Pom-Hightech Inc Case Analysis

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Production and Operations Management
Case study: “ Hightec Inc” Date 12th October 2011

Submitted To: Prof .Dr. R. Jagadeesh

Submitted by, Sec: B, Group: 2 BHARADWAJ S (11070)

HARSHITH SHETTY (11090) PRASAD KRISHNA (11099) SAGAR CHIMURKAR (11106) SAURABH MANDAL (11108)

Contents
Executive Summary: ............................................................................................................................... 3 Major Problems:.................................................................................................................................. 3 Recommended plan of Action: ........................................................................................................... 3 Problems: ................................................................................................................................................ 3 Short-Term Problems: ......................................................................................................................... 3 1. 2. 3. 4. 5. Chaotic Supply room: ................................................................................................................. 3 Inefficiency in material transportation: ....................................................................................... 4 Requirement of additional 1000 sq ft of storage space: .............................................................. 4 Crowded machine shop: .............................................................................................................. 4 Sentimental value had to be compromised: ................................................................................ 4

Long-Term Problems: ......................................................................................................................... 4 1. 2. 3. 4. Space limitations: ........................................................................................................................ 4 Slipping productivity and product quality: ................................................................................. 4 Lower capacity: ........................................................................................................................... 4 Cramped office quarters: ............................................................................................................. 4

Causes of the problem:........................................................................................................................ 4 Alternatives: ............................................................................................................................................ 5 1. 2. 3. Renew Rental contract: ............................................................................................................... 5 Purchase land and build a new 19,000 sq ft facility.................................................................... 5 Renew current rental contract and also rent the adjacent building: ............................................ 5

Recommended Solutions: ....................................................................................................................... 5 Cost incurred in the first alternative:................................................................................................... 5 Cost incurred for the second alternative: ............................................................................................ 5 Cost incurred for the third alternative: ................................................................................................ 6 Recommendation: ................................................................................................................................... 7 DESIGN AND EVALUATION OF AN EFFECTIVE BLOCK PLAN: ............................................... 8 Iterations:...
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