OPS/GM 571 Internal Memo

Individual assignment week 3 OPS/GM 571

OPS/GM 571 Internal Memo

There was a union strike which has entirely shut down the shipment of the control chips. The strike in Canada has created the need to consider trying to get an alternate control chip manufacturer. This is important because the control chip is a fundamental part used to create the keyless car remote. As most of you have learned through our training workshops, the Goldratts Theory of Constraints can be considered to be executed as another way to manage with the problem. Being that we cannot lose momentum or decrease in productivity, this is our alternative until a negotiation with another company can be made or the strike hopefully ends. The strike is the main problem for the company because although the strike is being held out of our country, it can delay our ability to assemble, sell and distribute products to our customers. As a strong and productive team that makes up this company, I am positive that this challenge will not be detrimental on our goal. The following steps must be taken based on with what the TOC establishes: 1) Identify the system constraints (needed to make improvements possible through locating weak link), 2) Decide how to exploit the system constraints (to make the constraints effective as possible), 3) Subordinate everything else to that decision (Align every other part of the system to support the constraints even if this reduces the efficiency of non-constraint resources) 4) Elevate the system constraints (If output is still inadequate, acquire more of this resource so it no longer is a constraint) 5) If, in the previous steps, the constraints have moved, go back to Step 1, but do not let inertia become the system constraint.

OPS/GM 571 Internal Memo

Fundamentally, there are three points to analyze: what to change, to what to change, and how to cause the change (AGI Goldratt Institute, 2007)? The constraint

is the strike at the manufacturing company in Canada and the setback in receiving the control chip needed for the automotive keyless entry fob. Another regional company, which is in Canada can be attempted to be used, its called Zen Automotive Co. It has been used in the past but at that time did not meet our expectations. Do to the proximity to the U.S, cost effectiveness in shipping, and greater quality control on the companys part our company plans to reach out and contemplate on giving them a second chance because we already had an agreement established, consequently we are familiar with their prices, and would only need to reach a new agreement in regards of them being on time. Zen Automotive Co. is the recommended option as an alternate regional company because this time around our project management is solid and our execution and collaboration with Zen will be highly synergized. If in fact Zen meets our deadlines, standards and expectations, there is a possibility to permanently name them our official manufacturer for the control chips. This change is necessary because the future of our company relies on it. Any future events such as this one can be a risk for our reputation, productivity and execution. It is our goal to maintain our standards and our responsibility to our customers. Therefore, the change will be taken into affect as soon as possible. In the meantime I trust your participation and willingness to continue doing what we do best.

References Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2006). Operations Management For Competitive Advantage (11th ed.). Boston: The McGraw-Hill Companies, Inc.

OPS/GM 571 Internal Memo

Theory of Constraints. (2011). In Wikipedia, The Free Encyclopedia. Retrieved September 1, 2011, from http://en.wikipedia.org/w/index.php