Write a report analysing the case presented below.
In order to meet the growing market demand for colour television sets, Southern Manufacturing Company has begun producing them. When it comes to making deliveries on schedule, the corporation has trouble keeping up with demand. Amirthalingam began working as a General Manager at Southern Manufacturing Company Ltd. two months ago.
He was compelled to take the necessary actions to ensure that the sales delivery timeline was closely adhered to. To determine the reasons for the delay in the delivery of the items, he had to look at the company’s data.
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Amirthalingam discovers that the manufacturing division paints a picture of increased expenses, missed delivery deadlines, and an uptick in quality complaints. He immediately dialled Mr. Bhaktavasalam, the works manager, to have a conversation and discuss the facts in order to find a solution to the issue. Bhaktavasalam acknowledged his poor performance but said that the sales department’s excessive promises and disregard for the production schedules were mostly to blame for his inability to achieve the delivery deadline.
The majority of the quality issues, according to him, are caused by the constant stream of engineering modifications that appear without notice and provide little time to iron out the manufacturing issues that are inherent in all new products. Amirthalingam acknowledged that he had given his approval for the most recent round of engineering improvements.
As a further step, Deeran, the engineering manager, was summoned to Amirthalingam’s chamber for discussion. He described to Deeran the difficulty in putting the authorised engineering improvements into practise. Mr. Deeran stated that since the engineering improvements with top management permission arrive to him one at a time, separated by a few days, it is impossible to adopt them all at once.
As a result, Amirthalingam instructed Deeran to implement all the agreed adjustments into production right away in order to boost output and adhere to the sales department’s timeline.
Amirthalingam summoned Mr. Nayar, the sales manager who is in charge of maintaining the sales calendar, during the problem-solving exercise so they could speak. Mr. Nayar acknowledged that he was unable to completely adhere to the sales timeline since he was unaware of the production schedules.
Additionally, he expressed dissatisfaction at the engineering division’s repeated changes to product standards without discussing or telling the sales division. He also complained that the sales department was not notified in advance when the finance department tightened the credit requirements, which delayed the delivery of the goods.
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Amirthalingam acknowledges once again that the identical engineering modification that produced issues for the sales department and rendered the stock of replacement components outdated. Additionally, he discovers that the credit standards were tightened by the finance department at his request because of an exceptionally low cash situation.
QUESTIONS
- What led to the issue?
- Describe the main coordination issue that Amirthalingam is experiencing.
- How can the company’s many divisions continue to coordinate?
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