Dr. Norman T. Sheehan, Ph.D, CGA, CMAMPAcc 801 JetFighter Exercise Your team is the senior mgmt group of the small and financially challenged JetFighter company. Your company has just won an important Government jet fighter contract that needs to be fulfilled immediately. In order to win the contract, your firm agreed to produce at least 5 planes in each production period. The Gov’t inspector will buy all the jet fighters that exactly meet the “Six Government Purchasing Criteria” laid out on last page of JetFighter Instructions We will divide into four teams – groups will build the Basic Training Plane or the Deluxe Combat Plane

Dr. Norman T. Sheehan, Ph.D, CGA, CMAMPAcc 801 JetFighter Exercise Base Plane Price=$5M, Deluxe Plane Price=$10M Raw materials cost varies by type of plane and amount purchased (see hand-out) Your team goal is to earn most profit: Revenue – Cost (Planes Passed*Sales Price) – (Planes Bought*purchase cost) Planes purchased but not completed or approved in Period 1, cannot be used in Period 2 as they become obsolete There may be small problems with the raw materials, but there are no refunds (sorry)

Dr. Norman T. Sheehan, Ph.D, CGA, CMAMPAcc 801 Six Government Purchase Criteria 1.Printed lines should be in the position shown on the diagram. 2.The wing tips must be turned up 2.5 cm on each wing and be straight up on both sides (not as shown in Step 12 “Top View” and “Front View” which shows them incorrectly bending inwards). 3.The “pilot’s cabin” (Step 11b) must be puffed out considerably (as shown in Step 12 “Top View” and “Front View”) as skinny cabins crowd the fighter pilots. The cabin folds must be creased on the printed lines (as shown in Step 12 “Top View” and “Front View”). The center cabin line must line up with the nose tip (as shown in Step 12 “Top View”). 4.The two wings must be level and even with each other (not as shown in Step 12 “Front View”, but rather the entire wing deck should be even and at the same level). The printed lines on the wings must meet in the center at a 45° angle. 5.The plane’s nose tip should be pointed at a 45° angle (as shown in Step 12 “Side View”). 6.The planes should be able to fly (more or less).

Dr. Norman T. Sheehan, Ph.D, CGA, CMAMPAcc 801 Government Purchase Criteria Basic Training vs Deluxe Combat Basic Planes = $5 Million Similar characteristics and components to Deluxe Planes, but much lower buyer expectations, so to pass inspection Basic planes should have a Similar quality as KIA SUVs Deluxe Planes = $10 Million Similar characteristics and components to Basic Planes, but higher buyer Expectations, so to pass inspection Deluxe planes should have similar quality as Lexus SUVs