Transcript Comm 438 Manangement Planning and Control

JetFighter Exercise
• Your team is the senior mgmt group of the small and
financially challenged JetFighter company. Your
company has just won an important Government jet
fighter contract that needs to be fulfilled immediately.
In order to win the contract, your firm agreed to
produce at least 5 planes in each production period.
• The Gov’t inspector will buy all the jet fighters that
exactly meet the “Six Government Purchasing Criteria”
laid out on last page of JetFighter Instructions
• We will divide into four teams – groups will build the
Basic Training Plane or the Deluxe Combat Plane
MPAcc 801
Dr. Norman T. Sheehan, Ph.D, CGA, CMA
JetFighter Exercise
• Base Plane Price=$5M, Deluxe Plane Price=$10M
• Raw materials cost varies by type of plane and
amount purchased (see hand-out)
• Your team goal is to earn most profit:
Revenue
–
Cost
(Planes Passed*Sales Price) – (Planes Bought*purchase cost)
• Planes purchased but not completed or
approved in Period 1, cannot be used in Period 2
as they become obsolete
• There may be small problems with the raw
materials, but there are no refunds (sorry)
MPAcc 801
Dr. Norman T. Sheehan, Ph.D, CGA, CMA
Six Government Purchase Criteria
1. Printed lines should be in the position shown on the diagram.
2. The wing tips must be turned up 2.5 cm on each wing and be straight up on
both sides (not as shown in Step 12 “Top View” and “Front View” which
shows them incorrectly bending inwards).
3. The “pilot’s cabin” (Step 11b) must be puffed out considerably (as shown in
Step 12 “Top View” and “Front View”) as skinny cabins crowd the fighter
pilots. The cabin folds must be creased on the printed lines (as shown in Step
12 “Top View” and “Front View”). The center cabin line must line up with the
nose tip (as shown in Step 12 “Top View”).
4. The two wings must be level and even with each other (not as shown in Step
12 “Front View”, but rather the entire wing deck should be even and at the
same level). The printed lines on the wings must meet in the center at a 45°
angle.
5. The plane’s nose tip should be pointed at a 45° angle (as shown in Step 12
“Side View”).
6. The planes should be able to fly (more or less).
MPAcc 801
Dr. Norman T. Sheehan, Ph.D, CGA, CMA
Government Purchase Criteria
Basic Training vs Deluxe Combat
Basic Planes = $5 Million
Similar characteristics and
components to Deluxe
Planes, but much lower
buyer expectations, so to
pass inspection Basic
planes should have a
Similar quality as KIA SUVs
MPAcc 801
Deluxe Planes = $10 Million
Similar characteristics and
components to Basic
Planes, but higher buyer
Expectations, so to pass
inspection Deluxe planes
should have similar
quality as Lexus SUVs
Dr. Norman T. Sheehan, Ph.D, CGA, CMA