OM $552$

Individual Case Study I

$(15$ points$)$

Please read the case The Morrison Company and then write a report based on the requirements attached.

Due date: Feb $7,2024$

Work method: Individual $($identical reports will not be accepted$)$

Submission method: Soft Copy through Blackboard

Outline for Case $1$ Report

I. First page: Case name, Student name, ID$,$ Date.

II$.$ Summarize Facts and Problems $(10$ points$)$

$($State here the main facts and major problems as you see them. Do not exceed $2$ pages$)$

III. Questions $(90\%)$

$1-$ Conduct capacity and utilization analysis and provide your own interpretation of Morrison$$s production capacity utilization.

Using the data provided to you in the spreadsheet and filling the missing information in the yellow$-$colored cells will help you answer the following specific capacity questions: $(30$ points$)$

$1.$a$)$ Based on overall capacity utilization, do you think they currently have a shortage in their production capacity?

$1.$b$)$ What is the utilization rate for each product type?

$1.$c$)$ If we separated the products based on standard and customized, what is the capacity utilization for each?

$1.$d$)$ Based on your analysis of the monthly capacity utilization rates, do you see fluctuations of under or over utilization? If you observed fluctuations, what do you think is causing it$?$

$1.$e$)$ Based on their compounded annual growth $($CAGR$),$ do they have enough capacity for the future?

$2-$ Explain the production processes for the various product lines at Morrison Company by including details for the following: $(35$ points$)$

$2.$a$)$ Schematically try to map the flow of their production process.

$2.$b$)$ Use a table $($see Exhibit $1$ below$)$ to summarize the two major types of products that they produce and the different characteristics of each product line.

$2.$c$)$ Use a table $($see Exhibit $2$ below$)$ to rank the competitive priorities of each product line:

Competitive priorities:

$$ Low cost,

$$ Performance $($i$.$e$.,$ reliability, features$),$

$$ Flexibility $($i$.$e$.,$ customization, volume$),$

$$ Time, Quality $($i$.$e$.,$ consistent quality or top quality$),$

$$ Innovation$/$customization$.$

$2.$d$)$ What type of production process are they currently using for each product type? $($Job$,$ small$-$batch, large$-$batch, line, or continues.$)$

$2.$e$)$ You learned that when products have different characteristics and competitive priorities, they should be using different types of production processes. Discuss the match between the product characteristics and the production processes used in Morrison Company. If there is a mismatch, explain it and recommend a solution for them.

$3-$ What recommendations would you offer Shauna Breen about how to address those issues she is facing? Be specific about any policies or organizational changes you propose, especially regarding the products they should be focusing on$.(25$ points$)$

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Exhibit $1$: Product characteristics

Product type $1$ Product type $2$

Price

$($high or low$)$

Market size

$($larger or smaller$)$

Rate of product change

$($slow or fast$)$

Customization

$($high or low$)$

Labor content

$($low or high$)$

Product life cycle stage

Growth rate

Compound annual growth rate $($CAGR$)$

Net profit margin

priority Product

type $1$ Product

type $2$

$1$

$2$

$3$

$4$

$5$

Exhibit $2$: Competitive priorities of each product type

Hint: Remember that Standard and Customized products$/$services should not be mixed together in the same production process.