Evaluate operations methods by comparing volume, variety, flexibility, cost, quality, automation and strategic fit in IB Business Management HL cases.
The ELE board of directors decided to retain the Zeat brand name but operate it as a separate division of ELE, with Lucas as the director. Lucas identified that improvements within the Zeat division were possible in:
• productivity levels
• delivery dates
• air compressor servicing
• employee motivation
• employee absenteeism. Lucas implemented a rapid modernization programme of Zeat’s batch production manufacturing method. New machinery was purchased, and cellular manufacturing was introduced. Within two years, the Zeat division became more profitable.
Lucas implemented a rapid modernization programme of Zeat’s batch production manufacturing method. New machinery was purchased and cellular manufacturing was introduced. Within two years, the Zeat division became more profitable. ELE’s marketing department conducted market research using stratified sampling, confirming a gap in the market for a low-cost electric air compressor for home use. In 2010, ELE set up a car rental business financed by retained profits and external finance. Giselle wanted to grow the division. Car rentals could be booked online, over the telephone and face to face at counters in gasoline stations or airports. ELE was considering launching a smartphone booking app. The gasoline station compressor market is saturated but consistently profitable. The Zeat factory will not require additional investment for another five years. Sales of the MiniC were consistent despite increased competition from cheap imports. Gasoline station revenues face the challenge of declining gasoline sales as governments and car companies move away from gasoline and diesel cars.
Outline one advantage and one disadvantage for ELE of changing to cellular manufacturing in the Zeat factory.
The issue of changing from batch to cellular may help the answer to be contextual.
Advantages
- Zeat needed modernizing. A useful way of achieving that;
- employees were demotivated, productivity levels are low. Cellular production could improve those through team work etc.
- motivation may improve overall with workers who have a range of skills;
- cellular manufacturing improves quality as workers have greater pride in their work.
Disadvantages
- employees may resist change especially as it was introduced rapidly;
- likely cost;
- no previous experience.
Accept any other relevant advantage or disadvantage.
Mark as 2+2.
Award [1] for one appropriate advantage and an additional of [1] for a description of how that advantage relates to ELE. Award a maximum of [2].
Award [1] for one appropriate disadvantage and an additional of [1] for a description of how that disadvantage relates to ELE. Award a maximum of [2].