Spartan Heat Exchangers Inc.

2201 Words Oct 12th, 2011 9 Pages
Group Case Study
Spartan Heat Exchangers Inc. Current State
Spartan Heat Exchangers Inc. has been a leading designer and manufacturer of specialized industrial heat transfer equipment for more than 10 years. The company’s primary products are transformer coolers, hydro generator coolers, air-cooled heat exchangers and transformer oil coolers. Their USP are Fin tube type heat exchangers and long lasting products.
“… A heat exchanger is a device that is used to transfer thermal energy (enthalpy) between two or more fluids, between a solid surface and a fluid, or between solid particulates and a fluid, at different temperatures and in thermal contact. …”
The company is into highly customized heat equipments. Presently, due to entry
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This change can be best illustrated by comparison of Figures 1.1 and 1.2 in Appendix 1, wherein the possible corporate structures may tend to three different values, i.e. cost, differentiation and responsiveness; Spartan strategy has shifted its focus from a differentiation and responsive model to a cost effective model.
• Job shop method of production to Hybrid method.
The new corporate strategy implies re-engineering from a job shop method of production to a hybrid method of production. The former involved manufacturing operations with several departments, each of which produced particular components whereas the latter being a flow operation where multiple stations can work simultaneously. This will mainly allow Spartan to increase volume of production, reduce lead time and it will further lead in cutting down the carrying cost of inventory, even though the inventory will be high.
• Change in Corporate Culture.
The new strategy will affect the corporate structure of the company. Earlier the work was based on the specific requirements of the client and it was more of research based but now the focus on research will be less and it will be more on general requirements. Therefore the type of work would shift.
The present organizational chart of the SC Department in the company includes two buyers, one material control clerk, one expeditor and two shipper/receivers. This structure was functional to the previous strategy

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