Academic writing professionals play a crucial role in assisting students with their university assignments, striving to achieve several key goals: Quality Assurance: Their primary aim is to deliver high-quality content that meets academic standards and fulfills the requirements of the university assignments. This involves thorough research, proper structuring, and adherence to guidelines provided by the educational institution. 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IIBMS – COMPETITION AHEAD: VSNL AT CROSS ROADS

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CASE II: IIBMS – COMPETITION AHEAD: VSNL AT CROSS ROADS IIBMS – COMPETITION AHEAD: VSNL AT CROSS The telecom sector had been functioning as a typical government department right from its inception. With the Department of Telephones (DoT) being under the exclusive control of the Ministry of Communications, Government of India (GO!), the system functioned more as a monopoly. With the advent of the LPG process (liberalization, privatization and globalization) in the early nineties, the telecom department went through a phase of modernization. A number of new and sophisticated electronic exchanges were installed which enhanced the capacity and lead to the disappearance of waiting list for telephone connections. In a landmark decision in 1995-96, the Government of India threw open its gates for private players in the area of cellular services. LCG and ACG were the two major players to enter this area in Karnataka region, while DoT decided to remain as an observer and continued as a provider of basic services only. Subsequently the Internet, ISD and other services were also opened to private participation. The year 1998 saw the entry of Vikas Telenet (VTNL) as a basic service provider in the state of Karnataka. It launched its basic services in Bangalore district, the commercial capital of the state, in January 1998. The impact of this entry was felt by DoT as it resulted in a mass customer churning, challenging the market leadership of DoT in basic services. This growing challenge from VTNL made General Manager DoT Indore, R.L. Rawat realized the need for a comprehensive review of the competitive scenario. The situation faced by the Bangalore district was one of its kind. It was the only city where four companies were providing telephone services. LCG and ACG were providing cellular services while VTNL and DoT were providing basic services. To attract the customers all the providers had attractive tariff plans. DoT\’s market share was not affected by the entry of LCG and ACG as – they operated only as cellular service providers and their services carried a premium price. But the entry of VTNL as a basic service provider with attractive tariff plans showed a marked shift in customer base from DoT to VTNL specially in case of heavy users make it necessary for DoT to come up with similar competitive tariff plans. General Manager Operations DoT Bangalore, S.N. Dutt, felt that improved services, customer care and proper pricing would help in winning back the heavy users who accounted for almost 60 to 65% of the total revenue. Keeping this in mind, a review of VTNL\’s tariff plans was done (Annexure I). The review revealed that the customers were getting a distinct price advantage in the rentals and free calls given by VTNL. Along with this, a discount ranging from 2.5 to 16% was also announced by VTNL. S.N. Dutt formulated a comprehensive plan to guard DoT\’s market share. Officers were appointed as account holders and were responsible for rendering personalized customer care to commercially important customers hoping to retain them with better services. He also formulated a proposal of discounts which was forwarded to the Circle Head Office (Annexure-II) and a presentation was made by DGM – Marketing K.K. Sen, highlighting the rate at which customer churning was taking place and the need for implementation of new tariff plan. He pleaded with the senior officers that DoT needed to be at least reactive if not proactive, to sustain itself in the market. The proposal was well received and forwarded to the Ministry of Communications for approval. Responding to the need of the hour, the Ministry decided to offer a comprehensive discount of 2.5 to 16% for its heavy users. The scheme was introduced in Bangalore, which was extended first to the state of Karnataka and later on to the entire nation. VTNL, which had so far been concentrating only on the heavy users, decided to now expand its network to get a wider customer base. With this view in mind, a number of promotional schemes were introduced e.g., web phone, a facility for internet usage where access to the net was provided at a cost of 60 paise per call only. It also announced free Internet facility for a year on every new connection. Besides this, VTNL went in for heavy promotion of its schemes. The careful wording of the schemes and enhancement of the number of free calls made the customers feel that they were gainers as far as rentals were concerned. These schemes when launched created very difficult times for VTNL during May -August 2001. By then, DoT had been Corporatised (October 1, 2000) and came to be known as VSNL. The Bangalore office was extremely hopeful that the corporatisation would facilitate. The implementation of new innovative schemes. For drafting a proposal of innovative schemes, VSNL first conducted a market research where in -the database of surrendered connections was used as sample and effort were made to identify the cause of disconnections. The survey revealed that of the total number of disconnections 30% were due to economic recession while 40% were due to customer turning in favor of VTNL while the remaining were due to a multitude of factors interplaying with one another. To redeem the situation, VSNL, Bangalore prepared an innovative plan known as Business Special Plan – Plan 600-800, which offered 800 free calls on a monthly rental of Rs.600 only. The plan was put forward to Chief General Manager at Bangalore for approval. The persistent efforts of K.K. Sen bore fruits and the proposal was approved at the Circle level. However, at the time of launch K. K. Sen realized that they needed TRAI\’s (Telecom Regulatory Authority of India) approval for going ahead. To ensure the unhindered approval of TRAI, modified tariff plans called 500-700 and an economy plan were suggested and sent for approval. While formulating these plans, an attempt was made to segment the market with an intention to target each segment with a customized/specific set of services. Plan 500-700

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IIBMS – REBRANDING MCJOBS

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CASE: 4   IIBMS – REBRANDING MCJOBS IIBMS – REBRANDING MCJOBS As with most fast-food restaurant chains, McDonald’s needs more people to fill jobs in its vast empire. Yet McDonald’s executives are finding that recruiting is a tough sell. The industry is taking a beating from an increasingly health-conscious society and the popular film Supersize Me. Equally troublesome is a further decline in the already dreary image of employment in a fast-food restaurant. It doesn’t help that McJob, a slang term closely connected to McDonald’s, was recently added to both Merriam-Webster’s Collegiate Dictionary and the Oxford English Dictionary as a legitimate concept meaning a low-paying, low-prestige, dead-end, mindless service job in which the employee’s work is highly regulated. McDonald’s has tried to shore up its employment image in recent years by improving wages and adding some employee benefits. A few years ago it created the “I’m loving it” campaign, which took aim at a positive image of the golden arches for employees as well as customers. The campaign had some effect, but McDonald’s executives realized that a focused effort was needed to battle the McJob image. Now McDonald\’s is fighting back with a “My First” campaign to show the public—and prospective job applicants—that working at McDonald\’s is a way to start their careers and develop valuable life skills. The campaign’s centerpiece is a television commercial showing successful people from around the world whose first job was at the fast-food restaurant. “Working at McDonald\’s really helped lay the foundation for my career,” says ten-time Olympic track and field medalist and former McDonald\’s crew member Carl Lewis, who is featured in the TV ad. “It was the place where I learned the true meaning of excelling in a fast-paced environment and what it means to operate as part of a team.” Richard Floersch, McDonald\’s executive vice president of human resources, claims that the company’s top management has deep talent, but the campaign should help to retain current staff and hire new people further down to hierarchy. “It’s a very strong message about how when you start at McDonald\’s, the opportunities are limitless,” says Floersch. Even the McDonald\’s application form vividly communicates this message by showing a group of culturally diverse smiling employees and the caption “At McDonald\’s You Can Go Anywhere!” McDonald\’s has also distributed media kits in several countries with factoids debunking the McJob myth. The American documentation points out that McDonald\’s CEO Jim Skinner began his career working the restaurant’s front lines, as did 40 percent of the top 50 members of the worldwide management team, 70 percent of all restaurant managers, and 40 percent of all owner/operators. “People do come in with a ‘job’ mentality, but after three months or so, they become evangelists because of the leadership and community spirit that exists in stores,” says David Fairhurst, the vice president for people at McDonald\’s in the United Kingdom. “For many, it’s not a job, but a career.” McDonald\’s also hopes the new campaign will raise employee pride and loyalty, which would motivate the 1.6 million staff members to recruit more friends and acquaintances through word of mouth. “If each employee tells just five people something cool about working at McDonald\’s, the net effect is huge,” explains McDonald\’s global chief marketing officer. So far the campaign is having the desired effect. The company’s measure of employee pride has increased by 14 percent, loyalty scores are up by 6 percent, and 90-day employee turnover for hourly staff has dropped by 5 percent. But McDonald\’s isn\’t betting on its new campaign to attract enough new employees. For many years it has been an innovator in recruiting retirees and people with disabilities. The most recent innovation at McDonald\’s UK, called the Family Contract, allows wives, husbands, grandparents, and children over the age of 16 to swap shifts without notifying management. The arrangement extends to cohabiting partners and same-sex partners. The Family Contract is potentially a recruiting tool because family members can now share the same job and take responsibility for scheduling which family member takes each shift. Even with these campaigns and human resource changes, some senior McDonald\’s executives acknowledge that the entry-level positions are not a “lifestyle” job. “Most of the workers we have are students—it’s a complementary job,” says Denis Hennequin, the Paris-based executive vice president for McDonald\’s Europe. Questions Discuss McDonald\’s current situation from a human resource planning perspective. Is McDonald\’s taking the best approach to improving its employer brand? Why or why not? If you were in charge of developing the McDonald\’s employer brand, what would you do differently? Would “guerrilla” recruiting tactics help McDonald\’s attract more applicants? Why or why not? If so what tactics might be effective? IIBMS – REBRANDING MCJOBS At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses. Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by IIBMS Institute (Institute Indian Institute of Business Management & Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments and case studies within the institute\’s curriculum. Whether in MBA, EMBA, GMS, DMS, or any other programs offered at IIBMS Institute (Institute Indian Institute of Business Management & Studies), our team is equipped to provide expert guidance and meticulously crafted solutions. We prioritize accuracy, originality, and timely delivery; ensuring students receive the necessary assistance to excel academically. We are dedicated to fostering an environment of academic excellence and providing dependable support to the esteemed students of IIBMS Institute (Institute Indian Institute of Business Management & Studies). IIBMS Answer Sheets IIBMS Mumbai IIBMS Bangalore Customized Answer Solutions MBA Assignment Solutions EMBA Case Study Solutions GMS Answer Sheets DMS Assignment Help Professional Writing Assistance Tailored Academic Solutions Comprehensive Answer Sheets Specialized IIBMS Support Academic Writing

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IIBMS – BOOM AND BUST IN TELECOMMUNICATIONS

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CASE: 2   BOOM AND BUST IN TELECOMMUNICATIONS IIBMS – BOOM AND BUST IN TELECOMMUNICATIONS In 1997 Michael O\’Dell, the chief scientist at World-Com, which owned the largest network of “Internet backbone” fiber optic cable in the world, stated that data traffic over the Internet was doubling every hundred days. This implied a growth rate of over 1,000 percent a year. O\’Dell went on to day that there was not enough fiber optic capacity to go around, and that “demand will far outstrip supply for the foreseeable future.” Electrified by this potential opportunity, a number companies rushed into the business. These firms included Level 3 Communications, 360 Networks, Global Crossing, Qwest Communications, World-Com, Williams Communications Group, Genuity Inc., and XO Communications. In all cases the strategic plans were remarkably similar: Raise lots of capital, build massive fiber optic networks that straddled the nation (or even the globe), cut prices, and get ready for the rush of business. Managers at these companies believed that surging demand would soon catch up with capacity, resulting in a profit bonanza for those that had the foresight to build out their networks. It was a gold rush, and the first into the field would stake the best claims. However, there were dissenting voices. As early as October 1998 an Internet researcher at AT&T Labs named Andrew Odlyzko published a paper that de-bunked the assumption that demand for Internet traffic was growing at 1,000 percent a year. Odlyzko’s careful analysis concluded that growth was much slower—only 100 percent a year! Although still large, that growth rate was not nearly large enough to fill the massive flood of fiber optic capacity that was entering the market. Moreover, Odlyzko noted that new technologies were increasing the amount of data that could be sent down existing fibers, reducing the need for new fiber. But with investment money flooding into the market, few paid any attention to him. WorldCom was still using the 1,000 percent figure as late as September 2000. As it turned out, Odlyzko was right. Capacity rapidly outstripped demand, and by late 2002 less than 3 percent of the fiber that had been laid in the ground was actually being used! While prices slumped, the surge in volume that managers had bet on did not materialize. Unable to service the debt they had taken on to build out their networks, company after company tumbled into bankruptcy—including WorldCom, 360 Networks, XO Communications, Global Crossing. Level 3 and Qwest survived, but their stock price had fallen by 90 percent, and both companies were saddled with massive debts.   Questions   Why did the strategic plans adopted by companies like Level 3 Global Crossing and 360 Networks fail? The managers who ran these companies were smart, successful individuals, as were many of the investors who put money into these businesses. How could so many smart people have been so wrong? What specific decision-making biases do you think were at work in this industry during the late 1990s and early 2000s? What could the managers running these companies done differently that might have led to a different outcome? IIBMS – BOOM AND BUST IN TELECOMMUNICATIONS At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses. Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by IIBMS Institute (Institute Indian Institute of Business Management & Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments and case studies within the institute\’s curriculum. Whether in MBA, EMBA, GMS, DMS, or any other programs offered at IIBMS Institute (Institute Indian Institute of Business Management & Studies), our team is equipped to provide expert guidance and meticulously crafted solutions. We prioritize accuracy, originality, and timely delivery; ensuring students receive the necessary assistance to excel academically. We are dedicated to fostering an environment of academic excellence and providing dependable support to the esteemed students of IIBMS Institute (Institute Indian Institute of Business Management & Studies). IIBMS Answer Sheets IIBMS Mumbai IIBMS Bangalore Customized Answer Solutions MBA Assignment Solutions EMBA Case Study Solutions GMS Answer Sheets DMS Assignment Help Professional Writing Assistance Tailored Academic Solutions Comprehensive Answer Sheets Specialized IIBMS Support Academic Writing Services Timely Submission Support Expertly Crafted Answers Personalized Guidance Reliable IIBMS Assistance Get expert assistance with your IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments and answer sheets from our professional academic writing services. Our team specializes in supporting students with IIBMS Institute (Institute Indian Institute of Business Management & Studies) coursework, ensuring top-notch answer sheets and comprehensive solutions. Ace, with our tailored assistance, your IIBMS Institute exams, offering precise guidance and accurate answer sheet preparation. Seeking reliable help for your IIBMS Institute studies? Trust our academic writing services for meticulously crafted answer sheets and exceptional support. Score high in your IIBMS Institute assessments by availing our expert aid in preparing comprehensive and well-structured answer sheets.   IIBMS Institute Project Report Writing Services IIBMS Institute Customized Project Reports IIBMS Institute Project Support IIBMS Institute Professional Project Report Assistance Tailored Solutions for Project Reports IIBMS Institute Quality Project Documentation IIBMS Institute Expert Project Report Writers IIBMS Institute Comprehensive Project Analysis IIBMS Institute Structured Project Report Services IIBMS Institute Detailed Project Documentation IIBMS Project Evaluation Support IIBMS Institute Custom Project Report Formats IIBMS Institute Project Research and Analysis MBA/EMBA/GMS/DMS Project Reports   IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments, solved papers, and study materials are available through our academic writing services. Seeking assistance with IIBMS Institute coursework? Our professional team delivers accurate and timely solutions for all your academic needs. Our specialized academic writing support simplifies access to IIBMS Institute (Institute Indian Institute of Business Management & Studies) question papers and model answers. Need expert guidance for your IIBMS Institute assessments? Our service offers

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IIBMS – STAR ENGINEERING COMPANY

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CASE – 4   STAR ENGINEERING COMPANY IIBMS – STAR ENGINEERING COMPANY  Star Engineering Company (SEC) produces electrical accessories like meters, transformers, switchgears, and automobile accessories like taximeters and speedometers. SEC buys the electrical components, but manufactures all mechanical parts within its factory which is divided into four production departments Machining, Fabrication, Assembly, and Painting—and three service departments—Stores, Maintenance, and Works Office. Though the company prepared annual budgets and monthly financial statements, it had no formal cost accounting system. Prices were fixed on the basis of what the market can bear. Inventory of finished stocks was valued at 90 per cent of the market price assuming a profit margin of 10 per cent. In March, the company received a trial order from a government department for a sample transformer on a cost-plus-fixed-fee basis. They took up the job (numbered by the company as Job No 879) in early April and completed all manufacturing operations before the end of the month.             Since Job No 879 was very different from the type of transformers they had manufactured in the past, the company did not have a comparable market price for the product. The purchasing officer of the government department asked SEC to submit a detailed cost sheet for the job giving as much details as possible regarding material, labour and overhead costs. SEC, as part of its routine financial accounting system, had collected the actual expenses for the month of April, by 5th of May. Some of the relevant data are given in Exhibit A. The company tried to assign directly, as many expenses as possible to the production departments. However, It was not possible in all cases. In many cases, an overhead cost, which was common to all departments had to be allocated to the various departments using some rational basis. Some of the possible bases were collected by SEC’s accountant. These are presented in Exhibit B. He also designed a format to allocate the overhead to all the production and service departments. It was realized that the expenses of the service departments on some rational basis. The accountant thought of distributing the service departments’ costs on the following basis: Works office costs on the basis of direct labour hours. Maintenance costs on the basis of book value of plant and machinery. Stores department costs on the basis of direct and indirect materials used. The accountant, who had to visit the company’s banker, passed on the papers to you for the required analysis and cost computations.   REQUIRED   Based on the data given in Exhibits A and B, you are required to:   Complete the attached “overhead cost distribution sheet” (Exhibit C). Note: Wherever possible, identify the overhead costs chared directly to the production and service departments. If such direct identification is not possible, distribute the costs on some “rational basis. Calculate the overhead cost (per direct labour hour) for each of the four producing departments. This should include share of the service departments’ costs. Do you agree with: a.   The procedure adopted by the company for the distribution of overhead costs? b.   The choice of the base for overhead absorption, i.e. labour-hour rate?   Exhibit A   STAR ENGINEERING COMPANY Actual Expenses(Manufacturing Overheads) for April RS RS Indirect Labour and Supervisions: Machining Fabrication Assembly Painting Stores Maintenance Indirect Materials and Supplies Machining Fabrication Assembly Painting Maintenance Others  Factory Rent Depreciation of Plant and Machinery Building Rates and Taxes Welfare Expenses (At 2 per cent of direct labour wages and Indirect labour and supervision) Power  (Maintenance—Rs 366; Works Office Rs 2,200, Balance to Producing Departments) Works Office Salaries and Expenses Miscellaneous Stores Department Expenses  33,00022,000 11,000  7,000 44,000 32,700 2,200 1,100 3,300 3,400 2,800 1,68,000    44,000      2,400    19,400   68,586 1,30,260      1,190 1,49,700 12,800 4,33,930 5,96,930   Exhibit B STAR ENGINEERING COMPANY Projected Operation Data for the Year  Department  Area  (sq.m) Original Book of Plant & Machinery Rs Direct Materials Budget Rs Horse  Power Rating Direct Labour  Hours Direct Labour  Budget Rs Machining Fabrication Assembly Painting Stores Maintenance Works Office Total  13,000 11,000  8,800  6,400  4,400  2,200  2,200 48,000 26,40,000 13,20,000   6,60,000   2,64,000   1,32,000   1,98,000     68,000 52,80,000 62,40,000 21,60,000 10,80,000 94,80,000 20,000 10,000   1,000   2,000 33,000 14,40,000   5,28,000   7,20,000   3,30,000 30,18,000 52,80,000 25,40,000 13,20,000   6,60,000 99,00,000   Note  The estimates given in this exhibit are for the budgeted year January to December where as the actuals in Exhibit A are just one month—April of the budgeted year.   Exhibit C STAR ENGINEERING COMPANY Actual Overhead Distribution Sheet for April Departments Overhead Costs Production Departments Service Departments Total Amount Actuals for April (Rs) Basis for Distribution A. Allocation of Overhead to all departments A.1 Indirect Labour and Supervision       1,49,700 A.2 Indirect materials and supplies   12,800 A.3 Factory Rent 1,68,000 A.4 Depreciation of Plant and Machinery   44,000 A.5 Building Rates and Taxes     2,400   A.6 Welfare Expenses     19,494     A.7 Power   68,586 A.8 Works Office Salaries and Expenses   1,30,260       A.9 Miscellaneous Stores Expenses   1,190 A. Total (A.1 to A.9) 5,96,430 B. Reallocation of Service Departments Costs to Production Departments B.1 Distribution of Works Office Costs B.2 Distribution of Maintenance Department’s Costs B.3 Distribution of Stores Department’s Costs Total Charged to Producing C. Departments (A+B)     5,96,430 D. Labour Hours Actuals for April   1,20,000   44,000   60,000   27,500 E. Overhead Rate/Per Hour (D)   IIBMS – STAR ENGINEERING COMPANY At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses. Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by IIBMS Institute (Institute Indian Institute of Business Management & Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments

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