: back to the early 1980s, established by three entrepreneurs,
Abbott, Guidry, and Scott. They recognized an opportunity in the water purification
equipment industry
and created a niche manufacturing company producing high quality brass valves. With
Steve Abbotts
business sense, John Scotts established rpnlttot:~- .. manufacturing industry, and Roland
Guidrys
administrative expertise; the founders 0 )ducts quickly grew their company into the
leading water purification supplier. They cllversified their product line quickly adapting
the
manufacturing- skills utilized in brass valve production and began producing brass pumps
and flow
controllers. sement saw it imperative to innovate and capture market share in the
manufacturllle; Vl VVa<“, p~ , ..__timl components; so they invested in an engineering
department tasked
with research and development of new products.
The company assembled the new components in their modern manufacturing facility using
the
same equipment and labor for all three product lines. They adopted a just-in-time delivery
system,
processing, packaging and shipping products upon completion. Just-in-time (JIT)
production, which is
also called lean production, is a “demand-pull manufacturing system that manufactures
each component
in a production line as soon as, and only when, needed by the next step in the production
linel
” In this
manufacturing process, the close coordination of the work stations ease the flow of
production by
reducing inventory and wastage, decreasing set-up time, and meeting customer demand
without inflating
overhead costs.
The increased competition in the industry has driven down prices forcing
reconsider their traditional accounting system. Will a comparison of different accounting
systems
illustrate how letitors can effectively maintain offering lower prices for brass pumps?
Will a comparison of their traditional costing system, a revised process costing system, and
an activity