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Case: Westover Electrical, Inc.

Operations Management
MBA 704
FEU-Manila

Submitted by:
Reacting Group
RALPH ADRIAN H. MIEL
MA. THERESA M. MAMAUAG

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I. Case Background
Toyota was presented with a challenged related mainly related to very
poor visibility and low quality of a supplier, Chassis Co., for the Suprima model.
The Japanese brand Toyota is mostly known for its high-quality products and
perfecting the “Just in Time” manufacturing process. In 1997 Toyota was
launching a model of Car called the Suprima and teamed up with a company
called Chassis Co, a notorious US automotive supplier of stamped metal
components. Having a had a good trustworthy partnership for the previous six
years Toyota greatly increased their usage of Chassis Co. Toyota is now giving
Chassis Co all the supply chain responsibility for a much more technologically
advanced rear suspension cradle, but problems would arise. One of first
problems that occurred in this case is that Chassis Co failed to alert Toyota up
front that they were experiencing production issues. Toyota heavily
miscalculated the ability of the supplier, but when Chassi Co realized they were
at 60% of the production they should have related this information. It would
become obvious that Chassis Co lacked the skills in engineering, sourcing,
logistics, and overall project management to produce the more complex rear
suspension for the 2003 Toyota Suprima.
II. Statement of the Problem

Why they lack so much skill to do some of the necessary tasks were also due to
the fact that most experienced people had all been redistributed across the
country which greatly decreased their know-how.

III. Assumptions

1. Assuming ChassisCo had the project management skills.

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IV. Areas of Consideration

a. Human Resource and Development
The company should consider hiring additional employees who are
well-trained and skilled in the field of electronics and has experience
in operating winding machines.

b. Operations

Quality check/control should be consistent and know the standard

procedure to check if the organizational flowchart is being observed.

c. Finance
Investing in new technology or machines maybe considered that may
avoid or lessen defective products. Regular maintenance of the
machines should be observed.

d. Marketing

e. IT / R & D Business Development etc.

V. Framework
Strengths Opportunities

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Weaknesses Threats

VI. Alternative Courses of Action (at least 4)

1. Retrain the employees responsible for a specific machine.

Advantages:

1. Increase employees’ morale

2. Improve and refresh employees’ knowledge and skills

Disadvantages:

1. Additional cost for training

2. Needs to allot time for the training and operations maybe
disrupted if number of employees is not enough

2. Check all parts of the machine and make sure they are all in best
condition, if not then replace the defective parts.

Advantages:
1. Guaranteed effectiveness and efficiency of the machineIncreased
in bed capacity.

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2. New patients can be accommodated per day.

Disadvantages:

1. Defective parts may not always be available from the supplier.

2. Additional costs for the repair and maintenance

3. Make checking and correcting errors be done by a different person

other than the person responsible for packaging

Advantages:

1. Increase employee productivity

2. Reduces the load of the employee

Disadvantages:

1. Increasing the number of employees in the packaging department will

also increase the salaries expense
2. Loyalty of new employees is not guaranteed

Revision of operational flowchart that will allow on the spot correction and
reworks at an early stage.

Advantages:

1. Minimize rejected products

2. Lessen time and expense for intensive reworks

Disadvantages:

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1. Adjustment to changes may cause confusion among employees and may

take a while to perfect the new flow

VII. Action Plans

Activity Responsible Person/s, or Timeline

Department/s, Team/s, etc
Update accurate report of Operations 1st week
total number of defective
wires per machine
Check 3 machines and its Operations 2nd week
capacity
Retrain Employees Human Resource Department 3rd week
involved in machine
handling
Hire additional Quality Human Resource Department 4th week
Controller
Consider Investing in new Operations and Finance 5th week
technology
Make daily log/checklist of Operations 6th week
the day to day operations
Consider giving bonuses Human Resource 7th week
and incentives for hitting
the goals/target in lowering
rejected products

VIII. Recommendation

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In order to Westover Electrical Inc. to improve, there are some recommendations

related to the workers and operators as well as to the equipment’s and machines
are suggested.
In the machine area, assign only specific person/s to handle it and always check if
the machine is working and record the dates/days wherein there is a failure in the
production.

In the production area, check first all the materials if it is in good condition.
Always make sure everything that the process in doing the product is followed.
Make the employees a reminder in the machine. After the product is done, double
check if it’s in good condition or working.

Lastly, in the packaging area, always check first what the personnel did and it
should be different persons to check if there is an error in the packaging. And if
possible, for security of the product always double check too.

Conclusion

Overall, Westover Electrical, Inc. main goal is to have the quality check personnel
that should help them in their problem for the rejected products that they have
right now. They should have a seminar in all employees specifically who’s
handling the machine to further enhance their knowledge and also to know what
are the policies in order to make their machine fully processed and work
efficiently. Propose to the HR Department if they can provide a reward for the
efforts of the employees to give their best to the employees. If the process is
working both to the employees and company, set new goals for both parties and in
return give what you can give to them for the appreciation that they did. It is very

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important to take care of your employees because it can make them boost their
knowledge and efforts to work better.

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