Essay on Taracare Inc case study

811 Words Sep 28th, 2013 4 Pages
Case study 1
Taracare, Inc

Summary

The case is about a conversation between Jorge Gonzales, the CEO from Taracare Inc., and his manufacturing manager Alfredo Diaz. Alfredo was hired because Taracare was having difficulties in meeting the deliveries and in quality. After some time and only making little progress, Alfred scheduled a meeting with Jorge to discuss the problems. The main points Alfredo concerns was:
Problems with Purchasing materials
Delivery promises from the sales that can´t be meet
New designs, which are nearly impossible to produce and at least the costs are increasing.
Equipment utilization is too low
When increasing the equipment utilization they have too much capital tied up in inventory
Alfredo thinks
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Question 2:
It is obvious that the main problem in Taracare is the missing cooperation and communication between the departments.
The goals from the different departments are often not the same. And often they are in a conflict to each other. They should think about what they want to achieve and how to lead Taracare.
Jorge should also immediately call a meeting with the department heads, so that they can see all the problems from different point of views and so that they are all on the same level of knowledge. After that they have to search for the reason of the problems and where the problems are coming from. They have to work together to find solutions. It should be easier if they hold the meetings from here on between only two departments. This gives more space for specific discussions. So the meeting regarding low equipment utilization should be held together with the finance and accounting department because it applies to both departments at the same time. Like I mentioned earlier they have different goals. So the accounting department wants high equipment utilization, the financial department on the other hand wants low inventory stock. Jorge should be present during these meetings as an objective person. Because in the end he has to make sure the decisions have the ambition of an efficient workflow for the whole company and

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