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Coping with capacity expansion: Go-Goal Hydro's panache

Saroj Koul (Jindal Global Business School, OP Jindal Global University, Sonipat, India)
Mayank Arora (Go-Goal Hydro Power (P) Limited, E-60, Industrial Area, Haridwar, India)

Publication date: 25 May 2012

Abstract

Subject area

Operations management.

Study level/applicability

This case study is intended for MBA, final year industrial engineering and 1st year PhD students, for use in graduate engineering, post graduate and executive level management programs. The case study illustrates operational and participative management control system in a matrix and flexible organization structure.

Case overview

Satish Arora (CEO) and Praveen Arora (Director Finance), a husband and wife team, own and operate Go-Goal Hydro Power Ltd (Go-GoalHPL) as a small medium enterprise (SME). Go-GoalHPL renovates hydro power generating machines up to 250 MW rating. Their current renovation/overhauling projects are located at different sites in India. Go-GoalHPL has grown its business by pursuing new avenues that include execution of major renovation projects and construction of new projects on a turnkey basis. Go-GoalHPL's management, despite their on-going successes, are concerned about severe capacity shortages if immediate actions were not taken. They have identified three capacity expansion options: continue current operating practices and obtain additional production space; undertake a make-versus-buy study and consider outsourcing parts; and implement world-class manufacturing techniques through adoption of focused factories. The first two options represented simple incremental changes while the third presents a radical alternative that required a major reorganization of the company operations and support functions.

Expected learning outcomes

These include knowledge about competitiveness, corporate survival, sustainable business, operations management, productivity, performance.

Supplementary materials

Teaching notes are available for faculty. Please consult your librarian.

Keywords

Acknowledgements

The case study is prepared from secondary sources including the information provided by company management, official web site and published reports. This case study is intended for a class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. The authors thank the management and executives at Go-Goal Hydro Power Pvt. Ltd, India for discussions, data, photographs and plant visits from January 2011 to October 2011. They are also grateful to the reviewers for their valuable suggestions that have made the paper more systematic and instructive.

The development of this teaching case study has been facilitated by Bimtech Center for Management Case Development at Birla Institute of Management Technology, Greater Noida (India).

Citation

Koul, S. and Arora, M. (2012), "Coping with capacity expansion: Go-Goal Hydro's panache", , Vol. 2 No. 2. https://doi.org/10.1108/20450621211228392

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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