The machine would produce the sand molds into which molten iron was poured to get iron castings. Fonderia di Torino case, business and finance homework help Studypool values your privacy. There are numerous qualitative aspects surrounding the decision whether or not to purchase the Vulcan machine.
The firm needs to consider all costs in deciding whether to keep the current machines or purchase the Vulcan Mold-Maker. The Vulcan Mold-Maker is a fully automated machine. What this could add to the bottom line right now is unknown. Francesca Cerini, age 57, had assumed executive responsibility for the company 20 years earlier, upon the death of her father.
Considering weather or not to expand during an economic slowdown should be kept in mind. This would lead to a lower rejection rate, lower scrap rates, and an increase in quality. Since the company is supplying parts for higher quality cars, higher quality products are important when the company is negotiating longer-term contracts.
Francesca Cerini should proceed with the project since the figures above show that the new project generates more value to the company than the old one. These contracts are stated to be relatively long-term contracts but they are not guaranteed.
At the present time there is no need for more space. It was awarded for its quality parts. Similar molding-machine proposals had been rejected by the board of directors for economic reasons on three previous occasions, most recently in More essays like this: In reality however, it might not be that simple.
The major benefit from acquiring Vulcan Mold-Maker machine is the production of higher quality products. In other words, calculate NPVs for the following scenarios: This rate had not been reviewed since In November of she was faced with the decision of purchasing an automated molding machine called the Vulcan Mold-Maker.
Another factor to consider is the contracts with the original-equipment manufacturers OEM. In certain instances, the OEMs had provided cheap loans to Fonderia di Torino to support capital expansion.
Back injury medical claims have doubled since due to the demand on employees to lift heavy objects. The semi-automated process was labor intensive for the workers. Medical claims had recently doubled as the mix of casting products moved toward heavy items. Get Access Fonderia di Torino S.
In addition, the payback period of the Vulcan Mold-Maker is reduced to 4. The Vulcan MoldMaker would replace an older machine and would offer improvements in quality and some additional capacity for expansion.
In the future if the company would like to expand into other areas of manufacturing, they would have space to do so without adding additional costs to a new investment. The OEMs insisted on quality products.
If the machine were purchased the company would have to be able to agree with the labor union on the reduction of twenty-five employees without financially stressing the company. A is a manufacturing company who produces metal castings using six semi-automated molding machines.
Conclusions If Francesca Cerini can negotiate the release of the 25 workers that are dedicated to the current process but will not be needed with the purchase of the new machine, then Fonderia Di Cerini should proceed with this project.
The new machine will have a lower scrape rate, which will be effective to save the cost associated with raw material. Buying the Vulcan machine will result in year 0 outflows of 1.Fonderia di Torino’s specialization is the production of precision metal castings for the use in automotive, aerospace, and construction equipment.
The company stood out because of its quality products.
Fonderia di torino case analysis 1. FONDERIA di TORINO 2. CASE OVERVIEW Fonderia di torino case study group1_ Cynthia Hanna. Eastboro case analysis Fajar Muhammad. Ufc (ultimate fighting championship) Fajar Muhammad. Brand equity measurement Fajar Muhammad.
Fonderia di Torino S.P.A. Case Study Essay Sample. Keep using the old machine incurs higher cost(higher EAA) than replacing it with the new one. Fonderia di Torino is a company that specialized in the production of precision metal castings for use in products like automotive, aerospace, and construction equipment.
The company, located in Italy, is known for the quality and craftsmanship of its work. Fonderia Di Torino Main Issues 1) Purchase of Vulcan Mold-Maker/Large Capital investment: With a total cost of million Euros the Vulcan Mold-Maker will need to be approved by the board of directors.
Fonderia Di Torino S.p.A. Case Solution,Fonderia Di Torino S.p.A. Case Analysis, Fonderia Di Torino S.p.A. Case Study Solution, Managing Director of the specialty foundry must decide whether to approve major investments to automate the production process of its plant.
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