Answer to Question #311397 in Management for aurelle

Question

Ben Rishi is operations manager for a factory making cooking pots. He has calculated that the maximum capacity of the factory is 3,000 units per week. The main limit on capacity is the old-fashioned machine for stamping out the metal pans from sheet metal. Purchasing another machine would be expensive - and would require an extension to the building to accommodate it. Workers are currently working very long shifts. Ben has also been working long days to ensure that all resources are fully employed at all times. For the past three months, demand has been high and last week there were orders for 3,100 pots. Ben is under pressure from his managing director to see that this number is made to meet the orders. Ben is unsure whether to recommend purchasing the new machine or to buy in components from another firm in that city that has spare capacity.

1. Outline the problems facing Ben because his factory is operating at full capacity.

Answer 1

1. Pressure to meet the clients' demands of producing more pots.
2. Limited workforce to meet the demands of the clients at hand.
3. Whether to buy a machine that is efficient and effective in meeting the demands of the clients or not, but, such machine will require a more space which not available.