MGMT 3320 Chapter Notes - Chapter Tesu: Offshoring, Lean Manufacturing, Butea Monosperma
11 Apr 2016
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Document Summary
Tesu szz used to be part of emt (major manufacturing equipment company) Employees received shares but never received dividends. Factory equipment was old, inefficient and frequently broke down. Little administrative overhead (mostly factory workers in company) Large proportion of material cost = diesel engine in ew and copper wire in all machines. More orders than we can handle (two months of sales), euro manufacturing wants to order even more. Major challenge = production capacity (backlog of overdue orders) Missing parts of model needed to build ew model. Unable to pay workers (owe 250,000 euros in unpaid back wages) Owe 25,000 euros in payroll taxes (need to be paid by end of april) Only 50 euros in bank right now. Lean manufacturing consultant at bse partners ltd. hired to help tesu resolve production difficulties (do lean production methods) Backlog of orders remaining from major shipment to emt (3 months backlog)
