Wriston Corporation: The Detroit Plant Summary: Richard Sullivan‚ recently appointed vice president in the Heavy Equipment Division (HED) of the Automotive Supplier Group of the Wriston Manufacturing Corporation‚ scrutinized one more time the P&L forecast for the Detroit plant – part of the lengthy report on the future of the plant which had been prepared by a task force Sullivan had appointed six months earlier. He saw three major alternatives: close the plant as soon as possible and transfer its
Premium Idea Revenue Investment
From: im79111 Date: Jun. 1‚ 2011 Re: Detroit Plant – Heavy Equipment Division (HED) This memo is to identify and analyze the key issues of Detroit plant in Heavy Equipment Division and provide reasonable solutions to the management team. 1， Background Heavy Equipment Division (HED) of the Wriston Manufacturing Corporation is a large axle and brake manufacturer‚ which accounted for approximately 11.2% of the Wriston’s total revenues. There are 9 on-stream plants in the division and a new one is still
Premium Plant Cash flow New product development
In determining the future of HED’s Detroit facility‚ it is important that we recognize the unique nature of the plant and its products and the differentiated role it plays in HED’s plant network. The Detroit plant‚ as an incubation ground for new products and a stable supplier of replacement parts for legacy products‚ has a different mission than that of the other plants. Its product mix‚ plant layout and production process embody the job shop model‚ where flexible resources are employed to produce
Premium Cost Economics Costs
Sullivan FROM: SUBJECT: Wriston Manufacturing Corporation DATE: June 9‚ 2011 Wriston Manufacturing Corporation (WMC) is faced with a Detroit plant that is no longer viable because of underinvestment‚ labour issues‚ and product-process mismatch. This has lead to low sales figures‚ low return‚ and high burden rates (as calculated by the company). The issues at the Detroit plant will be reviewed and options will be presented. A recommendation to address the Detroit plant will be be made based
Premium Net present value Manufacturing Variable cost
Wriston’s Detroit plant is no longer a viable operation due to long-term capital underinvestment and product-process mismatch. It is recommended that the plant be phased out of operations over a five-year period with production and staff gradually shifted to a new plant to be built in the Detroit area. Further‚ it is also recommended that division accounting procedures and evaluation mechanisms be modified to allocate revenues/costs allowing for the synergistic benefits of Detroit’s products‚ and
Premium Net present value Manufacturing Investment
Sullivan Subject: Detroit Plant Wriston Manufacturing’s Heavy Equipment Division (HED) Detroit plant has been performing below its plant peers and its operations can no longer be sustained long term. Profitability of each HED plant is measured on a standalone basis‚ which has distorted the Detroit plant’s profitability metrics. Detroit is a job shop‚ tasked with production of low volume products and prototyping. Once a product becomes profitable it is moved to another‚ higher volume plant‚ boosting that
Premium Contract Net present value Michigan
MEMORANDUM TO: FROM: SUBJECT: DATE: RICHARD SULLIVAN 76220136 WRISTON MANUFACTURING CORPORATION 3RD FEBRUARY‚ 2014 Overview Wriston Manufacturing Corporation (WMC)‚ a multi-billion dollar corporation with products targeted at North American transportation industry‚ had seen a decline in sales over the last three years and as a result under-performing plants of Heavy Equipment Division (HED) such as Detroit and Lima were coming under increased scrutiny on their future financial viability
Premium Photosynthesis Plant
Subject: Wriston Manufacturing Corporation Date: May 1‚ 2012 Thank you for the opportunity to work with Wriston Manufacturing Corporation (WMC)‚ it has been both a rewarding and insightful experience. As requested‚ an evaluation has been conducted to assess and identify the key areas of strength and weakness and to provide an external perspective into possible opportunities for corporate advancement. Based on our analysis‚ the following overarching themes are notable: * The Detroit plant
Premium Investment Manufacturing Plant
Wriston Manufacturing-Detroit plant (Paper from internet for us reference) Detroit’s production is unique when compared to other Wriston plants. Runs are typically low volume‚ involve significant set-up time‚ and vary significantly due to the sheer volume of different products lines‚ families and models. It is notable that the Detroit plant is the only plant manufacturing all three product lines: brakes‚ off-highway and on-highway axles; all other plants produce only a single product line. Manufacturing
Premium Manufacturing Investment Revenue
TO: Richard Sullivan‚ Vice President of HED‚ Wriston From: FT28312 Subject: Wriston Manufacturing Corporation Case Analysis and Summary Date: January‚ 1992 Summary The Heavy Equipment division of the Automotive Supplier group of the Wriston Manufacturing Corporation is a large axle and brake manufacturer having three broad product lines which are being manufactured in its nine plants. The Detroit Plant which is the oldest plant of HED has been operating at low profitability level for
Premium Net present value Investment Time