Instead, I would research the differences in operations of the two plants and determine what is factoring into the additional Jaboatao downtime. I ultimately would not want the addition al machines due to the associated costs.
Increasing the machinery will allow for the production to be increased to units per minute and the bottleneck is corrected. I would use the information to re-train employees and educate them on the Guarulhos processes and procedures.
This would increase productivity but the company is still faced with the increased labor costs associated with the additional machinery. It is estimated that the process would require one additional employee to increase the production of inspecting the carbon rods.
There could be a smoother transition in the future by introducing the Pan-Orient equipment at later time. If I were the manager of the Jaboatao plant, I would be faced with a difficult decision. The difference in annual expenses is large but the amounts are offset by the initial investment of the Pan-Orient equipment See exhibit.
If the two bottleneck problems in the process are corrected, this would bring production up to the required units per minute.
While this solution will increase productivity, it will also increase labor required to operate the machine and additional labor would be required to inspect carbon rods. The Pan-Orient equipment is a good investment for the future but does not appear to be the right decision now.
Microtel did not appear to be heavily in favor of this decision and I would imagine that stakeholders would be weary of the large investment. This, however, would have an impact on the decision of the stakeholders on whether to accept this proposal or not.
One concern to Microlite is the amount of downtime that is experienced in Jaboatao. During my evaluation I determined that the ideal transition would be to move the equipment from Guarulhos to Jaboatao to increase productivity and reduce downtime in the process.
Moving the equipment from Guarulhos appears to be the wisest choice as it is the least expensive and drastic. Purchasing and installing the new Pan-Orient equipment seems extreme due to the significant amount of capital funds required as an initial investment.
The additional funds that are saved could also be used on training and machine modifications to improve machine productivity.
How to cite this page Choose cite format: One obvious way to decrease downtime would be to simply add more machinery from Guarulhos.Microlite S.A.: The Pan-Orient Decision Case Solution, As Brazil starts lowering tariffs on imports will Microlite SA, the country's largest producer of dry batteries, faced with increasingly competitive intern.
The Pan-Orient Decision Case Analysis, Microlite S.A.: The Pan-Orient Decision Case Study Solution, Brazil begins reducing its tariffs on imports, Microlite SA, the country's largest manufacturer of dry batteries, faces become competitive at the internati.
The Pan-Orient Decision ESSAYS AND PAPERS at #1 Case Study Microlite S.A.: The Pan-Orient Decision ESSAYS COLLECTION ONLINE. Totally Free Case Study Microlite S.
Case Study Microlite S.A.: The Pan-Orient Decision Abstract Microlite S.A. which is located in Brazil was the largest producer of batteries in South America with a mighty 55% share of the Brazilian battery market. Top Management had decided to shut down all but one out of three of the dry cell battery factories in Guarulhos.
The Pan-Orient Decision xls file, Microlite S.A.: The Pan-Orient Decision excel file, Subjects Covered Capacity analysis International operations New processes Process analysis by Ann E. Gray Source: Harvard Business School 13 pages. The Pan-Orient Decision Essays, Case Study Microlite S.A.: The Pan-Orient Decision Term Papers, Case Study Microlite S.A.: The Pan-Orient Decision Research Paper, Book Reports.
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