Operation Strategy

Problems:

- Manufacturing problem - only 1 site of manufacturing

- Management problem - Nielsen autocratic leader style, he is not committed to empower his managers, engineers do not get support from management to make product innovation (time to do research).

- No research and development.

- Not skilled employees, salaries are not competitive which causes high turnover,

- When they set up the process they copy the process from boiling.

- The company does not make money

- The company is taking more orders that it can handle - delays.

- Suppliers are also late

- They do not a lot about the equipment.

- Nobody in charge of every account.

- Centralization - everything needs to be decided by Nielson.

Cause of Problems:

- Management does no have knowledge of the industry.

- The two industries are very different: Standard process vs. made to order process, job shops (every order meets customer requirement), customization.

Winners: Quality, on time delivery,

Qualifier: customer service,

Losers:

Root Problem: Nielsen did not empower employees and keep the organization very centralized, running 2 different divisions the same way.

Nielsen problem (not educated)?? Management? The management style has a conflict with the industry. New product, new market, new process that allow flexibility.

If he did not how to do it he could have empowered employees, very centralized.

The company has not experience?? Right strategy? Salaries?

Desired outcome statement: run the factory at its full capacity and should deliver quality products on-time.

Recommendations:

- Empower the new Hired leader so he can make the changes to happen - No centralization, the 2 products are different.

- Assess proper number of order due capacity - analyze how many orders we can complete, reduced costs by having less orders (less workers, less quality issues)

- Train new employees, attract new talents, and increase salaries, get rid of unqualified people).

- Change cost-driven orientation (cutting-costs from the factory), making sure the factory works properly (installation, we have enough supplies).

- Have