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Challenges at Tarco

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Challenges at Tarco
1. Please identify in list form the challenges that TARCO is facing. Which are the most important? Are they interlinked?
The main problems TARCO face are:
• To keep up with the production, despite the frequent overtime work.
• The increasing production conversion costs due to the production of small series.
• The large quantities of waste which are generated because of the production.
• A planning is never carried out, neither before nor after the takeover.
• Delivery time is very long and inconsistent.
The most problematic issues are the increasing delivery time, as customers complain and sales decrease. However, this delivery time not only affects the customers, but themselves. Deliveries from the two component factories are inconsistent, which leads to unnecessary interruptions of the assembly lines and causes employee dissatisfaction.
Furthermore, not making a plan also affects the production. After the merger, a new systematic production planning process is introduced. However, there are still many problems as weekly plans are sent with a short notice and there is no time to make changes. There is no time for feedback.
All these problems are interlinked as the disorganization leads to inefficiency in the deliveries, which causes problems in order to keep up with the production, which generates waste production and increasing production conversion costs.

2. Mr. Wiese chose to develop the new product line without consulting his management colleagues. What was his rationale for this? Do you think he was justified?
Wiese told the rest of the team, that previously he had been accused of saying that the two component factories should jut conform the old TARCO factory. He thought that if he had consulted the rest of the team about his project, they would just have started to discuss about who should contribute what and when. Instead he had chosen a model where he just ordered the components needed and pretended they were going to be used for the current

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