The Morrison Company
FIN 485 – Brief Case #5
The Morrison Company
December 5, 2013
Case Overview/Key Issues
The Morrison Company is a manufacturer of Radio Frequency Identification Tags (RFID). These tags can be scanned from small distances away and are used to track items in the shipping and supply chain process. The Morrison Company provides RFIDs to companies in the Pharmaceutical and Retail industries. The company has seen a large increase in sales over the past year, which has forced production to increase as well. As production levels increased, problems began to arise in the production process that hindered Morrison’s ability to run the company at the most efficient and effective level. Shauna Breen was recently hired as the new Director of Operations, and her main goal was to find out exactly what the major problems are and how to fix them.
Breen identified her two main problems as inefficiencies in production controls and inefficiencies caused by supply shortages. She believed that theses were due to outdated manufacturing technology, a lack of floor space, and multiple bottlenecks in the process, specifically in the customization phase. Breen feels that the only way to fix Morrison’s problems and set the company up for success in the future, their capacity must increase.
In order to increase capacity, Breen will need to decide between adding a second shift and expanding floor space via renting or buying more property. In the end, Breen believes that fundamental changes need to be made for the Morrison Company if they wish to continue their success in the RFID industry.
Question 1:
a. The Radio Frequency Identification Tag (RFID) market is an up and coming industry. Global sales in the industry were $4.9 billion in 2010, and were expected to grow at a CAGR of 11.5% until 2015, when global sales were projected to be $8.5 billion. RFID technology is used by many industries to track goods throughout the supply chain and shipping process. Some of the uses of RFIDs
The Morrison Company
December 5, 2013
Case Overview/Key Issues
The Morrison Company is a manufacturer of Radio Frequency Identification Tags (RFID). These tags can be scanned from small distances away and are used to track items in the shipping and supply chain process. The Morrison Company provides RFIDs to companies in the Pharmaceutical and Retail industries. The company has seen a large increase in sales over the past year, which has forced production to increase as well. As production levels increased, problems began to arise in the production process that hindered Morrison’s ability to run the company at the most efficient and effective level. Shauna Breen was recently hired as the new Director of Operations, and her main goal was to find out exactly what the major problems are and how to fix them.
Breen identified her two main problems as inefficiencies in production controls and inefficiencies caused by supply shortages. She believed that theses were due to outdated manufacturing technology, a lack of floor space, and multiple bottlenecks in the process, specifically in the customization phase. Breen feels that the only way to fix Morrison’s problems and set the company up for success in the future, their capacity must increase.
In order to increase capacity, Breen will need to decide between adding a second shift and expanding floor space via renting or buying more property. In the end, Breen believes that fundamental changes need to be made for the Morrison Company if they wish to continue their success in the RFID industry.
Question 1:
a. The Radio Frequency Identification Tag (RFID) market is an up and coming industry. Global sales in the industry were $4.9 billion in 2010, and were expected to grow at a CAGR of 11.5% until 2015, when global sales were projected to be $8.5 billion. RFID technology is used by many industries to track goods throughout the supply chain and shipping process. Some of the uses of RFIDs