Premium Essay

Applichem Case-Plant Comparison

In:

Submitted By hashem
Words 883
Pages 4
The Manufacturing Plants
Applichem has four plants spread across US, Europe and Asia. Their nature and performance is discussed below and summarized in Table (1) :
Gary Plant
It is the company's first large manufacturing facility. It had designed capacity of 26 million pounds a year and produced 18 million in 1982 with 1000 non-union workers.

Advantages: * The plant has very loyal employees, which can lead to low employee turnover rates. Not only are employees loyal to Applichem as a company, but they are also loyal to the plant manager as well. This can be an implication of how well Gary plant employees will react when new production process and training programs are implemented.
Disadvantages:
* The equipment used for the production of Release-ease was installed between 1959 and 1964, which is outdated according to an estimated useful technical life of 20 years. * Gary has 8 different formulations for Release-ease. * Release-ease is produced in 80 different package sizes. * The Gary plant produces 19 other products other than Release-ease. The plant was also designed to be a batch operation, not a streamline operation, which causes production to switch between different product lines.
Frankfurt Plant
The plant supplied in Europe, Middle East and Africa and other Applichem plants. This plant bulk shipped Release-ease to other plants where the product is packaged and shipped to customers. It had 12 product families in addition to Applichem and a deigned capacity of 47 million a year.

Advantages: * With only 600 employees and about 38 million pounds of ease release made annually, the employees at the Frankfurt plant are more productive than any other plant. Also, its production better met specifications. * One piece of equipment used to produce Release-ease was installed between 1971 and 1974, and the other was

Similar Documents

Premium Essay

Applichem Presentation

...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

Premium Essay

Applichem

...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

Premium Essay

Supply Chain Management

...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