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Section 1
1a. Executive Summary
This case study focused on the Markham Instrument Company and the current state of the company as it stood in 1959. With the impending forced "retirement" of Plant Superintendent Ed Greene, the company and its management executives were faced with the daunting task of not only replacing Ed Greene but also addressing numerous issues between the Production Division and the other divisions within the company that were negatively affecting profitability.
1b. Business Issue
The most pressing business issue present in this case is that scheduling of production was too complex and varied for the different divisions within the company. These complexities and differences between the divisions were further complicated by management's desire to keep inventory low because of space limitations for storing the inventory. Forecasting was also impacted by a rapid increase in the number of products and by the uncertainties about the future demand for new products. These numerous forecasting problems ultimately prevented the company from achieving maximum profitability and growth.
1c. Behavioral Issue
The main behavioral issue present in this case is the personality conflicts that existed between Ed Greene and the executives of the other divisions, most notably the Sales and Engineering Divisions. The Production Division had created a tight-knit cliquish environment where established norms and roles prohibited them from being able to work effectively with members in the other divisions. Further complicating things was the fact that th ...