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Submitted
by
Kancherla Narendar
Reddy
0181/52
Background
Vickers manufactures hydraulic machinery that is used in various industrial
and engineering applications. It has 3 business/product segments: Vane
pumps, Piston pumps and Remanufactures services. Its major customers are
from North America region. Vickers has manufacturing plants in Detroit,
Joplin, Omaha and other international locations. Its Omaha plant, with an
Engineering laboratory, is the largest hydraulic component manufacturing
plant in the world.
But for the past few years, Omaha plant sales were declining continuously,
which affected companys topline. It was not able to offer competitive
products to the customers. Product quality and performance were also
deteriorating gradually. Product innovation and development was not
happening according to the customer requirements even though its
engineering laboratory has state-of-the art facilities and skilled employees.
Competition was also increasing both from large multi-national corporations
and small pump shops. All these issues plagued Omaha plant and reduced its
revenues and profitability.
be stated as the causes since they are inevitable in any industry. The below
diagram depicts the causes and effects (problems).
INTERNAL CAUSES
Old machinery and
technology
Lack of standard
procedures
PROBLEMS
Obsolete Higher lead time and
products; Higher costs
off-spec
Hindrance
flexibility
to
innovation
and
Strikes
and
shutdowns
periodic reviews about the status. In future, he has to assess the validity of
these actions and change them in accordance with the changing industry
landscape and customer requirements.