TARTANS CORPORATION

CASE REPORT
I .TIME CONTEXT : 1981
II . POINT OF VIEW: Richard Web, industrial engineering on special projects
III. MAIN PROBLEM: How to convince the financing department to approve the request in
purchasing coil shear
IV. SECONDARY PROBLEM: To meet the targeted 1982 sales demand
V.OBJECTIVE: To meet the 1982 sales demand with the help of additional equipment which is the
coil shear
VI. AREAS OF CONSIDERATION:
STRENGTHS:
Coil shear meets Tartan Corporations quality control standard.
Coil shear has an automatic oiling of steel before it goes to the cutting which can eliminate or
reduce the rusting of steel.
Coil shear is less spacious in terms of floor storage.
Produce substantial direct material cost saving and produce no end drop off
Labor cost savings
The coil shear could do the work of two conventional shears in four to six hours per day.

WEAKNESSES:
Coil shear has higher annual cost maintenance
The use of coil shear will complicate the schedule of coil shear operation.

OPPORTUNITIES:
It provides extra capacity for increase in production.
Coil shear has fast production.
Coil shears produces quality products that will attract consumers.
Coil shear has in-plant training at no cost to Tartan.

THREAT
The motors used are prone to malfunction that could affect production schedule.

VII. ALTERNATIVE COURSES OF ACTION
1. Presentment of its benefits to the company
Pros: The benefits presented may be a ground to have the financing departments approval.
Cons: Incur additional cost in the preparation of the said presentment

2. Presentment of the cost of the equipment
Pros: The financing department will be informed about the sufficiency of funds for the acquisition of
the coil shear.

3. Acquire additional coil shear.
Pros: Fasten the production and help increase sales.
Cons: Incur additional cost for production.

VIII. DECISION CRITERIA
1-10, 10 as the highest
ACA (1) : 8
ACA (2) : 8
ACA (2) : 6

IX. RECOMMENDATION

At the moment, only alternatives 1 and 2 could be immediately implemented by the
purchasing department. Alternative 3 may be adopted if the acquisition of coil shear
became successful.