Subject category:
Production and Operations Management
Published by:
Ivey Publishing
Version: 2003-07-08
Length: 14 pages
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Abstract
The factory manager at the Doka plant in Stockholm was reviewing a capital expenditure proposal to replace some of the manufacturing equipment in the plant. The changes were proposed to avoid product environmental concerns and to provide savings in raw materials and personnel costs. He has, however, some reservations about the proposal, particularly the production process it was advocating and that it would put the plant out of line with the production process used by other subsidiaries.
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Abstract
The factory manager at the Doka plant in Stockholm was reviewing a capital expenditure proposal to replace some of the manufacturing equipment in the plant. The changes were proposed to avoid product environmental concerns and to provide savings in raw materials and personnel costs. He has, however, some reservations about the proposal, particularly the production process it was advocating and that it would put the plant out of line with the production process used by other subsidiaries.