The Manufacturing Manager of New Technology Company Is Concerned About

question 79

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 the best of everything. 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 favorable. However, recently, things have turned negative.
In recent months, everything seems to be operating in a crisis management mode. Although most cost variances remain favorable, 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 vice president of sales 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:

Critical Thinking

The objective analysis and evaluation of an issue or situation in order to form a judgment.

Clinical Inference

The process of drawing conclusions about a patient's health status based on available data and professional judgment.

Cervical Spinal

Pertaining to the cervical region of the spine, which consists of the first seven vertebrae situated in the neck area.

Data Collection

The process of gathering and measuring information on variables of interest in an established systematic fashion.