Operations Managment MGMT640 Individual Project

Individual Project, 1000 – 1500 wordsScenario: 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.
Smitheford faced 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 TechnologyCentralized Location
Low TechnologyDecentralized

Don't use plagiarized sources. Get Your Custom Essay on
Operations Managment MGMT640 Individual Project
Just from $13/Page
Order Essay

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
225,000Use 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:
When to centralize manufacturing
When to opt for higher technology options
individual_project_2.docx

Unformatted Attachment Preview

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. Smitheford faced 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
Centralized Location Decentralized
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

Purchase answer to see full
attachment

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your essay today and save 15% with the discount code ESSAYHELP