The Manufacturing Manager of New Technology Company Is Concerned About

question 60

Essay

The manufacturing manager of New Technology Company is concerned about the company's newest plant.When the plant began operations three years ago,it had modern equipment,well-trained employees,engineered work and assembly stations,and a controlled environment.During the first two
years,the evaluation results were very good with almost all cost variances being favourable.However,recently,things have turned negative.
Now everything seems to be operating in a crisis management mode.Although most cost variances remain favourable,the plant's segment contribution is declining and customers are complaining about poor quality and slow delivery.Several customers have suggested that they may take their business elsewhere if things do not improve.
The shop floor is in continual turmoil.In-process inventory is everywhere,production employees have difficulty finding jobs that need to be worked on,and scheduling has requested a larger computer to keep track of work-in-process.
The sales manager does not know where to begin with solving the customers' problems.It seems that everyone is working very hard and the plant has the best facilities and trained employees in the industry.
Required:
What is the nature of the plant's problems? What recommendation would you make to help improve the situation?
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Definitions:

Inflation

The growth rate in the general cost of goods and services, causing a downturn in the power to make purchases.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers.

Dale Carnegie Institute

An educational institution offering courses in leadership, public speaking, sales, and personal development, based on the principles of its founder, Dale Carnegie.

Rapport

The establishment of a trusting and harmonious relationship between people.