Case Study on Norsal Trondheim

I. Objectives and Scope

The group activity aims to address the case study on the Norwegian Salmon Processing Facility in Trondheim. It aims to apply the concepts and techniques on productivity and multifactor productivity measurement to show how changes in both input and output variables affect the overall productivity, and how these changes in productivity can be interpreted and used as basis for the company’s decision to upgrade its facility.

This group activity shall focus on the case of the Norwegian Salmon Processing Facility in Trondheim. NorSal Trondheim is considering upgrading its current facility to increase plant capacity. Although an equipment upgrade would mean additional cost, a modernized plant would, on the contrary, reduce energy consumption. It is therefore necessary to compute for the productivity of the current equipment and proposed new system. The amount of additional expense on equipment that would make the productivity of both systems equal, as well as the effect of increasing energy costs, shall also be identified to aid in the evaluation of the case. These shall be the bases for the group’s recommendation. All computations shall be based on the data provided in the case.

II. Methods/Approach

The group discussed the case and initially identified its main objective. A basic group strategy was identified, which included summarizing all the given information, identifying the requirements, executing the required calculations, and counterchecking and analyzing the results. Using the discussion questions as guide, multifactor productivity computations were done independently by members of the group. The results were compared, discussed and analyzed before the group agreed on its recommendation for NorSal Trondheim. A few meetings were held by the group, but remote collaboration tools, such as online group messaging and Dropbox, significantly helped the group members in coordinating with each other.

III. Analyses and...