Operations Management: An Integrated Approach, 5th Edition

CASE: Data Tech, Inc.

Data Tech, Inc. is a small but growing company started by Jeff Styles. Data Tech is a business that transfers hard copies of documents, such as invoices, bills, or mailing lists, onto CDs. As more companies move to a paperless environment, placing data on CDs is the wave of the future. Jeff had started the company in his two-car garage three years earlier by purchasing the necessary software and signing two large corporations as his first customers. Now he was about to sign on two additional corporate customers. Suddenly what was a small garage operation was turning into a major business.

The Business

The operations function of Data Tech seems deceptively simple. Every day Data Tech receives packages of mail from corporate customers containing documents they want transferred to disc. Data Tech usually receives anywhere from 10,000 to 30,000 pieces of mail per day that need to be processed. The first step requires workers to unpack and sort the mail received. Next, workers scan each item through one of two scanning machines that transfer content to disc. An accuracy check is then made to ensure that information was transferred correctly. This stage is particularly important as many of the documents contain important private information. Finally, the discs and the documents are packaged and sent back to the customer, with Data Tech keeping a backup disc for its records.

The Need for Capacity and Relocation

Running a full-time business out of his two-car garage ...