Fonderia Di Torino S.P.A.

FONDERIA DI TORINO S.P.A. In November 2000, Francesca Cerini, managing director of Fonderia di Torino S.p.A.,[1] was considering the purchase of a Vulcan Mold-Maker automated casting machine. This machine would prepare the sand molds into which molten iron was poured to keep iron castings. The Vulcan Mold-Maker would replace an older machine and would offer improvements in fiber and some additional capacity for expansion. Similar molding-machine proposals had been jilted by the board of directors for economic reasons on three former occasions, most recently in 1999. This time, given the size of the proposed outlay of close (euros) €1 million,[2] Cerini was seeking a careful judge of the projects costs and benefits and, ultimately, a recommendation of whether to advance with the investment. The Company Fonderia di Torino specialized in the production of precision metal castings for drug abuse in automotive, aerospace, and construction equipment. The company had acquired a reputation for quality products, particularly for safety parts (i.e., parts whose failure would force in loss of control for the operator). Its products included crankshafts, transmissions, brake calipers, axles, wheels, and various steering-assembly parts.

Customers were original-equipment manufacturers (OEM), mainly in Europe. OEMs were becoming increasingly insistent about product quality, and Fonderia di Torinos response had reduced the rejection rate of its castings by the OEMs to 70 parts per million. This record had won the company coveted quality awards from BMW, Ferrari, and Peugeot, and had resulted in strategic alliances with those firms: Fonderia di Torino and the OEMs exchanged technical force and design tasks; in addition, the OEMs shared confidential market-demand information with Fonderia di Torino, which change magnitude the precision of the latters production scheduling. In real instances, the OEMs had provided cheap loans to... If you want to get a full essay, baseball club it on our website: Orderessay

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