Mayank and Vinnet is Case Presentation(Bergerac)
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Transcript of Mayank and Vinnet is Case Presentation(Bergerac)
BERGERAC SYSTEMS112-MAYANK PANDEY
560-VINEET HEJIB
OVERVIEW
Pet diagnostics market
Adoption of in house lab equipment
Product OmniVue Diagnostic instrument
User friendly
Virtually no training needed
Good quality and accuracy
THE PROCESS OF PRODUCTION
Instrument production was assembly line operation
Cartridge production was injection moulded plastic pieces
Challenge of exploring the opportunities
Problems with suppliers Little buying power
Petrochemicals as key inputs
Uncertain economic environment
Capacity constraints
BUILD VS BUY ISSUES
Buy opportunity Purchase prize = $5.75 per month
8 moulding presses
Cycle time = 75 seconds
3 shifts and 5 days working a week
Revenue accounted for = 50%
Acquiring would redue overhead
Pay back option = 5 years
Build opportunity 4 moulding presses
New machine with cycle time = 70 second
Machine uptime = 95%
Savings = 57 cents per unit
Additional staff needed for training
Setup time = huge
Payback time = 16 months
BUILD VS BUY CRITERIA (FROM RAVI VENKATESAN ARTICLE)
SOME ANALYSIS
Net income = $6616000
parameter Build Buylabour costs 1087000 1143600Raw material cost 3560156 3675000Reagent costs 5390625 5390625net overhead 1073400 1759500consultation cost 90,000 0Annual operating cost 11201181 11968725
SAVINGS AND OTHER COMPARISON
parameter Build Buycartridges generated 4687500 4687500cost / unit 2.389585 2.553328delivery cost 0 0.15net cost / unit 2.389585 2.703328current cost 2.96 2.96savings 0.570415 0.256672net savings @ 4687500 units 2673819 1203150net capital requirements 3607000 5750000Break even volume 6323470 22373541break even time @ 4687500 units 1.349007 4.773022
CONCLUSIONS & RECOMMENDATIONS
Resources would be easily gathered
Families are strategic
Investment could result in economical savings
Pay back period is lesser
Hiring and training would be more complex though
Let it buy its cartridges
Give proper training
Recruit experienced personnel
THANK YOU