problem: In order to achieve its objectives and profit targets, an engineering business must have in place an adequate financial plan. describe the main steps in forming a financial plan for a typical engineering company.
problem: Several factors will influence the directors of an engineering company in formulating the financial plan. List and examine three of these factors and discuss what effect they might have on the decision making process during the financial planning.
problem: Mega Widgets Ltd have designed a new Super Widget which may revolutionise inter-stellar sandwich making.
Production costs:
Variable, material, labour etc: £10 per item
Fixed, machinery, tolling heating etc: £20,000 per year
Administration + selling overheads:
Fixed: £35,000
The company have to decide whether to make the widgets and sell them. find out the selling price based on absorption and marginal costing techniques. The company wish to make a 40% profit on each unit.
Analyse the most appropriate costing method if production is at a rate of 100 widgets per hour and sales are predicted to be 20,000 per year.
Super Widget Manufacturing Project
To manufacture the new super widget requires 3 manufacturing processes and a packing process. Quotations for the machinery have been obtained.
1) Squidging machine, £10k, 2 operators, 50 units per hour, maintenance 6 month intervals @ 4hours, running cost £25/ hour
2) Banging machine, £20k, 1 operator, 100 units per hour, maintenance yearly @ 8hours, running cost £30/ hour
3) Thumping machine, £5k, automated, 200 per hour, maintenance monthly @ 1hour, running cost £10/ hour
4) Packing process, current equipment can be used, 1 operator, 20 units per hour, maintenance by operators daily @ 30 minutes.
Installing the machines takes 1 half day each and requires 1 electrical and 1 mechanical fitter.
Training takes 1 hour per operator and requires the machine being available.
Commissioning each machine takes 2 days, requires both fitters and 1 operator.
Production is to be spread evenly across the year, with batches produced in a single run, once per week.
Labour costs are £10 per hour per operator, £15 per hour for fitters.
problem: List the total resources and associated costs required to complete the whole project for a 2 year production run.
problem: Produce a project plan covering installation, commissioning, training and operating production for the two years.
problem:Plan the human resources required listing the requirements on a weekly basis and costs on a monthly basis.