MICOM CARIBE (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Q.1)what accounted for the quality crash in 1987? To what extent was the geographical location of manufacturing-relevant, and what would you have done separately, as MCC, to avoid the crisis? Why were MCC unable to see a solution?

MICOM CARIBE

Micom Caribe one of the manufacturing facility of the Micom communication Corporation (MCC), which was established in Puerto Rico. The corporation objective is to produce only high-volume and stable product and services, to sustain its long-term growth. Micom Caribe proved to the most effective and profitable, before taxes than the other manufacturing sector of MCCs, based in the United States, Singapore, and Mexico. Micom Caribe had a various geographical location advantages and benefits such as tax exemption, cheap labor, government support benefits, low-cost raw material benefits, and flexible working conditions or environment.

Unlike other manufacturing facilities of MCC in Puerto Rico, Caribe static, traditional and hierarchical, which is designed to stable products and services at low-cost. The quality system of the corporation relied on the traditional technique such as Acceptable quality level (AQL) and inspection. Moreover, the coordination and scheduling work are carried out by pushing onto the floor level. Later, Tom Moschetti, a plant manager of the Micom, leads the Caribe towards the right path to becoming more effective organization, in the long run, and also making it more valuable for the specialized manufacturing.

Quality Crash

In 1987, Quality problems and challenges plagued the introduction of the corporation highly marketed, the company’s best quality product “Micom Box”. Moreover, the production was marketed in the right path, and demand was also acquired. However, the final product of the Micom failed to satisfy the customers, and as a result, lead the company to a quality crash.

Therefore, the quality crash leads the Micom Caribe realize the need to understand the changing customers’ quality perceptions and preferences regarding the products and services. Micom box did not differ from the manufacturing Caribe has been accustomed to. However, it required certain operations, quality and measures, which the company was not practicing in its current operations. Furthermore, quality crash leads the company to face financial and operational costs losses.

Geographical location

On the other hand, Geographical location of Caribe’s did not support or help them to deal with the quality crash, and as a result, severe setbacks faced by the corporation. Moreover, the Caribe’s location was very far from the headquarters, and lack of communication and negotiation from Caribe with the manufacturing, design, and marketing facilities caused delays in finding the actual cause of the problem. Furthermore, the telephone communication medium was nit the best means to deliver the important information regarding the design specifications and customers’ feedback.

Cultural background

Apart from that, the cultural background of the operators and lack of diversification in the workplace was a considerable disadvantage for the company and leads the company to face conflicts among the managers and the employees. Moreover, the workers are low-skilled and single task oriented, and from sugar cane makers to the high-tech manufacturers. The trainers were trained to fulfill their task in the right direction and order from the design facilities, but the trainers show no involvement in the process.

Moreover, the design engineers and marketing managers were not aware of the manufacturing and marketing process and vice versa. Therefore, it is important for the management of the company, to consider these factors and develop a winning strategy to overcome these issues and challenges, to lead the company to gain customers q and competitive advantage in the long run.

Quality improvement process

Micom Caribe should have implement Quality improvement process and procedure, as a part of their operations, this process will also help the company to avoid the quality crash in 1987. Moreover, the company should develop an effective communication medium to transfer efficient information between manufacturing, engineering, and marketing department of the MCC. This strategy will help the company to overcome missing and wrong information as well as conflicts among the employees of the different department.

Moreover, the operators at the Micom Caribe should have been actively involved in the design and engineering process, to work effectively and efficiently. Furthermore, the company should make certain miniature changes in the design process to improve efficiency in the operations, reduce the possibility of errors and defects in the future. Apart from that, it is the responsibility of the managers to encourage and empower to make the effective decisions and take responsibly.................

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