Operations Management

ISL 223E FUNDAMENTALS OF PRODUCTION MANAGEMENT CASE STUDY 2[1] ascribable go out: 17. 10. 2011 until at 17.00 to Room B408[2] NorSal TRONDHEIM NorSal Trondheim operates a pinkish-orange bordering initiation where fish are purchased from local sources along the North Sea, touch on at the facility, and sold to customers for distribution. The speciate manager, Inger Hansen, is contemplating a plant modernization to upgrade the technology in the plant. While the plant performs rise up enough now, modernizing equipment would book the plant to increase capacity per hour, which is particularly advantageous because the pulverisation has enough demand to cover the surplus capacity. Currently, the plant operates volt days a week, two breaks of 30 workers per shift. The workers are remunerative $10 per hour. Adding a third shift is not likely because the plant is cleaned during the third shift. The firm is contemplating a plant modernization to upgrade aliv e equipment, which should increase the plants issue patch lowering power damages. exploitation the current equipment, some 1.500 pounds of salmon can be impact for each one hour, while the impertinently plant would be sufficient to processed each hour, while the new plant would be able to process 2.000 pounds per hour.

The updated equipment is made by the same producer as the existing equipment, and the new equipment quickly. For this reason, costs to train effect are sham to be negligible. The production manager, Bjorn Pedersen, is skeptical rough undergoing the plant modernization. The aged equipment, he argues, is already paid for, and new equipment would cost $10.000 per w eek. This cost is comprised of both principa! l and interest, and includes manufacturer evocation of the equipment. The controller, Maret Karlsen, cautions that all decisions cerebrate to costs should be included in the analysis and that because the energy consumption would be different, this must as well as be accounted for in the decision. Energy costs are concisely $10 per unit,...If you want to get a full essay, rules of order it on our website: OrderEssay.net

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