Premium Essay

Deloitte Case Study

In: Business and Management

Submitted By msamadi6
Words 3269
Pages 14
• In this case Deloitte & Touche Consulting Group was tasked to come in and consult with SKS Manufacturing, an auto supplier, in order to fix their inventory problems along with other issues the company was facing. Maria Chen would lead part of the team for her first time on this 12-week engagement, but would in occur some difficulties throughout the first 6 weeks of the project. The Deloitte team has a lot of work to do before the end of the engagement in order stabilize the company and prepare them for a more radical long term project that plans to “reengineer” their business process. Most of the responsibility for the slow start on the project is resting on Chen’s shoulders due to the choices she has made during the first half of this engagement.

Why does SKS need Deloitte’s services? Would you have approached the improvement problem in the same way as Deloitte in terms of defining the problem and work planning?

SKS needs Deloitte’s services for a number of reasons with the main influence being that they were having a cash flow problem, and they didn’t have the experience or manpower to address this problem themselves. As there were a number of unfinished components sitting between presses and “‘split-batches’” making the production shop “a little chaotic”, their whole process scheduling likely had issues. Additionally, they were having difficulty maintaining acceptable levels of customer service by being late to ship a significant proportion of the orders.
Deloitte focuses on four improvements in four main areas: operations, information technology, financial management, and strategy development. These areas are very pertinent to solving the cash flow issues in the production company where their “basically useless” computerized system for managing operations was negatively affecting their financial management. Thus Deloitte, which has employees…...

Similar Documents

Premium Essay

Deloitte Case 12-1

...Case Study 12-1: An Unlikely Alliance Florabama is a power producer of which Meyer Inc. is a 60% owner and Saban Company is a 40% owner. Saban has a cost-plus arrangement that permits it to purchase up to 20% of the power produced by Florabama at the cost plus a fee. The remaining power produced by Florabama is sold to third parties. The profits and losses of Florabama are split based on ownership. Sale, transfer, or disposition of ownership requires written consent of the other party in advance. Both parties are independent and willingly agreed upon the prior approval terms. The board is composed of 10 individuals that Meyer and Saban are able to appoint based on their ownership percentage (Meyer has 6 and Saban has 4). The board makes all strategic decisions and establishes operating and capital budgets. The board also determines the pricing of power produced and appoints the CEO. The CEO that was appointed was the COO of Saban and he will oversee the day to day operations of Florabama. Both Meyer and Saban bear equity price risk. Meyer Inc. also has operating risk since the decisions of the board are made by simple majority (Meyer owns the majority). Saban bears commodity price risk due to the cost-plus arrangement. Meyer and Saban are both variable interest holders. Saban has an equity interest in Florabama and it also has the cost-plus arrangement, both of which make Saban a variable interest holder. Meyer Inc. is a variable interest holder in Florabama due to......

Words: 396 - Pages: 2

Premium Essay

Checkpoint - Deloitte & Touche Case Study

...Checkpoint: Deloitte & Touche A Case Study HRM/240 November 30, 2011 Checkpoint: Deloitte Touche Case Study 1. How did the problems at Deloitte & Touche occur in the first place? The problems at Deloitte & Touche first occurred when women who should have been considered for partnership instead of advancing forward moved off the work scene for several reasons. There were at least 80 percent of the women, although qualified resigned before ever becoming a partner because she believed there was neither an opportunity for advancement for a woman in a male dominated company, nor was she included in a mentoring and networking program that rarely was beneficial for them anyway. The women also thought that work and concerns in dealing with family matters proved to be problematic. According to Molina (2005), “The long hours and heavy travel schedules for some made juggling work and home life next to impossible” (p.1). 2. Did their changes fix the underlying problems? Explain. The changes made created a huge difference in the way the women of this company were treated and the way they perceived it to be. According to Trimberger (1998), “Deloitte & Touche has worked at changing its culture since launching the program in 1993; however, not all of the desired changes have been made, nor all of......

Words: 647 - Pages: 3

Premium Essay

Case Study

...Running head: Case 3.4 Survival of GM 1 Study of Case 3.4 Financial Survival of General Motors Student Name Wilmington University Case 3.4 Survival of GM Study of Case 3.4 Financial Survival of General Motors General Motors (GM) is struggling strategically with its meager financial position in the automobile industry. Alternatives solutions to address the financial trepidation include restructuring, reducing debt, and the most favorable alternative, focusing on products to satisfy customers. By using strategic management to implement better products at GM, the company can rein, once again, as a top competitor in the highly competitive automobile industry. Primary Issue 2 The primary issue is whether GM is capability of increasing its value to be financially solvent in the automobile industry. Langlois and Goldstein (2012) reflect on an announcement by auditors from Deloitte & Touche, “that GM's recurring losses from operations, stockholders' deficit and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue” (para. 7). If GM does not address its financial position it may cease to exist in the automobile industry. Analysis of GM Including Financials Despite changing times, for more than 70 years, GM was the leader of the automobile industry. Columnist Costantini (2012) depicts GM as follows. The world’s largest car maker from 1931 to 2008, when it was surpassed by......

Words: 1941 - Pages: 8

Premium Essay

Deloitte Major Motors Case Study

...Major Motors, Inc., a publically held company, recently agreed to sell its Major Automotive Parts (MAP) operations to National Guaranteed Repairs (NGR), another publicly held company. NGR paid cash plus common stock that, after issuance, would be equal to roughly 15% of NGR’s outstanding shares, which would in turn make Major Motors the largest shareholder by a considerable margin. The question resulting from this transaction is whether or not the equity method must be applied to Major Motors’ 15% interest in NGR. After reviewing the appropriate accounting literature, we have determined that the equity method is, in fact, appropriate for Major Motors’ interest in NGR under FASB ASC 323, Investments—Equity Method and Joint Ventures. According to accounting literature, Major Motors meets the requirements for applying the equity method. If an investor holds significant influence in an investee, then using the equity method to account for the investment would be the most appropriate. FASB ASC 323-10-15-6 outlines the criteria for significant influence: a.  Representation on the board of directors b.  Participation in policy-making processes c.  Material intra-entity transactions d.  Interchange of managerial personnel e.  Technological dependency f.  Extent of ownership by an investor in relation to the concentration of other shareholdings.            Major Motors satisfies three of the six criteria pertaining to significant influence above. Through the deal, Major......

Words: 840 - Pages: 4

Free Essay

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Premium Essay

Deloitte Trueblood Case Drug King 4-8

...The research leading to this solution was conducted using the FASB Accounting Standards Codification. The keywords used were financial assets transfer, call options, put options, effective control, more-than-trivial benefit, transferor, transferee.. This issue deals with financial accounting. It focuses on the effect of call options and put options on the accounting for transfers of financial assets. The research will be focused on the compliance aspect of financial accounting. ASC Guidance on Transfers and Servicing The case directly points us to the FASB Accounting Standards Codification (ASC) and topic ASC 860-10 (Transfers and Servicing – Overall). The scope paragraph 860-10-15-2 states that the guidance in this topic applies to all entities and scope paragraph 860-10-15-3 further explains that this guidance applies to the issues of accounting for transfers and servicing of financial assets. Therefore, this guidance applies to DrugKing’s case. ASC paragraph 860-10-40-4 addresses the criteria to determine whether a transferor and its affiliates have surrendered control over the transferred assets. There are three main criteria that need to be considered: 1. Would the transferee be consolidated by the transferor? 2. Does the transferor have continuing involvement in the transferred assets? 3. Have all arrangements and agreements made with the transfer been considered (even if entered into at a different time than the transfer)?1 Since InsureAll is a substantive......

Words: 3358 - Pages: 14

Free Essay

Deloitte Case

...clients will help the consulting team better understanding the environment and the situation. Second, Maria should educate the client that even though she does not have the relevant experience in automotive manufacturing, her team does have a senior consultant, who had prior experience in the field and had been on three different engagements. Moreover, Maria should mention their team would use the larger resource from Deloitte to serve the client and provide the best suitable solution for SKS. Finally, Maria should point-out that her team’s goal is to help the foreman and SKS to achieve their goals. By aligning their goals, the Foreman will recognize he is also part of the consulting team and solidify their trust. Here is a script I come up for Maria Chen. “I recognize the fact that I do not have the hands-on experience like you do on the shop floor, and I will take any information and advice you give us into our project consideration. In addition, my team does have professionals with relevant experiences in the manufacturing industry and more resources from Deloitte Consulting Group ready to support the project. With our training and experiences, my team will have a big picture analysis and provide you and the rest of SKS a “re-engineered” production process that will allow your job to be better accomplished and reduce inventory cost at the same time....

Words: 259 - Pages: 2

Premium Essay

Deloitte Aaer-3428 Case Analysis

...Deloitte AAER-3428 Case Analysis AAER No. 3428 is a report of an enforcement action against Deloitte & Touche (South Africa) in regards to violations of auditor independence and improper professional conduct. Certain names were not disclosed in this case and will be referred to as “Director” and “Company A.” The key players involved in this case are Deloitte & Touche South Africa (“DT-SA”), their wholly owned consulting affiliate Deloitte Consulting (Pty) Ltd. (“DC-SA”), DC-SA’s contracted consultant (“Director”) and DT-SA’s auditing client (“Company A”). In April, 2006, Director was hired by DC-SA as an independent consultant to provide assistance in the energy industry. There were no business conflicts until September 1st, 2007, when Director joined the board of directors of Company A. Because DC-SA is owned by DT-SA, Director’s employment with DC-SA became a prohibited business relationship that impaired auditor independence between DT-SA and their client, Company A. Because of an absence of controls in place for DC-SA, DT-SA was unaware of this prohibited relationship until August 11, 2008. After further review, Director’s employment was effectively terminated on September 30, 2008. DT-SA’s lack of internal controls and continued employment of Director for over a year caused them to violate auditor independence and engage in improper professional conduct. The particular rules that were violated in this case were rules 210.2-01 and 210.2-02(b) of Regulation...

Words: 865 - Pages: 4

Free Essay

Case Study

...articulate or pursue such a goal, in our view, is at high risk of leaving substantial value on the table. Getting the retained organization right We have found several key factors that significantly influence the retained organization’s readiness to help drive value after the shift to a shared services model. Some of these factors are essentially “table stakes” – the business case, leadership support, and change management activities that should underlie any business transformation. Others fall into the realm of “lessons learned”: less obvious but critical factors that we believe companies should address in the areas of governance; process design; staffing, sizing, and deployment; and value creation. Table stakes Any effective business transformation requires a solid and clearly articulated business case, sustained leadership support, and effective change management and end-user education. Briefly, key considerations in these areas include: • Business case. The case for change must spring from a business-driven value proposition against which the entire program can be measured and managed. The business case should include expectations for both cost savings and value-added benefits, and both should be tied to measurable performance indicators. In addition, clear expectations for the scope, level, and cost of service should be defined early in the effort (with robust service-level agreements or at least a clear process for setting service parameters). • Leadership support.......

Words: 4075 - Pages: 17

Premium Essay

Case Study

...Case 05-3 Cherry Apple, Inc. (Apple) is a publicly traded company that manufactures fruity beverages. During the current year, Apple decided to add a series of mango-flavored beverages to its current product line. Management anticipated that the costs associated with developing the new product line and ramping up production would be significant. In an effort to defray some of the costs and manage the risk associated with the new product line, Apple identified a partner, Berry, Inc. (Berry), and together they created a separate legal entity, Cherry LLC (Cherry), and entered into a joint venture arrangement. Berry is a publicly-traded subsidiary of international conglomerate Berry Cherry, Inc., a privately held corporation with significant cash reserves. Key terms of the joint venture arrangement are as follows: • Apple contributed intellectual property with a fair value of $60 million, plus cash of $20 million, in return for 80% of the common stock of the joint venture. The contributed intellectual property consisted of certain license agreements acquired by Apple in a business combination during fiscal year 2003. The license agreements had been recorded at fair value at the time of the business combination. • Berry contributed $20 million in cash in return for 20% of the common stock of the joint venture and an agreement to be the exclusive supplier of all software and hardware used in the manufacturing process. Apple, Inc. Berry, Inc. Cherry LLC (Joint......

Words: 609 - Pages: 3

Premium Essay

Deloitte Case 13-08

...Case 13-08 overview M international (M) and W Inc (W) decided to enter a long term litigation, due to a patent rights violation. M being the demandant and W the respondent. Not enough information was provided in relation to the charges or the patent. To properly understand the events a chronological descripcion of the litigation is to be provided. Events: Problems to be addressed Is necessary to understand the proper and logical accounting literature to address the matter previously presented. The case it self provides a series of matters to be attends, these matters have to be address in accordance to the General Accepted Accounting Principles. Matters to be discussed: * The liability to be recorded by M financial statements, for the year-end December 31, 2007 * What adjustments should be done if any, for the year-ended December 31, 2009, financial statements; should the amount be recognized as a 2009 event or as a prior period adjustment. * When should M record a deduction of the previously recorded loss contingency Solution To understand the topic to be discussed is necessary to understand its basic components. FASB recognizes that companies are often involved in situations where uncertainty exists about whether an obligation will arise and an amount will be disbursed to fulfill or settle the obligation. This is known as a Contingency in the Accounting world. What is a contingency? ASC 450-10-20 defines it as “An existing condition...

Words: 1945 - Pages: 8

Premium Essay

Case Study

...CASE STUDY I.2 Manchester United: still trying to establish a global brand Manchester United (abbreviated as ManUtd, www.manutd.com) has developed into one of the most famous and financially successful football clubs in the world, being recognized in virtually every country, even those with little interest in the sport. Real Madrid has displaced ManUtd from the pole position in Deloitte’s football money league. The list, which has been running for the last 9 years, identifies the top 20 clubs in terms of revenue. The top five in 2008 were: Real Madrid with 3365.8 million, Manchester United (3324.8 million), FC Barcelona (3308.8 million), Bayern Munich (3295.3 million) and Chelsea (3268.9 million) (Deloitte, 2009). Having won the Premier League and Champions League in 2007/08, United would have overtaken Real Madrid at the top of the Deloitte Football Money League had it not been for the depreciation of the pound. The top 20 clubs now generate more than three times the combined revenue of the clubs in the first Money League publication in 1996/97. The most valuable US sport teams, the National Football League’s Washington Redskins and baseball’s New York Yankees, are both worth somewhat more but more than any US sports team, ManUtd has built a global brand. Since the mass commercialization of football in 1992, Manchester United has unquestionably been the team to beat. In the past 16 seasons, it has collected 10 Premier League titles, four FA Cups and two Champion League......

Words: 1907 - Pages: 8

Premium Essay

Deloitte

...Deloitte Consulting WetFeet Insider Guide 2005 Edition The WetFeet Research Methodology You hold in your hands a copy of the best-quality research available for job seekers. We have designed this Insider Guide to save you time doing your job research and to provide highly accurate information written precisely for the needs of the job-seeking public. (We also hope that you’ll enjoy reading it, because, believe it or not, the job search doesn’t have to be a pain in the neck.) Each WetFeet Insider Guide represents hundreds of hours of careful research and writing. We start with a review of the public information available. (Our writers are also experts in reading between the lines.) We augment this information with dozens of in-depth interviews of people who actually work for each company or industry we cover. And, although we keep the identity of the rank-and-file employees anonymous to encourage candor, we also interview the company’s recruiting staff extensively, to make sure that we give you, the reader, accurate information about recruiting, process, compensation, hiring targets, and so on. (WetFeet retains all editorial control of the product.) We also regularly survey our members and customers to learn about their experiences in the recruiting process. Finally, each Insider Guide goes through an editorial review and fact-checking process to make sure that the information and writing live up to our exacting standards before it goes out the door. Are we perfect?......

Words: 10686 - Pages: 43

Premium Essay

Case Study

...Case Study 3 Randa Ring 01/25/2012 HRM/240 1. How did the problems at Deloitte & Touche occur in the first place? I feel that the problem began in the work environment. It looks as if there was limited opportunity for advancement. As well that the company was not able to handle issues that a raised from work and family. I think that it was a wonderful idea to have the company made up of women. I feel that it was a very positive thing because a lot of their issues where not geared towards men. 2. Did their changes fix the underlying problems? Explain. Yes I feel that the changes that they made did fix some of their underlying problems. With them keeping their women employees no matter what position that they were in at the time went up. For the first time the turnover rates for senior managers where lower for women than men. 3. What other advice would you give their managers? They really need to watch showing favoritism towards the women. They did to treat everyone as an equal. I also feel that they should make the changes geared towards the men and women’s issues that have to deal with family and work. 4. Elaborate on your responses to these questions by distinguishing between the role of human resources managers and line managers in implementing the changes described in this case study When it comes to Human resource managers, they will work with the managers in implementing changes. As well they will make a plan to show new and current...

Words: 330 - Pages: 2

Premium Essay

Ops - Deloitte Case

...Deloitte & Touche Consulting Group Issues: 1. Juniors leading the team – senior manager not present enough in the engagement. No top-down communication 2. lack of communication across all levels (consultants, with clients, within the company) – across the two projects going on for SKS. 3. Inventory management – SKS not utilising the existing framework in place - High inventory held - poor sales forecasts due to lack of communication - lack of synchronisation between procurement, production, design team (BOM), IT, sales and a/c receivables due to poor control systems - cash flow shortage (link from kumar) Fishbone notes: Issue – The plant is fucked up. Causes: Man/People - resistant to change/lack of communication = lack of trust + understanding = because each function works in silos/lack of leadership Machine/Equipment – Method/Process – inefficiencies in their manufacturing process resulting in bottlenecks/dirty, unorganised plant/ Materials RPA – in excel sheet Recommendations: 1. More involvement with the senior managers – i.e. Annette a. Daily morning check-ins for those on site. \weekly meeting (in person) with senior consultants b. More direction 2. Formal change management and communication process c. Town halls meetings d. Weekly meetings with senior management e. Shareholders need to kept up to date f. GANTT chart - Kumar g. Flywheel of commitment h. Map out networks –......

Words: 252 - Pages: 2