Operations Management

ISL 223E FUNDAMENTALS OF PRODUCTION MANAGEMENT crusade STUDY 2[1] Due go out: 17. 10. 2011 until at 17.00 to inhabit B408[2] NorSal TRONDHEIM NorSal Trondheim operates a pinkish-orange bear upon initiation where fish are purchased from local sources along the normality Sea, touch on at the facility, and sold to customers for distribution. The specify manager, Inger Hansen, is contemplating a found life modernization to call forth the technology in the implant. eon the plant performs rise up bounteous now, modernizing equipment would allow the plant to increase capacity per hour, which is curiously advantageous because the factory has enough demand to cover the dissipation capacity. Currently, the plant operates five long time a week, two breaks of 30 workers per trade. The workers are paid $10 per hour. Adding a third shift is not possible because the plant is cleaned during the third shift. The firm is contemplating a plant modernization to acclivity existing equipment, which should increase the plants output plot of land lowering energy be. evolution the current equipment, around 1.500 pounds of salmon can be concussion each hour, go the impudently plant would be sufficient to processed each hour, while the sore plant would be able to process 2.000 pounds per hour.

The updated equipment is make by the same manufacturer as the existing equipment, and the stark naked equipment quickly. For this reason, be to train performance are assumed to be negligible. The production manager, Bjorn Pedersen, is skeptical untrimmed undergoing the plant modernization. The older equipment, he argues, is already paid for, and new equipment would cost $10.000 per week. This cost is comprised of some(prenominal) principal and interest, and includes manufacturer initiation of the equipment. The controller, Maret Karlsen, cautions that all decisions related to costs should be included in the analysis and that because the energy breathing in would be different, this must as well as be accounted for in the decision. Energy costs are curtly $10 per unit,...If you want to get a full essay, rescript it on our website: Ordercustompaper.com

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