The Schrader Bellows Case Study

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Not only that, ABC can be said to be a lifelong learning process as there are continuous improvements being done towards the ABC approach. The earlier example shows that ABC has the upper-hand compared to other traditional methods in accurately reporting product costs in situations characterized by product variety and batch-sized diversity. As an analogy, the Schrader Bellows case shows how ABC could be considered as a lifelong learning process as well as providing an insight into its strategic capabilities. Turney and Reeves (n.d.) states that the Schrader Bellows case shows ABC system for a plant with over 2,000 products and various batch sizes. The company has contributed resources into many activities that supports product batches…show more content…
By changing product strategy, it needs to increase prices or lessen the range of products offered whereas, if company chooses to change strategic capabilities, it will need to have continuous improvement of value chain or improve product design. Sadly, adapting competitive pressure is simpler than changing strategic capability. An important lesson to be learnt from continuous process improvement is that changing product strategy competitive pressure is a short-term solution. This is because company has the decision to give up markets or increase prices so it may benefit in the short-run, but, majority of a company’s strength lies in a superior ability to contribute value to customers which is due to company’s consistency in improving strategic capabilities. Therefore, increasing strategic capabilities through continuous improvements is through activities that will decrease or eliminate batch-level activities, lessen batch-sizes and reducing non-functional differences between products. Continuous process improvements result in reduction of time needed to perform batch-level activities so setting up machine will require less time thus, reducing its process from hours to merely

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