CEOs dilemma

CEOs dilemma

Based on forecasts of potential contracts, the CEO of Kibby and  Strand is considering an option to lease the building next door, but he  has concerns there may be some slack in current production capacity that  could be utilized, negating the need for the addition space. There are  also some newer technology cutting and sewing machines available with  higher capacity the company could purchase, but they are expensive. So  here are the CEOs options:

  1. Do nothing to increase production, but the downside is lost contracts.
  2. Lease the building next door, then expand production by purchasing  the same technology cutting and sewing machines as the company has now.
  3. Try to squeeze more production out of the current production  department setup. This may require overtime pay, and would definitely  increase the maintenance costs on the current machines.
  4. Replace all the machines in production with newer higher capacity machines and remain in the current production space.

How do you decide which option to select without reliable and valid  data on the current production department? You can’t, and that is the  CEO’s dilemma.

This scenario presents a realistic picture of how outcomes data can  serve as a catalyst for change within an organization. While the focus  of this case is on consumer satisfaction data, most firms have ready  access to a dearth of outcomes data that can be used to investigate  causal factors, establish priorities, weight options (alternatives),  support decisions, and provide an internal benchmark from which to  compare future results. Making operational and supply chain management  decisions without having benefit of information coming from sound  statistical analyses, is tantamount to playing darts blindfolded and  betting your life savings on hitting a bull’s eye on the first toss.  Industries are being increasingly more reliant on data to support the  decision-making process. Data analytics and informatics permit leaders  to leverage big data, perhaps in ways it hasn’t been previously used, to  make informed decisions that can positively impact clinical outcomes,  financial and operational performance, and the strategic positioning of  the firm.

Unit Learning Outcomes

  1. Perform descriptive analyses on datasets using Microsoft Excel. (CLO 4, 5, and 7)
  2. Properly determine standard times for units of work using Microsoft Excel. (CLO 3, 4, and 5)
  3. Calculate cycle time commonly associated with time studies for production using Microsoft Excel. (CLO 1, 3, 4, 5, and 7)
  4. Use quantitative data as the basis for making suggested operational  improvements within various organizational structures. (CLO 3, 4, and 5)

Students are to complete Module 4, Human Resources and Capacity  (Scenario) in Practice Operations. Based on their observations in this  scenario, and upon a careful review of the available literature, the  student is to consider him – or herself to be the Production Manager of  Kibby and Strand, the company in the scenario.

The CEO is thinking of expanding Kibby and Strand, and you are tasked  to create a data collection plan and measurement criteria for how  production output and product quality will be measured. Create your  collection plan and output measurement criteria assuming the current  production capacity in the simulation scenario will be doubled.

In addition, the HR manager asks for a list of qualifications and  skill sets required for production shift managers to staff the  expansion. Create your job ad to include qualifications and desired  skill sets.

The student is to create the data collection plan, measurement  criteria, job qualifications list, and staffing plan based on knowledge  learned in the scenario, and post it in the discussion.

Instruction Guidance: It would be prudent to  consider content covered in chapter 7 of the textbook; however, there  are many other useful resources available on the Internet and in the  literature to support the construction of your action plan.

The required items should be prepared in a single Microsoft™ Word  document, and then attached to the unit discussion thread. There is no  minimum or maximum in terms of the word count; however, the response  should explicitly address all required components of this discussion  assignment. The document should be prepared consistent with the APA  writing style (6th edition) and reflect higher level cognitive processing (analysis, synthesis and or evaluation).

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