Production Control

production control

a. This investment would not tend to dilute the excellent ROI achieved by ABI as it was in line with the new strategic plan of the company bidding only on high margin products capable of sustaining their margins over a long time.

b. Equivalent reduction in labor as the company believes in maintaining small plants having maximum 480 employees

c. New products would be pursued only when their production process and design are of a proprietary nature and exist in areas where its technical abilities help to maintain a long-time position. Hence, in this manner, assets would be protected.

proposal would maximize the ROI and the total profit as it would enable 100 percent sourcing in both the original equipment market and the replacement market with high margins.

1) No it will not dilute the ROI of the company as Should ABI be successful in their bid, this would result in 100 percent sourcing in both the original equipment market (OEM) as well as the replacement market with its high margins. Furthermore, the high investment required to produce these special pistons at ABI’s costs would virtually rule out future competition.

2) Yes, the cost in new equipment (eg. FMS) will be returned by an equivalent reduction in labour as Though such a system would be expensive, the volume of production over the FMS’s longer lifetime would offset that expense.

3) Yes asset protection will be there as they will pursue only new products whose design or production process is of a proprietary nature and that exist in areas where our technical abilities enable us to maintain a long-term position.

4) Yes because:

Price of the piston heads= $25.45

Expected cost = $17.15

Adding