Flextronics Case Analysis

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Flextronics Case Analysis

1) Problem Statement :
Flextronics won the bid to produce Microsoft Xbox video game for the 2001 holiday season and assigned groups in Hungary and Mexico to manufacture. The Microsoft required using the same shop-floor management system in two facilities for easily tracking information. However, the Mexican team used the Datasweep while the Hungarian team preferred the Virtual Factory and both were resistant to switch. The account manager, McCusker found it difficult to coordinate and determine which software to use.

2) Objectives:
* Effective shop-floor management system for tracking information. * Meet the requirements of Microsoft: a single system.
* Timing: fulfill the project on time.
* Save costs.
* Positively impacts for future large scale global projects. * Keep good relationships with three parties, Hungary Team, Mexico Team, and Microsoft.

3) Alternatives:
1. Use Datasweep in two facilities.
2. Use Virtual Factory in two facilities.
3. Maintain the Status Quo and convince Microsoft to accept two systems. 4. Persuade the CEO to subsidize the Hungarian to switch software.

4) Consequences of Alternatives
Datasweep was an effective system that could be used globally and rewarded by the Microsoft. The main drawback was cost. It needed a lot of customization, complex implementations that had to be done by professionals that charged expensive. However, it was used and supported by many places in North America. The IT department, the head of North America, and McCusker all preferred it, as well as the Microsoft, shew its satisfaction early when bidding. However, the head of Europe was resistant to use it. If the CEO pushed Hungarian team to use Datasweep, first, it cost money, 2 to 3 million dollars plus ongoing fees. Second, it might generate unforeseen bugs and waste time. Third, it would upset the Hungarian group. Mc Cusker didn’t want to displease any party...
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