PRODIGALIDAD, Thiel Marie A.
IE-4
MORTON SALT
Case Study
I. OBJECTIVES
 To determine all the possible reason why the company continues to use
the old processing equipment instead of buying new, modern
equipment
 To recommend possible changes and improvements to the company’s
plant
 To evaluate the current situation of the company concerning its
production and quality
II. STATEMENT of the PROBLEM
With the Morton Salt current situation, is the use of the old
processing equipment still applicable with the trend our technology is
having right now? How can Morton Salt improve its plant for the better?
III. S.W.O.T. ANALYSIS
STRENGTH
 Morton Salt has been operating as a small business since 1848 hence it
had already established its name
 The Silver Springs plant employs about 200 people, ranging from
unskilled to skilled
WEAKNESS
 Morton salt uses old equipment which requires a fair amount of
maintenance to keep in good working conditions
 The plant has its own tool shop where skilled workers repair parts or
make new parts because replacement parts are no longer available for
the old equipment which means that it cause additional ‘cost’ for the
company wherein there is no profit to gain
OPPORTUNITY
 Salt production offers a very large opportunity for the company
THREATS
 Other companies has high technological approach with regards to
machines and equipments
IV. ALTERNATIVE COURSES of ACTION
ACA 1 Flexible Manufacturing System
This will offer reduced labor costs and more consistent quality
compared with more traditional manufacturing methods, lower capital
investment and higher flexibility.
ACA 2 Acquire equipments that goes along with high technology
Technological innovation is very important nowadays. Many
companies acquire equipments that are expensive but do not high
maintenance in which they can benefit later on.
ACA 3Continue the present strategy
The company has mastered its present strategy they have continue
using its old equipment without any problem which means that its strategy
is effective for the company
V. RECOMMENDATION
The use of ACA 1 and 2 is recommended for Morton Salt. Flexibility
manufacturing system offers flexibility that will allow the manufacturing
system to react in some unpredicted or predicted changes that will help the
company. Instead of operating its own tool shop where skilled workers
repair parts they can acquire high technological machines or equipment so
that they can eliminate non profitable activities for the company.
On the other hand, visual inspection is somehow alarming for the
quality assurance of the product. Although it do not cost too much for the
company it is the least accurate method of inspection.
They can have
examination of the production which is more accurate although more time
consuming.
VI. DETAILED PLAN of ACTION
The company should have:
 Machine flexibility - the ease with which a machine can process various
operations
 Material handling flexibility - a measure of the ease with which
different part types can be transported and properly positioned at the
various machine tools in a system
 Operation flexibility - a measure of the ease with which alternative
operation sequences can be used for processing a part type
VII. CONCLUSION
Morton salt is a company producing salt for food, water
conditioning, industrial, agricultural, and road/highway use. With the
recommendation cited the company can benefits and upon the Flexibility
Manufacturing System the company can:
 Increase its productivity and improved production quality due to
automation
 Because of flexibility preparation time for new products is lessen
 Lower direct labor cost, due to the reduction in number of workers
 Saves from the indirect labor because of reduced errors, rework,
repairs and rejects
On the contrary, Flexibility Manufacturing System’s complexity and cost are
reasons for its slow acceptance by industry