Executive Summary:
The report of the plant manager for RIO BRAVO IV, a subsidiary of Packed Electrical a division of General Motors identifies mistakes made by top management. These mistakes clearly indicate top management failure to use project management principles in starting up a new manufacturing branch. It also points out the learning outcomes when good efforts are placed at the right places and with the right human talent employed. In the new economy organizations have to focus on the customer, environment and its resources and change their approach in doing business (paradigm shift). Senior management has to give clear goals and utilize the Total Quality Management (TQM) philosophy.
Failure by top managed clearly state the
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There is no clear operational strategy. The end performance which was a result of TQM is clear proof that with good management decisions organisation can become a Centre of excellence. At the end, this factory was a top performer. Management need to do things right first time. There was need to carry out the feasibility study on the location of the factory and know the customer, so as to be able to address the diversity issues.
Case Background:
Rio Bravo IV Electicos is a newly established subsidiary as a part of the Packard Electric, a division of General Motors to expand and be a world leader in their sot of business. It was established to carryout production in Northern Mexico where there were some Packard facilities in operation. A new management team was appointed to take the new plant from ground zero to a quality manufacturing company and the initial customer was one of Packard’s biggest clients. All of the managers came from a different background than the positions they currently held. This posed great challenges as the newly appointed management team had little experience in this nature of business. Their customer New United Motor Manufacturing Incorporated (NUMMI) demanded high quality products, in precise quantities, at specific hours of the day, to the correct location and at an acceptable price. We then see challenges when the samples of initial
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Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage.
The case study illustrates the challenges met by a newly established company i.e. Rio Bravo IV in a high performance and quality demanding Industry. It shows how the best operations management strategy is important and how customer focus is a key feature in the success of an organization. We also see how building the right team for the right job will be key in the success of projects in today’s result oriented world.