United technologies corporation Harvard Case Solution & Analysis

United technologies corporation Case Solution

1.     Define key operational issue(s) of this case.

Around 400 Fire and Security branches, which are suitable for courses in operations technique and general administration, are given the open door for development. The management had to solve and organize a global activity in order to reduce the issues regarding the cost.        The company had the opportunity cost of developing defective products which would result in a waste of time spent producing them as well as it would affect the reputation of the company in the market as well as it would negatively affect the margins of the company especially the Net Recovered Margin (NRM).

Therefore, the company investigated the internal issues and improved the quality due to operational issues such as the company’s poor designs which caused malfunctioning of the products and affected the productivity.

UTC Fire and Security Products provide innovative electronic security and fire safety arrangements which are safe and ensure individuals, resources, groups and bases. By offering progressing accomplice support and an extensive arrangement of items including fire discovery, interruption identification, access control and video inspection, UTC Fire and Security Products is the single-source supplier in meeting the existing and future security needs of an expansive scope of clients. UTC Fire and Security Products is a segment of UTC Climate, Controls and Security, a unit of United Technology Corp.

2.     Explore the possible drivers for the cost over-runs and develop a cause-and-effect diagram.

 Cost over run, which is also known as cost increment or budget overrun, it includes sudden expenses due to previous unpaid amounts due to the underestimation of the previous expense while planning. The cost overrun would be recognized from cost escalation, which would beutilized to express a foreseen development in the planned expense because of factors such as inflation.

Possible drivers for Cost overruns:

  1. Underfinancing: It shows that the company might be unable to effectively allocate the budge which would lead to overrun in the budgeting of the company.
  2. Unfeasible cost estimates: The company had made wrong estimation of the costs in terms of unqualified staff as it seemed fine in the initial years however later it started making losses.
  3. Increase of the project scheduling: If the project completes in time then it would not increase the cost however, if the project time is extended then more money and personnel would be required which would increase the cost.
  4. The resource planning: The company would face cost overrun if it fails to properly estimate the resources...............                                                                         This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
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