1. Next Big Q
How good are you in making your goods…

5. Current
Ideal

6. No use of 2nd Shift?
Current
Ideal

7. Optimum Automation Levels?
Current
Ideal

8. Right-Sizing Capacity:
FAIR SHARE ESTIMATES: 3-4 Rnds out:

9. A Historical Consideration… RE: Projected Share
LOW END: 0-1 product killed repositioned or introduced
TRADITIONAL: 3-6 repositioned from High…0-1 killed…1-2 introduced
SIZE: 0-1 killed, 0-1 repositioned to Traditional, 1-2 introduced
PERFORMANCE: 1-2 killed, 0-1 repositioned to Traditional, 0-1 introduced
HIGH: 1-3 killed or repositioned to Traditional, 1-3 new products arrive in rounds 2 or 3

10. Round 3- Forecast Segment Competitive Density
LOW END: 6 products=rivalry unchanged
TRADITIONAL: 9 products, w/ 3 repositioned= increased competition
SIZE: 7 products, w/ 2 new= increased competition
PERFORMANCE: 4 products, w/ 1 new= reduced competition
HIGH: 6 products, w/ 2 new= increased competition 6 4 9 6 7

11. -Given Round 3 Scenario- How should adjust your production capacities?
Round 0-1st shift Capacity
Round 3-Unit Demand
Traditional
1800
1068
Low End
1400
2081
High End
900
668
Performance
600
823
Size
469

12. Should You Run 2nd shift –when Labor Costs 50% higher?
Will we make less because labor costs are 50% higher for 2nd shift?
Another Q: If we double sales will we double our net margin?
Answer by using your proformas:
1- On production spreadsheet build 1200 units
2-On Marketing display- FORECAST 1200 UNITS
3.-ON Proforma Income statement- note NET MARGIN –
4- On production spreadsheet build 2400 units
5-On Marketing display- FORECAST 2400 UNITS
6.-ON Proforma Income statement- note NET MARGIN –

14. 2nd shift gets a free ride-only has to pay labor premium…
The Big Answer
1st shift- covers all fixed costs-
2nd shift gets a free ride-only has to pay labor premium…

15. Evaluate Your Company’s Production Situation & Formulate Strategies to Optimize Quality & Efficiencies

16. Can I be excused my brain is full..