Case Study: Evaluate the three options DTI president Toru Shima is considering for expanding his firm's output of flat panel displays. Which of the three options should Shima choose, and why?
Toru Shima - Leadership Quality
This case exemplifies the fact that how despite tremendous technological innovation, an organization faces extinction due to market innovation by its owners. This case serves a point of refute to the traditional management thinking that positively links technological innovation to unremitting competitive advantage. The success of DTI to meet their customer's (IBM and Toshiba, who were also its owners) requirement and overcome the manufacturing bottlenecks is an example of managing radical technological innovation. It was Toru Shima's vision to met the requirement of 100,000 units per month but also overcome the hurdles imposed by the complex technological and manufacturing process.
OPTION # 1: Continue to focus on improving output in the existing line.
Advantage: It will significantly increase the outputs of the company, although it must come with appropriate production planning.
Production planning is a necessary function within the company if it aims to improve output. In manufacturing and technological companies this process is often very difficult because of the fast rate of change and the occurrences of unplanned events. DT uses several methodologies depending on the rate of demand of the customer and the price of the technologies. Nevertheless, the objectives of the company for every transaction do not change: efficiency and effectiveness.
Production planning must be implemented by this company in order for its activities and resources to be coordinated over time. This enables the company to achieve its goals with minimal resource utilization. Production planning also enables the company to monitor the progress of their plans at regular intervals and maintain their control over operations. Production planning within...