The Morrison Company Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Morrison Company Case Study Solution

Primarily, the company produces 20,000 unit per hour, with anallocation of 8 working hours per week. Therefore, the total production capacity per month with the help of 10 machines is 32 million unit and per year was 384 million. In addition to this, the actual production per year is 274 million, representing that the company is not utilizing its full capacity.(See appendix 3)

It is recommended that company should add an extra shift because purchasing of a new machine is not an effective option due to its limited 2800 square foot space. A quantitativeanalysishas been performed for this recommended solution of adding an extra shift, which represents that the total production capacity would increase by 50% because of an extra shift. The total annual production would be 768million units for satisfying the increasing needs of the customers. (See appendix 4)

In addition to this, it is recommended that the company should cut down its retail assembly line in order to increase its revenues, because pharmaceutical line has greater demand and per unit price as compared to the retail line. The analysis represents that if company cuts down its retail production line, then it could maximize its revenues up to $60 million as compared to the previously earned $48 million revenue, along with retail line. (See appendix 5)

Recommendations

It has been analyzed that all the concerned issues have raised due to one specific reason, which is the shortage of manufacturing space. It is difficult for the company to expand its space production capacity, Therefore, another option that the company could avail is the addition of an extra shift, because purchasing of a new machine would not be an effective option due to the limited space. This will require hiring more skilled staff. In addition to this, computer terminals should be placed at each manufacturing machine to ensure the proper customization requirements in order to reduce the return rate of stocks shipments. In addition to this, it is recommended that company should cut down its retail assembly line in order to increase its revenues because pharmaceutical line has greater demand and per unit price as compared to the retail line.

Conclusion

Morrison was established to manufacture RFID (Radio Frequency Identification) tags for pharmaceutical and retail industries, which are known as smart labels. The entire manufacturing related activities with an inclusion of marketing as well as the administration activities are all performed at a 28,000 square foot single facility. The expansion possibilities are limited because the surroundings are already developed. Due to space constrained, stock out issues have arisen. It has been analyzed that all the concerned issues have raised due to one specific reason- shortage of manufacturing space. But it is difficult for the company to expand its space production capacity. Thus, another option could be the addition of an extra shift because purchasing of a new machine would not prove to be an effective option because of the limited space. In addition to this, the company is recommended to cut down its retail assembly line in order to increase its revenues, because pharmaceutical line has greater demand and per unit price as compared to the retail line..............................

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