Heinz Case
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H.J. Heinz Company
A Managerial Accounting Perspective
Jarrod Brinker
Mita Harkness
Michelle Panatex
Kathy Rodriguez
Michel Valbrun
Memo
1 DESCRIPTION OF BUSINESS
1.1 Identification and mapping of processes
2 METHODOLOGY
2.1 Explanation of Methodology
2.2 Effort in Methodology Refinement
3 REGRESSION ANALYSIS
3.1 Predictive Analysis
3.2 Interpretation of Findings
4 COST-VOLUME-PROFIT ANALYSIS
4.1 Breakeven Analysis
4.2 CVP Chart
4.3 Interpretation of Findings
5 ACTIVITY-BASED COSTING
5.1 Identification of indirect activities and drivers
5.2 Communication and explanation of drivers
6 ANNUAL PROJECTIONS
6.1 Revenue/expense budget factors
6.2 Cash planning implications
6.3 Sensitivity to macroeconomic factors
6.4 Forecast uncertainty analysis
7 STRATEGY IMPLEMENTATION AND BALANACE SCORECARD
7.1 Strategy identification
7.2 Balanced scorecard development
7.3 Scorecard incentive issues
8 APPENDIX
8.1 Financial Reports
A. 10-K
Memo
To: William R. Johnson
From: Team 13
Date: 03/29/2010
Re: Key Findings
Below we explain the implications of the variances that I calculated. I would enjoy meeting with you to discuss whether we are following the most efficient policies, given these calculations. Please let me know if there is any way to improve my work or my presentation to you.
1. Our batch sizes for both setups and quality inspection were smaller than planned. Even though we were able to reduce the setup and quality inspection time needed for each batch (because of the smaller batch sizes), these gains were more than offset by the increased number of batches. Overall, we ended up substantially below the level of efficiency at which we wished to operate.
2. The hourly wage for the setup workers went over budget due to the tight labor market in our area
H.J. Heinz Company
A Managerial Accounting Perspective
Jarrod Brinker
Mita Harkness
Michelle Panatex
Kathy Rodriguez
Michel Valbrun
Memo
1 DESCRIPTION OF BUSINESS
1.1 Identification and mapping of processes
2 METHODOLOGY
2.1 Explanation of Methodology
2.2 Effort in Methodology Refinement
3 REGRESSION ANALYSIS
3.1 Predictive Analysis
3.2 Interpretation of Findings
4 COST-VOLUME-PROFIT ANALYSIS
4.1 Breakeven Analysis
4.2 CVP Chart
4.3 Interpretation of Findings
5 ACTIVITY-BASED COSTING
5.1 Identification of indirect activities and drivers
5.2 Communication and explanation of drivers
6 ANNUAL PROJECTIONS
6.1 Revenue/expense budget factors
6.2 Cash planning implications
6.3 Sensitivity to macroeconomic factors
6.4 Forecast uncertainty analysis
7 STRATEGY IMPLEMENTATION AND BALANACE SCORECARD
7.1 Strategy identification
7.2 Balanced scorecard development
7.3 Scorecard incentive issues
8 APPENDIX
8.1 Financial Reports
A. 10-K
Memo
To: William R. Johnson
From: Team 13
Date: 03/29/2010
Re: Key Findings
Below we explain the implications of the variances that I calculated. I would enjoy meeting with you to discuss whether we are following the most efficient policies, given these calculations. Please let me know if there is any way to improve my work or my presentation to you.
1. Our batch sizes for both setups and quality inspection were smaller than planned. Even though we were able to reduce the setup and quality inspection time needed for each batch (because of the smaller batch sizes), these gains were more than offset by the increased number of batches. Overall, we ended up substantially below the level of efficiency at which we wished to operate.
2. The hourly wage for the setup workers went over budget due to the tight labor market in our area