Tour B_Job Shop Process Part1

Tour B_Job Shop Process Part1 - TOUR B A JobShop Noreen...

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Unformatted text preview: TOUR B A JobShop Noreen Industries Jersey Shore, Pennsylvania i ., . . :or. (Courtrsy of Noreen Industries) It had been years since Joe Gehret fmally gave in to his desire to control his own company and resigned his position as general foreman in the machine shop of the Litton Industries plant in WIlliamsport, Pennsylvania. In July 1967,Joe and a part- ner (who has since left the firm) began Norcen Industries by selling stock and tak- ing over an old garage in Jersey Shore, about 15 miles west of Williamsport. They initially intended for Noreen to be a plastics distributor and fabricator, but it soon became apparent that both. their experience and the demands of industry in north central Pennsylvania dictated a change of course. Noreen quickly became mainly a metalworking machine shop, and the machine shop accounted for almost 90 per- cent of gross revenues. 42 TOUR B A Job Shop 43 . Joe Gehret beside a lat~e. (Courtesy of Noreen Industries) The company had experienced reasonably steady growth. In 1981, Noreen moved into a new 21,000-square-foot building on the outskirts of town. Sales in 1996 had grown to over $2 million and employment to 39, and Noreen was cur- rently planning an expansion of 13,750 square feet to accommodate laser cutting equipment for even thick metal plates and to permit the expansion of currently in- adequate space in the factory, such as the inspection area. __<: ~_ 1 "'" PARTONE: PROCESSDESCRIPTION Products, Sales, and Order Handling As a general machine shop, Noreen was capable of producing a seemingly endless succession of metal and plastic parts that a host of companies typically assembled into machines and other products. Noreen specialized in close tolerance work for the electronics and aerospace industries. Almost all of Noreen's customers were manufacturers, but 95 percent of this business Noreen had to win by submitting low bids. The purchasing departments of Noreen's customer firms generally re- quested Noreen and at least two other machine shops to "quote" the work they wanted done. The request always specified (1) the number of pieces desired, which varied enormously, from 5 pieces to over 1000,although most lots were less than 250; (2) the nature of the material required and whether it was supplied by the customer; (3) the design of the piece (a blueprint would be sent); and (4) the date by which the order had to be received. During peak years, Noreen bid on as many as 250 such requests each week, knowing that on a long-run average its quote would be accepted about 15 percent of the time. (In ~hepast this figure had sometimes been as high as 40 percent.) 44 TOUR B A Job Shop Joe Gehret was responsible for deciding all metalworking quotes. Naturally, it was easier for him to quote jobs that Noreen had done before. Not only did he know the hourly charge-out rate (currently, $34.50 per hour for general machining and $45 per hour for electronic discharge machining [EDMD, which would cover both direct labor and overhead...
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This note was uploaded on 07/21/2009 for the course BUAD 311T taught by Professor Vaitsos during the Fall '07 term at USC.

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Tour B_Job Shop Process Part1 - TOUR B A JobShop Noreen...

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