Applichem
Applichem Case
Purpose:
This case write-up is intended to compare the performance of Applichem’s 6 Release-ease plants and understand why some plants are performing better than others.
Approach:
This paper would like to use two methodologies to compare the performance of factories.
First, this paper will measure input Vs. output. Factories which generate higher output given the same input will rank higher. Inputs can have two dimensions of time and money. We will measure how much input is needed to produce a unit quantity in terms of time and money. Second, this paper will measure the relationship between total production volume vs. yield. This is to rank factories both on quality and volume of their product. There are usually trade-off between the quality and production volume. Data will also selectively be used to make a fair comparison between factories. For example, since we are only focusing on the efficiency of factories, we will not consider the packing cost. We will only use cost before packaging.
Analysis 1. Labor required to produce a unit volume of Release-ease The first analysis focuses on ‘How much input is needed to generate a unit volume of product?’
We will first analyze the labor force required to produce the unit volume of product across different factories. This tells how efficient each factory is.
[Table 1-1. Raw data from the case]
[Table 1-2. Total Labor needed for a production of 1 pound of Release-ease]
As shown in Table 1-2, there are significant variations among factories on how much labor force is needed. In terms of total labor per one pound of product, Frankfurt is ranked as No.1 since it requires the least number of labor force. Frankfurt is closely followed by Mexico.
Simply put, in terms of total labor management perspective, the rank is
However, these metrics could be easily affected by economies of scale. The larger the factory is, the more likely the factory will enjoy the economies of
Purpose:
This case write-up is intended to compare the performance of Applichem’s 6 Release-ease plants and understand why some plants are performing better than others.
Approach:
This paper would like to use two methodologies to compare the performance of factories.
First, this paper will measure input Vs. output. Factories which generate higher output given the same input will rank higher. Inputs can have two dimensions of time and money. We will measure how much input is needed to produce a unit quantity in terms of time and money. Second, this paper will measure the relationship between total production volume vs. yield. This is to rank factories both on quality and volume of their product. There are usually trade-off between the quality and production volume. Data will also selectively be used to make a fair comparison between factories. For example, since we are only focusing on the efficiency of factories, we will not consider the packing cost. We will only use cost before packaging.
Analysis 1. Labor required to produce a unit volume of Release-ease The first analysis focuses on ‘How much input is needed to generate a unit volume of product?’
We will first analyze the labor force required to produce the unit volume of product across different factories. This tells how efficient each factory is.
[Table 1-1. Raw data from the case]
[Table 1-2. Total Labor needed for a production of 1 pound of Release-ease]
As shown in Table 1-2, there are significant variations among factories on how much labor force is needed. In terms of total labor per one pound of product, Frankfurt is ranked as No.1 since it requires the least number of labor force. Frankfurt is closely followed by Mexico.
Simply put, in terms of total labor management perspective, the rank is
However, these metrics could be easily affected by economies of scale. The larger the factory is, the more likely the factory will enjoy the economies of