Motorcycle Components (MC)

MC is a large public limited company producing components for motorcycle manufacturers in a very competitive industry. The Operations Director, Jay, is proposing new capital expenditure of $4 million. Jay thinks that automation of the production process will have significant financial benefits for MC. He wishes to gain approval from the Board of Directors to implement a process innovation project. Jay believes that, with good communication and the involvement of employees, he can effectively manage the project.

Evaluate the possible impact on MC from introducing process innovation.