Pyrex case study Essay

2657 Words Jul 9th, 2014 11 Pages
Pyrex Case Study

The current dilemma with World Kitchen is to continuing making Pyrex themselves, or to contract the manufacturing out and buying it that way. This problems has arisen because of the aging Pyrex plant in Charleroi needs an upgrading and they have decided to look at it to see if it is better to outsource it or to upgrade the plant and continue to make it. Pyrex was first started in the early 1900’s by Corning Glass Works. It was made by mistake when Bessie Littleton the wife of a Corning chemist ask her husband to bring home s some strong shatterproof glass for her to use in the kitchen. What her husband did was bring two jars home, made of low- expansion glass. Bessie had cooked a sponge cake in one of the
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One thing is that you might lose some of the market because the competition will be selling a product that is cheaper and this is because it is cheaper to make overseas. You might not be able to compete with the price and thus lose customers. Another downside would be having to deal with unionized workers in the US, if they do not like their pay or some type of labor condition they could go on strike which will than put production on a halt and money and product will be lost. Another downside about the Charleroi plant is the furnace and the costs to operate it each year. They stated one year they were to make 41 million pieces of Pyrex and the cost to make the pieces would be 39 million. So making that much product you would only have a 2 million dollar profit, which isn’t bad but the labor and the costs of paying the workers is the most expensive thing and can be cut down or even out if there are better and cheaper ways to make. Along with the expense you do not have the flexibility to operate the furnace when you want and you do not have the flexibility to change the speed of production that much either. You cannot control how many products and how much time it takes to make as well and this is because the furnace controls that because you cannot speed it up or slow it down. The furnace is the bottle neck of the batch process and even to upgrade it and make it a better process is going to cost Pyrex quite a bit of

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