Rio Bravo IV - operations management case study
Packard Electric Corp. is a peaker in position and signal product distribution in the United States. They supposition they could do the same thing outside of the US so they opened a plant in Juarez, Mexico to manufacture harnesses for US and other foreign customers. At the beginning, however their results were really paltry. Probably, the about important issue was that none of the management had the necessary go across needed for their managerial positions and hardly anyone spoke Spanish. Also, the factory was very poorly equipped that could not compete with the lofty requirements of NUMMI - Packards neighboring(a) customer. Packard was known for their mettlesome quality products but NUMMIs expectations were too high to satisfy. The first shipment was based on a 200-piece nightspot for prototype vehicles. Packard put together their best employees, every area was care in force(p)y checked, and was packaged in perfect order. However, NUMMI and Toyota decided that the products had poor quality design and they were unhappy with the products. Later Packard hired Simitomo wire for their expertise in methods of producing outstanding quality and precision. They taught Packard but at the end of a six-month program, their shipment was rejected. After all that spat Packard decided to implement elements of JIT and TQM, such as Kaizen, reduction of lead times, quick die changes, Kanban, and Visual management (Shoenberger, Knod, 1997).
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Packard Electric Corp. has successfully implemented several JIT and TQM programs. However, they could enhance the efficiency of operations in several sectors, such as automation of human/auto work, involvement of third parties to work on quality, flexibility, and service, and an adequate layout to abate operations wastage....
1. Executive Summary
The authors present the case study analysis of Rio Bravo IV, and observed that not all the 16 principles of operation management have been applied. The partnership that was introduced in order to improve the product for their client brought some techniques into the organisation helped, however this was at an ad hoc fashion. Customer focus and customer needs where not understood entirely. The leadership of the organisation displayed poor communication, and a lack of measurement systems for processes.
Initiatives such as customer relationship management, customer service management, order fulfilment, demand management and capacity planning would allow the organisation to manage the supply chain cross functionally. The benefits of applying the above-mentioned techniques and principles would be customer satisfaction, customer retention and increased market share, which is in line with the overall company objective.
The introduction of the balance scorecard will assist Rio Bravo IV in measuring benefits of strategic importance.
The author’s opinion in the Rio Bravo case is the leadership has been formed on an ad hoc fashion. The selection of the team to start up the new production plant had very little experience in the operations field. The ad hoc fashion approach has filtered down throughout the organisation as all new processes and ideas are ad hoc with no formal procedures. The leadership team that has been put in place has poor...
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