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Should Under-Utilized Capacity Be Included in Work Center Burden Rates?

Tuesday, October 30, 2012 @ 10:00 AM (PDT)
Web-Based Event from Radio MEI 140 N. Maple Street, #105 CoronaCA  92880
Tuesday, October 30, 2012 @ 10:00 AM (PDT)
Web-Based Event from Radio MEI 140 N. Maple Street, #105 CoronaCA  92880

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About This Activity


Why You Should Attend This LIVE & INTERACTIVE 90-Minute "Modem Chat Series" Webinar

The Manufacturing Executive Institute is pleased to bring you this LIVE & FULLY interactive "Modem Chat Series" webinar on Tuesday, October 30 at 10:00 AM PT.  Participate in this virtual training event from the comfort of your office or home computer.  Learn from an expert instructor AND your industry peers!

When your factory is underutilized, your products' incremental fixed cost is increased.  As your factory gets more utilized, the allocated incremental fixed-costs decrease, thus increasing your company's gross margins.  But what happens to product gross margin when sales drop and factory UNDER-UTILIZATION increases?

Plant, property, equipment and people do not go away just because utilization drops.  And yet, as utilization drops, gross margins also drop, which may suggest a product PRICE increase is in order... except if prices are increased, won't demand drop even further thereby reducing gross margins further in a seemingly endless downward spiral?  This is the scenario most often suggested by proponents of not incuding allocated fixed costs in work center burden rates (full absorption costing) and in corresponding product profitability measures.

This LIVE and INTERACTIVE 90-minute webinar will debate both sides of the "to-include" and "not-to-include" work center underutilization in the calculation of individual work center burden rates.  The instructor will share details of both methods and lead a live and interactive discussion with participants.The instructor will also present different methods for calculating cash contribution and suggest a reasonable alternative for managing this work center burden rate dilemma.  Participants should be prepared to openly discuss their ideas and to interactively comment on other participant’s ideas presented during this LIVE webinar.

This program should be attended by anyone who is responsible for establishing, measuring, monitoring or using work center burden rates in a less than fully utilized factory.

Instructor/"Modem Chat Series" Facilitator: Alan G. Dunn, President of GDI Consulting & Training Company.
Learn from other professionals who have the same concerns as you.  Attend MEI's 90-minute "Modem Chat Series" webinars and interact with other professionals and an expert instructor.  Participate in this exciting new learning medium.

The Manufacturing Executive Institute presents numerous workshops and webinars each month.  To see listings and schedule of upcoming programs, go to www.mfgexecutive.com or call (951) 736-2114.

About MEI's "Modem Chat Series" Workshops

MEI's "Modem Chat Series"
webinars are periodically scheduled webcast programs that are limited to 24 participants.  These LIVE webcasts are fully INTERACTIVE, allowing instructor AND participants to talk and be heard by all participants.  Instructors and participants have full visual access to teaching materials as well as interactive audio among themselves.  Participants will know the names and contact information of other participants.

All MEI "Modem Chat Series" interactive programs are coordinated live from MEI's webinar studio, "Radio MEI."  These "virtual" training programs are designed to address difficult to solve problems that manufacturing and distribution professionals face daily.  Topics are periodically chosen that lend themselves to a group training model that relies as much on the participants as the lead instructors.

Upon registration, participants will be provided with login details.   Please consider this valuable "virtual" program.  Interact with other professionals and learn from the comfort of your home or office.  No need to travel... just attend MEI's "Modem Chat Series" webinar!  Click here to view a list of upcoming MEI "Modem Chat Series" webinars.        

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Tuesday, October 30, 2012 @ 10:00 AM (PDT)
Web-Based Event from Radio MEI 140 N. Maple Street, #105 CoronaCA  92880
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