Professor Elam

One student wondered whether anyone cares how full efficient jet engines are, so I found out.  AS it turns out, log on to GE where you can choose either aviation or transportation under the industry pull down tab. Aviation features an interesting video showing the advantage of the new GE jet engine, They are so powerful only two are needed saving lots of moving parts over having four engines.  Such engines feature  carbon fiber blades. IN the video note now the design of the blade aids air passage thru the engine, Gee, there is that design thing again.   Transportation tab  features their new locomotive with a 3-5% fuel savings,

Okay who is the numnber two jet engine builder after GE?  IF you said Rolls Royce step to the head of the class. This has nothing to do with the famous car company that is now owned by BMW, this is a much much larger enterprise which you will see is listed on the London Stock Exchange.  Also click on the site to see their on line magazine, now that’s neat design!.

Now imagine that you are working for either firm and they are embarking on a build and design of a new jet engine.  How would you accumulate or estimate the costs of the final product?  How would you use standard costs and budgeting to help you?What about  supply chain, think how a weak link in delivery of just one part, say the carbon fiber fan blades could cripple the entire operation.  What would you do to prevent that?  Hey just another day in managerial accounting!