However, if one decides to change the machinery, then it is most likely that the budget will be surpassed and that there will be problems with the union, considering the fact that there will be a surplus of worker and that these will probably be laid off. As such, it seems that, in order to solve a problem, one may expect troubles in the case of the other two. The case with the press is eloquent in this case. This had broken down because its shafts had never been changed since 1979, however, solutions in this case will bring additional trouble with the union and the budget, as we shall see further below.

6. 1) the operational changes implemented will probably have, in the long run, a positive effect with regard to increasing productivity and meeting production schedules. As such, it is likely that these changes will also address some of the other problems that I have mentioned, including the yearly budget problem.

2) Besides the operational changes that I have already mentioned here above, Hinrich's changes focused on increasing worker productivity by reducing idle time per worker in the plant. Additionally he spent some time on "combining processes" so as to increase overall efficiency. Further more, several changes were directed towards cost reductions, such as the new die to be used in the press. The change process thus implemented may have a long-term impact on the company's production and efficiency and may provide the appropriate answers.

3)in my opinion, as I have discussed in the paragraph above, it is less likely that Hinrichs will be able to satisfy all the parties involved. In this case, he needs to prioritize and decide what is most important for the plant in this case: fixing the press at a lower cost,...

As it is, the decision is quite difficult, because the survival of the plant is closely related to its relation with the community that provides its workers. However, I tend to believe that the cheapest option seems most efficient from an economic point-of-view. We need to keep in mind the fact that the main goal of an economic entity is profit maximization, so choosing the less expensive option seems the right choice.
7. Alternative solutions

If we consider the current problem as being related to the press breaking down, that the three alternative solutions are presented in the case study. The first one would be to hire outside skilled tradesman and fix the shafts for a total cost of $75,000. Advantageous because it has the lowest cost, this solution has the disadvantage of creating troubles with the union.

The second alternative solution would mean fixing the plant using new parts, at an estimated cost of $210,000. Besides the fact that this is an expensive solution, it has the disadvantage of increasing production cost with $2 for each TCC. The third option, costing $250,000 would also install the new die, with the great advantage of increasing efficiency in the future and providing a long-term solution for the plant's problems.

8. Optimal solution

As I have mentioned before, prioritization is the key word here and the first priority for the plant is keeping track with the budget. If this is achieved, then it may consider long-term goals such as increasing productivity and efficiency. In this sense, it is best that the first solution, costing less money, is chosen and implemented.