Fhe, Inc.

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FHE, Inc.

Background Information
FHE Inc. is a manufacturer of pumps and related fluid-handling equipment that supplies products used to transfer all types of liquids from paint to food products and pumps to various industries such as automobiles and appliances. FHE Inc. is a multimillion dollar company that is experiencing improved sales and profits over the last five years through aggressive new product introductions. Phil Thomas, VP for Corporate Development and Marketing is in charge of both Marketing and Engineering. FHE chose to do this in order to facilitate cooperation between Marketing and Engineering, particularly with new product introductions. With the marketing and engineering departments so integrated, many times it is difficult to tell which department is in charge of certain responsibilities and who is to blame when problems arise. Problem Statement

Lum Donaldson, the Product Development Engineering Manager for FHE, Inc. is convinced that there is a need to improve the procedures, organization, and project control systems to make new product introductions go smoothly. He continually encounters problem in coordinating the technical program managers and the product managers. He is also concerned about the fluctuating workload in the engineering services department. While the Engineering Service and Administration Manager has requested several times for more advanced notice for these new projects the response given was that there are many uncertainties in the project schedules and many requirements are often unknown until the very last minute. Another issue is that the manufacturing department seems to be excluded during the design stage of new products and suddenly has a product design trusted upon them with little knowledge about the design yet high expectations for their work. Because of these issues, there are many problems that arise during manufacturing and sometimes products must be recalled. Key Considerations

1.What could be done...
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