Michigan Manufacturing Corporation's: the Pontiac Plant

myocardial infarct Manufacturing Corporations: The Pontiac Plant, 1992 Overhead costs of plants in the Michigan Manufacturing (MM) system vary greatly from plant to plant for some(prenominal) reasons, but the major one is that the varying complexity of the perpetration of each plant. Exhibits 2A and 2B show that different plants vary greatly in the moment of crossroad families they produce, and then also in the number of product models. We did not calculate the correlation between these poesy and the burden rates, but it is evident that the higher the number of products/product families, the higher the burden rates. The role of the Pontiac plant in the received manufacturing system: Pontiac was the first plant of MM. When products became popular, MM built vernal plants, dedicated to those high volume, standardized products. With time, Pontiac lost this position of a feeder of new product into the MM - it was »left with a residue of low volume products« (1). Pontiac also retained function for many replacement parts (even for discontinued products). The recomm block upations of the task military group are ? in our opinion ? short sighted, and based by and large on fiscal analysis, while neglecting new(prenominal) major factors such as complexity of operations and human resources issues.

Even the financial analysis itself is not necessarily accurate. Let us hear the following points: 1.It is true that some of the products may be transferred to other plants, some of which are not operating at honorable capacity. However, under-utilization does not sozzled these plants would have no problem to cargo hold low volume production. Transferring too many products would mean that the complexity level at those plants will increase, and they will not be as focused as they are at the bow time and therefore not as profitable. We may end up moving overhead from Pontiac to those other plants. 2.Closing Pontiac would mean losing many experienced and versatile people with a proved track record of developing and... If you want to get a full essay, order it on our website: Orderessay

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