MBA Operations Management - Case Study Guides - 07: ROCHESTER MANUFACTURING’S PROCESS DECISION

CASE STUDY
ROCHESTER MANUFACTURING’S PROCESS DECISION

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1. As a production manager for RMC, what do you recommend?
Why?
As production manager, you believe that the inherent
advantages of an FMS should tilt the scales in favor of FMS.
Your management task should be easier and therefore better
because those parts of your workday that are related to
scheduling, manpower, maintenance, and housekeeping
should require less direction and be easier to control. You
would be inclined to ask the “numbers people” to be sure
they included all of these relatively minor shop floor issues
in the decision.
LO 7.5: Identify recent advances in production technology
AACSB: Analytical thinking
2. Prepare a case by a conservative plant manager for maintaining the status quo until the returns are more obvious.
A conservative plant manager may well be the individual in
the decision-making process who is asked about the return
on investment. ROI may be largely the plant manager’s
responsibility. If the numbers do not support change, then
don’t do it. Additionally, the trauma of change in layout,
training, and acceptance by workers contains numerous
hidden costs. Consequently, the plant manager may have a
strong case for the status quo.
LO 7.5: Identify recent advances in production technology
AACSB: Analytical thinking
3. Prepare the case for an optimistic sales manager who suggests that you should move ahead with the FMS now.
The optimistic sales manager’s case is that improved delivery time (i.e., improved throughput) and improved quality
may well yield a higher market share, which, if the company
is already above break-even, is great for profitability, and
hence ROI will be higher than projected (sales growth is not
typically included in ROI computations). Additionally, the
management task is easier (i.e., fewer machines to maintain,
fewer people to supervise), and additional floor space will be
available when needed.
LO 7.5: Identify recent advances in production technology
AACSB: Analytical thinking
 

 

 

 

 

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Operations Management: Sustainability and Supply Chain Management, 12th Edition (Free Ebooks Download)
Jay Heizer, Texas Lutheran University
Barry Render, Graduate School of Business, Rollins College
Chuck Munson, Carson College of Business, Washington State University

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