Operations Management

ISL 223E FUNDAMENTALS OF PRODUCTION MANAGEMENT CASE STUDY 2[1] cod go out: 17. 10. 2011 until at 17.00 to Room B408[2] NorSal TRONDHEIM NorSal Trondheim operates a chromatic passageing initiation where fish are purchased from local sources on the North Sea, touch on at the facility, and sold to customers for distribution. The gear up manager, Inger Hansen, is contemplating a plant modernisation to upgrade the technology in the plant. While the plant performs rise up enough now, modernizing equipment would stomach the plant to increase capacity per hour, which is particularly advantageous because the factory has enough demand to cover the surplus capacity. Currently, the plant operates fivesome days a week, two breaks of 30 workers per shift. The workers are nonrecreational $10 per hour. Adding a third shift is not thinkable because the plant is cleaned during the third shift. The firm is contemplating a plant modernization to upgrade existing equ ipment, which should increase the plants widening maculation lowering brawn equals. exploitation the current equipment, almost 1.500 pounds of salmon can be impact each hour, while the impertinently plant would be sufficient to processed each hour, while the new plant would be able to process 2.000 pounds per hour.

The updated equipment is made by the same producer as the existing equipment, and the new equipment quickly. For this reason, costs to train effect are simulated to be negligible. The production manager, Bjorn Pedersen, is skeptical rough undergoing the plant modernization. The erstwhile(a) equipment, he argues, is already paid for, and new equipment would cost $10. 000 per week. This cost is comprised of both! principal and interest, and includes manufacturer evocation of the equipment. The controller, Maret Karlsen, cautions that all decisions related to to costs should be included in the analysis and that because the energy consumption would be different, this must as well as be accounted for in the decision. Energy costs are abruptly $10 per unit,...If you want to get a full essay, order of magnitude it on our website: OrderEssay.net

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