Topics: Management, Customer service, Economic growth Pages: 2 (611 words) Published: October 27, 2013
Detailed in the Indalex Ltd. case analysis, current production is stretched to the limit, creating a capacity constraint to meet future forecasted demand; hindering the firms objective of a real growth rate of ten percent annually. The issue of deciding on a capacity expansion plan, given uncertainty about near term economic projections was presented. Indalex concentrates on a competitive priority of service quality, where flexibility and quality are more of a priority than price. This is described in the case study where past and current success of Indalex is attributed to their competitive strategy being strictly based on three words: service, service, service. Indalex set out with the objective of offering a seven-day service, along with offering highly qualified assistance in designing selection for their customers. Valuing service quality, Indalex manages a close working relationship with their customers, such as responding to needs even under short notice, demonstrating how Indalex understands their factories are an integral part of their customers’ factories. I feel that maintaining reputation along with meeting the growing demand of their existing customers is crucial to the service quality strategy of Indalex. In making a decision for the capacity expansion plan, an emphasis on insuring customer satisfaction and retention is of top priority. Given the options of either increasing capacity of their extrusion process, increasing anodizing capacity, building a recycling plant to reprocess scrap aluminum, or increase capacity of both the extrusion and anodizing process; a decision had to be made on which of the options should be done first, in order for the new piece of equipment to be available by the beginning of 1979. In regards to flexibility and quality, the option to either increase capacity of the extrusion, increase capacity of anodizing, or increasing capacity of both operations together; offers machine flexibility. Having excess capacity would...
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