1. Identify the underlying problems here. Try to be as specific as possible. Rory Thomas has been...

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1. Identify the underlying problems here. Try to be as specific as possible.

Rory Thomas has been working as a production manager at YD Furniture Limited for the last six years. During his tenure, he has been part of teams responsible for designing and launching new products as well as for exploring new markets. The company is earning good revenue and has many happy customers. Recently, third quarter results for the year 2015 were declared. Rory was surprised to see the poor performance of one of their premier sofas in that quarter. The sofa in question was a small designer piece suited for a bedroom or living room. This sofa had contributed a big part of the revenue in the past; therefore, its poor financial performance in this quarter affected the overall revenue significantly.

Rory decided to look into the matter himself. He scheduled a meeting with the managers from different departments involved in the production and dispatch of the product. Unfortunately, he found that all managers were blaming each other for the delay. He asked his assistant to get him a few important documents from each department.

A thorough investigation revealed that the dispatch department was dispatching only one sofa every five hours, while the average demand was two sofas every six hours. Rory phoned the dispatch department, which complained that the inspection department was taking more than the required time, causing the delay. The inspection manager, when contacted, made it clear that the upholstering department was sending sub-par sofas that had to be rejected multiple times.

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Related Book For  book-img-for-question

Introduction To Materials Management

ISBN: 9781292162355

8th Global Edition

Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive

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