4 Columbia Business School Booz Allen Hamilton 1007 Summer, Second Content: Qualitative and quantitative Our client is a telecommunications infrastructure manufacturer and they have hited us to help determine if they have any excess manufacturing capacity. If there is any excess capacity, our client would like Booz Allen Hamilton to suggest a course of action to ensure they are profitable and efficient. The client currently has plants in both Minnesota and Mexico, close to the Texas border. The plants manufacture similar products and the facilities are about the same size. The company expanded capacity by replicating their first plant (using it as a template for others). ‘TERVIEWER BREIFING Candidate should formulate a logical structure (internal vs. external factors, supply/demand, ete.) and then determine if the client has excess capacity oF not. Interviewer does not offer the necessary data and so the interviewee should ask directed questions to extract the following data © Each plant operates an 8am ~ Spm shift © Demand is flat or declining Client has a relatively high market share of 80% Customers are phone companies and there are high switching costs Our client recently acquired a competitor and there are very few players in the market. * The client is not highly concerned about new entrants because the industry growth is flat or declining, this is not an attractive market. DIALOGUE, would start by looking into the company’s manufacturing process to determine if they are experiencing low utilization rates compared to the overall capacity of production. Management Consulting Association Case Book 2007 4l