Case Studies Case studies are tools for learning which expose the reader to real world problems. The proble situations presented in a case study can be either real life problems or imaginary problems created for the purpose of case study. Cases studies require active participation of the readers so that they can lear the intricies of real-life problems and can develop problem solving skil present s. A case study may a difficult situation and an unsuccessful attempt for handling the situation, thus providing the reader with an opportunity for analysing the problem more critically and for developing alternate ways of tackling the problem situations. Some case studies may present a problem with many alternate solutions and ask the reader to identify the right solution and to explain as to how the solution chosen is the right one. Also, some case studies may provide a very complex situation and ask the reader to identify the under-lying issue. ‘Studying cases will enable readers to practise their skills of © Problem identification © Data handling Decision making Analytical and critical thinking Interpersonal relationships ‘+ Communication ‘© Judgement ‘* Handling assumptions and inferences Before proceeding to find answers to the questions given in case studies, the reader should first gain an overall impression of the case and isolate key information. He should cultivate a questioning frame of mind and should develop the ability to sift through information and voluminous data given in the case study.CASE STUDY 2 Mr, Venket, a mechanical engineering graduate from Indian Institute of Technology, Madras was a promising entrepreneur. His father was owning a small scale industrial unit for the manufacture of mild-stee! pressed components used in the manufacture of electrical panel boards. His father's engineering unit, M/s. Star Engineers was mainly catering to the requirements of local fabricators and electrical contractors. Mr. Venkat, after his studies, took over the management of the unit from his father. After a few years of gaining first hand experience of the trade, he decided to go in for large scale production, as he found the prospects for the industry good. He formed a Private Limited Company by name M/s. New Star Engineers (P) Ltd., with his family members and close friends as the promoter directors. The entire investment for the proposed project was decided to be financed'by share capital contribution of the directors. Mr. Verkat’s dream project took off smoothly. He did not face any financial constraints as all the promoter directors were financially sound. M/s. New Star Engineers (P) Ltd., gained market recognition due to high quality of its products and within a short span of time the company became a original equipment supplier to major machinery manufacturers. The production capacity of the plant was 10 tonnes per month. The order position was also about 10 tonnes per month and hence the plant capacity was to the requirement. Due to sudden spurt in theCase Studies 613 demand, the order position improved subsequently and Mr. Venkat found an immediate need to increase the production capacity of the plant to 20 tonnes per month. Out of the machinery available, the power press which is a major machine could produce 30 tonnes of pressed components per month. The other engineering fabrication machines like drilling machines, welding machines, punching machines and nlbbling machines have been just adequate to handle orders to the tune of about 15 tonnes per month. The powder coating machine (which is used for giving surface finish to the pressed components) could handle about 10 tonnes per month, Two of the major customers have given orders to the tune of around 20 tonnes per month and are also willing to enter into a contract for the regular supply of 20 tonnes of products per month for the next 12 months. There are also indications from other customers that their requirement would be about 10 tonnes pet month and they affirm that the order positon is likely to be on the increasing trend. In order to cope up with the orders of 20 tonnes per month finalised with two customers. Mr. Venkat went for an expansion of his production facility. He doubled the production capacity of general fabrication facility by doubling the capacity of drilling, welding, punching and nibbling machines. As the investment on powder coating machine was slightly on the higher side, he added only one more powder coating machine, thus increasing its handling capacity 10 about 20 tonnes per ‘month. By the time he completed the expansion works, orders have started pouring in and orders t0 the extent of around 30 tonnes per month have been booked. Mr. Venkat was happy that his power Dress could handle 30 tonnes order quite easily. But, the machines downstream have inadequate capacity to handle 30 tonnes per month. The production engineer suggested to Mr. Venkat to accept all the orders and to divert part of the fabrication and finishing works to outside engineering units if the entire work can not be carried out in-house. However, as Mr. Venkat was very quality conscious, hhe was not prepared to accept orders beyond his production capacity. His preference is to have all the required production facilites in-house and he is even prepared to 0 for one more expansion plan to handle the increased orders. Discuss the case and answer the following (2) Was Mr. Venket right in his approach that all the required production facilities should be available in-house ? (2) Was the production engineer's view is a right one and will it help the company to tie-over the situation ?