Tag Archives: economies of scale

by | May 13, 2013

Case Study on Regional Power Sector Integration

A Study about Regional Power Sector Integration

Developing countries are increasingly pursuing—and benefitting from—regional power system integration (RPSI) as an important strategy to help provide reliable, affordable electricity to their economies and citizens. Increased electricity cooperation and trade between countries can enhance energy security, bring economies-of-scale in investments, facilitate financing, enable greater renewable energy penetration, and allow synergistic sharing of complementary resources.At the same time, many RPSI efforts around the world are currently facing challenges that slow progress and mitigate the full benefits of greater integration.

Case Study on Power Sector Integration

These challenges include: difficulty aligning national and regional investment decisions; differences in regulatory environments between countries; insufficient regional institutions; dearth of financing; changes in political frameworks; and national sovereignty and energy independence concerns.This briefing note draws from the experiences of RPSI schemes around the world to present a set o findings to help address these challenges. keep reading…

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by | May 4, 2013

A Case Study on Efficiency Evaluation for Pooling Resources in Health Care

A Case Study about Efficiency Evaluation for Pooling Resources in Health Care

Abstract: Hospitals traditionally segregate resources into centralized functional departments such as diagnostic departments, ambulatory care centers, and nursing wards. In recent years this organizational model has been challenged by the idea that higher quality of care and efficiency in service delivery can be achieved when services are organized around patient groups. Examples include specialized clinics for breast cancer patients and clinical pathways for diabetes patients.

Case Study on Efficiency Evaluation

Hospitals are struggling with the question of whether to become more centralized to achieve economies of scale or more decentralized to achieve economies of focus. In this paper we examine service and patient group characteristics to study the conditions where a centralized model is more efficient, and conversely, where a decentralized model is more efficient. This relationship is examined analytically with a queuing model to determine the most influential factors and then with simulation to fine-tune the results. The tradeoffs between econ omies of scale and economies of focus measured by these models are used to derive general management guidelines. Keep reading…

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by | March 2, 2013

A Case Study – The Business Statistics Innovation Program

We changed from a vertically structured organisation that I just talked about to a more horizontal structure to provide greater functional specialisation and economies of scale. Starting on the left hand side of the diagram, we have the Economic Statistics Data Centre which undertakes all the data collection activities, all the front end processing activities and so forth. There is only a single data centre whereas there are multiple Business Statistic Centres (BSCs), shown in the middle part of the diagram.


They are based around groups of similar business collections. For example we have one Business Statistic Centre (BSC) for all our sub-annual business collections, we have another BSC for all our agriculture collections. The third type of organisational unit is the National Statistic Centres (NSCs). There are multiple National Statistic Centres and they are based on particular statistics themes.


So we have a labour NSC, for example, and its role is to get away from being solely based on internally focused labour collection based activity that it was responsible for to having a much greater alignment with the users and producers of labour statistics and to take an interest in all data sources that could be used for labour statistics. Click here to read more…

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A Case Study – The Business Statistics Innovation Program

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by | March 1, 2013

Case Study for Global Supply Chain Management – Transportation

Global Supply Chain Management – Transportation

Abstract: Much is understood about risk assessment and management related to general business operations. However, our understanding related specifically to effective assessment and management of Supply Chain Risks (SCR) is an important nascent area of research for scholars and practitioners alike. Calling upon previous literature, this presentation addresses (1) the need for assessing and managing supply chain risks, (2) risk management approaches, (3) SC risk management approaches, (4) supply chain risk management practices (SCRMP), and (5) techniques used to use SCRMP.



Case Study for Global Supply Chain Management

Global logistics aim to optimize and control the material/product flow and the information flow so that materials/products can be moved at a desired pace, in a proper fashion and at the right volume. The production processes in the medical equipment manufacturing industries are highly automated and dynamic and the orders are customized. In order to achieve high economies of scale and shorten the logistics and supply chain lead-times, medical equipment manufacturing system has its manufacturing operations set up in various parts of the globe..

Click here to read more on Global Supply Chain Management


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by | February 7, 2013

Case Study on Crown-Haitai M&A

Background: On January 2004, the management at Crown Confectionary, ranking fourth in market share in the confectionary industry, faced the task of advancing its hold to the next level. One of the myriad plans to attain this goal was to acquire Haitai Industries, which was owned by a consortium led by UBS, a Swiss investment bank, as a consequence of its financial instability in the late 1990s.



Case Study on Crown-Haitai M&A

The acquisition was deemed an ideal strategy, with expectations for synergies in economies of scale and enhancement of brand value in the midst of an ever-competitive confectionary industry. However, this move would not come without risk. The capital required to acquire a corporation whose assets and revenues were twice its own was beyond something negligible. Click here to read more on Crown-Haitai M&A…

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by | January 12, 2013

Case Study on Lucent Technologies

Introduction: Organisations gain many different operational benefits from producing goods or providing services on a large scale. As they get larger, often through the integration of business units under a single umbrella company, average unit costs fall and they benefit from economies of scale. Organisations must, however, aim for an optimum size of production, i.e. the size which suits them best. If the optimum size of an organisation is exceeded, the business becomes difficult to manage and inefficiencies, known as diseconomies of scale, occur. Click here to read more…



Case Study on Lucent Technologies

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by | January 5, 2013

A Case Study on Britannia Industries Ltd.: Revitalizing a Brand

Britannia Industries fast became almost synonymous with biscuits. In 1997, the product reportedly contributed as much as 85 per cent of the company’s revenues. However, there was an issue looming on the horizon: In line with the gradual structural changes that were being undertaken in the Indian economy after the reforms introduced by the Dr Manmohan Singh–P. V. Narasimha Rao combine, the production of biscuits was no longer reserved for the small-scale sector.

A Case Study on Britannia Industries Ltd.: Revitalizing a Brand

It was felt that if India was to compete on the world stage, production on a larger scale, along with the concomitant economies of scale, should be the order of the day. In addition, the biscuit industry was becoming increasingly commoditized. Competition was increasing from both local players as well as new multi-nationals that had entered the market. Click here to read more…

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by | November 28, 2012

The Benefits of Flow

Flow is the most effective and efficient way to produce a good or service, as those who have implemented flow have seen. However, the techniques for making value flow often run contrary to our “common sense”. For example, from an early age we have been taught that the best way to produce anything is in batches to gain economies of scale. Thinking in terms of processing one piece at a time can be counterintuitive for many people.
Most of the examples of Flow relate to producing widgets, or some other part that is manufactured in a high volume, low variety environment. This is not the only environment in which Flow may be applied.
So how we apply flow in other areas?

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by | May 28, 2012

Focused Factory or Flexible Manufacturing System?

Some gurus in manufacturing strategy advocate that a manufacturing operation should both be Focused Factory and a Flexible Manufacturing System. The focused factory movement claims benefit from simplicity and repetition to gain economies of scale; A flexible manufacturing system exploits the gain from product proliferation and mass customization for economies of scope. However, it seems that these two approaches lead to opposing directions in understanding. Like many paradoxical issues in operations management, researchers can only offer a list of general strategies – most of which oppose each other and change from time to time.
What is right for your business?

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flexible manufacturing system case study

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