Curled Metal Inc Essay
Problem Identification and Situation Analysis
Problem Definition and Objectives
Curled Metal Inc. - Engineered Products Division (CMI), Company had grown from selling metal as a finished product to one that used it as a raw material, with sales increase from $750,000 usd in 1991 to over $55 million usd by 2007. To date, CMI strongly relies on Slip-Seal, used as a high-temperature product seal in cars. Even considering CMI 80% market dominance for this product, management moved to diversify.
A new product application for curled metal technology, a cushion pad, could be the key for this purpose. After closely reviewing, management needs to …show more content…
Definition of Market.- Based on Sanwal's assumption we can estimate the maximum number of set of metal pads requested annually by the market. Since the feet of piles driven amounted to between 290 and 390 million and the new CMI set of pads would drive 10,000 feet, we can easily calculate that the market should be in a range of 29,000 to 39,000 sets per year (see Exhibit 2).
Product.- CMI’s new metal pile driving pads provided several benefits over the current cushions. The new metal pads are much safer than conventional pads. Workers often had to handle super-heated pads and risked the possibility of being severely burned. Also conventional pads are much heavier than metal pads, thus increasing the risk of back and other weight related injuries. Conversely, CMI pads are significantly reduced the possibility of heat related injury, and are much lighter than the others pad. The innovative CMI pad has an estimated life 10 times longer than conventional pads (related with his outstanding resiliency), contain no hazardous material, increase driving time by approximately 33%, and will reduce damage to hammering equipment and to the piles