I would use the information to re-train employees and educate them on the Guarulhos processes and procedures. How to cite this page Choose cite format: Purchasing and installing the new Pan-Orient equipment seems extreme due to the significant amount of capital funds required as an initial investment.
There could be a smoother transition in the future by introducing the Pan-Orient equipment at later time.
I ultimately would not want the addition al machines due to the associated costs. One concern to Microlite is the amount of downtime that is experienced in Jaboatao. This, however, would have an impact on the decision of the stakeholders on whether to accept this proposal or not.
The additional funds that are saved could also be used on training and machine modifications to improve machine productivity.
Moving the equipment from Guarulhos appears to be the wisest choice as it is the least expensive and drastic. The difference in annual expenses is large but the amounts are offset by the initial investment of the Pan-Orient equipment See exhibit.
If the two bottleneck problems in the process are corrected, this would bring production up to the required units per minute. Microtel did not appear to be heavily in favor of this decision and I would imagine that stakeholders would be weary of the large investment.
This would increase productivity but the company is still faced with the increased labor costs associated with the additional machinery. One obvious way to decrease downtime would be to simply add more machinery from Guarulhos.
If I were the manager of the Jaboatao plant, I would be faced with a difficult decision. The Pan-Orient equipment is a good investment for the future but does not appear to be the right decision now.
Increasing the machinery will allow for the production to be increased to units per minute and the bottleneck is corrected. Instead, I would research the differences in operations of the two plants and determine what is factoring into the additional Jaboatao downtime.
During my evaluation I determined that the ideal transition would be to move the equipment from Guarulhos to Jaboatao to increase productivity and reduce downtime in the process.
While this solution will increase productivity, it will also increase labor required to operate the machine and additional labor would be required to inspect carbon rods.The Pan-Orient Decision case study solution, Microlite S.A.: The Pan-Orient Decision case study analysis, Subjects Covered Capacity analysis International operations New processes Process analysis by Ann E.
Gray Source: Harvard Business School 13 pages. Access to case studies expires six months after purchase date. Publication Date: October 19, This case is available in only hard copy format (HBP does not have digital distribution rights to the content). The Pan-Orient Decision xls file, Microlite S.A.: The Pan-Orient Decision excel file, Subjects Covered Capacity analysis International operations New processes Process analysis by Ann E.
Gray Source: Harvard Business School 13 pages. Case Study Microlite S.A.: The Pan-Orient Decision Abstract Microlite S.A. which is located in Brazil was the largest producer of batteries in South America with a mighty 55% share of the Brazilian battery market. The Pan-Orient Decision Case Analysis, Microlite S.A.: The Pan-Orient Decision Case Study Solution, Brazil begins reducing its tariffs on imports, Microlite SA, the country's largest manufacturer of dry batteries, faces become competitive at the internati.
Microlite S.A.: The Pan-Orient Decision Case Solution, As Brazil starts lowering tariffs on imports will Microlite SA, the country's largest producer of dry batteries, faced with increasingly competitive intern.Download