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Pratt & Whitney has bet billions on its commercial jet engine market, but first, it has to get parts delivered on time. The Wall Street Journal (June 8, 2016) reports that half of the company’s suppliers for its new “geared turbofan” engines aren’t delivering parts and materials at expected levels as seamlessly as the company expected. Some 44% of the company’s 1,600 suppliers weren’t meeting the company’s on-time delivery and quality control targets. “Forty-four percent is the challenge,” said the CEO. It is the latest hiccup in P&W’s effort to ramp up production of the engine from 15 in 2015 to 200 units this year, and 1,200 a year by 2020. As P&W tries to coax its supply chain into shape, the company is requiring underperforming suppliers to provide buffers of extra parts as insurance against any interruption in production. The firm has more than 7,000 orders for the engine, and says that the new design will offer increased fuel efficiency and thrust while lowering engine noise—big enticements to airlines. Unlike previous generations of engines, 80% of parts for the geared turbofan will be made by entities other than P&W itself, then shipped and assembled in the company’s engine manufacturing centers in Connecticut, Florida, Canada and Germany. As a defensive measure against production problems, the company says it has tried to double up its suppliers—signing up duplicate makers for many of the engine parts to avoid interruptions. “We have all the capacity we need—the challenge is to get all the parts in on time,” said P&W’s VP for operations. “It’s a dogfight every day.” Discuss P&W’s approach to defend against production problems. Why is this supply chain problem arising? How would you like to manage it? Please use no more than 150 words to answer the above questions.
It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established.
When comparing the negotiating styles and strategies of French versus Spanish negotiators, a number of sharp contrasts are evident. What are three of these, and what could MNCs do to improve their position when negotiating with either group?
Harold Potter, a manager of Designs by Potter, is upgrading his CAD software. The high performance (IBM) software rents for $3,000 per month per workstation. The standard-performance (HP) software rents for $2,000 per month per workstation. The produ..
Explain how would Carlyle define its business strategy. Illustrate what present conditions in Carlyle's external environment favour its success. Illustrate what are the keys to Carlyle's future strategic success given its impressive also stiffer comp..
Organizational Development: Some company representatives believe in order to achieve change in an organization, there must be an entire organizational effort. Organizational development is the planned and systematic process in changing an organizatio..
Open today’s issue of The Wall Street Journal and look for an article about new moves being made by a corporation, specifically the decisions that are strategic. At what level is each of the decisions that you identified? Functional/Business/Corporat..
Assume your local congressman calls you for some economic advice. He wants to sponsor legislation to increase public spending on such common medical interventions as because he’s been told early detection saves money: Getting all children the right i..
Explain how goals and rewards can motivate individual and group behaviors and outcomes.
Write a two-and-a-half-page report briefly describing the various metrics used to gauge network effectiveness and efficiency in meeting organizational goals.
Carefully read the project scenario describing the MicroPharm organization. MicroPharm realizes that a compensation plan has to be created to support its continued growth and strategy. Outline a set of strategic compensation goals and plans for inter..
Peanut Processing Company produces cans of peanuts. The company expects sales of 15,000 cans in January, 16,000 cans in February, 17,000 cans in March, and 17,000 cans in April. Prepare a production budget for the company for the months of January, F..
Start Up Costs and Strategy: Consider the challenges of an entrepreneurial firm (SME, fewer than 500 employees) in the industry you researched previously. Using the Internet and traditional library resources, research and discuss the costs of startin..
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