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Engineering Management: Challenges in the New Millennium

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Solution Manual Chapter 3 :D :D
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   ANSWERS TO CHAPTER 3 QUESTIONS  ANSWER 3.1  Forming a concurrent team is the most suitable strategy for this assignment. The steps to take are: (1) name selected staff with experience in major functions (e.g. marketing and sales design engineering product de!elopment customer ser!ice and production) as members ( ) set objecti!es (#) define timelines and budget constraints and ($) declare a top priority for all supports the team might need.  ANSWER 3.2   %he should take the following steps: (1) benchmark externallyto define the current le!el of in&house 'uality performance and pertinent metrics to assess 'uality performance ( ) set up a 'uality impro!ement team ('uality cycle) comprised of representati!es of the workers who ha!e hands&on experience and skills in handling different materials the team should ha!e no management people (#) define team objecti!es ($) specify time and resources constraints () hire external consultants to offerideas of best practices in materials handling but only if the team makes little progress o!er a reasonable period of time (*) support the team recommendations and make resources a!ailable forits implementation (+) recogni,e and reward team achie!ements and (-) regularly monitor 'uality performance thereafter.  ANSWER 3.3   The preempti!e introduction of the first batch of sophisticated products to a technologically un&ad!anced country signifies a major competiti!e ad!antage for the company in that marketplace. nly fools would gi!e up that marketing entry and associated expansion opportunity and hand it o!er to the competition. /o not make the same mistake as the training managerwho suffers from a chronic lack of perspecti!e. The company should do the following:0. eject the suggestion of the training manager and continue tohonor the sales contact.2. 3onduct a comprehensi!e sur!ey of trainees to elicit commentsabout the training program (e.g. language technical terms speed of deli!ery lack of hands&on practices trainers not proficient in training arrogant attitude toward third&world engineers etc.) and ask for their recommendations to impro!e.3. 4ork with trainees to refine the training programs (e.g. addremedial topics for trainees to catch up on selected background materials use electronic e'uipment not widely a!ailable back Chapter 3 Answers 17  home conduct plant tours to obser!e real&life operation and maintenance procedures etc.)./. %end experienced maintenance and operational personnel to!isit the trainees for a period of time to pro!ide additional on&site guidance.5. %et up a call center to continue to offer support for thetrainees.  ANSWER 3.4  0 change in business conditions is a !alid reason for manpower reduction. 6es the engineer should be discharged with se!erance pay. The company may want to retain the ser!ice of an outplacement consulting firm to assist the engineer in finding a new job. Furthermore the company may offer a !ery positi!e reference letter to support the engineer in his search for a new job.  ANSWER 3.5   The company president should take the following steps:0. 0uthori,e market research to !erify the existence of anenlarged customer base for the company7s products.2. 3onduct an external benchmarking program to !alidate thecompany7s marketing practice in order to be comparable to the best in industry.3. 3ommunicate the results to all employees !ia a town meetingelectronic bulletin board company newsletter or other such means./. Form a high&le!el team which contains representati!e of allmajor functional groups (e.g. marketing design engineering product de!elopment production finance and ser!ice) to come upwith a strategy of broadening the customer base (e.g. segment si,e growth rate new product features competition marketing8 sales program ser!ice organi,ation to ensure customer satisfaction etc.).5. 3reate a 9ew roducts /i!ision whose primary objecti!es areto make market and sell new products and pro!ide ser!ice to the enlarged target customer base.F. 0uthori,e resources and delegate the responsibility and authority of program implementation to the 9ew roducts /i!ision.;. e!iew results regularly to monitor progress. Chapter 3 Answers 18   ANSWER 3.6   0c'uire a small company to shorten the time to market and thus more readily preser!e its position in the marketplace. <ntegrate its technology into the company modify production lineto accommodate the upgrade and assign the current marketing sales and ser!ice staff to manage customer relations. <n this way the company can take ad!antage of its established brand nameand expand the current customer base.  ANSWER 3.7   The preferred members on this presidential task force shouldbe marketing8sales design engineering product de!elopment production finance logistics and ser!ice. The specific representati!es from these functional groups must be experiencedrecogni,ed leaders in their domains of expertise known for theirinno!ati!e and creati!e insights and be relati!ely easy to work with. The task force should first get organi,ed. 0!ailable dataare then to be re!iewed. The task force should brainstorm possible causes for the declining sales:0. 4as the product price too high in comparison tocompetition due to high product cost=2. 4ere the sales people ineffecti!e due to poor training low morale meager compensation and8or inade'uate e'uipment8 facilities=3. 4as the ad!ertisement budget too low resulting in poor product exposures and insufficient brand name recognition=/. 4as there a decrease in product demand due to new substitution products recently coming into the market from o!erseas=5. 4ere the customers dissatisfied with the ser!ices (e.g. problem&sol!ing spare parts order processing etc.) offered=F. thers. 0ssign task force members to collect8ac'uire applicable datato !erify any identified causes responsible for the decline in sales. nce the real causes for decline in sales are identified addadditional experts to the task force to help define solutions. /e!elop options to eliminate all causes of the problem. ank&order the options document the decision criteria and Chapter 3 Answers 19  report back to the company president with recommendations. eorgani,e the task force to include experts on projectimplementation. 3arry out the project plan as appro!ed.  ANSWER 3.8   >eeting customer7s re'uirements must always be the primary goal of e!ery company e!en if it means a loss of profitability. e&organi,e the project to utili,e external resources (e.g. drafting model making testing design of specific parts 'uality control etc.) for supplementing in&house capabilities inorder to shorten the time to market. The project manager should estimate the additional costs in!ol!ed and get an authori,ation from company management. 0ssure >arketing that roject ? will be deli!ered on time. @nderstand the real causes of project delays (e.g. poor initial estimates poor execution special unanticipated e!ents deli!ery problems of !endor&supplied parts short supply of skilled staff due to resignation etc.) de!elop the pertinent contingency measures and document these findings for future use.  ANSWER 3.9   %ince the director7s need to know details may be brought about by the need of his boss the A it is not a good idea for %ally to 'uestion >ark7s wisdom of raising so many detailed 'uestions. ead all progress reports make notes at staff meeting and tabulate the major milestones and results of all projects. %ally should ha!e this table on her desk so that some details can be extracted from it when the director calls. <f %ally cannot answer specific 'uestions offer to call in the professional staff in!ol!ed and ha!e a !erbal report made in %ally7s presence. >ake notes on additional details so reported. esist an increase in the fre'uency of re!iews as %ally should protect her staff from di!erting too much time to communications with the director.  ANSWER 3.10   0s illustrated in Table #&1 there are two additional laddersbesides the managerial ladder for engineers to consider: Chapter 3 Answers 20
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