Memorandum Report
DATE: April 5, 2012
TO: Henry Hanns -Director of development, Royce Automobili S.p.A
FROM: Nicholas Lauko -Project Director, AMG engine Division
RE:
Analysis of productivity and cost systems to the employee engineering division desirability of switching to high quality tools.
Thank you for allowing my field of supervision “If its perfect make it better” is our standpoint. As requested, we have evaluated the quality of performance ship here at AMG and to my awareness we as a division, request to switching or upgrading to the higher quality tools. Our current manufacturing tools made by a Taiwan importer have been proven outdated as follows:
1. With required prevented maintenance, tools fail at a constant rate rather less frequent.
2. Difficulty of production with lack of ease has proven inferior to another higher quality tool (German).
3. It would cost the company a fraction to upgrade rather than buying more cheap Taiwanese tools.
4. The customer is our priority and tools needed are essential to function and deliver a insured safe product.
The rest of this memo explains the fundaments of price and of conclusions.
Product cost analysis
Finance has said it is possible to retrofit our workstations at the company’s best interest. Our analysis begins by exemplifying the two brands. Product Taiwan average tool normally used 1000 times needs to be replaced and is accurate to 1000 of an inch. Our new product for 25% more of the initial price that Taiwan is made by a factory in Germany and can be used for 10000 times but needs to be serviced. Also it is more accurate to 10000 of an inch insuring safety that gets passed on to our products.
Conclusions and Recommendations
We recommend that at the company’s best interest you and your authority persuade this interest and secure our craftsmanship to our motto.