Question: please answer the questions in details based on case Case: The Engineering Company for Engines was established in 1970 to produce small engines, and there

please answer the questions in details based on case please answer the questions in details based on
Case: The Engineering Company for Engines was established in 1970 to produce small engines, and there was no specific plan for the sizes of engines produced by the company. And since it was seeking to satisfy the desire of its customers who were factory owners, it found itself producing a wide range of sizes. The company's production was divided into two groups: The first group is characterized by a mass production system to meet the needs of the market, and the second group is characterized by a production system on demand The company moved its production divisions for the first group in 1995 to a new site about 200 miles away from the old site. The new factory had a modern design and was equipped with modern machines and designed on a production line system and the company did not transfer production departments on demand, but the high production cost made this one of the possibilities that must be studied The most important factors that led to the transfer of the departments of the first group was the old machines. Although the company had a good reputation for its production, it was making a very limited percentage of profits. Therefore, the company's management decided to negotiate with a bank to obtain a loan to purchase a newly equipped factory that was offered for sale. After the purchase of the new factory and the regularity of work in it for one year, the company's business showed remarkable profits in the production of the modern factory, but the old factory did not show profits except in a small number of orders that it produced. In the management's view, this is due to the high rates of wages and the low production efficiency of the machines used. The hourly labor cost in the old factory was 30% higher than in the modern factory. The company's management has considered four suggestions to overcome this problem 1. Stopping production in the old factory completely 2. Contracting with some factories to perform this process on behalf of the engineering company 3. Making some improvements to the machines and checking the product pattern 4. Transferring all operations to the modern factory Additional information: Most customers buy fromfacturers together The number of similar factories is few The cost of the proposed improvements to the old factory is estimated at approximately $2.000.000 Reducing the workforce by 10% achieves cost savings of $80,000 annually Transferring operations to a modem factory costs about $2,000,000 Required: 1- What are the considerations that should be considered before reaching a decision on this problem? 2- Evaluate the four proposals 3- What are the factors that the administration should study before deciding to stop the production of one of the types in the old factory? 4- What is your suggestion to solve this

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