The job responsibilities of three employees of Ruido Speakers Inc

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The job responsibilities of three employees of Ruido Speakers Inc. are described as follows:

Kaylin Hepworth, production manager, is responsible for production of the plastic casing in which the speaker components are placed. She supervises the line workers, helps develop the production schedule, and is responsible for meeting the production budget. She also takes an active role in reducing production costs.

Joseph Henson, plant manager, supervises all personnel in the plant. Kaylin and other production managers report directly to Joseph. Joseph is in charge of all that takes place in the plant, including production, logistics, personnel, and accounting. He helps develop the plant's production budgets and is responsible for controlling plant costs.

Leo Tidwell, plant controller, is responsible for all of the accounting functions within the plant. He supervises three cost accounting managers and four staff accountants. He is responsible for preparing all cost of production reports. For example, he prepares periodic performance reports that compare actual costs with budgeted costs. He helps explain and interpret the reports and provides advice to the plant manager on how to control costs.

Required:

Identify Kaylin, Joseph, and Leo as line or staff.

 

Hepworth Communications produces cell phones.

One of the four major electronic components is produced internally.

The other three components are purchased from external suppliers.

The electronic components and other parts are assembled (by the Assembly Department) and then tested (by the Testing Department).

Any units that fail the test are sent to the Rework Department where the unit is taken apart and the failed component is replaced.

Data from the Testing Department reveal that the internally produced component (made by the Component Department) is the most frequent cause of product failure. One out of every 50 phones fails because of a faulty internally produced component.

Barry Norton is the manager of the Component Department.

In a recent performance evaluation, the plant manager told Barry that he needed to be more sensitive to the needs of the department's customers. This charge puzzled Barry somewhat: after all, the component is not sold to anyone but is used in producing the plant's cell phones.

Required:

1. Who are Barry's customers?

2. From the list of options provided below, select as to how the plant manager's charge to Barry to be more sensitive to his customers could improve the company's time-based competitive ability.

a) A reduction in the defect rate would decrease cycle time, lower the rework rate, and increase costs.

b) A reduction in the defect rate would decrease cycle time, lower the rework rate, and decrease costs.

c) A reduction in the defect rate would increase cycle time and lower the rework rate.

d) None of above.