Case | HBS Case Collection | August 1993

Applichem (A) (Abridged)

by Janice H. Hammond and Gary P. Pisano

Abstract

Applichem manufactures the same chemical product in four plants, each of which is located in a different country. The company has completed a major study comparing the productivity and performance of these plants. Using the data from the study, students must decide which, if any, plants to close. The case requires students to think about the relevant metrics for comparing the performance of plants that operate very differently and in different countries. An important issue is the distinction between physical measures of productivity and financial measures of performance. Finally, the case allows students to think about what management might do to ensure that productivity improvements are shared across the plant network.

Keywords: Business or Company Management; Management Practices and Processes; Performance Productivity; Performance Efficiency; Performance Evaluation; Strategy; Judgments; Factories, Labs, and Plants; Business Exit or Shutdown; Chemical Industry;

Citation:

Hammond, Janice H., and Gary P. Pisano. "Applichem (A) (Abridged)." Harvard Business School Case 694-030, August 1993.