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For the BAC plant in Gordon town to reduce its production cost, the technical and personnel problems that it is facing will need to be resolved. The technical issues will involve changing will involve changing of the maintenance plan and possibly replacing of meters while personnel problems will involve more personal action for instance conducting a managerial shift over and holding summits for the management to improve their managerial skills.
The power plant mentioned above has a high potential of yielding great profits. However it is underachieving due to a number of factors. If the proper steps are taken then the power plant would incur less production cost and return higher profits.
Baldur Agricultural Chemicals is a company with manufacturing plants across the country. It has a manufacturing plant in Gordontown, 43 miles from Disrael Crescent. Gordontown has a population of 15,700 people and the BAC power plant is the primary employer. On 20th October 2012, Ms. Paulette Machon, the vice president, operations, of BAC identified that the powerhouse costs are rising at Gordontown. This is causing an increase in production and thus causing the company to lose its competitive edge in both national and international markets.
Ms. Machon noted her concern that over the past two years, fuel consumption at the power plant has risen 18% and it has also experienced numerous breakdowns. Ms. Machon subsequently engaged Pro-Active Consultants Inc. to try to identify any production problems.
Boiler cleaning is badly neglected and the head office should probably issue another one. The flow meters being used are completely faulty and are of absolutely doubtful accuracy. This will make the plant seem to be producing more steam than it is actually producing.
A number of personnel difficulties were also found. The existing senior chief engineer Mr. harry Markham and the present chief engineer, Mr. Cart
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