A delivery rate of 82% for the control chip and 100% rate for all the other parts in the assembly of the remote means that the entire product is going to take more time to assemble and therefore a longer time to get to the market. The original assumptions concerning the process which were pegged on the expectations of 100% delivery for all the parts are now not applicable given the control chip supplier’s low delivery rate. In the light of the new information, alternatives that are likely to meet the deadline will be considered.
In the original process where all the suppliers were selected and each given the opportunity to supply a certain part in the remote production, the global supplier that is located in another country was given the responsibility of supplying the control chip. This process is now not efficient and an alternative must be established. In the alternative process, supply of the control chip is supposed to be shifted to another more reliable company so as to avoid the delay. Before the alternative process of selecting another supplier is implemented, a careful analysis has to be done as a way of trying to establish the reason as to why the company in the first process design has a delivery rate of 82%. The process of evaluating this old supplier will the a tough one given its location in another country (Bessant 1990, p.78). The reasons for this include travel if the evaluation has to be done on site, legal issues in dealing with foreign importers or contractors, and a difference in management traditions that may be existing in this supplying company due to the fact that it is in a different country (Deresky, 2008, pp. 208-209).
In my decision making process, there are cultural business factors that will play a role. For example the fact that business related decisions are never made with emotions will influence my decision making (Petroski, 1992, pp .34-35). Therefore, I will look at the whole process with the intention of replacing it with one that makes business sense and not the one that appeals to my emotions. Also, the tradition of carrying out a thorough search for a possible supplier at home before looking out to other countries will influence my decision (Dean & Snell1991, pp. 776-780). A supplier from another country will only be considered if there is no local supplier.
In evaluating the alternative process, I will the statistical process control technique of learning curves for organizations as they undertake various processes. I will apply the learning curves by coming up with learning curves for the two processes; the one of 82% delivery rate and the alternative. Then I will determine the learning rate of the alternative and then compare the two so as to pick the most efficient.
The new process, if picked will take time to take effect. Laying down the infrastructure for the new process and getting all those involved to get used to the process details will take some time; meaning that it will be a bit slow at first. After a while, this will change since everyone will have understood how the process works. Thus the supply of control chips will be at 100% and remotes will be produced smoothly. “The amount of time required to complete a given task or unit of a product will be less each time the task is undertaken.” (Chase,Jacobs & Aquilano, 2005, p. 135). This means that with time, the system works faster.
In conclusion, the learning curves will help in coming up with the learning rate for the second process which is basically the alternative. This will then be compared to the existing and if found to be more effective, it can be adopted.
References
- Bessant, J., 1990.Managing Advanced Manufacturing Technology: The Challenge of the Fifth Wave.London: Basil Blackwell.
- Chase, R., Jacobs, R & Aquilano, N. (2005).Operations Managementfor Competitive Advantage,(11th ed.).New York: McGraw-Hill/Irwin.
- Dean, J.W. & Snell, S.A., 1991. Integrated manufacturing and job design: moderating effects of organizational inertia. Academy of Manage Journal, 34, 776–804.
- Deresky, H., (2008).International Management: Managing Across Borders and Cultures, (6th ed.). New York: Prentice Hall.
- Petroski, H. 1992. To Engineer is Human: The Role of Failure in Successful Design.(New York: Vintage Books.