Part 1
Deliverable Length: 500-600 words
After performing the cost benefit analysis on technology options, the leadership of Smitheford Pharmaceuticals has asked you to determine what other factors should influence their decision. Identify these other factors and provide your insight as to their importance. Do world-class organizations always select the higher technology option; why or why not?
Part 2
Deliverable Length: 1000–1500 words
Scenario:Smitheford Pharmaceuticals is facing other issues. The company had not kept up with modern manufacturing technology and was in the process of modernizing the injectable manufacturing facilities in Pueblo and Colorado Springs. There were several modernizing scenarios under analysis. Perform cost-benefit analysis calculations for 2 equipment scenarios. The data are provided below.
Scheduling the various manufacturing operations has become more complicated. In the 1990s, the Pueblo plant expanded tremendously, based on forecasts for the growth of a promising osteoporosis medication, Osto54. The facility doubled in size, mostly with tanks and processing equipment. Osto54, however, caused heightened enzyme levels in the liver and led to seven deaths in the elderly because of drug interactions. Smithefordfaced the loss of millions of dollars in liability suits and had excess intermediate manufacturing capacity in Pueblo.
Two years ago, a new immune system treatment, Ultamyacin, was discovered by a Smitheford researcher. The drug could be manufactured at the Pueblo facility for the bulk manufacturing, but the final manufacturing steps could be made in Puerto Rico for final purification and then sent to Fort Collins for final manufacturing into sterile bottles for injection.
Smitheford leadership has narrowed the decision making down to 2 options. The first is a higher technology option in one location, and the other is a lower technology option in several locations.
|
High Technology
|
Low Technology
|
|
|
Annual Fixed Cost |
$620,000 |
$110,000 |
|
Variable Cost/Product |
16.31 |
18.89 |
|
Estimated Annual Production |
||
|
(in number of products) Year 1 |
100,000 |
100,000 |
|
Year 5 |
170,000 |
170,000 |
|
Year 10 |
225,000 |
225,000 |
Use applicable business formulas to determine costs for both options.
Consider the following questions:
• Which is the lead cost alternative in Years 1, 5, and 10?
• How much would the variable cost per unit have to be in Year 5 for the automated alternative to justify the additional annual fixed cost of the automated alternative over the manual alternative?
• Determine what other factors should be considered when deciding the following:
o When to centralize manufacturing
o When to opt for higher technology options
Do you need a similar assignment
done for you from scratch? We have qualified writers to help you.
We assure you an A+ quality paper that is free from plagiarism.
Order now for an Amazing Discount!
Use Discount Code “Newclient” for a 15% Discount!
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
The post MGT674 Park University Planning Service & Manufacturing Paper appeared first on Top Premier Essays.
"Is this question part of your assignment? We Can Help!"
Other samples, services and questions:
When you use PaperHelp, you save one valuable — TIME
You can spend it for more important things than paper writing.
