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Case Bottling

By | Feb. 2011
Page 1 of 9
Problem Statement:

The main problem in this case “Bottling at Creemore Springs Brewery” is that will the cleaning of the bottles change to be in the house cleaning or maintain its current method of cleaning with a contractor. Having Thompson and Fuller responsible for the decision to be made, which have to be a strategic one or it will effect the long term profitability and success of the company. They have to make the company be more productive and efficient.

Problems/Sub problems/Issues:

There are two kinds of aspects in this case, one is the current cleaning process and the other is the new cleaning process.

The current processes of cleaning the bottles have been done fairly well. The Creemore Spring drivers have to pick the bottles, drop them off and re-pick them up again. Creemore Spring had been forced to recheck the bottles due to the fact that some were not up to their high quality standard. Other bottles would come back chipped or even broken, which would cost the company an extra $1000 a year for replacement bottles. However it have been an inefficient one where the drivers had to make some trips to drop the current empty bottles off since they had reached their maximum level of empty bottles and pick up the previous ones. Sometimes there would be no cleaned bottles to be picked up where the driver have to go back ones again to pick up the bottles at a later date. Causing a slack of bottles and down on time, and extra shipping cost which the company had estimated a cost of $15,000 a year.

The new cleaning process which is in the house cleaning is an issue for Thompson and Fuller have to be well decided. They have to know if they would want to purchase new equipment or purchase older and less expensive equipment. Purchasing the new equipment which would have obvious technology advantages, but they are unsure as to whether the new equipment would last longer compared to the older equipment. The extra expenses that would come...

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