Case Study for Management Accounting

36924 words 148 pages
CASES FROM MANAGEMENT ACCOUNTING PRACTICES Table of Contents
Case 1: Case 2: Bal Seal Engineering Robin Cooper Bill’s Custom Planters William Stammerjohan Deborah Seifert Dublin Shirt Company Peter Clarke in assoc. with in assoc. with Paul Juras Wayne Bremser ECN.W William Lawler Endesa Gary M. Cunningham Scott Ericksen Francisco J. Lopez Lubian Antonio Pareja Kincaid Manufacturing Jon Yarusso Ram Ramanan Osram.NA John Shank Lawrence Carr William Lawler Pleasant Run Children’s Home Brooke E. Smith Mark A. McFatridge Susan B. Hughes University Bottom Line Enrico Uliana

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Case 9:

Editor’s Remarks I am pleased to present the nine teaching cases presented at the 2002 Conference of the
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The final step, production consisted of ensuring that very high quality products were produced on a timely basis. The firm’s commitment to quality was necessarily extreme because its products were relatively inexpensive compared to the customers’ end products in which they were used. However, since seal malfunction could lead to disastrous failure of the customer’s product, long-term consistent performance of the firm’s products was essential. Consequently, Bal Seal’s manufacturing process was geared to produce products that had exceptionally long meantimes between failures.

Production Process
A spring-energized seal consisted of a plastic U-cup ring and a canted-coil spring. The purpose of the plastic ring was to ensure that metal to metal contact did not occur between a piston and its housing. In addition, the seal was often designed to provide the piston with both support and guidance. The seal could either be mounted on the piston (Figure 3) or on the housing (Figure 4). The springs and plastic rings were manufactured independently and then assembled to create the seal. While springs were sold separately, plastic rings were only sold as part of a completed seal. Products were produced to order, only a small number of items were retained in finished goods inventory. For small orders, only one production run was

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