However, market demand is improved and this means that efforts need to be made to try to improve the performance of the aircraft manufacturing business. This write-up presents a discussion for bringing about improvements at Going Inc’s aircraft manufacturing business that is presented with an opportunity to capitalize on high market demand for its products. However, Going Inc’s aircraft manufacturing is plagued with problems that lead to manufacturing delays. Problems related to long lead times for manufacturing, poor quality, poor flexibility in manufacturing operations, high manufacturing overheads and poor order accuracy persist to bring about deterioration in the overall performance of the aircraft manufacturing business.
The content of analysis provided in Appendix A clearly presents the case that Going Inc’s aircraft manufacturing business now has an additional market demand with a backlog of one hundred airplanes on order. With such a high backlog and a maximum production capacity for fifteen planes per month, or sixty planes for a lead time of approximately four months, it is clear that the production capacity is inadequate and this should be doubled. However, if a decision is being taken to incur the additional expenses to double production capacity, then every effort should be made to try to deliver value to its customers by producing aircrafts of high quality, cheaper and faster so that the market share can be sustained (Murman, 2002, Chapter 4).
Increasing production capacity without maintaining satisfied customers who show satisfaction with order accuracy, quality and flexibility in manufacturing that caters to their needs will result in a the business losing customers and wasting the investment in its added production capacity. Thus, in addition to doubting its production capacity for aircraft,
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