Case study 1
The case is about a conversation between Jorge Gonzales, the CEO from Taracare Inc., and his manufacturing manager Alfredo Diaz. Alfredo was hired because Taracare was having difficulties in meeting the deliveries and in quality. After some time and only making little progress, Alfred scheduled a meeting with Jorge to discuss the problems. The main points Alfredo concerns was: Problems with Purchasing materials
Delivery promises from the sales that can´t be meet
New designs, which are nearly impossible to produce and at least the costs are increasing. Equipment utilization is too low
When increasing the equipment utilization they have too much capital tied up in inventory Alfredo thinks the main problem is that he is getting too less support and there is no communication and cooperation between the different departments. Jorge leaves the meeting without saying anything to the problems Alfredo mentioned. He just says that Alfredo has some good points but they are no worse than those of the competitors. At the end he wants Alfredo to send him a memo, so that he maybe call a meeting where they can discuss these issues with the other department heads.
At first it looks like outdoor furniture and replacement windows have very little in common. It looks like Jorge made a mistake in hiring a new manufacturing manager without the proper qualifications in this branch of industry. BUT Alfredo already knows how to run a manufacturing facility. He proved that in his previous position. The tasks of managing a manufacturing facility are the same and don’t depends too much on the products which are made. He only needs some time to get used to the different manufacturing processes. And in both products are similar raw materials, such as aluminum, glass and wood. So he already knows the processes to handle these raw materials and just needs the knowledge to assemble the parts which are not so different from his...
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