Ace Designers, a machine tool business in India, is debating whether to put money into creation of an in house CNC controller. Now Ace is meeting imported CNC controls into its machine tools, which account for 50% of the material price. The in house accountant's cost also reduces the exposure of firm to exchange rate fluctuations and is significantly lower. However, convincing customers about dependability and the quality of an indigenously developed CNC control is a major challenge and could impact the sales in the short run.
Sufficient data is provided in the instance to perform quantitative analysis, evaluate the success of earlier initiatives, and warrant or reject investments in the new endeavor. Also sufficient advice is given on earlier process development initiatives to obtain deeper insights into softer issues and provide reason for failure or success of future projects.
PUBLICATION DATE: August 01, 2010 PRODUCT #: IMB329-PDF-ENG
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
Related Case Solutions & Analyses:
Microsoft IT India
Four Star Industries Singapore – Matching Supply with Demand
Aspen Skiing Company (A)
The Joslin Diabetes Center
Livedoor: The Rise and Fall of a Market Maverick
Managing Creativity
New Balance Athletic Shoe Inc.
China: To Float or Not to Float (E): ABB Investment in China
Grocery Gateway: Customer Delivery Operations
Cold Storage (Singapore): Establishing Trust Among On-line Consumers
