Product details

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Authors: Sanjay Kumar (Management Development Institute (MDI), Gurgaon)
Published in: 2014

Abstract

The case describes the simplified operations at a manufacturing plant making transmission systems, for a farm equipment manufacturer. A new Plant Head (Vijay Mehta) is recruited by the Managing Director with a mandate to improve operations and increase plant profitability.The case describes the plant operations from the perspective of the new Plant Head, who goes around the plant and tries to understand the various operations. The operations have been simplified, for solving in one class of 90 minutes.The plant capacity has to be calculated using routing and material flow data given in the case. The student is supposed to help him to calculate the cost of the operations (Profit before tax) using data given in the case. Next the student is supposed to look at various initiatives which will help the Plant Head Vijay Mehta to reduce flab and waste in the plant, and increase profitability of the plant by 25%. Increasing capacity and matching demand and capacity is an example of such an initiative. The student has to also help the Plant Head Mr Vijay Mehta estimate the cost impact of each initiative, so that the objective of improving plant profitability is achieved.
Location:
Size:
INR270 million (USD50 million approximately)
Other setting(s):
2013-2014 (updated)

About

Abstract

The case describes the simplified operations at a manufacturing plant making transmission systems, for a farm equipment manufacturer. A new Plant Head (Vijay Mehta) is recruited by the Managing Director with a mandate to improve operations and increase plant profitability.The case describes the plant operations from the perspective of the new Plant Head, who goes around the plant and tries to understand the various operations. The operations have been simplified, for solving in one class of 90 minutes.The plant capacity has to be calculated using routing and material flow data given in the case. The student is supposed to help him to calculate the cost of the operations (Profit before tax) using data given in the case. Next the student is supposed to look at various initiatives which will help the Plant Head Vijay Mehta to reduce flab and waste in the plant, and increase profitability of the plant by 25%. Increasing capacity and matching demand and capacity is an example of such an initiative. The student has to also help the Plant Head Mr Vijay Mehta estimate the cost impact of each initiative, so that the objective of improving plant profitability is achieved.

Settings

Location:
Size:
INR270 million (USD50 million approximately)
Other setting(s):
2013-2014 (updated)

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