Danshui Plant No. 2 Essay

1735 words - 7 pages

SEPTEMBER 28, 2012


Danshui Plant No. 2
In August 2010, Wentao Chen, manager of Danshui Plant No. 2 in southern China, was anxious. The plant was in the third month of a 12-month contract to assemble the Apple iPhone 4. The contract called for Danshui to assemble 2.4 million iPhones in the period between June 1, 2010, and May 31, 2011, but now in the third month of the contract, production was only 180,000 units per month. Chen called Jianye Ma, the plant controller, to request a summary of monthly operations for August as soon after the end of the month as possible. Danshui was a contract manufacturer that assembled electronic ...view middle of the document...

Because the contract was for a year, an annual budget was established soon after the iPhone contract was signed. This budget was divided by 12 to establish equal monthly budgets to which actual revenues and expenses could be compared. All budgeting and monthly reporting was done in U.S. dollars.

Professor Emeritus William J. Bruns of the Harvard Business School and Associate Professor Julie H. Hertenstein and Assistant Professor Kelvin Liu of Northeastern University prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. Despite occasional references to actual companies, this case is fictitious and any resemblance to actual persons or entities is coincidental. Copyright © 2012 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.

913-525 | Danshui Plant No. 2

As the plant manager, Wentao Chen was responsible for control of all costs in his plant. Materials, labor, and overhead were his responsibility. This was done to provide incentive to control all costs whether caused by use waste, damage, theft, or inefficiencies.

The Apple iPhone 4
The iPhone 4 contained more than 100 components manufactured in plants located in Europe, Asia, and the United States. For examples, Samsung supplied flash memories and application processors, and Infineon (a German chip maker) supplied chips that send and receive phone calls and data. A gyroscope, new to the iPhone 4, came from STMicroelectronics, based in Geneva, and a touch-screen module came from Taiwan. Contract manufacturers assembled these parts in assembly line plants that required each worker to focus on one or more tasks in a short period of time as each phone moved along an assembly line toward completion. Estimates of the material cost of each iPhone were around $180, assembly labor around 7% of total cost, and Apple’s profit margins about 60% of the selling price to customers. (See Exhibits 1 and 2 for estimated standard costs and overhead budgets for the Danshui Plant No. 2.) The assembly process at Danshui Plant No. 2 was almost entirely based on handwork by workers. There were about 140 steps in the assembly process for an iPhone 4, and each phone was handled by 325 individuals during the five days required for assembly. Apple released the iPhone 4 on June 24, 2010 and more than 1.7 million units were sold in the first three days it was available. It was the most successful product launch in Apple history. Apple fanatics around the world waited in long...

Other Papers Like Danshui Plant No. 2

Project Feasibility Study Essay

3579 words - 15 pages technology and equipment involved should be determined on the basis of identified plant capacity. Then the various structures and civil works such as factory buildings and plant infrastructure facilities have to be defined and relevant costs estimated. Schedule X. ESTIMATE OF INVESTMENT COST: CIVIL ENGINEERING WORKS ESTIMATE OF INVESTMENT COST Civil engineering works Project component No. Qty. Unit 1. No. _____ Description __________________ Local Foreign Unit Cost Foreign Cost Local Total Item Description Site preparation and development ……… ……… 2. ……… Buildings and special civil works ……… 3. Outdoor works ……… ……… Total

Proposal Essay

542 words - 3 pages ------------------------------------------------- Bhopal Disaster Understanding its impact on Organizational Behavior December 7, 2014 Bhaskardeb Maitra 2201 192nd ST SE #L4, Bothell, WA 98012 December 7, 2014 Bhaskardeb Maitra 2201 192nd ST SE #L4, Bothell, WA 98012 Introduction The industrial catastrophe that occurred on the midnight of December 2, 1984 at Union Carbide India Limited pesticide plant in Bhopal, India was the worst

Gsk Patents

383 words - 2 pages 31, 2008 | | Land and buildings | 10,538  | 9,654  | 9,263  | 9,457  | 8,506  | | Plant, equipment and vehicles | 16,105  | 15,454  | 15,550  | 16,361  | 15,020  | | Assets in construction | 3,056  | 3,148  | 3,343  | 3,523  | 3,330  | | Property, plant and equipment, cost | 29,699  | 28,255  | 28,156  | 29,340  | 26,857  | | Accumulated depreciation | (15,427) | (14,663) | (14,234) | (14,184) | (12,708) | | Property, plant and

Plant Based Diets

806 words - 4 pages ) have the lowest rates of osteoporosis” (Joseph Bennington-Castro) which stirs up more controversy because there are alternative such as raw, whole, organic milk which eliminates concerns like pesticides, hormones, antibiotics, and the effects of homogenization and pasteurization — but to me, these benefits don’t outweigh dairy’s potential risks. Teammate Brian Akers has spent the last 2 months on a plant-based diets, he had his blood drawn before

Bose Corporation

542 words - 3 pages parts • Vendors were involved at a very early stage of product development – like design advice and product specification • Elaborate screening process for choosing a vendor • 4 types of personnel involved in procurement process: 1.Design Engineers, 2.Materials Planners, 3.Buyers, 4.Vendor Salesperson • After 1988 procurement and purchase were decentralised and instead of Corporate Level, buying began at Plant Level • Buyers at Plant were

Pepper Seed Dna Extraction

2410 words - 10 pages wash solution by vortexing for 5 min on Fisher Vortex Genie 2 (Fisher Scientific, Cat. No. 12-812). The tube was centrifuged for 4 min (5,000 X g). The wash solution was removed and washed with 75% ethanol. The tube was centrifuged for 4 min (5,000 X g). The ethanol wash was removed by decanting. The tubes can be stored vertically for 1-2 min to remove the remaining ethanol. The DNA pellets are air dried. The pellets are dissolved in TE buffer and

Lincoln Eletric Co

803 words - 4 pages rate to piece rate is the average output will rise. Output would be affected in a positive way, because this pay method would raise the standard and encourage speed and productivity. 2. Roy’s machine shop is facing many problems such as low production due to unmotivated employees. The employees have no incentive to cooperate with the firm because of its bad payment system. This firm lowers the money earned for over producing. It means that if a

Slag - Iron And Steel

3816 words - 16 pages aluminium silicates in various combinations. The cooling process of slag is responsible mainly for generating different types of slags required for various end-use consumers. Although, the chemical composition of slag may remain unchanged, physical properties vary widely with the changing process of cooling. In an integrated steel plant, 2 to 4 tonnes of wastes (including solid, liquid and gas) are generated for every tonne of steel produced


1943 words - 8 pages fissuring, differential consolidation, liquefaction, and cratering which is not directly related to surface faulting. The following geologic features which could affect the foundations of the proposed nuclear power plant structures shall be evaluated, taking into account the information concerning the physical properties of materials underlying the site developed pursuant to paragraphs (a)(1), (3),  (2) Slope stability. Stability of all slopes

Nuclear Gobolization

2541 words - 11 pages SDD4002 Report Global issue Topic: Nuclear energy Course Code: EG114400 Class: 1C Name: Lee Chak Kwan 150134649 Lee Tsz To 150035266 Chong Ching Ho 150415484 Yip Chung Hing 150589275 Leung Ka Shing 150171909 Lee Ki Kwan 150035752 Contents Introduction 3 Background 1.Identify a global issue 3 2.Background of the global issue 4 3.Formulate a title for the

Financial Accounting Harrison Solution Manual Chapter 7

9421 words - 38 pages |= | 51,840 | |Totals |$200,000 | | |1.00 | | | |$192,000 | Req. 2 |Sale price of machine no. 3…………….. | $54,000 | |Cost…………………………………………. | (51,840) | |Gain on sale of machine

Related Essays

Coursework On Photosynthess Essay

725 words - 3 pages changing the filter that was covering the cabomba plant from no filter, to red, and then to a blue filter. The way that these different filters will affect the rate at which the plant photosynthesises is that different colours only allow certain wavelengths to pass through while the others are absorbed. This means the different levels of light intensity are going to be absorbed into the chloroplasts and therefore either reduce or increase the

Eden Essay

382 words - 2 pages . The project is located at Kaolinite pit, which is 2 kilometres from the town of St Blazey and 5 kilometres form the large town of St Austell, Cornwall in the United Kingdom. The project since started at January 1995 because of the hole it give the owner of the project an idea that they need a large place for their plant, so in 1996 they began to design the Eden, the works started in 1998, then finally paid off the funded in 2000 as well as let

Abortions Essay

607 words - 3 pages I chose plants as my topic for my science project. The book Horticulture was my main resource outside of just plain knowledge. I had only 1 measurement which was the height of the plant. My hypothesis is that the plant with the water would grow the fastest and tallest, because that’s what I’m simply use to. The materials that I needed was very easy to come by. 1st. I needed to get 3 pots to put them in, which I chose 16oz plastic cups. 2nd

Billy's Beats Inc Essay

671 words - 3 pages Case 11-8 Billy’s Beats Inc. Billy’s Beats Inc. (Billy’s), an SEC registrant, is a new audit client with a fiscal year-end of December 31, 2011. Billy’s manufactures musical instruments. Billy’s acquired Little Drummer Boy Inc. (Little Drummer) in 2011 for $575 million in cash. The fair value of significant assets acquired was determined by an external valuation specialist and included property, plant, and equipment totaling $865 million (based