AYB321 Strategic Management Accounting Discussion Leadership Questions

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AYB321 Strategic Management Accounting

 

Discussion Leadership Questions

 

Tutorial 4

Balanced Scorecard (1)

 

 

 

 

 

  1. Hutchins Specialised Furniture Corporation has provided you with the following data in relation to the manufacture of snooker tables:

 

Activity

Average Hours per Table

Assembly of tables

5.0

Average waiting time (idle time due to machine breakdown)

1.5

Cutting and fitting cloth

1.0

Delivery and installation in customer’s premises

3.0

Insertion of table pockets

2.0

Inspection of completed tables

0.5

Machining of table legs

4.0

Materials handling

1.0

Storage of completed tables awaiting distribution

2.0

Total   

20.0 hours

 

 

 

 

 

You are asked to advise on the following:

 

  1. What is Hutchins’ MCE? (Show all workings.)

  2. How could Hutchins improve their MCE, and how might this provide them with a competitive advantage?

  3. Why would an improvement in MCE be particularly important to a firm whose main customers are switching to JIT manufacturing?

     

     

 

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