Peoria Engine Plant (A) (Abridged) Harvard Case Solution & Analysis

Describes the value of control systems used in automotive engine plant for labor and overhead. Financial staff prepares daily, weekly and monthly reports on budget variance. Supervision department, financial staff, and the director of the plant to discuss the use and interpretation of these reports. Also describes the company's budget procedures, which include a factor in increasing productivity to motivate annual increase productivity and reduce costs. Allows the class to discuss the extensive and detailed analysis of the deviations of promoting valuable managerial tasks, such as cost control, training and improvement. The big problem is that focuses on the short-term budget prevents long-term improvement of quality and productivity. "Hide
by Robert S. Kaplan, Amy P. Hutton Source: Harvard Business School 14 pages. Publication Date: April 23, 1997. Prod. #: 197099-PDF-ENG

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