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|Discopress Case Study |
|Operations Management |
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|Deepali |
|6/9/2014 |

Case Study

Discopress was the biggest manufacturer of recorded optical media which included CDs, Dvds and video games. The process for creating the disks regardless of the type was the same.

Discopress started with mass manufacturing of disks. The preparation and expertise required to setup production of each title was significant and thus expensive compared to the marginal cost of production of each unit.

Discopress later on added On Demand manufacturing of the disks, as technological advancement made it economical. This process required little or no setup overhead. The unit cost of the disk was higher because of higher variable costs like the cost of the blank disk. This process created a slightly inferior quality disks as compared to the mass production process. Because of minimal fixed cost, this process was a viable alternative for slow selling titles where slightly inferior quality was acceptable.

A side by side comparison of the 2 processes follows –