The following questions are from the text p.169 1. Do you think the daily P&L should be continued?

Was it based on good cost accounting data and principles? No, profit and loss report shouldnt be continued because this report is insufficient and costly to the organization. Every morning each facility reported the key data for the previous three shifts. It also shows the format of one page comprehensive report and provides amplifying information. No, this report wasnt based on a good cost accounting data and principles, this as served as the scorecard for corporate management to judge the perform ace of each production facility and for he GM to evaluate their operations. It also consists of the explanation of in the daily profit and loss. 2. What other measures would you recommend? Should they replace the daily P&L, or should they be additional? Weekly and monthly reports, weekly reports focused on the key operational data ( safety, quality , employees, productivity and on-line shipments) and summary financial information monthly reports were primarily financial and contained an analysisi of profit and loss statement including a detailed assessment of cost and a comparison to budget and forecast. Profit and Loss reports should be additional to other reports. 3. Do you see any opportunity to employ an ABC-type cost system? NYPRO use ABC system, adding the material cost, machine rate (including facility overhead) times the cycle time. They then added a 25% margin for sales, general administration, and profit to arrive at a price quote. Corporate sold the jobs to the various production facilities (profit centers) using a cost based transfer pricing system and they receive profit on it. So, it is good idea to comply ABC system. 4. Given the daily and monthly reports, was this enough control to manage this growth company? Did they need more balance in their reporting system? The weekly report, exhibit 4 focused on the key operational data (safety, quality, employees productivity and on-time shipments) and the summary financial information (sales and profit). The monthly reports were primarily focused on financial and contained an analysis of the profit and loss statement, including a detailed assessment of cost and comparison to budget and forecast. These reports cover all

the primary operations and they had profit and loss reports in addition to that so these reports would be enough to balance their reporting system. Rather than just relying on reports a suggestion could be that the management also should focus on communicating with stores managers to fins out about the trends. Check out NYPRO Incs website at www.nypro.com. What is the history of the company? Any other information that you believe is relevant to NYPRO Incs control system? NYPRO is a plastics company which design plastics products, build mould used to mould plastics, perform the plastics injection moulding, supply other parts needed to be assembled with plastics parts, assemble the parts and prepare them for delivery to our end customer. There is a high standard of benchmark one of their most successful facilities which is called the Clinton molding operation serves as a model and benchmark for other facilities.

The following questions are from the text p.169 1. Do you think the daily P&L should be continued? Was it based on good cost accounting data and principles? I dont think the daily P&L should be continued, although it provided some useful information of each operation centre. NYPROs daily P&L is based on comparing actual costs with some standard of what those costs should have been at the measured output. And this method has two flaws 1 recorded costs are not precise measures of the resources actually consumed 2 the standard is merely an appropriate of what ideally should have happened under the prevailing circumstances. Also, the measurement of profitability leads NYPRO to focus too much on ROI and discourage things like maintaining and capital expenditure which are essential for NYPRO. Therefore NYPRO should avoid spending too much time and relying on it by stopping daily P&L report. 2. What other measures would you recommend? Should they replace the daily P&L, or should they be additional? I recommend that EVA should be used to measure NYPROs operational performance. EVA focuses on value added act and measure the effectiveness of operation. NYPRO

can still keep the P&L report but not daily. These measures should be used together along with other reports such as weekly reports which focused on the key operational data (safety, quality, employees productivity, and on-time shipment) and the monthly report which were primarily financial and contained an analysis of the P&L statement, including detailed assessment of cost and a comparison to budget and forecast. 3. Do you see any opportunity to employ an ABC-type cost system? ABC costing system is not recommended. Because ABC is suitable for the operation of which different production procedures are involved for different jobs. While NYPROs production process is fixed regardless of various kinds of jobs, and the production process is repeated and is a cycle. Therefore there is no need for implementing ABC. 4. Given the daily and monthly reports, was this enough control to manage this growth company? Did they need more balance in their reporting system? It is not enough. NYPRO is a decentralized organization, and there are many layers of management. So maybe NYPRO should reveal its management cost. In addition other non-financial factors such as employee and customer satisfaction which are important to achieve NYPROs objectives. Check out NYPRO Incs website at www.nypro.com. What is the history of the company? Any other information that you believe is relevant to NYPRO Incs control system? Nypro was founded as Nylon Products Inc. on August 1, 1955, by Fred Kirk and Nick Stadtherr, who started with one machine to injection mold nylon, In 1962, Gordon Lankton bought half of the company and became General Manager. Nylon Products began its global growth in 1973, partnering with loyal customers Gillette and Johnson & Johnson in Puerto Rico as they pursued their expansion strategieSince then, Nypro has grown to encompass 52 operations in 17 countries, offering product development, mold making, molding in a wide variety of formats, assembly and general contract manufacturing capabilities to the world's greatest companies in the healthcare, electronics/telecommunications, automotive, consumer/industrial and packaging markets.s. 1. Do you think the daily P&L should be continued? Was it based on good cost accounting data and principles? No, the daily profit and loss report shouldnt be continued. Every morning each

facility reported the key data for the previous three shifts. This cost the company a lot of time and labor. The report is used for making decisions, but when the managers make decisions, they dont need to know the information for everyday. No, this report wasnt based on a good cost accounting data and principles, this as served as the scorecard for corporate management to judge the perform act of each production. 2. What other measures would you recommend? Should they replace the daily P&L, or should they be additional? Daily report can be cancelled, or reported every 3 or 4 days. Maybe in the weekly or monthly reports, they can add some information in the weekly or monthly report, and make the report more materiality and reliability. 3. Do you see any opportunity to employ an ABC-type cost system? Yes, Activity-Based Costing is a method of assigning the organization's resource cost through activities to the products and services provided to its customers. In the case, the overhead and cost driver for each activity is very clearly, so the company can employ an ABC-type cost system. 4. Given the daily and monthly reports, was this enough control to manage this growth company? Did they need more balance in their reporting system? The weekly report focused on the key operational data and the summary financial information. The monthly reports were primarily focused on financial and contained an analysis of the profit and loss statement, including a detailed assessment of cost and comparison to budget and forecast. These reports would be enough to balance their reporting system because these reports cover all the primary operations and they had profit and loss reports in addition to that. When the managers make decisions, they need more information not only the weekly or monthly report. But as mentioned, they dont need so detailed information like daily report, so a report for every 3 or 4 days is reliability enough for the company. Check out NYPRO Incs website at www.nypro.com. What is the history of the company? Any other information that you believe is relevant to NYPRO Incs

control system? Nypro is a customer injection moulding company which was founded in 1955 in the USA with the name Nylon Products Inc. During the 1970's, Nylon Products expanded overseas to South America and Asia. Nylon Products changed its name to Nypro in 1977. It build mould used to mould plastics, perform the plastics injection molding, supply other parts needed to be assembled with plastics parts, assemble the parts and prepare them for delivery to our end customer. There is a high standard of benchmark, one of their most successful facilities which are called the Clinton molding operation serves as a model and benchmark for other facilities.

NYPRO Inc
Just post another case study, there were really a lot work of AMA... SAMPLE 1: Background: Nowadays, NYPRO is a very famous large custom injection molding company in all over the world. Especially, the sales have achieved $200 million in 1995. However, 20 years ago, it was just one small business of over 2000 injection molders. 1SWOT analysis. Strengths: 1) The company has high goodwill in the market and establishes their good image in the customers. 2) They have two form of company, one is consolidated company, and another is joint venture. 3) Excellent products and services, such as clean-room, high quality plastic. 4) Good strategy: To be the best in the world in precision plastics injection molding, creating value for our customers, employees and communities. In addition, there are some key important points in the strategy. 5) A wide variety of products and a wide market (globalization).

6) Good network ---they build a world wide network of customer. 7) High quality standards of products and production flexibility. Weaknesses: 1) The personally review of internal reporting system will lead to omit or burden of the information of company, and then make some negative effects for the company development. 2) Because of two forms for company, thus, it is very hard to control the whole organization. 3) The low price strategy will reduce the profits of company. 4) The process of judged 23 profit centers will expense too much human resource and cost for company. 5) The controllers of direct report and indirect report are divided, and that will make some negative effect for decision and development of company. Opportunities: 1) New market & new production. 2) New demands of customers. 3) Global information. 4) Competitors vulnerabilities. 5) More partners joint into the company. Threats: 1) Financial problems. 2) The rapid growth in information technology was making internal report system obsolete. 3) The wrong measure of company development will be made. 4) Pricing fights. 5) Substitute production. 6) Threats from competitors. 7) Rapidly changing in business environment.

2. In my opinion, we can keep the daily P&L report as a supplementary result of performance for company. However, nowadays, because of rapid growth in information technology, there are some information and value opportunities which the P&L report can not respect. Thus, we can not just use P&L report as the major report to measure the company performance. In addition, because of the P&L report was not based on the good cost accounting data and a principle, it just describes the profits and loss of facts item by item, and is not relative cost of goods and services, so it is can not to measure the performance of company. 3. In fact, there are many methods systems can be use to measure the level of the company performances. In my mind, the best is activity-based costing system to measure the result of company operating, because the costs of activities can perform on each individual unit of product and services, and it easy to control more regular than other methods system. However, in this case, we should say the daily P&L report also have its own effects on the measure of the company. Thus, it needs to say, the activity-based costing can not replace the daily P&L report, but should be additional as the major. In addition, some other elements should be additional and will be more effective, such as return on investment, transferring pricings and the balance scorecard. 4. Use the ABC type cost system; we can identify the cost of activities performed on each individual unit of product or services more clearly. In addition, because the ABC type cost system relative the cost of products and services, it can calculate the COGS more easily and more effective for make decisions and right strategy for company, and the reports are more efficiently to the direct and indirect controller. At the same time use this method, we can see the cost of activities undertaken to support individual products regardless of the number of units, and to meet the needs of customers. Due to this, it can help company expand the new market areas and attract more consumers in future. Thus, it will give more wide opportunities for the company development. 5. Of course not. Because just the daily and monthly reports, they are very hard to respect the whole operating performances of the company. Moreover, there will omit some data and record some wrong information to lead to wrong judge the company position in the competitive markets. Especially, the year report is very import because it can be analysis the whole trend of the company. In addition, there are more balance sheet in the reporting system are necessary, such as financial performance/position statements, return on investment, the balance scorecard and some other important reports. SAMPLE 2 NYPRO Inc Conduct a SWOT analysis Strength 1. Able to find a neish market for their product to be sold. 2. Initially when the company started its competition was based on price. But tey were able to

differentiate themselves by marking their product higher quality and focusing on selling the product to the fortune 100, example: Johnson & Johnson, Gillette Weakness 1. By selling their product to a few large companies this put pressure on the sales price and NYPORO product because they were dependent on the sales generated from these few customers. 2. The company is not diversified; its focus in one area, only this area could potentially have draw backs in the future because of the difficulty to recycle plastics products and emplacement for the environment. Opportunities 1. To expand their focus from the fortune 100 to the fortune 500 to have a wider scope of sales market. 2. To focus with a broad range of customers which are not big in size. Threats Other competitor who may come in the same market place as NYPRO can start a price competition between the companies the companies which also can severely impact earnings. The following questions are from the text p.169 1. Do you think the daily P&L should be continued? Was it based on good cost accounting data and principles? No, profit and loss report shouldnt be continued because this report is insufficient and costly to the organization. Every morning each facility reported the key data for the previous three shifts. It also shows the format of one page comprehensive report and provides amplifying information. No, this report wasnt based on a good cost accounting data and principles, this as served as the scorecard for corporate management to judge the perform ace of each production facility and for he GM to evaluate their operations. It also consists of the explanation of in the daily profit and loss. 2. What other measures would you recommend? Should they replace the daily P&L, or should they be additional? Weekly and monthly reports, weekly reports focused on the key operational data ( safety, quality , employees, productivity and on-line shipments) and summary financial information monthly reports were primarily financial and contained an analysisi of profit and loss statement including a detailed assessment of cost and a comparison to budget and forecast. Profit and Loss reports should be additional to other reports.

3. Do you see any opportunity to employ an ABC-type cost system? NYPRO use ABC system, adding the material cost, machine rate (including facility overhead) times the cycle time. They then added a 25% margin for sales, general administration, and profit to arrive at a price quote. Corporate sold the jobs to the various production facilities (profit centers) using a cost based transfer pricing system and they receive profit on it. So, it is good idea to comply ABC system. 4. Given the daily and monthly reports, was this enough control to manage this growth company? Did they need more balance in their reporting system? The weekly report, exhibit 4 focused on the key operational data (safety, quality, employees productivity and on-time shipments) and the summary financial information (sales and profit). The monthly reports were primarily focused on financial and contained an analysis of the profit and loss statement, including a detailed assessment of cost and comparison to budget and forecast. These reports cover all the primary operations and they had profit and loss reports in addition to that so these reports would be enough to balance their reporting system. Rather than just relying on reports a suggestion could be that the management also should focus on communicating with stores managers to fins out about the trends. Check out NYPRO Incs website at www.nypro.com. What is the history of the company? Any other information that you believe is relevant to NYPRO Incs control system? NYPRO is a plastics company which design plastics products, build mould used to mould plastics, perform the plastics injection moulding, supply other parts needed to be assembled with plastics parts, assemble the parts and prepare them for delivery to our end customer. There is a high standard of benchmark one of their most successful facilities which is called the Clinton molding operation serves as a model and benchmark for other facilities. SAMPLE 3 NYPRO Inc Conduct a SWOT analysis Strength: 1 an excellent reputation as a sensitive and caring employer 2 its partnership with big players in computer and communication industries 3 capacity to make unique plastic pieces of high quality 4 its worldwide operation which can lead to negotiate globally and deliver locally 5 clean room environment for production Weakness: 1 outdated performance reporting system 2 to many layers of management 3 lack of significant capital expenditure to double sales 4 sales dependency on a few large customers Opportunities: 1 adoption of latest information technology for performance reporting 2 develop

sales form medium or small sized customers 3 use of latest technology to improve production to double sales through capital expenditure 4 implement a uniform and simple management system Threats: 1 fierce price competition in the industry 2 changers brought by latest technology both in production and management systems 3 loss of customers due to the current pricing system The following questions are from the text p.169 1. Do you think the daily P&L should be continued? Was it based on good cost accounting data and principles? I dont think the daily P&L should be continued, although it provided some useful information of each operation centre. NYPROs daily P&L is based on comparing actual costs with some standard of what those costs should have been at the measured output. And this method has two flaws 1 recorded costs are not precise measures of the resources actually consumed 2 the standard is merely an appropriate of what ideally should have happened under the prevailing circumstances. Also, the measurement of profitability leads NYPRO to focus too much on ROI and discourage things like maintaining and capital expenditure which are essential for NYPRO. Therefore NYPRO should avoid spending too much time and relying on it by stopping daily P&L report. 2. What other measures would you recommend? Should they replace the daily P&L, or should they be additional? I recommend that EVA should be used to measure NYPROs operational performance. EVA focuses on value added act and measure the effectiveness of operation. NYPRO can still keep the P&L report but not daily. These measures should be used together along with other reports such as weekly reports which focused on the key operational data (safety, quality, employees productivity, and on-time shipment) and the monthly report which were primarily financial and contained an analysis of the P&L statement, including detailed assessment of cost and a comparison to budget and forecast. 3. Do you see any opportunity to employ an ABC-type cost system? ABC costing system is not recommended. Because ABC is suitable for the operation of which different production procedures are involved for different jobs. While NYPROs production process is fixed regardless of various kinds of jobs, and the production process is repeated and is a cycle. Therefore there is no need for implementing ABC. 4. Given the daily and monthly reports, was this enough control to manage this growth company? Did they need more balance in their reporting system? It is not enough. NYPRO is a decentralized organization, and there are many layers of management. So maybe NYPRO should reveal its management cost. In addition other non-

financial factors such as employee and customer satisfaction which are important to achieve NYPROs objectives. Check out NYPRO Incs website at www.nypro.com. What is the history of the company? Any other information that you believe is relevant to NYPRO Incs control system? Nypro was founded as Nylon Products Inc. on August 1, 1955, by Fred Kirk and Nick Stadtherr, who started with one machine to injection mold nylon, In 1962, Gordon Lankton bought half of the company and became General Manager. Nylon Products began its global growth in 1973, partnering with loyal customers Gillette and Johnson & Johnson in Puerto Rico as they pursued their expansion strategieSince then, Nypro has grown to encompass 52 operations in 17 countries, offering product development, mold making, molding in a wide variety of formats, assembly and general contract manufacturing capabilities to the world's greatest companies in the healthcare, electronics/telecommunications, automotive, consumer/industrial and packaging markets.s. SAMPLE 4 NYPRO Inc Conduct a SWOT analysis Strength l Had an excellent reputation as a sensitive and caring employers l Maintained consistently high quality standards and production flexibility to meet specific customer requirements. l Had a flat decentralized organization with a lean headquarters staff. Weakness l By selling their product to a few large companies. That's means NOPRO has limited number of customers. Opportunities l Global-produce and sell in the other countries. l To focus with a broad range of customers which are not big in size. Threats l More and more competitors will in this industry. l Other competitors maybe make similar products at a lower cost.

The following questions are from the text p.169 1. Do you think the daily P&L should be continued? Was it based on good cost accounting data and principles? No, the daily profit and loss report shouldnt be continued. Every morning each facility reported the key data for the previous three shifts. This cost the company a lot of time and labor. The report is used for making decisions, but when the managers make decisions, they dont need to know the information for everyday. No, this report wasnt based on a good cost accounting data and principles, this as served as the scorecard for corporate management to judge the perform act of each production. 2. What other measures would you recommend? Should they replace the daily P&L, or should they be additional? Daily report can be cancelled, or reported every 3 or 4 days. Maybe in the weekly or monthly reports, they can add some information in the weekly or monthly report, and make the report more materiality and reliability. 3. Do you see any opportunity to employ an ABC-type cost system? Yes, Activity-Based Costing is a method of assigning the organization's resource cost through activities to the products and services provided to its customers. In the case, the overhead and cost driver for each activity is very clearly, so the company can employ an ABC-type cost system. 4. Given the daily and monthly reports, was this enough control to manage this growth company? Did they need more balance in their reporting system? The weekly report focused on the key operational data and the summary financial information. The monthly reports were primarily focused on financial and contained an analysis of the profit and loss statement, including a detailed assessment of cost and comparison to budget and forecast. These reports would be enough to balance their reporting system because these reports cover all the primary operations and they had profit and loss reports in addition to that. When the managers make decisions, they need more information not only the weekly or monthly report. But as mentioned, they dont need so detailed information like daily report, so a report for every 3 or 4 days is reliability enough for the company. Check out NYPRO Incs website at www.nypro.com. What is the history of the company? Any other information that you believe is relevant to NYPRO Incs control system?

Nypro is a customer injection moulding company which was founded in 1955 in the USA with the name Nylon Products Inc. During the 1970's, Nylon Products expanded overseas to South America and Asia. Nylon Products changed its name to Nypro in 1977. It build mould used to mould plastics, perform the plastics injection molding, supply other parts needed to be assembled with plastics parts, assemble the parts and prepare them for delivery to our end customer. There is a high standard of benchmark, one of their most successful facilities which are called the Clinton molding operation serves as a model and benchmark for other facilities. now, i am using Firefox to edit this blog, it seems better than IE. but i do not know what will happen later, maybe something wrong with the format. PS. really wrong with the format...