? To which lines are these investments appropriate ? Are the mainstream and children’s segments potentially “over-engineered” ? What impact will this have on the required workforce levels ? If layoffs are required to achieve the benefits, what impact will this have on labor relations ?
Reduce costs through establishing a formal preventive maintenance program Issues to be considered:
? What organizational changes will be required ? What analysis will be performed to determine the appropriate amount of PM ? What training is required of the workforce ? What technical or system changes are required ? How will the unionized workforce respond Key takeaways:
This case can prove to be lengthy and very involved. It is not expected that a candidate would cover all of the above topics, but rather work through selected topics in a logical fashion. It is important that the candidate pursue a solution that considers both revenue and cost issues to impact profit. Additionally, a conadidate’s ability to work comfortably with the quantitative side of this case is important. The above recommendations for improving profitability are just a few among many. The candidate may come with their own ideas.
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