The Goal - Burnside's Model 12's

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Alex has shown a huge improvement in the plant and has reduced lead time to just four weeks. Hearing of this, Bucky Burnside decides to give UniCo one last chance of having his business by demanding one thousand Model 12 units in just two weeks. Although this will generate over one million dollars in revenue, producing that many parts on such short notice would be extremely difficult. Chapter 29, page 242.

D: Accept Burnside's offer and attempt to produce 1,000 Model 12 units in two weeks
D': Decline Burnside's offer
B: Prove to management that the plant has improved performance and is capable of handling demand
C: Have a clean record and ensure other orders are fulfilled on time
A: Convince management to keep the plant open
Click on the icons on the arrows to see assumptions and injections
In order to Convince management to keep the plant open I must Prove to management that the plant has improved performance and is capable of handling demand and in order to Prove to management that the plant has improved performance and is capable of handling demand I must Accept Burnside's offer and attempt to produce 1,000 Model 12 units in two weeks. But, in order to Convince management to keep the plant open I must also Have a clean record and ensure other orders are fulfilled on time and in order to Have a clean record and ensure other orders are fulfilled on time I must Decline Burnside's offer. I can't both Accept Burnside's offer and attempt to produce 1,000 Model 12 units in two weeks and Decline Burnside's offer.
RelationAssumption(s)Injection(s)
D-D'1. Burnside will not accept a compromise on the number of units.
2. Burnside will not accept a compromise on the timing of unit delivery.
3. I cannot decline the offer and still make the requested units.
1, 2. Negotiate with Burnside an aggressive yet acheiveable goal, leaving the possibility that the entire could still be fulfilled as requested. Use this to leverage a higher price from the sale.
3. Decline the offer, make as many units as possible anyway, and if success appears iminent, approach Burnside.
B-D1. Management will view my decision as a major factor in the plant's health and future success.
2. This is the only way I can prove the plant's value to the company.
1. This assumes that management does not appreciate the high risk of accepting the offer and would be intolerant if the offer were reasonably declined.
2. Management assumes that other indicators of profitability and success are not enough to justify the plant's added value.
C-D'1. Burnside's order would place a heavy strain on plant activities and scheduling.
2. Unpredictable variables can create large issues with this and other orders.
3. Completing other orders is more important than completing Burnside's order.
4. The plan does not have the capacity to handle both it's normal work and Burnside's order.
1. Plant management can perform worst-case and likely-case scenario analysis to determine if the plant could really handle the capacity.
2,4. Through careful planning, risks can be mitigated. While unauthorized, overtime can be justified if significant revenues are realized.
3. Analysis can be conducted to quickly determine which order has the greatest value.
A-B1. Executive management has indicated that current performance may not be sufficient to keep the plant open.
2. Completing such a large order adds significant value to the company.
3. Management would view completion of this order as evidence of improved performance.
4. Management will not look at other measures of the plant's success.
1. Executive management will take any step necessary to improve performance, including misleading the plant manager into thinking current work is insufficient.
2. It is unknown how much value the order adds in comparison to other orders. Completing the order may create unrealistic future expectations.
3. Completing the order might impress management, but it could be viewed as a one-time success vs. an indication of average performance.
4. Management has already indicated that other measures, such as efficiencies, are viewed with high importance. The fourth assumption implies that other measures, such as revenues, are ignored.
A-C1. The plant has a long history of failing to meet deadlines.
2. Sacrificing other orders to complete Burnside's order may show a serious lapse in management decision making.
3. Executive management may give too much weight to recently failed deadlines in comparison to the plant's successful months.
4. Executive management may view failure to meet deadlines as a sign that the plant is reverting to it's unprofitable operating structure.
1. Recent successes have lasted several months and indicate that the plant has deviated from past mangerial practices.
2. If successfully completed, accepting Burnside's order will show courageousness.
3,4. Management cannot be reasoned with in explaining that one large order with higher profits is worth more than several smaller orders. This also implies that completing Burnside's order and other orders are mutually exclusive.