Danshui

In: Business and Management

Submitted By haroro
Words 1349
Pages 6
MAIN ISSUE
A part from reading the Danshui Plant No.2 case, we can see that there is no enough information to evaluate the performance of the pant for the first three contracts to assembly Apple iPhone 4.
Analysis of the issue
To get a clear picture a flexible budget was prepared for the month end of August 2010. (Shown in the table below)
From the flexible that is prepared it can seen the performance of Danshui Plant NO.2 is not good enough as what it suppose to be. The budget show that Danshui has unfavorable variance in the assembly the flash memory part, variable tools and supplies, assembly and packing, shipping nad the last one on the supervision.
As for the flash memory it has been stated that Samsung had raised the price by $2.00 which had been cover by the Apple as their neutralized the profit which supposedly to give a favorable variance. But for the budget it can seen that the flash memory is showing an unfavorable variance. This is due to lack of skills during the installation the labour which had lead wastage as they need to replace the damage flash memory with the new one. The replacement of the flash memory due wastage had increased the cost that is expected which had lead to unfavorable variance. Variable supplies and tools show an unfavorable variance has it has connection with installation of parts in the iPhone 4 especially on the flash memory installation part. .so when the labour done a wastage or reckless job during the installation of flash memory or any parts of iPhone 4, it will cause the labour to use a new tools and supplies. This is the main reason why variables supplies and tools had an unfavorable variance.
The amount of unfavorable variance in the assembly and packing is vey significant. This is because installations of the I Phone 4 involve to many steps (140) and 325 labors within 5 days. This will a higher chances of error to…...

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