The Trane Company Case Study

Great Essays
Spencer (1994) examined the conflict between traditional cost accounting and TOC accounting, presents a description of how the TOC method operates at The Trane Company (Macon, GA) and how the cost accounting aspect of TOC was used to evaluate the addition of a new product line proposed by marketing.
Spencer (2000) presented a case study to examine an organization that has implemented all three branches of the theory of constraints (TOC) into their operations to form a continuous improvement process. The organization is not a traditional manufacturer but operates in the food production industry as a service provider for larger food processors. Therefore, one of the key points in this case study is the examination of the application of a production
…show more content…
(2007) have focused to develop an algorithm, for optimizing joint products further processing decision under the theory of constraints. The algorithm is made of seven steps which consider every bottleneck resource to the decision-making process by computing a priority ratio to establish its priority sequence. According to the priority sequence of the most constrained resource, the first master production schedule is developed and the following steps later find the best path to reach the optimal solution under the guidance of all bottleneck resources. Thus, to attain the jointly produced characteristics of joint products and the sequential produced …show more content…
In the aspect of continuous improvement on enterprises management, the method is more general than others in administrative philosophy and technology, which is demonstrated with many cases.
Yao and Zhou (2009) have proposed a production scheduling model of the processing program of paper-making system, starting with pulp and paper balancing as entry point. In order to preserve the good characteristics of the previous generation and reduce the disruptive effects of genetic operator, this paper uses the niche genetic algorithm for solutions. According to simulation proof, this method was proved by the case to have high efficiency for scheduling problems and practical values.
Yuan et. al. (2003) have explained a generic buffer management procedure, based on the concept of the Theory of Constraints buffer management that rigorously defines a method of monitoring to size and to adjust the buffer. Author has stated Theory of Constraints replenishment solution to aggregate inventory buffers at the central warehouse in plant and change the mode of operation from push to pull. The solution is effective, but the optimal amount of buffer remains

Related Documents

  • Improved Essays

    Manufacturing Company

    • 1450 Words
    • 6 Pages

    Introduction Manufacturing companies, like Hampshire Company, rely on the costing data provided by various costing methods to determine financial successes and downfalls. “By tracking and categorizing this information according to a rigorous accounting system, corporate management can determine with a high degree of accuracy the cost per unit of production and other key performance indicators” (Kucera 2018). Therefore, Hampshire Company has requested that I calculate how traditional and activity-based costing impact the company’s operating income. In addition, Hampshire Company has requested that I research and alternative costing method and decide whether or not it should be implemented (Kucera 2018).…

    • 1450 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    Summary Goldratt

    • 1350 Words
    • 6 Pages

    Summary of Main themes In this book, one of the main themes that Goldratt seeks to expound on is the struggles that managers go through. In their work of ensuring that the supply chain runs smoothly, managers often have to deal with a hoist of operational, human resource and even social problems that make it difficult to achieve the set goals. This book gives the story of one Alex Rogo who is facing serious consequences if the manufacturing plant he manages does not improve within three months. Managers in different companies face this typical problem, as there is a lot of pressure from supervisors. .…

    • 1350 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Two of the most important issues in inventory control are order quantity and order timings. Hence my recommendation is to utilize a fixed order quantity system (Q system) as it will determine the reorder point of the items on the basis of the current market status depending on the average demand for the items and EOQ value. The current service levels for the company are 68-75 %. Therefore for an effective and flourishing business the service levels should match to 90-95%. In order for the Inventory Management System to achieve this value, the following requirements would be…

    • 894 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    BSG Lessons Learned How did the key theories and concepts in the course relate to the simulation? The Business Strategy Game (BSG) was the practice of strategic management that offers virtual executive experience. The assigned team could analyze the market, set the direction, and make strategy for company’s growth in BSG.…

    • 1159 Words
    • 5 Pages
    Great Essays
  • Decent Essays

    T. BKSI Simulation Paper

    • 193 Words
    • 1 Pages

    PT. BKSI is a manufacturing company engaged in the steel foundry, with its main product is a worm screw. Problems that occur in the presence of the company is still an imbalance between the processing time and the lack of resources in the form of machines which cause a bottleneck and lead to a buildup. The goal of this research is in order to form a model of the proposed improvement scenarios balancing the right to be able to increase production and minimize work in process and analyze the feasibility of investment in machinery on corporate profits. For the use of simulation methods in solving problems and methods of analysis in terms of the economic feasibility of the technique used the Net Present Value (NPV) and Payback Period (PP).…

    • 193 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    This strategy in turn aids in determining production numbers and whether increases or decreases in automation is needed. Customer awareness thus far has also been excellent, which is an integral part in marketing. One issue that Andrews Corporation has faced is production capacity. With six products in five markets, the company has to determine the most efficient way to allocate its capital to best utilize its capacity and to avoid inventory stock outs and while making a profit. The financing department for the company has been doing well thus far, needing emergency funds only once during the four live…

    • 716 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    COSTCO’s Internal Audit To: Management From: Audit Committee Date: December 6, 2015 Subject: Internal Audit The purpose of the internal audit is to protect Costco's assets through evaluating the acceptability and efficiency of internal controls; recognizing areas of possible risk, revenue improvement and/or cost reductions; and making sure transactions are authorized, completed, and logged as proposed. Costco normally knows sales, net of probable returns and at the period the member takes ownership of the products. The amount received is normally logged as deferred revenue on the consolidated balance sheets pending the sales or serviced is finished. Costco provides for projected sales returns based on past transaction.…

    • 1445 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Printworx Case Study

    • 870 Words
    • 4 Pages

    Target costing is a pro-active cost control system. There is no cost slashing rather there is continuous pressure to keep the costs of a product to a minimum. Target costing sets the selling price of the product by analysing the external environment, its competitors, customer reviews, requirements and their willingness to pay. The target profit is then determined from the predetermined selling price and this results in the target cost. The target costs is then compared to the expected unit costs to ensure that the target cost is being met and if not what needs to be adjusted to get to the required target cost.…

    • 870 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    1.3 RANKING OPTIMIZATION Ranking is a technique to categorize and finding the best option in the market. When number of best option is available in the market so it's difficult to getting the best option is always a problem. Ranking optimization often required to predict or to acquire pre or post ranking based on the existing dataset and available rank unit. At present there are creatures which may predict the approx.…

    • 621 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    This data management system would service all of the Kudler Fine Foods stores in ensuring that the all of the data is integrated for new customers, customer information is updated, and that duplicates are prevented. To allow customers to redeem their accumulated “loyalty” points, web servers would need to be set up to assist with the vast amount of data. Also, redundancy of the said servers would need to be implemented in case there is a hardware or software failure. The most important piece of the “loyalty” program is the card itself. It is a card that the customer would carry and has a unique identifier dedicated to that customer.…

    • 1021 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    The Toyota Way Summary

    • 1369 Words
    • 6 Pages

    In the book, “The Toyota Way” by Jeffrey Liker, the author introduces that the 14 principles of the Toyota way could be divided into four categories, including “long-term philosophy, the right process will produce the right results, add values to the organizations by developing your people, and continuously solving root problems drives organizational learning”. From my perspective, I want to talk about them from three major aspects. I will talk about their system firstly, then continue to show why they would apply these two systems because of the problem they are facing. Finally, I will say something about how their continuous improvement works and impacts on my life. We all know that the Toyota company is a famous Japanese company for producing the automobiles, their products have been sold to any place around the world.…

    • 1369 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Odoo Case Study

    • 904 Words
    • 4 Pages

    Why Odoo? ( Selection Criteria) Odoo allows you to consolidate your applications, to centralize your data and to make your daily work easier, in a nice and unified interface. In terms of product, Odoo is going way beyond traditional ERP. What's usually interfaced with third party apps is fully native with Odoo CMS, E-Commerce, Point of Sale, and a Business Intelligence engine.…

    • 904 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    FHE Inc Case Study

    • 705 Words
    • 3 Pages

    The sequential process often results in product misalignment. Sequential process is a traditional approach where processes are done in stages or steps shown in the figure below. Product misalignment occurs when problems occur during the new product development (i.e. the manufacturing department cannot make what the engineering department specifies due to technology limitations.) The concurrent process shows a simultaneous development process where all functions of the marketing, engineering and operations are involved from beginning to the final stage of product launch.…

    • 705 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Cost Accounting Essay

    • 1292 Words
    • 6 Pages

    Cost accounting has various methods that are applied to specific conditions to aid a company in their goals. Standard cost, activity-based costing, job costing, and process costing are all methods in which cost accounting is liable to provide adequate measurements and analysis on cost control. Standard cost focuses on budgeting for overhead and volumes for allocation base. Budgeting is crucial to forecast out the future and plan accordingly with minor variances. ABC is used to evaluate the most accurate cost of production of each unit.…

    • 1292 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Roles of production planning and control department in garment industry 14.5.2.1 Task Scheduling: It is the process of planning of time and action calendar for each order from the receipt of order to dispatch of the same. The task schedule comprises a list of jobs to be processed for the style of garment. Alongside of each tasks the production planner cited about when to start a task and what is target date for completion of the same. For example, scheduling planned cut date (PCD), line loading date etc.…

    • 1070 Words
    • 5 Pages
    Improved Essays