Precision Parts Inc.

Presented By Abdul Azeem (34)

Moonis Siddique (23)
Mohd. Anas Rasheed (14)
Ritu Raj (47)
 Company Profiles

• Precision Parts Inc

– Founded: 1942 to support WW-II
– Supplier to Aircraft Industry
–
• Nash Grinding Equipment Company
–
–
• Precision ---- ACQUIRES ---- > Nash –
Sep. 1967
 Precision History
• Growth during WW-II in Sales & Profits
• Decline after war -- no profits
• Cost-cutting campaign
• Productive efficiency improved

acquired
ADOPTED
DIVERSIFICATION STRATEGY
Feast & Famine Situation 
–
 MODEST profits on reduced sales


–
• Korean War -- Sales boom; sky-high Profits

NASH


• End of war – no profits; hence adopted

• Efficiency concept -- implemented
Good Profits
to all operations
• New cost accounting software
Improvedfor
• Planning & Control Procedures Skill &
Technology
» Raw material purchase
» Production scheduling
National recognition
» Sales & Distribution
 Characters
• Mr. Vincent P. Sayles -- Vice President
(Industrial Marketing)
•
•
•
•
•
• Mr. Mark S. Timador -- Senior Marketing
Analyst
 Problem
• Exceptionally high forecast cost


– Reason
• Increase in companies Customer database


• Customer & Cost comparison

SELF NASH DETAILS
500 1500 Customers
$9 $25 Cost/customer
TOTAL
$4500 $37500 $42000
 Critical points
• Sales forecast -- Planning & Control
Mechanism.


• ±5% forecast error.



• Reduction in cost over time.

• Experience & Relationship building with key
contacts in customer organization.


• Acquisition -- Increased overall sales.

 -- Exorbitant forecast.
 Solutions

1.NASH was acquired for diversification

 Need to utilize the resources of NASH
 Hence include major customers of NASH for
forecast; eventually reducing cost and
increase sales

2.
3.Instead of collecting data from
Customers
 Take NASH sales history and make approx.
forecast for next year

4.
5.