Chapter 5 -Production Planning and ControlCASELET:ESCOM-COPING WITH RUNWAY CAPACITY NEEDSESCOM is a producer of electronic home appliances, including VHS (Video HomeSystem) television recorders, located in northern California. The packaged productweighs about 75 kg. ESCOM was not the innovator of the system. Rather, its managerssat back and let RCA and others develop the market, and ESCOM is currently producingunder license agreements. ESCOM has a conscious strategy of being a follower with newproduct innovations. It does not have the financial resources to be a leader in researchand development. ESCOM's present opportunity is indicated by the fact that industrysales of VHS recorders have increased 30 per cent per year for the past two years, andforecasts for the next year and the two following are even more enticing. ESCOM hasestablished a 10 per cent market share position and feels that it can at least maintainthis position if it has the needed capacity; it could possibly improve its market share ifcompetitors fail to provide capacity at the time it is needed. Year 0 1 2 3 4 5 Forecast,1000 Units 100 140 195 270 350 450 Capacity (gap), or slack 5 (35) (90) (165) (245)(345) 1000 units. The forecasts and capacity gaps are indicated in Table. ESCOMregards the first year forecast as being quite solid, based on its present market shareand a compilation of several industry forecasts from different sources. It is less sureabout the forecasts for future years, but it is basing these forecasts on patterns for bothblack and white and color TV sales during their product life cycles. ESCOM's VHS modelhas a factory price of Rs 600. Variable costs are 70 percent of the price. Inventorycarrying costs are 20 per cent of inventory value, 15 percentage points of whichrepresents the cost of capital. ESCOM's facility planners estimate that a 40,000 unitplant can be built for Rs. 5 million and a 200,00 unit plant, for Rs. 10 million. Land andlabour are available in the area, and either size plant can be built within a year.(a) What capacity plans do you think ESCOM should make for next year? Why?(6) What longer-tem capacity plans shoald ESCOM make? Wby?a What are the implications of these plans for marketing. distribution, andproduction?[Source: Modern Production/Operations Management by Elwood S.Buffa & Rakesh K.Sarin]

Capacity planning refers to when a company defines its short-term and long-term capacity needs and…

(a) What capacity plans do you think ESCOM should make for next year? Why? (6) What longer-term capacity plans should ESCOM make? Why? dWhat are the implications of these plans for marketing, distribution, and production?

(a) What capacity plans do you think ESCOM should make for next year? Why? (6) What longer-term capacity plans should ESCOM make? Why? dWhat are the implications of these plans for marketing, distribution, and production?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
Prob 3: Slattkey Sweets proposes to re-launch one of its mature brands, the Zubirot Bar. The brand manager has identified the tasks involved and produced the following information about them: I Activity H A B C D E F Description Redesign the bar Redesign the packaging Build pilot production line Trial production run Consumer panel tests Main pilot production Design promotional material Test market redesigned product Produce report for the Board Predecessor Activity A, B C D E E F, G H Optimistic estimate of time (weeks) 5 3 10 1 4 2 8 2 Most likely estimate of time (weeks) 8 4 13 1 1 6 4 10 2 Pessimistic estimate of time (weeks) 10 5 a. Construct the PERT/CPM network for this problem. b. What is the expected project completion time? What is the critical path? c. Determine the mean and the standard deviation for the product re-launch. d. Ascertain the probability that the project will be finished in 40 weeks. 16 2 1 9 5 15 3
Q The owner of a small manufacturing business has patented a new device for washing dishes. Before trying to commercialize the device and add it to the existing line of products, the entrepreneur wants reasonable assurance of success. Variable costs are estimated at Rs. 50 per unit produced and sold. Fixed costs are Rs. 4,00,000 per year. A) If selling price is set at Rs. 250, how many units must be produced and sold to break-even? B) Forecasted sales for the first year are 4500 units, if price is reduced to Rs. 150. With this pricing strategy, what would be the product’s profit?
Company: ABC Civil Engineering - an engineering firmSituation: ABC company has recently made significant cuts in staff and the workload on existingemployees has increased. A major RFP is dueCharacters: Ted Waltz – Managing Director of ABC EngineeringElaine Tillman – Civil Engineer____________________________Elaine Tillman looked at her watch – it was 7:30 pm. Just then she knew she would not make it to her son’s final high school basketball game. It took her a moment to collect herself and wipe the tear that had started down her face and onto the ragged-edged 100 plus page RFP she was working on. The RFP,the largest opportunity that ABC Civil Engineering had a chance to bid on in 6 months, was far fromready for the 9:00 AM deadline the following day.Normally in this situation, Elaine would have collaborated with a proposal team putting together such a big proposal but, since the economic down turn hit, ABC has had to make significant cuts in its staff. It started with administrative…
Company: ABC Civil Engineering - an engineering firmSituation: ABC company has recently made significant cuts in staff and the workload on existingemployees has increased. A major RFP is dueCharacters: Ted Waltz – Managing Director of ABC EngineeringElaine Tillman – Civil Engineer____________________________Elaine Tillman looked at her watch – it was 7:30 pm. Just then she knew she would not make it to her son’s final high school basketball game. It took her a moment to collect herself and wipe the tear that had started down her face and onto the ragged-edged 100 plus page RFP she was working on. The RFP,the largest opportunity that ABC Civil Engineering had a chance to bid on in 6 months, was far fromready for the 9:00 AM deadline the following day.Normally in this situation, Elaine would have collaborated with a proposal team putting together such a big proposal but, since the economic down turn hit, ABC has had to make significant cuts in its staff. It started with administrative…
5. Your firm has acquired the contract of developing a housing society that covers in 1000 Acres of land. As manager, what strategy should be taken for having single or multiple suppliers. Would it be more beneficial to have multiple suppliers for the construction material or vice versa. Support your answer with the help of appropriate justification and relevant example List down different phaces of project life cycle VWhat are the different deliverables found in each phase of the project life ode (Oply list)
Criteria Strong Support Support Business Strategy Urgency 10% of Sale From New Products Competition Fill Market Gap Weighted Total (a) Weighted Total (b) Weight 2 5 4 3 1 3 ? ? Project 1 9 5 2 0 2 5 ? ? Project 2 3 7 2 0 2 5 ? ? Project 3 6 8 2 3 6 8 ? ? Project 4 1 0 5 10 6 9 ? ? Project 5 3 10 10 1 8 0 ? ? The Custom Bike Company has set up a weighted scoring matrix for evaluation of potential projects. Above are five projects under consideration. Using the scoring matrix above, which project would you rate highest? Lowest? If the weight for “Strong Sponsor” is changed from 2.0 to 5.0, will the project selection change? What are the three highest weighted project scores with this new weight? Why is it important that the weights mirror critical strategic factors?
Question 1 Assume JBD decides to expand the sale of its products into new markets outside of the European Union (EU). Discuss how each element of PESTLE analysis could help inform this decision.
Strategy; Food Producer The Yee-Haw Pickle Company in Park City, Utah, has grown in fouryears to supply 600 retailers nationally. The products include pickles and pickled green beans. YeeHaw’s products are unique for their unusual ingredients, such as wildflower honey used in some oftheir products. The owners of Yee-Haw are considering how to make the company grow. A largediscount store chain with 500 stores wants to add the Yee-Haw product. Required1. What type of strategy, cost leadership or differentiation, should Yee-Haw use?2. Should the owners accept the offer of the large discount chain?3. What are the key factors you considered in answering requirements 1 and 2?
Requirement Provide at least two (2) examples/case studies of international modes of entry utilized by multinational corporations in Japan, USA and Singapore that have succeeded or failed. The name of the multinational must be clearly stated in each example. Be sure to state the mode of entry utilized in each example in each country. Why do you think they would have succeeded or failed in each example included? Provide details on this. Ruberic Examples/case studies of international mode of entry strategies of multinational corporations in Japan, USA and Singapore that have succeeded or failedo Names of the multinationals clearly stated o Mode of entry in each case stated o Why they have failed/succeeded stated with details provided