Premium Essay

Case Study Rochem Ltd

In: Business and Management

Submitted By sakis335
Words 451
Pages 2
1 How do the two alternative process technologies (Chemling and AFU) differ in terms of their scale and automation? What are the implications of this for Rochem?
2 Remind yourself of the distinction between feasibility, acceptability and vulnerability discussed in Chapter 4. Evaluate both technologies using these criteria.
3 What would you recommend the company should do?

The differences of Chemling and AFU in terms of scale are tabulated below:

Machines Chemling AFU
Variable Cost per unit £750 £600
No. of Units per month 105 kg 140 kg
Capacity 98% 99.50%
No. of units based on the capacity
(No. of Units per month+ Capacity) 102.9 138.6
Total Variable Cost
(Variable Cost per unit* No. of units based on the capacity) 77175 83160
Fixed Cost £15,000 £40,000
Total Cost per month
(Total Variable Cost +Fixed Cost) 92175 123160
Total Cost per unit
(Total Cost per month/ No. of units based on the capacity) 895.77 888.60

895.77-888.60= 7.17
So, the Chemling’s machine total cost per unit is by £7.17 higher.

Evaluating the two alternative technologies according to their features and the long term valuation, the new Chemling is manual testing unlike AFU that is automatically testing. Also, the delivery for the AFU is immediate and tree months for the Chemling. So the AFU is more feasible.
The AFU technology is how all future similar technologies will be. By the acceptability of the technology the company will improve the competitiveness and will give a return on investment as well as adding to the resource base.
In the end, any manufacturing operation has to bear in mind that, the unit cost of the product is a critical factor in measuring performance. In the case of the Rochem Ltd, the Chemling’s machine total cost per unit is by £7.17 higher. So, as a long term investment the AFU is more profitable.


Similar Documents

Premium Essay

Case Study: Steinhouse Knitting Mills (Canada) Ltd.

...Case Overview Steinhouse Knitting was founded in 1929. A family business, that specialized in the manufacture and sale of men’s sweater. The company produces three different brands: Steinhouse, Etcetera and Espana. The three brands do not differentiate on the basis of style, price, or fabrication. The company had been on St.Lawrence Street for 30 years. They built their own plant and moved, in May 1989, to Chabanel Street, in Montreal. Mission Steinhouse Knitting manufactures and sells high-quality men’s sweaters to satisfy their customers’ needs and wants. Objective 1. They want to stay in business and make profit. Symptoms 2. Men’s sweater is not as fashionable as they were. 3. The independent stores are quickly disappearing (losing customers). 4. Customers prefer well-known brands over the lesser-known brands such as Steinhouse. Situation Analysis Strengths 5. The sweaters are cut piece by piece as opposed to cutting in piles. 6. They take out the shrinkage. 7. All the yarn is NAFTA-approved. 8. They produce most of its sweaters to order (avoiding having too much overstock). Weakness 9. They don’t have an in-house designer. 10. The equipment and machinery in Steinhouse Knitting is different from what is available in Europe, so the products they make do not look exactly like the samples purchased. 11. They use a lot of acrylic to produce their sweaters, so customers perceive......

Words: 1288 - Pages: 6

Premium Essay

Hunter Boot Ltd. Case Study Report

...Hunter Boot Ltd. Case Study Report INDEX 1 Introduction 3 1.1 History of Hunter Boot Ltd. 3 1.2 Hunter Boot Ltd. today 4 2 Comparative and competitive advantage 4 2.1 Comparative advantage 4 2.2 Competitive advantage 5 2.3 Hunter Boot Ltd. and competitive advantage 5 3. Market screening 6 3.1 Asian market 7 3.2 Screening criteria for Hunter Boot Ltd.’s selection of new markets in Asia 7 4. Market Entry Mode 7 4.1 Hunter Boot Ltd. and entry mode 8 5. The 4 P’s of Marketing 9 5.1 Hunter Boot Ltd.’s two most important P’s 10 5.1.1 Product 10 5.1.2 Pricing strategy to differentiate Hunter products 11 6. Conclusion 11 References 12 1 Introduction This paper looks into different aspects of Hunter Boot Ltd. and its possible expansion to the Asian market. The paper’s content is based on a case study prepared for a Webinar April 12th 2013. The report goes through Hunter Boot Ltd.’s history, theories of comparative and competitive advantages, market screening criteria, Asian market, entry modes and how Hunter Boot Ltd. could apply these theories in order to enter Asian market. Lastly, the report is finished with a short summary of the subject. In recent years, an increasing number of key industries such as automobile and motorcycle production, agricultural equipment, aerospace, military hardware, telecommunication, electronics and luxury consumer goods have become global in scope. Firms in these industries originate,...

Words: 3058 - Pages: 13

Premium Essay

Boeing Australia Ltd Case Study

...get the same results, large percentage of staff and management resistant to change. Boeing Australia Limited (BAL) Due to the costs involved in upgrading their entire system, was BAL large enough to proceed without thought to the costs. BAL really only had one major customer the ADF and what would happen in the future if they lost those contracts. But, would not upgrading to a new full system or upgrading the e-procurement portion to work with the systems that are already in place cause them to lose the contracts as they could not provide the information needed by their major customers to monitor the progress of projects they were working on. Quantitative Issues Key Cost Assumptions a) Hardware is not needed – mention of Dell purchase in case b) Internal IT staff available c) All costs include installation and training. Alternatives and/ or Options ALT 1: BAL implements a sophisticated e-Procurement System that integrates all parts of the current technology legacy system that is already in place. (Assumes that the systems are authorized for usage by major customer ADF) PROS: BAL employees are already comfortable in using the old system, not a huge learning curve. Not as expensive in the short term as a whole new ERP system would be. Hopefully lower costs, larger savings long term. BAL would be able to pass on information between departments, suppliers and customers with ease. CONS: Costs are high, no guarantee that new procedures would save money in......

Words: 1826 - Pages: 8

Premium Essay

Case Study: Chasseur Chickens Pty Ltd

...LEADERSHIP CASE ANALYSIS: CHASSEUR CHICKENS PTY LTD WEBINAR 2014 CASE STUDY 1 AUTHORS: SAMANTHA WINTER AND DELYTH SAMUEL Published by Deakin University on behalf of CPA Australia Ltd, ABN 64 008 392 452 © CPA Australia Ltd 2014 (Edition 14a) The contents and any information contained in this document (Information) are for general information only. They are not intended as professional advice. For any professional advice, please consult a suitable qualified professional. CPA Australia Ltd, Deakin University and the author(s) of the Information (Entities) make no representation about the content and suitability of this Information for any purpose. The Entities disclaim all warranties with regard to the contents and in no event will be liable for any loss and/or damage whatsoever resulting from loss of income or profits, whether in an action of contract, negligence or other tortious action, arising in connection with the use and performance of and/or reliance of the Information. CPA PROGRAM – PROFESSIONAL LEVEL GLOBAL STRATEGY AND LEADERSHIP CASE ANALYSIS: CHASSEUR CHICKENS PTY LTD WEBINAR 2014 CASE STUDY 1 AUTHORS: SAMANTHA WINTER AND DELYTH SAMUEL Contents Introduction 1  Case facts Industry information The global chicken meat processing industry The Australian poultry meat processing industry The production process Industry key success factors Competition in the Australian chicken meat farming and processing industry Chasseur Chickens Pty Ltd......

Words: 20021 - Pages: 81

Free Essay

Case Study of Walkers Engineering Ltd.

...CASE STUDY: WALKERS ENGINEERING LTD Company profile Name of company: Walkers Engineering Ltd Based / situated: United Kingdom Type / Nature of Business: manufacture plastic mouldings and have recently expanded their range of ‘wheelie bins’ due to the increase in recycling. SME stands for Society of Manufacturing Engineers No. of employees : 225 Facing tough Competition from new market entrants at both home and abroad. Weekly production of production is over two hundred wheelie bins Manufacturing Department Structure Production manager Two Section Plastic Injection Moulding Final Packing and Despatch Departmental Manager Departmental Manager Supervisor Supervisor Assistant Supervisor Assistant Supervisor § Enviornment of Manufacturing Department 1. Quite Hot, 2. Humid and Smelly 3. As the process involves machinery that gets quite hot. 4. No of employees in manufacturing department are 42. 5. Skilled and trained workers. 6. Duties:- § Converting plastic pellets into the moulded products which are usually made-to-order, although a small buffer stock and some ‘end of run’ stock is stored in a small warehouse on site. § Interdependent with packing Department. 7. Method of working § Pressure to perform is transmitted directly onto the supervisors. § Output levels are the number of consignments dispatched. § Efficiency is the ratio of the......

Words: 517 - Pages: 3

Premium Essay

Case Study ‘Technical Instruments Pty Ltd’

...Case Study ‘Technical Instruments Pty Ltd’ Table of contents 1. Introduction 2. Analyse strategic and operational plans 3. Consult line and senior managers to identify human resources needs 4. Develop options for delivery of human resource services 5. Comply with legislative requirements 6. Develop and agree on strategies 7. Agree and document roles and responsibilities of human resource teams 1. Introduction The purpose of the report is to analyse the current state of human resources side of Jim Palmer’s Technical instruments Pty Ltd business. To identify the critical HR systems and services needed at TI and the most effective strategies for delivering them to TI. This report describes the range of the problems that have recently uprooted in TI and their reasons to occur. Consultation with line and senior managers to identify their needs, options for the delivery of human resource services as per legislative requirements. 2. Analyse strategic and operational plans After reviewing the human resources side of the business, I have analysed that there is a likelihood of increase in the staff turnover in few years where it has now reached to 20 per cent over the past one year. Due to lack of morale amongst staff, the productivity has dropped in spite of crude measures in place. The wrong recruitment strategy is in place as initially they had been recruited on a word of mouth basis offering higher than average salaries. There is......

Words: 968 - Pages: 4

Premium Essay

Rochem Ltd

...Rochem Ltd This case examines an equipment purchase decision as faced by a small food preservatives manufacturing company. The text is a description of a meeting between four managers concerned with the decision and presents their evidence to the management committee together with their personal views as to which of two alternative machines ought to be bought. No conclusion is reached in the case. Some notes on the Rochem Ltd case exercise The equipment purchase decision in general It is unusual for facilities to be chosen on one criterion only. For example, if a piece of equipment is needed immediately and only one model or make is available without considerable delivery delays, then the criterion of availability has predominated. Normally, however, in addition to availability there are two other groups of criteria which are used: technical and financial. Technical criteria The most obvious technical criterion is capability that is, can the equipment do the job required of it? Certainly this criterion can be used as an initial screening test to eliminate obviously unsuitable equipment, but often there will be several which ostensibly meet the criterion. It may be that the capability requirements are difficult to define or predict, or that none of the alternative machines completely fulfils the requirements. As well as absolute capability, variation in capability can be important, variation both in the sense of reliability, and the process variability in......

Words: 1306 - Pages: 6

Premium Essay

Case Study

...ROCHEM LIMITED: Introduction: John Rhodes is the founder of Rochem ltd, he was a young research chemist when he joined the company. The company’s first real success came in early 60’s when they launched their first meat based preserver. Other products such as food colours and coating forms about 25% of the total sales of the company. 1. THE DECISION: John forms a committee of four members to make a simple decision regarding the purchase of new machinery. The committee comprises of following members: The Marketing Manager The Production Manager The chief Chemist The Accountant The members present their personal point of view as regards to which machine they should purchase. As par the market survey there are two machines available namely: chemex and UFA. Both the machines have their pros and cons. The committee comes to no conclusion and John has to interfere and make a decision. Each member presents his point of view to John who has to make a quick decision. 2. CLASSIFICATION AND CONTEXT OF DECISION: The decision to purchase new machinery is operational decision in context. As it involves decision which focuses on smooth functioning of the company and does not involves goal setting or creating the vision. However, it is also and unstructured decision. As the four members have their own interest at the heart and gives out their own valued opinion it is of no use as no decision has been made as yet. 3. Which machine the company should buy and why...

Words: 3928 - Pages: 16

Premium Essay

Colourbatch & Compounding Co. Ltd / Case Study

...FREIE UNIVERSITÄT BERLIN Marketing Case Study Seminar Colourbatch & Compounding Co. Ltd / Case Study by Dipl.-Kfm. Stefan Felsch Dipl.-Ing. Richard Steiner (MBM) Student Name: Lucas de Oliveira Souza Faia Seminar Tutor: Prof. Dr. Dr. h.c. Michael Kleinaltenkamp Marketing Department WS - 2013/2014 CONTENTS Description page number INTRODUCTION .......................................................................... 2 THEORETICAL BACKGROUND ..................................................... 3 Features of the Extruder................................................ 3 CALCULATION ............................................................................. 5 Scenario Analysis ........................................................... 9 Price Fluctuation ............................................................ 9 RESULTS .................................................................................... 11 Decision Tree ............................................................... 11 FINAL DISCUSSION .................................................................... 13 Strategies ..................................................................... 13 Suggestion ................................................................... 14 1 INTRODUCTION Throughout this marketing essay the Colourbatch & Compounding Co. Ltd. case study presented in class by the students and discussed at the end together with the professor will be presented and......

Words: 3159 - Pages: 13

Free Essay

Environinvest Ltd Case Study

...Introduction This case study is based on Environinvest Limited (Receivers and Managers Appointed)(in liquidation) vs Roger Neil Pescott & Ors (2012) and Environinvest Limited (Receivers and Managers Appointed) (in liquidation) vs Blackburne Pty Ltd (in liquidation) (2012). Environinvest Ltd was a corporation that manages investment schemes in the field of agriculture (Bloomberg Businessweek, 2014). The corporation was responsible in developing various agriculture investments under the care of agriculture specialist, such as eucalypt plantations and hydroponic tomatoes (Korda Mentha, 2014). Investors would invest in these schemes in order to receive tax deductions (Lonie, 2009). In 2008, the corporation was voted into liquidation. The Court and the Judge The court that handed down the decision of the case was the Supreme Court of Victoria in the commercial and equity division commercial court located in Melbourne. The judge that decided the case was Judge Ferguson J and he made his judgment on 26th April 2012. Facts of the Case The main purpose of this case was an application to amend pleading or the proposed pleading of the plaintiffs towards the defendants upon the allegations that had been drawn up to them. This case is between Environinvest Ltd versus their former directors, members of the Pescott family and associated companies that are owned by the Pescott members and associates. There are two types of proceedings in this case, the Properties Proceeding and...

Words: 2789 - Pages: 12

Premium Essay

Amp Ltd Case Study

...|DETAILS OF ASSIGNMENT | | |STUDENT NAMES: |IDS: | |Adam Carlyon |9948252 | |UNIT CODE * NAME |LMC 501B | |ASSESSMENT TITLE |Assessment Task 2 – Case Study – Part 2 | |TUTOR’S NAME: |Terry Landells |DATE OF SUBMISSION: |22/04/2013 | | | | |DECLARATION | | |We declare that ( the first four boxes must be completed for the assignment to be accepted): | |□ This assignment......

Words: 1532 - Pages: 7

Premium Essay

Case Study: Confil Garments, Ltd.

...CASE STUDY: CONFIL GARMENTS, LTD. VIEWPOINT: MANAGEMENT TIME CONTEXT: During the 6th month of operation (1987 Aquino Administration) I.PROBLEM STATEMENT A. The code of ethics is neither written nor compiled in a clear, understandable, and accessible manner. B. The management borders on autocratic, disregarding employee input and putting the decision making process solely in the hands of the upper management C. The Management is nepotic and discriminating, putting exclusively family in top management and favoring Chinese and Chinese-speakers for promotion and advancement. II. STATEMENT OF THE OBJECTIVES A. To provide a clear and written code of ethics B. To bridge/ fix the relationship among employer and employees C. To show equality and give opportunities to all employees The objective of this case study is to solve external and internal problems in the company within 1 month III. AREAS OF CONSIDERATION Strengths | Weaknesses | 1. The work environment is clean and well maintained and it is pleasant to work in2. The wages for regular employees are 10% higher than the minimum | 1. That the management is repressive and autocratic2. That the upper management is nepotic because the company are composed of family members3. They fire or terminate employees without due process for violating unwritten code of ethics | Opportunity | Threats | 1. The Aquino Administration was very fond of foreign investment and made policies to make......

Words: 846 - Pages: 4

Premium Essay

Abc Ltd Case Study

...Case Study: ABC Learning Background ABC Developmental Learning Centres was founded in 1988. ABC rapidly expanded, reaching 43 childcare centres by June 30, 2001. By November 2005, it had 697 Early Childhood Education centres throughout Australia and New Zealand. In March 2006, it forecast that would have 950 centres in Australia and New Zealand by June 30, 2006. It was a highly profitable company in the 2004/5 financial year, recording net profit after tax of $52.3 million from total revenues of $292.7 million. The six months ending 31 December 2005 showed no slowing in the financial momentum for the company with profit after tax reaching $38 million and revenues of $219.8 million. Trading in ABC Learning shares was suspended in August 2008 after the company failed to release its earnings for the 2007-08 financial year. Despite selling off assets, the company fell into receivership in November 2008 after increasing debt servicing obligations and its auditors were unable to sign off on its accounts. The federal government injected $22 million into the company to keep its childcare centers open until the end of 2008. The company was subsequently delisted. Creditors voted to wind up the company in June 2010. ‘Lessons to be learnt from ABC Learning's collapse’ Colin Kruger January 2, 2009 Dr Philip Ross, the head of the school of accounting at the University of Western Sydney, describes it as a "failure of regulatory and accounting processes" and says that despite...

Words: 543 - Pages: 3

Premium Essay

Dorchester Ltd Mini Case

...Dorchester Ltd is a famous high-quality chocolate maker based in the United Kingdom. Through its facilities in the United Kingdom, Dorchester manufactures candies that it sells throughout Western Europe and North America (United States and Canada). Dorchester has been struggling with supplying the United States with their demand of 390,000 pounds (with 5% annual growth rate) of candies. Due to limited production capacity, only 65,000 pounds per year of candies are supplied throughout that region. The company deems that an additional manufacturing facility situated in the U.S would easily supply Dorchester’s product throughout the entire U.S. market and Canada. The current spot exchange rate is US$1.50/GBP, while the U.S is predicting a 3% inflation rate and 5% for the U.K. Dorchester’s expansion possibility to the United States will cost them US$7,000,000 to build a factory. This would allow Dorchester to fulfill all 390,000 pounds expected demand and its profit per pound would increase from US$4.305 to US4.400. The factory has planned to operate for seven years, at that time, the United States Internal Revenue Service considers the factory fully depreciated with straight-line depreciation, but Dorchester’s management suggests that the remaining equipment can be sold for US$2,000,000. Should Dorchester choose to invest in the new U.S factory, they plan to pay it off with a combination of equity capital and debt. The company would borrow at most £2,000,000......

Words: 575 - Pages: 3

Premium Essay

Sir Richard Branson, Chairman Virgin Group, Ltd. Case Study

...Sir Richard Branson, Chairman Virgin Group, Ltd. Case Study International success for an organization requires the expansion of the company into the global market for exposure and the goal of increasing profit margins. Strong leadership skills are an essential key in the success for a global company. Judgment, positive attitude and entrepreneurial thinking, and motivational incentives are additional keys that contribute to the success of an organization. The strategic leadership ways and personality of Sir Richard Branson proved to be success in the company he led into the global market. His Virgin Galactic company had the vision to be the first company to offer passengers the opportunity to fly into space at the cost of an expensive price as the world’s first space line. In addition to offering the hopes of the first space line for customers, Branson wanted to expand the global presence even further by participating in joint-venture agreements in telecommunications with China. By incorporating their reputation into the foreign market, the exposure to an untapped market or competitive market, an organization is able to branch out with ideas that will produce additional profits. The leadership traits that Branson portrayed played a huge part in the motivation skills he used on his employees that increased production, Corporate leadership requires two important areas: content leadership (leader’s attributes and decision making skills) and context leadership......

Words: 2407 - Pages: 10

Lien 9 flashx Dvdrip | Servers & Network | Rocky II: A Revanche (Rocky II) 1979