To: Richard Sullivan‚ Vice President‚ Heavy Equipment Division‚ WMC Subject: Wriston Manufacturing Corporation Date: May 1‚ 2012 Thank you for the opportunity to work with Wriston Manufacturing Corporation (WMC)‚ it has been both a rewarding and insightful experience. As requested‚ an evaluation has been conducted to assess and identify the key areas of strength and weakness and to provide an external perspective into possible opportunities for corporate advancement. Based on our analysis
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MEMORANDUM TO: FROM: SUBJECT: DATE: RICHARD SULLIVAN 76220136 WRISTON MANUFACTURING CORPORATION 3RD FEBRUARY‚ 2014 Overview Wriston Manufacturing Corporation (WMC)‚ a multi-billion dollar corporation with products targeted at North American transportation industry‚ had seen a decline in sales over the last three years and as a result under-performing plants of Heavy Equipment Division (HED) such as Detroit and Lima were coming under increased scrutiny on their future financial viability
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Wriston Manufacturing We identified seven factors contributing to the variance in overhead costs from plant to plant. However‚ in order to best understand how these factors contribute to inter-plant variance‚ it is helpful to first take note of the individual components of total overhead. As noted in the case‚ fixed overhead includes depreciation‚ utilities‚ salaries‚ and fringe benefit costs of employees‚ whereas variable costs consist of first-line supervisors’ wages‚ costs of set-up labor‚ scrap
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MEMORANDUM TO: Richard Sullivan FROM: SUBJECT: Wriston Manufacturing Corporation DATE: June 9‚ 2011 Wriston Manufacturing Corporation (WMC) is faced with a Detroit plant that is no longer viable because of underinvestment‚ labour issues‚ and product-process mismatch. This has lead to low sales figures‚ low return‚ and high burden rates (as calculated by the company). The issues at the Detroit plant will be reviewed and options will be presented. A recommendation to address the Detroit
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under-invest on machinery and tooling upgrades – based mainly on its consistently lower return on assets – have further weakened the plant’s operational efficiency‚ increased overhead costs and led to its decrepit conditions today. Our recommendation to Wriston regarding the Detroit plant is to keep it running‚ invest the required amounts each year for maintenance and new tools‚ but discontinue the Group 3 products which have ceased to be economically viable. Reasons behind our recommendation are: • Due
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for the synergistic benefits of Detroit’s products‚ and to recognize inherent manufacturing complexities‚ respectively. Issues Detroit’s production is unique when compared to other Wriston plants. Runs are typically lowvolume‚ involve significant set-up time‚ and vary significantly due to the sheer volume of different products lines‚ families and models. It is notable that the Detroit plant is the only plant manufacturing all three product lines: brakes‚ off-highway and on-highway axles; all other
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Tatiana Krymsky Artem Bolshakov Alexander Rubinchik Matan Kurman Wriston Manufacturing: Redistribution vs. Factory Termination vs. New Plant Recommendation: The Detroit plant is an inefficient factory and ought to be closed as soon as possible. Products should be transferred to other plants for benefits in both operational and financial gain. Assessment of Option 1: Close the Plant (Transfer Products to Other Plants) Financial Analysis Selling the plant would cause immediate cash
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Memorandum To: Sam Sullivan Subject: Detroit Plant Wriston Manufacturing’s Heavy Equipment Division (HED) Detroit plant has been performing below its plant peers and its operations can no longer be sustained long term. Profitability of each HED plant is measured on a standalone basis‚ which has distorted the Detroit plant’s profitability metrics. Detroit is a job shop‚ tasked with production of low volume products and prototyping. Once a product becomes profitable it is moved to another‚
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TO: Richard Sullivan‚ Vice President of HED‚ Wriston From: FT28312 Subject: Wriston Manufacturing Corporation Case Analysis and Summary Date: January‚ 1992 Summary The Heavy Equipment division of the Automotive Supplier group of the Wriston Manufacturing Corporation is a large axle and brake manufacturer having three broad product lines which are being manufactured in its nine plants. The Detroit
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Wriston Manufacturing S. Chopra/Operations/Strategy 1 Wriston Manufacturing Burden Rates (total overhead cost / direct labor cost) 7 6 5 4 3 2 1 0 Sanduski Detroit Lima Lebanon Saginaw Essex Tiffin Freemont Tiffin Freemont Maysville Free capacity and Throughput 160 140 120 100 80 60 40 20 0 Sanduski S. Chopra/Operations/Strategy Detroit Lima Lebanon Saginaw Essex Maysville 2 Wriston Manufacturing Corp: OH Burden rates: Economies of Scale? Sales vs. burden 7 Detroit (20
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