Danshui Plant recommand for managemnt accounting perspective Essay

Danshui Plant No.2 is facing insufficient information for Wentao Chen, manager of Danshui Plant, to prize the surgical procedure of their production for the first quarter of their contract to assemble the apple iPhone4. They were anxious as their target to produced 200,000 units of iPhone per month was unachievable as they could alone produce 180,000 of units per month. Wentao Chan had called Jianye ma to request a summary of monthly operations, unluckily Bingqian Li was uncomfortable with the report. In order to have a go at it what really way out on, Li wants to prepare the flexible budget to compare the actual performance to the budget. Use of flexible budget allows the management to have a go steady and real time monitoring of business operations.This is because, it is prepared with the different cast values for different sales projections. also that, it is become useful planning tools and help to react to the changes much efficiently. Since the gild does not have a ffluent information about the buncoage of production of iPhone, the guild still accept to consider the possible causes of the problem. For examples, the problem may cause by the weaknesses of the prepare that is used by the company to produce the iPhone. As we know before this, the plant is used to produce the computer hardware, and now it is used to produce the iPhone.Here, we digest see that the capacity of the plant is unable to produce the iPhone. Besides, we know that the company need to produce more than 200,000 units of iPhone every month for the rest of 9 months dues to the shortage of the plant to produce the desired quantity of iPhone that being place by the company target, they should upgrade the maintenance of the plant that suits to assemble the iPhone.Besides that, the company can source some of the part of the iPhone from other company so that they could focus on the assembling the process only. By doinfg this, more advertise could be assigned to assemble the iPhone and as a result, the add of production impart be lower due to the reducing in labors and material cost. Indirectly, all the material cost in producing the parts will be much lower as it will be interpreted by the outsource company.Apart from that, the ability or skills of labours needs to be enhanced. There is no point if the capacity of the plant can be increase to produces more parts but the labours still assemble the akin amount of the iPhone. Therefore, as a solution, Danshui Plant need to held an speed and short training course of instruction that could enhance the skills of their labours in order to achieved the target. As we know that the program might consumed times, but the results will be better. More labor can be hire and let them to experience such program to perform better than before. The increasement in labor cost will be covered by the material cost that is reduced due to the outsource activity before.