Naval Operating Base Case Study Assignment Help Naval Operating Base, Arkadelphia Inefficient Management: Lieutenant should early question costs that appear to be caused by inefficient management because after
comparison, it was clear that the overhead rates seemed unusually higher than other firms in the same general line of business. In production of these machines, the similar practices were standard operating procedures those were used in other firms in the same general line of business. It was found that in these firms, the overhead cost of production was lower than the supplier.
Additionally our case study assignment help experts said that, supplier’s company has not an effective management system because it cannot be said an effective strategy for a small company to have three separate echelons of management. Company also employed one stenographer for every five production workers that was not needed as being small company. In addition, members of the Hawthorn family, who owned the enterprise, occupied positions in management that duplicated those of other people in the management hierarchy. It also increased the administration cost of the company. Its cost statement also showed that company was paying salary to the estate of an individual, who had died over two years ago. These fake statements regarding the cost increased manufacturing overhead, engineering overhead, general and administrative expenses. This inefficient management affects the overall planning and coordination of different activities within the organization and also has a negative impact on the cost management and performance of the company (Taylor, 2006). All these things show that management of the company was inefficient that caused the increased cost in cost statement by using false data and information. Therefore, it can be said that there was need to question about costs that appear to be caused by inefficient management.
Contingency Allowance: Lieutenant should early take action with respect to the contingency allowance of 3.3 percent. It is a big deal with small company, so, it is possible to obtain discount on allowance by using buyer’s power. She should observe the previous records of the company related to contingency allowance that can help her to determine actual rate for negotiation. She should use the sensitivity analysis tool to detect the key drivers affecting total cost of supplier. The Trustworthy equipment company implemented the allowance as approximately 3.3 percent of all other costs. It should be estimated on the basis of a detailed task profile derived from fixed specifications. It is used to determine a fixed fee quotation or to establish a basis of cost control for hourly rates and expenses. She should consider above factors in order to analyze the way that company is using to determine contingency allowance (Nevitt & Fabozzi, 2000). On the basis of that case base study help, she can determine the level of allowance and take decision to reduce percent level. It will depend on her negotiation skills that at what extant, she influences the decision of the company’s management regarding contingency allowance. She should ensure the representative that this deal will be helpful for the company in future. She should also ensure the company that navy will purchase these trustworthy machines in big numbers from the same in coming time. These negotiation skills will be helpful for her to reduce the contingency allowance up to optimum level (Dhungel, 2011).
Actions on Unwilling to Eliminate Unusual Cost Items: Some actions can be taken by Lieutenant if the Trustworthy representative is unwilling to eliminate some of the unusual cost items. The Navy’s supply management policy was based on the assumption that prices should reflect reasonable costs. First of all, she can take actions to improve Navy’s supply management policy. She can search other alternatives that can help in reducing this problem effectively. She can go for other suppliers form other regions and after comparison of cost, she can select the supplier, who could provide the machines at minimal cost with convenience. She can contact with management of the company directly. To contact with the management directly, could be right decision because she can negotiate the deal with them. She can make them understand about pros of this deal (Cohen, 2002). It will be also good for the Navy to purchase the machines from the company at that price because the Navy needed the equipment and purchase of the machines would not only save the Navy money but would also reduce substantially the down time on submarines. So, it can be another decision of Lieutenant to buy the machines at same cost that is fixed by the company.
References Cohen, S. (2002). Negotiating Skills for Managers. UK: McGraw-Hill Professional. Dhungel, B. (2011). Negotiation Skills – Research on Cross Cultural Competence. Germany: GRIN Verlag. Nevitt, P. K. & Fabozzi, F. J. (2000). Project Financing. UK: Euromoney Books. Taylor, J. (2006). A Survival Guide for Project Managers. USA: AMACOM Div American Mgmt Assn. We offer the best case base study assignment writing help services for business topics.We always provide the extra groundwork assignment help to the students that will help to get higher grades in assignment. We always provide the original and authentic business assignment writing help that will help you succeed in your academic career. We are available 24X7 for student assignment help so you can get answer of your assignment query in few minutes. So contact us for assignment help at email@example.com