General manager of the production of taps and dies must decide whether to continue the main program of capital investment. The program was designed to replace outdated mechanical machines with modern electronic control equipment. Post-audit, after the first group of two machines were purchased and put into effect, showed that actual sales were lower than expected in the request for capital expenditures and operating expenses were higher due to the challenges of adapting to new technologies. The analysis requires consideration of intangible benefits from new investments in addition to the more easily quantifiable savings in labor costs. "Hide
by Robert S. Kaplan, Glenn Bingham Source: Harvard Business School 22 pages. Publication Date: March 22, 1985. Prod. #: 185124-PDF-ENG
Related Case Solutions & Analyses:
Andy Chew at Siemens Nixdorf: Change from the Middle
Apple Computer–1996
Eastman Chemical Co.: Building a Board from Scratch
Workbench Pricing Strategy
Organizational Capabilities and U.S. War Production: The Controlled Materials Plan of World War II
Creative Confidence: The Path From Blank Page to Insight
Rough Justice: Stuart Eizenstat and Holocaust-Era Asset Restitution (B)
JetBlue Airways (IPO process)
Ethical Issues In Business
Shanzhai (“Bandit”) Mobile Phone Companies: The Guerrilla Warfare of Product Development and Supply Chain Management
