Taracare Case Study

Essay on Taracare Inc case study

811 WordsSep 28th, 20134 Pages

Case study 1
Taracare, Inc


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…show more content…

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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... 1. What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material? It is no doubt that the ultimate problem rising in the case is miscommunication. Communication is utmost vital for both parties – purchasers and suppliers- to interact effectively, hence, to conduct business smoothly. On the other hand, it is also a lack of competency of Avion, Inc.’s procurement managers as they were unaware of such obvious changes in volume and delivery time required for operation though they deal with the flow of material on a day-to-day basis. They could not identify the problem, but also did not even bother initiating inquiries with Foster Technology sooner. To maintain a smooth flow of material, every aspects of value chain, including inbound, outbound logistics, operations, marketing and sales, and customer services must be fulfilled. In the case of Avion, Inc., the volume of goods shipped and its delivery lead time are far beyond the actual ability and capacity that Foster Technology could handle. The inbound logistics was hence affected, slowing down operations and outbound logistics, causing frustrated customers. 2. What initially appears to be the problem? What really is the problem(s) in this case? Delayed shipment initially appears to be the problem causing the whole...


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