Transportation of Pratt & Whitney north heaven (Abridged Harvard Case Solution & Analysis

Transformation of Pratt & Whitney North Heaven (Abridged)

  Introduction

Pratt & Whitney were the subsidiary of an aircraft engine of United Technologies Corporation (UTC).Initially,Pratt sold spare parts and aircraft gas, maintained and overhauled in the repairing of enginesand sold unnecessary and obsolete items in order to ensure effective maintenance of plants.At the end of 1993, Pratt & Whitney had around 15,000 installed commercial jet engines which serving around 480 customers at both local and global levels. As far as sources of revenue of the company are concerned a sufficient amount of revenue had come from the sale of the engine, the other source of revenue was the spare parts. Engines sold in the 1980’s had generatedmore than three times as compared to their original price in spare parts over the last decade.

Due to the technological impact on the manufacturing process, engines provided to facilitate the organization in a positive manner and lasted longer. The sale of the spare parts dropped drastically in that period, roughly it was dropped below twice than the original list price. The last source of revenue for the company was engine overhaul, which refers to a completely new engine in order to utilize in the manufacturing process. Engine overhauling provided great support to the company in order to cut the cost as well as effective production capacity during the manufacturing process.

Aircraft engine manufacturing was also an area of concern for the company during the crisis in the airline industry, which caused radical deductions in orders in the 1990’s to compete in the market.As a result, aircraft engine manufactures started various offers for new airframes that caused a significant increase in price. It impacted negatively on the company’s performance, and the profits were rapidly decreasing as well. Due to these problems and situations, UTC management found it difficult to compete in the market. However, the senior management of UTC took it as a challenge to remain competitive in the market. Various changes were required for a company to restructure Pratt & Whitney.

Problem Statement

                Pratt & Whitney North Heaven’s business unit manager of Aluminum Coating department, Tom Hutton authorized and empowered a pool of hourly workers in order to buy grit blast equipment for the two cells. There were various problem occurred to purchase the equipmentand the decision to buy the equipment was debatable...................

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