Wabash Manufacturing Implemented Lean Manufacturing in Its Sheboygan Plant as a Pilot

question 24

Essay

Wabash Manufacturing implemented lean manufacturing in its Sheboygan plant as a pilot program. During the most recent three weeks, the following data pertaining to a specific product line value stream was collected:
Week 1:
Sales = 500 units @ $50 per unit selling price
Beginning inventory = 80 units @ $15 ($5 materials, $10 conversion)
Production = 500 units @ $15 ($5 materials, $10 conversion)
Week 2:
Sales = 675 units at $50 per unit selling price
Beginning inventory = 80 units at $15 ($5 materials, $10 conversion)
Production = 595 units at $15 ($5 materials, $10 conversion)
Week 3:
Sales = 650 units at $50 per unit selling price
Beginning Inventory = 0
Production = 700 units at $15 ($5 materials, $10 conversion)
Required:
1. Prepare a traditional income statement for each week.
2. Calculate the average value stream product cost for each week. What does this cost signal, if anything?
3. Prepare a value stream income statement for each week. Assume that any increase in inventory is valued at average cost. Comment on the financial performance of the value stream and its relationship to traditional income measurement.

Identify best practices in handling customer complaints and requests.

Understand how to maintain long-term customer relationships through trust and reliability.

Understand effective strategies for responding to loss of sales or accounts to competitors.

Recognize the importance of investment in customer relationships based on potential sales.

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Definitions:

Electromagnetism

A branch of physics that studies the interaction between electric currents and magnetic fields.

Solenoid

A coil of wire that acts as a magnet when carrying electric current, often used to control a valve or other components by moving a ferromagnetic core.

Relay

An electrical switch that opens and closes circuits electromechanically or electronically, often used for controlling a high-power circuit with a low-power signal.

Deficit of Electrons

A deficit of electrons occurs in an atom or molecule when it has more protons than electrons, resulting in a positive charge, often referred to as an ionized state.