Ace designers, machine company in India, debating whether to invest in production in house CNC. Currently, Ace setup import CNC controllers into their machines, which account for 50% of the material. The cost of the house of the controller is much lower, and reduces the effects of fluctuations in the exchange rate. However, convincing customers about the quality and reliability of the indigenously developed CNC is a serious problem and can affect sales in the short term. Given the history of successful implementations for an inexpensive product segment and process improvement initiatives (eg, Ace Designers' production lines in the work shop "), students need to determine the probability of success in this new venture and the financial viability of the project controller. Sufficient information is provided in the case of the quantitative analysis, to assess the success of previous initiatives, and justify or reject the investment in the new project. In addition, enough information is given on earlier initiatives to improve the process of obtaining a better understanding of the soft issues and provide the rationale for the success or failure of future projects. "Hide
by Haritha Saranga, Sulakshana Sarathy, Mario Goncalves Source: Indian Institute of Management, Bangalore 20 pages. Publication Date: Aug 01, 2010. Prod. #: IMB329-PDF-ENG
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