Microlite S. A. is a company in Brazil that manufactures alkaline and zinc-carbon batteries. In 1992 the corporation was up against a reduction of tariffs upon imported created goods which in turn would mean which the international competition would enhance significantly. Luiz Pinto, who had been a Microlite manager at that time, was faced with the opportunity to decrease labor and manufacturing costs by shutting down the plant in Guarulhos and approach production towards the plant in Jaboatao.
The choices that Mr. Pinto was faced with were to push the Guarulhos equipment to Jaboatao as well as to purchase new and more quickly equipment. Going the Guarulhos equipment to Jaboatao could minimize the capital investment and in addition increase the work flow due to the dependability of the gear. Purchasing the new equipment might require more capital investment but decrease labor and increase development. The new contract price reductions were set to end up being implemented in 1995 and the problems were that Mr. Pinto needed to reduce labor and increase productivity so that you can maintain the significant share in the Brazilian power supply market that it currently owned or operated.
One non-production issue that Mr. Pinto is faced with is from a financial factor. One choice presented to Mr. Pinto is to order new Pan-Orient equipment. The investment in new gear would be roughly $2 , 000, 000. It is unidentified from the case study how the $2 million will be paid or financed. This, however , may have an impact around the decision of the stakeholders about whether to accept this pitch or not.
The Current Condition
The current bottlenecks in the operation of the Easy to change battery operation in Jaboatao are definitely the steps " add paste to cupвЂќ and " inspect carbon dioxide rods. вЂќ These two steps operate below the required level of creation and will need to be remedied to improve production. In an effort to boost productivity, the Jaboatao flower should put one machine from Guarulhos dedicated to " add paste to cupвЂќ production. While this...