Page 245 - Writing Winning Business Proposals

236 Appendix A

Units/Month
(00)
1,600

Optimistic
Conservative
1,400

1,200

Current Capacity
1,000

Years
2 4 6 8 10

FI GU RE A . 1 ABC ’ s f or ecast ed sales c ould ex c eed manufac turing capacit y in less than t w o y ears
FIGURE A.1 ABC’s forecasted sales could exceed manufacturing capacity in less than two years..

press and maintenance departments before becoming press department fore-
man. Gupta stresses that Metzger was highly successful in the press department
and succeeded him as plant manager three years ago when Gupta was promoted
to VP of Operations. Gupta asks Metzger to describe the current situation related
to utilizing production capacity.
According to Metzger, the plant is meeting its current production schedules by
working two full shifts of operation, with some overloaded work centers working a
third shift. Most scheduled equipment maintenance is also performed on the third
shift so that little overtime premium is incurred because of weekend work. While
showing the group a site drawing of the current facility, Metzger describes how the
site is well utilized with manufacturing and office space, truck docks, and park-
ing areas. “Let me point out,” says Gupta, referring to the drawing, “that the site
can’t be expanded because it’s bounded by railroad tracks in one direction, a major
thoroughfare in another, and by residential areas in the other two directions.”