ELETRONICSENSORS Case Study Solution
2.2 Production
It is very important to look into the capacity to make good decisions.
If you sell capacity to the point that you have less than 200,000 units on an assembly line, Capstone interprets this as a liquidation instruction and will sell your remaining inventory for half the average cost of production. Capstone writes off the loss on your income statement. If you want to sell your inventory at full price, keep at least 200,000 units of capacity. Another main factor in the production line is automation. The production line must be integrated partially. The lowest possible automation rating is 1.0; the highest possible rating is 10.0. As automation levels increase, the number of labor hours required to produce each unit falls.
2.3 R&D
As a part of our team, It is my opinion that the company must need to focus on the R&D of the products and innovation. This factor has the greatest advantage over all of these which surely increases the company revenues.
- Product line that needs to be eliminated
There are 6 production lines that is Daze,Dash, Dell, Duck, Dottie, and Duet. The first product daze was started with a performance of 6.4, a size of 13.6 and MTBF of 21000. Daze has made the competent changes in order to compete effectively in market place.Whereas other products such as Dottie which has the market share of 8% and are low performing.
In my opinion, Dottie needs be eliminated, because as the Dottie is low performing, also the sold range of Dottie is less than other products which means that the Dotting be eliminated easily without having a significant impact on the company.
2.Inference
Every company has its up and pitfalls. It is not a rare moment for the company to experience these issues, but it is very important to stay determined and firm when experiencing such downfalls. It is righty stated that after hardships, there is ease. This means the company and its employees must work in such a manner that makes them the family. As a part of our executive team, when I came to know the issues faced by the company, which leads the company towards downfall, I was not that surprised but I became more active and I look into the matters and tasks that need to be done at this time. I think the company needs to look into its production line and liquidate other products that no longer provide revenue for the company.
There are 6 production line that are significantly running by our group of company “Digbyteam”, These products are Daze,Dash, Dell, Duck, Dottie, and Duet. As the company is already generating towards losses, as a part of our production team we were asked to give idea to eliminate one of our production line at least for now. In my opinion, the product that needs to be eliminated is Dottie, as Dottie is a low performing product and has least market share. The disposing range of dottie is less than the other specified products. Therefore, in my opinion, it is best to get rid of the Dottie for now in this crucial time...............
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