This case study is about Delta Plastics, Inc. a company which produces plastic containers mainly for household purposes. Their products have been recognized for their high quality and they were providing to the customers through merchandised retailers. Delta was a well known industry leader that was continuously looking dynamically to wide their brand identification and market share. The key factor of the company was their R&D team which was working constantly to improve the plastic material and develop new product designs.
When R&D Delta’s team presented a new plastic material which was resistant at extreme temperatures (could immediately moved from the oven to the fridge), which compared to the glass containers, facilitates no breaks or cracks. Delta’s marketing group believed that this new plastic container would bring the revolution and corner the market, so they started pushing and arguing for direct production. That pressure lead to a meeting with the main issue whether to send it to the market or to go for further testing. The director of R&D Isabelle Harrison insisted for more testing in order to determine precisely the characteristics of the product. Even though there was any issue for the product safety, they wanted to improve the material and verify any incidents during the production stage. The Director of Manufacturing Jose De Costa agreed that the new material may needs more examination in case it is fragile. On the other hand, George Chadwick, Director of Marketing argued against that millions of dollars had already been spent on design and testing, and that the new product should immediately go to production, before the competitor comes out with something similar. The final decision was taken by Jonathan Fine, Delta’s CEO who declared that “If product safety is guaranteed, small problems in production should not be a big deal. Let’s initiate production as soon as possible.” Exactly one month after the production started, Jose De Costa while...
Please join StudyMode to read the full document