Decisions for Quarter One and Quarterly Business Review

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"Growing Your Business" - A Management Simulation

Developing Project

Project 02

Available Project

Project 01

Project 03

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Status Summary

Status: No investing plan

PROCESS SIMPLIFICATION We have been studying the design of several of our major assemblies to see if there is a way to simplify the process and thereby reduce off specification material, hazardous waste emissions and the labor content of the product. We find that we can redesign and simplify two of the assemblies. Positive hits can be made in all three areas, however at this stage we can only definitely count on a cut in the total labor content by 25% (this means that the Planned Time will be reduced by 25% in the implementation quarter).

This redesign will be a major undertaking. We will need $25,000 in each of the next two quarters to get it ready to implement. We can shorten that time to one quarter, but it will cost $60,000. It can not be done any faster than this no matter what the cost, since the required regulatory permits to build the new lines is three months.

At our current production rates this would have a payback of less than one year. I think we should go ahead as soon as possible.

 R&D

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 Reginald Whimbush

Hisco    SWOT and STRATEGY  R&D Financial Statements  Supply Chain Mgt