Publications
Publications
- March 1985 (Revised November 1985)
- HBS Case Collection
Wilmington Tap and Die
By: Robert S. Kaplan
Abstract
The general manager of a division manufacturing taps and dies must decide whether to continue a major capital investment program. The program was designed to replace aging mechanical machines with modern, electronically controlled equipment. A post-audit, after an initial group of two machines had been purchased and made operational, revealed that actual sales were lower than had been projected in the capital expenditure request, and operating costs were higher because of problems adjusting to the new technology. Analysis requires considering intangible benefits from new investment in addition to the more easily quantified labor cost savings.
Keywords
Capital Budgeting; Investment; Accounting Audits; Cost Management; Technological Innovation; Information Technology; Performance Productivity; Production; Management Analysis, Tools, and Techniques; Manufacturing Industry
Citation
Kaplan, Robert S. "Wilmington Tap and Die." Harvard Business School Case 185-124, March 1985. (Revised November 1985.)