Guidelines (Rubric) for the Special Team Memo:
Assessment of Production Efficiency: A Company Analysis

Each team is to prepare a one and a half page (Maximum) memorandum to clearly and concisely assess the production efficiency of a company. The text should be single-spaced. Additional tables and exhibits can be included as annexes.

The purpose of the Special Memo is to apply the concepts discussed in this course to the analysis of the production process of a company. In order to avoid duplication, please submit the name of the proposed business entity you have selected for my approval by the deadline given in the Course Agenda section of this syllabus. The following companies are not allowed for the Memo: Apple, Coke & Pepsi, Ford, and Dell.

The production process (assessment of efficiency based on Q)
In analyzing the company’s production process (inputs into outputs) you should use economic ratio(s) to substantiate your assessment of efficiency. In order to calculate any production efficiency measure you have to have an indicator of output (Q), which represents a physical unit of output, i.e. number of computers, room nights sold, patient days or some equivalent metric. Based on available information, develop measures of the company’s economic efficiency in order to assess its competitiveness. The analysis can include productivity (for example: output per worker), average costs, and economies of scale, and how they may compare to other firms in the industry. The selection of efficiency indicators for your analysis will depend on data availability. While MC is an important concept in effectively managing production resources, companies do not usually disclose their production information on annual reports and other financial statements in sufficient detail to enable the use of statistical and other quantitative tools to calculate a company’s marginal costs; thus this indicator (MC) is not required for this analysis.

Try to calculate at least one economic ratio to discuss the key trends in production efficiency during a four / five year period.

Memo Outline:
• BRIEF (4 or 5 lines) overview of the company: the type of company – manufacturing, services, or retailer; its products and services; its markets including geographic boundaries.
• Analysis of company efficiency based on economic ratio(s). Explain why they increase or decrease. You are not likely to have sufficient information to pin-point the precise reason for the changes in the company’s efficiency ratio, or you may not be able to calculate the economic ratios for individual product lines but rather for all of the company’s products, so provide reasonable, plausible, and consistent explanations. The company’s annual reports could provide useful information.
• Include any recommendations on how to improve the production process to achieve operational effectiveness based on the analysis of the memo.

NOTE: On or before the due date send by e-mail two power point slides related to your memo. One should include a table with the relevant efficiency metric (could be a table already included in the memo) and the second a graph showing the trend in the efficiency metric.
Focus on relevant issues and accurate cost metrics for efficiency. Concentrate on key insights backed-up by cogent analysis.

Grading Criteria:
The following grading criteria will be used based on markup of the Group Memo’s text:

• The assessment of concise/succinct text is based on the following factors:
o Frequency of relevant statements; and
o Avoidance of repetition

• Relevance of a statement in relation to the case questions is recognized using the following markup:
o Underlined text: relevant
o Underlined text + check mark : very relevant
o Underlined text + double check marks: very relevant and highly insightful

• Quality of analysis is established on the basis of the following comments:
o Comments next to the text point to opportunity for more depth of analysis.
o Questions about the text raise issues of accuracy, clarity, consistency, and relevance of the analysis.
o Comments may also question whether the recommendations made in the Case Memo follow from and are consistent with the analysis contained in the Memo.

Guidelines (Rubric) for the Special Team Memo:
Assessment of Production Efficiency: A Company Analysis

Each team is to prepare a one and a half page (Maximum) memorandum to clearly and concisely assess the production efficiency of a company. The text should be single-spaced. Additional tables and exhibits can be included as annexes.

The purpose of the Special Memo is to apply the concepts discussed in this course to the analysis of the production process of a company. In order to avoid duplication, please submit the name of the proposed business entity you have selected for my approval by the deadline given in the Course Agenda section of this syllabus. The following companies are not allowed for the Memo: Apple, Coke & Pepsi, Ford, and Dell.

The production process (assessment of efficiency based on Q)
In analyzing the company’s production process (inputs into outputs) you should use economic ratio(s) to substantiate your assessment of efficiency. In order to calculate any production efficiency measure you have to have an indicator of output (Q), which represents a physical unit of output, i.e. number of computers, room nights sold, patient days or some equivalent metric. Based on available information, develop measures of the company’s economic efficiency in order to assess its competitiveness. The analysis can include productivity (for example: output per worker), average costs, and economies of scale, and how they may compare to other firms in the industry. The selection of efficiency indicators for your analysis will depend on data availability. While MC is an important concept in effectively managing production resources, companies do not usually disclose their production information on annual reports and other financial statements in sufficient detail to enable the use of statistical and other quantitative tools to calculate a company’s marginal costs; thus this indicator (MC) is not required for this analysis.

Try to calculate at least one economic ratio to discuss the key trends in production efficiency during a four / five year period.

Memo Outline:
• BRIEF (4 or 5 lines) overview of the company: the type of company – manufacturing, services, or retailer; its products and services; its markets including geographic boundaries.
• Analysis of company efficiency based on economic ratio(s). Explain why they increase or decrease. You are not likely to have sufficient information to pin-point the precise reason for the changes in the company’s efficiency ratio, or you may not be able to calculate the economic ratios for individual product lines but rather for all of the company’s products, so provide reasonable, plausible, and consistent explanations. The company’s annual reports could provide useful information.
• Include any recommendations on how to improve the production process to achieve operational effectiveness based on the analysis of the memo.

NOTE: On or before the due date send by e-mail two power point slides related to your memo. One should include a table with the relevant efficiency metric (could be a table already included in the memo) and the second a graph showing the trend in the efficiency metric.
Focus on relevant issues and accurate cost metrics for efficiency. Concentrate on key insights backed-up by cogent analysis.

Grading Criteria:
The following grading criteria will be used based on markup of the Group Memo’s text:

• The assessment of concise/succinct text is based on the following factors:
o Frequency of relevant statements; and
o Avoidance of repetition

• Relevance of a statement in relation to the case questions is recognized using the following markup:
o Underlined text: relevant
o Underlined text + check mark : very relevant
o Underlined text + double check marks: very relevant and highly insightful

• Quality of analysis is established on the basis of the following comments:
o Comments next to the text point to opportunity for more depth of analysis.
o Questions about the text raise issues of accuracy, clarity, consistency, and relevance of the analysis.
o Comments may also question whether the recommendations made in the Case Memo follow from and are consistent with the analysis contained in the Memo.