Professional Documents
Culture Documents
Strategy Group True
Strategy Group True
Strategy Group True
Tama Electronics’ current manufacturing facilities arrangements are based on production units in
which production of various components is done.
Tama Electronics’ manufacturing unit are four in number that is pilot line unit, the spare parts unit,
machine vending unit and the unit handling the rest of the activities.
The “pilot line “unit is the first unit and is responsible for the development and introduction of
products. the “pilot line” unit has the most skilled operators due to the development nature of the
task, which often involves using product drawings and discussing specification changes.
The spare parts unit is the second unit that was set up to handle low-volume spares requirements.
The spares unit also requires a high level of skilled labor, but often finds difficulty in resourcing
both these units.
Machine vending unit is the third unit that was made responsible for all vending machine products.
This unit requires less skilled labor. Its job concerns assembling a range of quantities for different
products.
The forth unit is the last unit and handles the rest of the activities in Tama Electronics. This unit
also requires less skilled labor. Its job concerns assembling a range of quantities for different
products.
These units involve the assembly, test and packing of pcbs(printed circuit board) and each shares
a more expensive process (such as flow solder, component sequencing, auto-insertion and any
expensive testing equipment which is centrally grouped on a process basis) with its own
managerial and supervisory structures which includes production and manufacturing engineering,
maintenance and production scheduling personnel, quality conformance, job training and
recruitment.
This current manufacturing facilities arrangements have led to a relatively low level of complexity
in terms of the requirements for operations control, capacity planning, inventory control and other
aspects of operations.
In addition, Tama Electronics had problems with employee motivation, especially regarding their
lack of identification with the business and plans for growth. As a result of the strategy review,
Tama Electronics changed its approach to one based upon smaller manufacturing units, each
focused to different aspects of the business. These units are each provided with their own relevant
support functions and as a result has responsibility for many aspects of the total production task
including day-to-day scheduling, change-overs, maintenance and quality control. The operatives
are given a broader set of responsibilities and Tama Electronics has successfully introduced
statistical process control to great effect.
1 (b)
The following are the advantages brought about by the present manufacturing facilities
arrangements
1 (c)
Delay as a result of conflicting order winners that exist within the Tama Electronics
manufacturing business
High level of design change versus reliable deliveries. In the Domestic Appliance Products
Markets, some customers seek high level design change that conflicts with reliable deliveries since
high level design change is time consuming and require technical know which calls for skilled
personnel.
Relevant technical support versus lead time. In the Domestic Appliance Products Markets, some
customers require relevant technical support for the products they have purchased or ordered for
that conflicts with the lead time that is the time between the initiation and completion of a
production process.
High level of quality conformance versus design support and reliable deliveries. In the Vending
Machine Products, customers require products of high level of quality which conflicts with the
design support and reliable deliveries hence leading to delays.
Delay as a result of the role of strategy versus unit autonomy as the basis for corporate
decisions.
Strategy role involves allocation of specific roles, responsibilities and decision-making authority
within Tama Electronics which ensures clarity and alignment. Decision making authority is
distributed based on these roles, expertise and hierarchical levels hence leading to delays whereas
unit autonomy involves the degree of independence granted to manufacturing units in Tama
Electronics allowing manufacturing units to adapt quickly to specific market conditions and
customer needs leading to inconsistency across units hence leading to delays.
1(d)
We would recommend the expansion of the market share by Tama Electronics beyond the three
markets currently available to increase sales and greatly out compete the rivals in the
manufacturing business.
The capacity difficulty in the spare units should at least be adjusted because the current one is
affecting the delivery reliability. This can be achieved by employing more high skilled labor that
can easily adjust (dynamic) and design the necessary spares that are required by the clients.
Alignment of Order Winners: Ensure that all units are aligned with the company's order winners
and strategic objectives. This alignment can help reduce conflicts and delays in decision-making.
Skill Development: Invest in training and development programs to address the skilled labor
requirements of units like the spare’s unit and the pilot line. Ensuring a sufficient and skilled
workforce can improve capacity utilization and delivery reliability.
Capacity Planning: Conduct a thorough capacity analysis to address capacity difficulties in units
experiencing constraints. Implement strategies to optimize resource allocation and mitigate
capacity challenges.
Performance Monitoring: Implement a robust performance monitoring system to track key metrics
such as delivery reliability, quality conformance, and production efficiency. Regularly review
performance data to identify areas for improvement.
Employee Involvement: Continue to empower employees and involve them in decision-making
processes. Encourage suggestions for process improvements and involve employees in the
development of new initiatives, such as the proposed payment system.
Strategic Review: Conduct periodic strategic reviews to ensure that the manufacturing facilities
arrangements align with the current and future needs of the business. Evaluate the effectiveness of
the decentralized approach and adjust as necessary.
2(a)
The payment system that reflects changes in the structure and responsibility that have been
undertaken by the employees initiated by the employees as suggested by Gary Wilson will result
into employee empowerment, tailored incentives, transparency and trust, innovation and
adaptability especially among employees.
However, this payment system can also result into complexity as the payment system is
customized, resistance to changes as employees resist alterations to the existing systems and risk
of bias because of employment involvement.
In conclusion, the payment system suggestions put forward by the manufacturing units at Tama
Electronics reflect a desire to tailor compensation structures to better align with unit-specific
responsibilities and performance. By carefully examining and implementing these suggestions, the
company can potentially enhance employee motivation, performance, and overall operational
effectiveness.
2(b)
This will result into increased efficiency, cost reductions due to digital payment systems, employee
empowerment and proper risk management in Tama Electronics.
However, this payment system comes with challenges such as employee trainings and potential of
technical issues during the transaction periods.
In general, the payment system suggestions play a bigger role into infrastructure development.
2(c)
In our own opinion, it’s appropriate to a larger extent for staff to initiate payment developments
because it contributes to employee engagement, frontline Insights, innovation and creativity,
ownership and accountability, expertise and experience plus leadership support within employees
and the firm as well.
To the smaller extent however, it’s not appropriate for staff to initiate payment developments
because it conflicts with the financial control and security, consistency and compliance in the
payment system procedures, efficiency and productivity as well as data accuracy and reporting.
2(d)
Alignment with manufacturing Strategy: Infrastructure investments should be closely aligned with
the firm's manufacturing strategy to ensure that they support the overall business objectives and
market needs.
Investment in people: Alongside physical infrastructure, investment in the skills, experience, and
attitudes of the workforce is crucial for successful implementation and operation.
Enabling innovation: Infrastructure should enable innovation within the firm, allowing for the
development of new products and processes that can provide a competitive edge.
Cost reduction and efficiency: Infrastructure should be developed to promote the adjustment of
production factors and reduce unit production costs, thereby increasing efficiency and
competitiveness.
Support for green development: Infrastructure development should also consider the
environmental impact and support the manufacturing's green development level, contributing to
sustainable practices.
Integration and flexibility: The infrastructure should be designed to be integrated across different
areas and adaptable to future technological advancements and market changes.
2(e)
Flexibility among employees or staff as they may tend to resist shifts or changes in job allocations
from one manufacturing unit to another or within the same manufacturing unit is an issue at stake
concerning infrastructure development and processes.
Operational efficiency: The shift towards smaller manufacturing units focused on different aspects
of the business was a response to the high level of complexity and lack of employee motivation in
the previous process layout approach. The issue at stake is the need to improve operational
efficiency through infrastructure developments that support streamlined processes, effective
resource utilization, and employee empowerment.