Written Analysis of a CaseKami CorporationProblem StatementMr. Olano's problem as the newly appointed General Manager of Kami Corporation is how to improve the operations to meet the demands of their client and to be a world-class company.
Areas of ConsiderationProductionÃ¢ÂÂ¢Inability to meet production quotas. The owner of Kami Corporation had committed to Aiwa to have production capacity of 80,000 units per month. At the time the case was written, Aiwa's orders had been 30,000 units per month compared to the output of only 25,000. But the client indicated that orders will increase to 50,000 to 60,000 within three months.
Ã¢ÂÂ¢Also, there should have been three production lines with output of 1,000 units per day per line but there were only two lines installed and had managed to reach an output of only 500 units per day.
Purchasing and LogisticsÃ¢ÂÂ¢Since Kami's purchasing function is accomplished through Mega, its sister company, mistakes in order placing and issues in shipment and customs clearing are commonplace.
There were instances when the orders had to be expedited correct lapses and address delays.
Inventory and WarehousingÃ¢ÂÂ¢Components and finished goods are often 'misplaced' in the Kami warehouse resulting to substantial order backlogs from the client while orders were increasing every month. Components are mixed with finished goods and rejected components and wastage from the production process.
Ã¢ÂÂ¢While components and finished goods are piled and mixed-up in the floor and aisles, there is a huge empty space on the top of the boxes.
Human ResourcesÃ¢ÂÂ¢Mr. Olano, a finance manager at one of Mega's companies, was appointed by the owner to be Kami's new General Manager to fix the problems that the company is facing. His appointment was met with resentment and jealousy by Mr. Kee, Kami's production operations manager.
Ã¢ÂÂ¢The production managers headed by Mr. Kee...