Question

NorSal Trondheim operates a salmon processing facility where fish are purchased from local sources along the North Sea, processed at the facility, and sold to customers for distribution. The plant manager, manger Hansen, is contemplating a plant modernization to upgrade the technology in the plant. While the plant performs well enough now, modernizing equipment would allow the plant to increase capacity per hour, which is particularly advantageous because the factory has enough demand to cover the additional capacity. Currently, the plant operates five days a week, in two shifts of 30 workers per shift. The workers are paid $10 per hour. Adding a third shift is not possible because the plant is cleaned during the third shift.

Discussion Questions
1. What is the productivity of the processing facility, with the equipment currently in use?
2. What would the productivity of the plant become if the new system were purchased and implemented?
3. What would be the amount of additional expense on equipment that would make productivity of the two systems equal?



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  • CreatedJuly 15, 2013
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