dsc 335 case #1

1
Need: to increase sales by 40%. Segments based on price would increasingly become order winner. Sales says this is realistic target within time frame. Customer importance factors: prompt quotations and samples, high delivery reliability and willingness to meet schedule changes. Sales: split 50/50 between price sensitivity and not. Where sales was most important, 2/3 said price sensitivity was given weighted avg. of 20 points. New machine factors: significant savings in costs all around (lower labor, lower material costs, . More efficient (current process utilization: 60%. New machine: 80-85%) Able to maintain quality (and improve consistency of this quality) to keep existing customer base where higher-quality was emphasized. Increases competitive advantage of speed, price, reliability while mainting and improving existing strength in quality. Able to increase throughput speed by 2x. End result: Essential to meet group’s current payback requirements and protect above-average return, keeps sharehoders happy.

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Page 1: dsc 335 case #1

Need: to increase sales by 40%. Segments based on price would increasingly become order winner. Sales says this is realistic target within time frame. Customer importance factors: prompt quotations and samples, high delivery reliability and willingness to meet schedule changes. Sales: split 50/50 between price sensitivity and not. Where sales was most important, 2/3 said price sensitivity was given weighted avg. of 20 points. New machine factors: significant savings in costs all around (lower labor, lower material costs, . More efficient (current process utilization: 60%. New machine: 80-85%) Able to maintain quality (and improve consistency of this quality) to keep existing customer base where higher-quality was emphasized. Increases competitive advantage of speed, price, reliability while mainting and improving existing strength in quality. Able to increase throughput speed by 2x. End result: Essential to meet group’s current payback requirements and protect above-average return, keeps sharehoders happy.