KOMTEK case study

KOMTEK case study Student’s name Department: University Course: Course Code Instructor’s name Date KOMTEK Case Study 1. Why is the Zimmer order having such a low price-to-cost ratio? The Zimmer order at KomTek has a defective P-C ratio due to several operational inefficiencies and increased scrap and rework. Secondly, the distal tip modification added more complexities to our first task. However, the total costs increase since the distal tip must be handled more during the hot coin and de-burring operation, translating to a higher rework and scrap rate. The use of a rushed nature in the order also contributed to a hurried approach that would utilize the equipment far too much and put inconsistencies in the quality control into place. Precision likely deteriorated with only one die set used to generate the entire order (supposing the order could not have been split to spread die sets), which would cause suboptimal product quality and waste. 2. Estimate the dollars/piece of the Zimmer order. The pricing largely depends on a number of factors such as the operational overheads against the expected margins for the business. Based on an alternative P-C ratio than KomTek's target of 1.33, we can use them to calculate dollars per piece for their costs to be near the prices received from Zimmer. If the labor and overh...