...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...
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...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...
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...Welcome to OPERATIONS MANAGEMENT Operations Management is important, exciting, challenging, and everywhere your look! Important, because it’s concerned with creating all of the products and services upon which we depend. Exciting, because it’s at the centre of so many of the changes affecting the world of business. Challenging, because the solutions that we find need to work globally and responsibly within society and the environment. And everywhere, because every service and product that you use – the cereal you eat at breakfast, the chair you sit on, and the radio station you listen to while you eat – is the result of an operation or process. Our aim in writing Operations Management is to give you a comprehensive understanding of the issues and techniques of operations management, and to help you get a great final result in your course. Here’s how you might make the most of the text: ● Get ahead with the latest developments – from the up-to-the-minute Operations in practice features in every chapter to the focus on corporate social responsibility in the final chapter – these put you at the cutting edge. ● Use the Worked examples and Problems and applications to improve your use of key quantitative and qualitative techniques, and work your way to better grades in your assignments and exams. ● Follow up on the recommended readings at the end of each chapter. They’re specially selected to enhance your learning and give you an edge in your course...
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