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Operations Management Issues at ABC Manufacturers - Term Paper Example

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ABC manufacturing is a southwest Florida manufacturer of solar heating systems for domestic hot water and swimming pools. A pre-purchase assessment of ABC reveals a turnkey firm that retails directly to consumers. …
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Operations Management Issues at ABC Manufacturers
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Download file to see previous pages The ROI is at 30% after taxes, based on the asking price. It is expected that these numbers could be even higher, based on preliminary marketing projections. However, ABC has several operational issues that need to be addressed prior to the purchase. The following will discuss these operational issues and will outline a plan for rectifying them. Understanding Solar Water Heaters. In order to perform a proper assessment of the market and opportunities that lie in the Solar Hot Water Heater market, it is important to gain an understanding of how they work and the various types that are available on the market. Solar hot water heating systems include storage tanks and solar collectors. Compared to other types of hot water heating systems, they pay for themselves overtime as the customer saves money by not purchasing an alternate fuel source. Solar systems use solar energy from the sun, which is free. The initial cost is paid back over time, after which the cost for the unit is free, other than for repairs. The decision to install a solar hot water heater has a high initial cost that represents a longer-term investment in which its payback is sometime in the future. There are three different types of collector systems for solar water heating units. The first type is the flat-plate collector, which consists of a weatherproofed, insulated box. Inside the box is a dark absorber plat that is under one or more glass or plexiglass panels. The absorber plate itself can be either metal or polymer. The integral collector-storage system has one or more black tanks or tubes in and insulated glazed box. In this system, the solar hot water heater acts as a pre-heater, warming the water before it passes through a conventional system. The third type of solar water heater is the evacuated-tube solar collector. This type of system uses parallel rows of glass tubes. These tubes contain a glass outer tube and a metal absorber tube attached to a fin. The fin absorbs solar energy, but prevents radiant heat loss.
The evacuated-tube system is used in a commercial setting. Most residential systems are either the flat-plate collector type, or the integral collector-storage system. Circulation systems can be either direct or indirect systems. The direct system pumps water through the collectors and into the house. They are used in climates that do not experience freezing temperatures. The indirect heating system circulates non-freezing heat-transfer fluid through the colle ...Download file to see next pagesRead More
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