Case Study Bananas Ads
Summary of Case The various units of Bananas Ads are scattered. Unit I is located near the grain store having Flour mill and standby power supply. Unit II is behind the railway station having Flour mill and maintenance workshop and Unit Ill is next to the bus stand having Bakery and Finished Goods Store. The above mentioned all sites are at some distance from one another and there is no scope for any expansion at any of the sites.
Bananas Dad’s daughter Harsh has some different dreams, she wants a odder plant layout including cake making facility at a new site and the proposed site should have adequate space for the futuristic growth. The cost of land that is prohibitively high. The problem is to determine the best layout for units of Bananas Ads at Sirs and plan a shift, if needed within the boundary limit of City of Sirs and surrounding areas.
The land near the bus stop and behind the railway station can be sold at substantial premium. One flour mill was imported from Egger many and that Morning behind the railway station is old. Big enough plot is available to create facilities currently being operated from different sites and leave space for future expansion.
Solutions and their Evaluations SOLUTION 1 .
Continue to Operate facilities as at present and search a new site when the need arises MERITS DEMERITS Locations are known as it is Standby power supply within the city limits Emotional attachment of Cake making may not be Bananas Ads possible Harshly demand not met No scope of future growth Harshly demand would have It may not be economical to met shift the old mills Excellent layout would have Proposal is quite expensive been created Standby power No production during shifting Space for future growth Emotional attachment of Bananas Ads with old mills Old sites can be sold Cake baking can start immediately Both Harshly demand and Would require Harsh to Bananas Dad’s emotional climb down from her attachments are catered demand. New site with adequate space There is a gap between for growth spending for a new site and disposal of the old assets. Thus finances will be needed during his gap. Production will continue Old plants need not be disturbed 2.
Scrap all the three units and purchase a big plot as per Harshly plan and shift all facilities to the new site. 3. Acquire the new, big enough site and start the cake baking facility immediately. Install the rest of the facilities in different phases. Funds available in stages due to sale of old sites jest Solution Buy a new site as per Harshly layout plan. Shift Bakery, and finished odds store to a new site.
Start cake production at the new site. Start cake production t the new site. Sell the unit Ill plot. Shift maintenance workshop to the new site, but let the flour mill continue to operate at the unit II till it is required to be scraped. Replacement for this mill should be installed at new site. Site of Unit II can be sold at that stage.
Let site I attention till tends become available tort the purchase to a new power unit and second flour mill. Newly purchased machinery should go to the new site and site I can be sold, unless required for grain business, if it is still continuing. Conclusion Flour mills and associated machinery is housed at three different locations separated by some distance. There is no scope for expansion at any of these sites. The proposal is to shift to a new site for which layout has been prepared.
Rhea new site must have adequate place for expansion and starting new product lines. Present owner is emotionally attached to these sites and is apprehensive about high prices of the land.