Business Proposal Essay

1030 Words Jun 26th, 2016 5 Pages
Overview
Stitch Professional is a company which will meet your requirements and will make everything on time.
Our company started operating past in almost 20 years ago. During those years we worked as a dense team which achieved personal goals and met almost every customer’s requirements and needs. There was a downs and ups but we stayed strong, and evaluated every step with a maximum seriousness.
As we started to operate, our machine started to generate constant profits and expanded the company almost twice during the first 3 years of our operations. Machine is our main profit generator, so we kept maintaining it all the scheduled times, but as we know, nothing is eternal, so it depreciated every year more and more.
During the last
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Fixing it and parts that was needed for it costed us $67,000. According to this data, action required immediately.

Proposal Specifics
According to situation there is two most efficient ways to resolve the problem and to keep the production on the same level. Which are:
• Overhaul the current machine and continue to work with it.
• Buy a new machine
Current change will prevent our company from production interruptions for old machine, and to increase the quality and quantity of production per month for a new machine.
If we decide to fix the old machine, we will need to take the following actions:
• To stop production for 20-25 days
• To make contracts with other companies for outsourcing
• To order parts for old machine
For buying a new machine we have to take following actions:
• Stop production for 25-30 days.
• Make contracts for outsourcing for installation period.
• Training employees for 5 days.
Deciding which way to go will help us some additional information about machines. For old machine:
• Will depreciate in 10 years with a 0 salvage value
• Will need some additional inspections and more usual maintenances
• According to opinion of specialists that already checked machine, output will slightly decrease in quality
For new machine:
• Will depreciate in 20 years with a $100,000 salvage value
• Won’t need any inspections and maintenances for the first 5 years
• Warranty…

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