Case summary:
RM Company is looking to change its numerically-controlled machines into a flexible manufacturing system. The transition will handle about 30% of RM Company’s work. There will be additional costs for the startup process. The new system is likely to reduce the inventory, floor space, production time, and number of laborers required.
The annual labor savings is a huge sum on the implementation of the new process. The company’s return on investment states that it should be at least over 15% for a new process to be implemented and the payback period should be less than 5 years.
To determine: The case of a conservative manager to maintain the status quo until there are more obvious returns.
Want to see the full answer?
Check out a sample textbook solutionChapter 7 Solutions
Operations Management: Sustainability And Supply Chain Management, Global Edition
- Companies have relied on their operations functions not only to maintain day-today operations, which has itself been challenging, but also to position the business to survive and grow in the post-pandemic world. Considering the preceding statement, examine the approaches that manufacturing organisations can implement to achieve a competitive advantage through their operations capability in a post-pandemic worldarrow_forwardResearch Apple and define its strategic mission, vision, corporate strategy, competitive priorities, and operations strategy. What can you say about Apple's strategy and practices regarding sustainability? You might use the Internet or visit the library.arrow_forward“Companies have relied on their operations functions not only to maintain day-today operations, which has itself been challenging, but also to position the business to survive, grow and remain competitive in the post-pandemic world”. Considering this statement, discuss the measures that organisations should embrace to remain ahead of their rivalries.arrow_forward
- Write a reflective essay about the Public Intellectual Series “Critical Innovation for National Industrializatio: Building Local Capacity for Local Development by Dr. Giovanni Tapang” You may also answer the guide questions: What did it mean when Dr. Tapang said that the state of science and technology in the Philippines is bansot (stunted) and atrasado (underdeveloped)? How is it apparent in the current situation of the Philippine society? What are the current critical innovations for national industrialization? https://youtu.be/0HkgsH2eE2I https://youtu.be/dAiNFJsYirE https://youtu.be/0HkgsH2eE2I https://youtu.be/dAiNFJsYirEarrow_forwardI am supposed to put find solutions to turn around a wooden toys producer with a 35-years history which is currently losing money. It has two factories, around 330 employees in total. It is producing trains, puzzles, action figures and micro furniture; sales have been growing for action figures (by 63%, to 8 million), have exploded for puzzles (170%, to 1.5 million) and micro-furniture (74%, to 21 million), but have decreased by almost 60% (from 24 million to 10.5 million) on wooden trains (which is the business line with most employees), so because of that the sales turnover figures has been flat in the last two years (41.5 million). Two of the production lines (puzzles and action figures) are only operating at 75% capacity on account of market demand. All direct costs have increased (transportation&warehousing 2.7 million, materials 16 million, staff costs 11.2 million), as well as the indirect ones (mostly marketing - 2.8 milllion and R&D - 2 million). Hence, EBITDA-wise…arrow_forwardDuring a face-to-face data collection or interview with locals, make a list of two do's and three don'ts. What would you do if you had the power to change the don'ts?arrow_forward
- How do economies of scale play into competitive priorities?arrow_forwardPerform a detailed value chain analysis and resource based view of your Green Earth foundation. What are the strategic management implications?arrow_forwardCase Study: Operations functions—including procurement, supply chain, and manufacturing—are at the forefront ofmanaging the challenges and finding new ways of working in light of global trends and disruptions. TheCOVID-19 pandemic has accelerated the pace of change, creating an inflection point. Companies haverelied on their operations functions not only to maintain day-today operations, which has itself beenchallenging, but also to position the business to survive and grow in the post-pandemic world. For example,regionalization has been accelerated by the pandemic, as countries closed their borders and protected theirsupply chains. Globalization was already under strain before the pandemic: the intraregional share of globalgoods trade increased by 2.7 percentage points between 2013 and 2018, according to an analysis by theMcKinsey Global Institute (MGI). Regionalization is most apparent in global innovation value chains, giventheir need to closely integrate many suppliers for…arrow_forward
- I'm still not able to get $304,000. Instead, I get $314,963. What am I doing wrong?arrow_forwardAn application of the SOSTAC planning framework to the Bradford city of culture, including the situation analysis, objectives, strategy, tactics, actions, and controlarrow_forwardDescribe the drawbacks or a value based planning in operations ?arrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub