Case summary:
RM Company is looking to change its numerically-controlled machines into a flexible manufacturing system. The transition will handle about 30% of RM Company’s work. There will be additional costs for the startup process. The new system is likely to reduce the inventory, floor space, production time, and number of laborers required.
The annual labor savings is a huge sum on the implementation of the new process. The company’s
To determine: The case of a conservative manager to maintain the status quo until there are more obvious returns.
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Operations Management: Sustainability and Supply Chain Management (12th Edition)
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