Debbie D. Stevenson
Grantham University
BA 510 Accounting
Instructor: Dr. Samuel Mocha
Success Story of Pratt & Whitney Canada The Canadian Operation of Pratt & Whitney Canada lead the world in the design and production of small and medium gas turbine engines for business aircraft, helicopter, regional transportation, military trainers, utility aircraft, auxiliary power units, and industrial and marine applications. The company of approximately 6000 in five manufacturing plants depended completely on traditional costing method. (2software.com) The manufacturing cost was killing the company quoted the manager of costing operations. The company was aware of the high cost of manufacturing but had to address the problem but needed to know what they actually were. (3software.com) Location of the Pratt & Whitney plants were all located in different housing/manufacturing functions-engineering (Montreal and Toronto), assembly and test (Montreal, Ledbridge and Toronto) and final parts manufacture (Haifax and Montreal). Levesque is the industrial engineer with a master degree in accounting. Levesque needed to find parts prices that would be competitive in the market. This company looked into a new type of software that would accurately make correct costing of the parts being manufactured. (3software.com) The search led the company to object based costing software from 3C software located in Atlanta, Georgia. Peter Tezza founder and CEO of 3C software and a pioneer in costing software technology. 3C was formed to bring accounting applications to the same technology level as other distributed information software found in the manufacturing companies. .(3software.com)
3C object-oriented costing software that provided the company with great flexibility in its application. This company offered the “Giant Calculator” which allows ABC costing. This company found the perfect software that would properly