20 Jul DETERMINE FEASIBILITY OF EXPANDED OPERATIONS SITUATION
13. Case Study (50 points)
You should use MS Word or PowerPoint for your answers, use of Excel may be helpful but not required.
Scope
After the first year of operation customer demand has increased to 20 kits per month. The two owners are overwhelmed and have asked you, to help them
a. Increase factory output by assessing needs
b. Develop an organization management plan
c. Assess staffing needs
d. Determine feasibility of expanded operations
Situation
? Currently 12 people produce 5 kits per month.
? The owners would like to focus on new product R&D and manage the business.
? Each kit sells for $75,000.
? Returns and warranty costs are $5,000 per month.
? Each functional area has $10,000 of equipment/inventory which 2 people can operate in a given 8 hour shift.
? The building and operations costs are $50k per month.
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