Case Bottling Essay example

1913 WordsFeb 16, 20118 Pages
Problem Statement: The main problem in this case “Bottling at Creemore Springs Brewery” is that will the cleaning of the bottles change to be in the house cleaning or maintain its current method of cleaning with a contractor. Having Thompson and Fuller responsible for the decision to be made, which have to be a strategic one or it will effect the long term profitability and success of the company. They have to make the company be more productive and efficient. Problems/Sub problems/Issues: There are two kinds of aspects in this case, one is the current cleaning process and the other is the new cleaning process. The current processes of cleaning the bottles have been done fairly well. The Creemore Spring drivers have to…show more content…
The machine would then do all the work from cleaning the bottles and sterilizing. The bottles then would be removed for refilling and send to the sellers. Calculations: -Number of bottled that are cleaned and reused: 75 * 60 * 460 * .80 = 1,656,000 -Salaries per year for part time workers: $12.50 * 2 * 460 = $11,500 -Maintenance worker salary per year: $20 * 460 = $9,200 -Cost of disposables per year: $6 * 5 * 460 = $13,800 -Utility costs for running the new machine per year: ($2.15 * 460) + ($2.33 * 460) + ($4.60 * 460) = $4176.80 -Total cost per year for in-house cleaning method: $11,500 + $9,200 + $13,800 + $4176.80 = $38,676.80 -Total cost for bottles to be cleaned: $38,676.80 * 1,656,000 = Ranks: (From 1 lowest and 10 highest): | |Contract Method |In-House Method | |Function |10 |10 | |Quality |10 |9 | |Quantity |10 |8 | |Price
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