DISCOPRESS Product Feasibility Harvard Case Solution & Analysis

Restate the case in general terms

This Case relates to the world of Media recording audio cassettes, CDs, DVD and tapes. Discopress Is the name of company now considering the some developments as the new modern methodology and techniques are coming in the future. Now the company has involved in the same decision which are Main essence of this case. The following things are major part which can affect the criteria of the developments and relevant decision thinking aspects:

discopress case solution

discopress case solution

A company in the field of media and now the moving to electronic media.

A company previously involved in the mass production, media which are more costly aspects.

The previous methodology involved many processes from master Stamper for recording optical media.

From 1990 to 2000, they improved their performance as many as they can do.

As far, the technologies going better they move on Manufacturing on demand with CDs and DVD.

These setups were cost effective, simple and quality factors for the organization.

From side by side, they are also doing their mass production works with quality check points.

The company also has two markets, niches which are drop-shipping (Contents Write Up) and Case Quantities (Sort of multiple Packaging).

The company also contracts with Farnsworth Filmed Entertainment (FFE), “who are involved in the motion picture industry”  as minimajors to distribute and market films.

Case totally relates to the solution of FFE whether it goes to the manufacturing on demand side or mass production.

Problem statement

As per the case there is some problem which has to decide how to resolve them with proper knowledge of economical exposure and respect to cost analysis benefits. Analysis shows that there are some problems which are given below:

  • Mass Production of units of FFE and extra cost associated with it
  • Mass Production also creates some quality defects
  • Manufacturing on demand, creating a problem of charging excess cost and in future it will change with respect to the variable of the economy changes

Analysis (Quantitative):

With respect to the analysis of making the Go/ No-Go decision, considering the matters of the given requirements for the product with following Assumption

ü  Economic conditions are good enough for the consistency in valuations

ü  Prices are not changing with respect to the Inflations

ü  Ordering cost is amortized under age of 5 years

ü  It is assumed in the mass production that order has been placed at one time

ü  It is assumed in the Manufacturing on demand that order quantities is varied from one order to twelve orders

ü  It also assumed that media cost are associated in the “Manufacturing on demand” with fabrication

Matter considering with standard prices of the requirement are given in Appendix A, it could be better programming for these appraisals. As far as concern with capital expenditure $10,000, Yes it has justified in increasing in demand because it more equipments and labor for the workloads. Manufacturing On-demand has borne the cost of the holding as compare to the Mass production.

As the matter of Mass production it contains the actual cost of the data given and all carrying cost relates to the FFE which are shown in Appendix B. It is comparable if it will finish the right with the company. On the other hand Manufacturing on demand has many possibilities for FFE, but attached some extra cost with it. It is shown in the Appendix C.

The Final cost manufacturing on Demand (MOD) versus Mass Production (MP) are Fixed cost that are associated with MP and it can better plan for economically but reducing the profit margin for the organization. The Analyses showed that it should go for MOD because curtail certain costs which are associated with MP.

Analysis (Qualitative)

Recommendation Solution

As per the analyses it provides and gives a better consequence in Manufacturing on demand, because it can be relevant accounting procedure and different cost will be eliminated. Although Manufacturing has an again and again setup cost but when we compare MP, MOD is for short run basis and MP is for long runs basis. Therefore, it was assumed as a short run planning, go to the recommendation on MOD.

Implementation Issue:

There is a one implementation issue is a setup for the demand manufacturing. If company has different situation then it will be feasible


Discopress have to make sure all the things are going up to situation as discussed and Go for the Manufacturing On demand...................

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