Addressing Supply Chain Barriers: A Case Study on Mandolin Manufacturing, Lecture notes of Financial Accounting

Download Addressing Supply Chain Barriers: A Case Study on Mandolin Manufacturing and more Lecture notes Financial Accounting in PDF only on Docsity!

D079 In mid-October, when you still have 1,000 orders to fill to meet retailer demands for the holiday season, your company begins receiving low-quality raw materials from a preferred supplier that you have used for 20 years. The wood breaks when the mandolin is being manufactured, which results in a high number of defects, reduced manufacturing capacity, increased wait time between manufacture and hand finishing, and missed delivery date commitments. Retailers are very upset that they are not receiving full orders, and your company still has no commitment from the supplier on the next high- quality shipment of solid wood materials. Retailers have expressed their concerns about the company’s ability to recover from this issue in time to deliver mandolins for the holiday season. Discuss how you would address a barrier or bottleneck in transporting your product to the retail facilities by doing the following:

1. Describe how a barrier or bottleneck from the scenario can affect transporting the product.
2. Choose either the Lewin or ADKAR change management model and discuss how you would apply each step of the chosen model to address the barrier or bottleneck from part B1.
3. Discuss how you will address an ethical consideration for the barrier or bottleneck from part B1.

Impact of Barrier or Bottleneck on Product Transportation A barrier or bottleneck in the supply chain, such as receiving low-quality raw materials, can significantly affect the transportation of the product to retail facilities. Here are some potential impacts:  Increased Production Time : The high defect rate due to low-quality materials increases the time taken to manufacture each unit. This delay in production can lead to a delay in transportation to retailers.  Missed Delivery Dates : The increased production time can result in missed delivery date commitments, leading to dissatisfaction among retailers.  Reduced Order Fulfillment : With reduced manufacturing capacity, the company may not be able to fulfill all orders, leading to fewer products available for transportation to retailers. Applying the Lewin Change Management Model The Lewin Change Management Model can be applied to address this barrier or bottleneck. This model involves three steps: Unfreeze, Change, and Refreeze.

1. Unfreeze : Recognize the problem and prepare the organization for change. This could involve communicating the issue to all stakeholders and seeking their support for the necessary changes.

2. Change : Implement the necessary changes. This could involve sourcing materials from a different supplier or investing in quality control measures to reduce the defect rate.
3. Refreeze : Make the changes part of the standard operating procedure. This could involve updating supplier selection criteria or quality control procedures to prevent a recurrence of the problem. Addressing Ethical Considerations One ethical consideration in this scenario is the commitment to quality. The company has a responsibility to its retailers and end customers to deliver a high- quality product. To address this, the company could:  Communicate Transparently : Inform retailers about the issue and the steps being taken to resolve it. This maintains trust and allows retailers to make informed decisions.  Prioritize Quality Over Speed : Resist the temptation to rush production at the expense of quality. This maintains the company's reputation for quality.  Seek Fair Solutions : If a new supplier is needed, ensure that the selection process is fair and transparent. This maintains the company's reputation for ethical business practices.