Finance:
Brother Andrews had a chat today with Idaho State Tax Commission. They told him that a company this year has had some legal issues about making sure other companies are to pay taxes on things sold.
Class Notes:Cash Flow, not accounting returns, are used in capital budgeting, exercises
Only cash flow that is INCREMENTAL (not net income or all the money that comes in, this is more cash flow due to investment) to the project is measured
Depreciation: MACRS
NET Cost
Poor sales forecasts = poor NPV and = poor IRR
Cash Flow from two (2) main sources:
1. Increase in Revenue
2. Decrease in Cost
Sensitivity Analysis: Change assumptions and re-run capital budgeting (what if scenarios)
Supply Chain:
Toyota case
Seat variations: 51
Toyota: Should they Redesign, Drop variations, stop rotating people, get rid of KFS or something other than those or combination?
What did they do?
Revise the reorder form
KFS reevaluated their position on quality
KFS instituted better lighting on end production
Managerial problem for seat problems
Seat Variations moved up to 100 at one point
Notes from the board:
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