Fair-Mead Marine Harvard Case Solution & Analysis

Issues Identification:

Tactical Issues:

Mr. Fair’s constant interference in the production schedule is one of the major supply chain issues being faced by the company, delaying the delivery of products in time. Minor problems cause production to halt and leave little time for long-term planning. Furthermore, the interference of Mr. Fair is also result in the de-motivation of the staff which leads to the underperformance of their key staff. As a result of this frustration and irritation the staff turnover might increase at Fair-Mead which undermines the credibility of the work done by the staff, which ultimately leads to the poor profitability of the organization as a whole.

Strategic Issues:

Another major issue that had arisen was related to a relatively small scale supplier but had become a significant matter since, the supply chain manager, Morales had to take a tough decision as to whether to let go of him or take a risk by keeping him. Mr. Sharma was taking longer to fulfill the urgent orders as he had run into some problems of his own. The gap between the supply of Sharma’s materials and assembling of the products was causing a major issue for the company. Moreover, Mr. Sharma's fittings were not according to the specifications that had been mentioned, having used lower quality materials instead of the one ordered, thus jeopardizing the company’s endeavor to produce the most superior quality products. Mr. Sharma faced an interesting dilemma that is; he could either provide the desired quality within his timeframe or supply on time but compromise on the quality. Miss Morales faces a challenge since; Sharma has the potential to grow into one of the major suppliers for the company which is why it would be a loss to let him go, while on the other hand continuing work with him with the same results could smear her reputation.

Fair-Mead Marine Harvard Case Solution & Analysis

Root Cause Analysis:

The major supply chain challenge faced by the company is the timely delivery of its products accompanied with the high quality that it promises to its customers. The two most important issues that have been identified include the following:

  • Fair’s micro-management followed by his decisions taken without any input from others that sometimes involve, changing the specifications. These decisions do not get communicated to the supply chain either.
  • Sharma’s reluctance to fulfill the orders within time. His materials that included, Bimini tops and other coverings had to be made of stainless steel and provided with short notice, but since Mr. Sharma had now established his company and had other lucrative offers as well as prospects including new product lines, for which he was willing to terminate the contract with Fair-Mead. Mr. Sharma is trying to increase its range of suppliers so that the Boat Parts & More inc cannot rely on just a single large customer. It can be said that the management of Fair-Mead fails to gain the confidence of the suppliers which indicates the poor performance of Fair-Mead.....................

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