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What are the three to five most significant operational constraints in such an expansion? Justify your choices with data from the case.
If you were the VP of Production at Caron, how would you suggest addressing each of the constraints? Use tools and techniques from your OPMT text to support your arguments.
From a strictly operational point of view, what is the best way for Caron to expand into the U.S.? Make a definitive recommendation and explain it.
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From the operations perspective, the question wants you to answer the operational constraints in the Caron case and as a VP of production explain how you would address the constraints in light of the expansion into the US market.
<br>There are some assumptions, which the question makes. The question presupposes that there would be an expansion and then seeks answers to production problems. This is not an approach that is appropriate in this case. The case study points out that even with the existing demand, there have been delivery failures of up to three months and that there are shortages of raw material. Second, the question assumes that the production VP should be able to answer how the company should expand into the US market. This is not substantiated by facts. The expansion of the company is a strategic decision and the production VP can only list the production constraints. Third, the question gives the production VP to address the operational constraints, but it does not give the resources at the disposal of the VP to do the job. For a four-year expansion plan the VP in the case says the cost would be Cdn$3 million, however, if there were more finance available then the expansion time could be reduced 'dramatically'.
<br>Given below is a template to help you answer your question.
<br>OPERATIONS CONSTRAINTS IN EXPANSION
<br>1. The ...
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