...AppliChem Case 4 - AppliChem Performance Measures Capacity Raw material cost Operating cost ($ Utility cost ($ per ($ per 100 lbs of per 100 lbs of million lbs of Total Cost Release-ease) Release-ease) Release-ease) Utilization rate (%) Production Avarage yield on raw material (%) Mexico 27 17,2 63,7 75,05 13,7 12,012 88,75 94,7 Frankfurt 47 38 80,85 53 15,91 11,116 68,91 98,9 Gary 26 14 53,85 60,83 22,16 19,365 85,64 90,4 5 4 80 91,86 50,56 36,675 142,42 98,8 Sunchem Comparison of the plants Total labour / Volume 9 8 7 6 5 4 3 2 1 0 Mexico Germany USA Japan Direct labour/Volume Indirect labour/Volume 4 5 3 4 2 3 1 2 1 0 Mexico Germany USA Japan 0 Mexico Germany USA Japan Comparison of the plants • Capacity Utilization 50 45 40 35 30 25 20 15 10 5 0 Mexico Germany USA Utilization Capacity Japan Comparison of the plants • Cost (USD)/lbs 1,6 1,4 1,2 1 0,8 0,6 0,4 0,2 0 Mexico Frankfurt (Germany) Gary (USA) Sunchem (Japan) Comparison of the plants • Summary Country/Plant Characteristics Mexico Very high efficiency Germany Highest capacity, very high efficiency USA Lowest utilization Japan Highest cost/lbs, lowest efficiency Currency development Mexico (Mexican Pesos /...
Words: 803 - Pages: 4
...7th December, 2009 APPLICHEM OPERATIONS MANAGEMENT CASE ANALYSISPRESENTED TO: PROF. HARITHA SARANGAIIM, BANGALORE | Table of Contents Q1 & 2: COMPARISON OF OPERATIONS OF PLANTS 3 Operational Performance 3 Operational Inferences 3 (i) Financial Performance 4 (ii) Labour productivity 4 (iii) Yield/ Waste 5 Q3: CONFIGURATION OF PLANTS 5 Table 1: Total Costs plant-wise 5 Table 2: Total Imports and Exports plant-wise 6 Table 3: Actual Costs of importing the finished product plant-wise 6 Table 4: LP Output 7 Shut down Sunchem: Why & How? 7 Exploring future options 8 Q1 & 2: COMPARISON OF OPERATIONS OF PLANTS The performance of Applichem’s 6 Release-ease plants on various parameters is as given below: Operational Performance Parameter | Mexico | Canada | Venezuela | Frankfurt | Gary | Sunchem | Production (mn lbs) in 1982 | 17.2 | 2.6 | 4.1 | 38.0 | 14.0 | 4.0 | Capacity (mn lbs) | 22.0 | 3.7 | 4.5 | 47 | 18.5 | 5.0 | Plant Utilization | 78.18% | 70.27% | 91.11% | 80.85% | 75.68% | 80.00% | Number of product families other than Release-ease | 6 | 4 | 1 | 12 | 19 | N/A | Packet Sizes for Release-Ease | 50-kilo | 50-kilo | 50-kilo | 50-kilo | About 80 variants | 1/2 – 1 kilo | Total Labour Required per mn lbs of Release-ease | 44.4 | 27.7 | 23.9 | 86.1 | 58.3 | 31.0 | Labor Productivity | 0.387 | 0.094 | 0.172 | 0.441 | 0.240 | 0.129 | Direct Labour Productivity | 88.2% | 21.5% |...
Words: 2580 - Pages: 11
...new markets, but the associated opportunities and challenges are totally different and highly industry-dependent. Clearly, the issues facing a hi-tech firm are different than those facing a global consulting firm, software is a different ballgame than textile, etc. "Global operations" can refer to, among others, global sourcing, to having manufacturing or service or R&D facilities world-wide, or to supplying global markets, each of which have very different ramifications: Global sourcing Global manufacturing Global distribution . dealing with foreign . facility location . local content regulations suppliers . coordinating networks . managing global . managing international of plants distribution logistics . coordinating networks . managing risk . managing risk of R&D facilities . operations in other countries Page intentionally left blank. Class: 2a Type: Lecture Supply Chain Management & Service The goal in this part is to introduce the two main sections of the course, international manufacturing and international service. For manufacturing we start with the simple proposition that decisions about our company’s competitive strategy leads to a supply chain strategy which then leads to a supply chain structure. We provide a strategic framework that can be used to analyze design, planning, and operational decisions in a supply chain...
Words: 6782 - Pages: 28