Fonderia Di Torino S.P.A.

According to our analysis, So , c) is a betterthe optimal choice whichchoice, which confirmed our aggressive machine buying strategy since Day 135. And on Day 149, and Day 170, we immediately bought machine for station 2 and 1 again when the stationsit becomes bottle neck or when lead time is more than 0.28 which caused revenue decreased to $1,200.

When making a purchase to improve on many areas of operations there are always factors to take into consideration. There will be a great amount of capital expenditure for this equipment; however the potential for higher return on investment is remarkable. The initial cost of purchasing the MAGNETOM is approximately $ 1 million. There will be an additional cost of $500,000 to operate and maintain the machine. These costs will be reimbursed within the first eight months of extensive utilization if the all marketing for the machine is on point. Since we are currently paying a technician to operate our out of date machinery, there is no reason why this prediction cannot become reality. There will also be an offset of income inherited by the lack of errors made by the technicians after they have trained for the new machine . ("Magnetom espree -," 2013)

4. Location of the new plant: 0 points.  Here we would have to strongly consider if we could relocate the plant given that we could hire new workforce under completely new agreements. The biggest disadvantage that we have currently is that the workers are being overpaid, and reducing their salary would affect their

Timing – In 1992, production capacity was increased from 75,000 to 100,000 after an internal expansion project. In 1995, a further capacity expansion was planned in response to the growing motorcycle market.

• Capacity would not increase significantly; it would increase by 20,000 immediately, and could be brought up to 48,000 in twelve months

To help mitigate the immediate supply crisis, Steve arranged for the Italian machinery tech- nicians to fine-tune the existing machines and increase capacity by 10 percent. However, Steve was not sure how long the equipment would be able to operate under this type of production schedule.

In order to meet customer demands for higher product quality, to comply with federally-mandated environmental regulations, and to reduce production costs, HCC must spend $2,000,000 within the next three years to upgrade equipment. The upgrade is expected to result in production efficiencies that will lower material and labor costs by reducing defective products, process waste, in-process inventory, and production man-hours through simplified work processes. It has been over a decade since significant modifications were made to the production facilities. Those changes were mostly technical in nature and did not substantially alter work processes or reduce overall employment. The average productivity gain in the industry for the past five years has been 3% per year. Financing for the loan to purchase the equipment

In addition, since ACE is willing to invest in the necessary machine and guarantee at least 100 engines per month, working with ACE would reduce cost of labor to disassemble and repair damaged casting, and disruption cost as well as maintain quality and ensure number of machines required

Start using the 2nd shift in the following period? 4.3 Results Machine capacity Capacity in previous period Installation of new machines Sale of machines Capacity in this period

Our approach to valuing the processing plant can easily be decomposed into three distinct steps first, find the value of the foreseeable free cash flows. Next, calculate the terminal value of the project. Finally, take the present value of those flows. The next few paragraphs walk through each of these steps in order of progression.

The Whirlpool Europe case provides an opportunity to look at different ways to evaluate a major IT investment the company is considering. To undertake this analysis we have to make a few assumptions because the case does not have all the details needed to estimate benefits and investment cost. However, if you were in a company faced with this situation, these numbers would be available.

The equipment is normally used to manufacture prototype boards, so its full capacity is never used. Since this new circuit board will not be manufactured in very large quantities, the machine will suffice, although some additional “add-ons” as well as supplies will be needed to produce this particular board. There is a 20% chance that equipment failure may cause a significant problem and, if it does, the impact is estimated at $50,000.

Consideration of the ability of the equipment to meet the anticipated future capacity demands, and how this equipment will facilitate the growth goals of Platinum, is vital. Analysis of the projected required capacity (Exhibit C) reveals some interesting and strategically important insight; if Platinum continues to grow at the expected rate, today’s purchase of new presses will not be able to meet the projected demand in 5 years (2010), unless additional presses are purchased, or factory hours are expended – perhaps with the addition of a third shift.

4. Which method of analyzing the value of the Firstburg investment proposal to Southport Minerals is most reasonable? Why? Why are the other three methods less reasonable? Present your reasoning in detail.

Fonderia di Torino S.p.A, founded in 1912 by Benito Cerini, was a manufacturing company who produced metal castings using semi-automated molding machines. The company’s main line of business was the production of precision metal castings for use in automotive, aerospace, and construction equipment. The company excelled at this and was awarded because of the quality of its products.