Dti Case Study

1505 words - 6 pages

Case Study: Evaluate the three options DTI president Toru Shima is considering for expanding his firm's output of flat panel displays. Which of the three options should Shima choose, and why?Toru Shima - Leadership QualityThis case exemplifies the fact that how despite tremendous technological innovation, an organization faces extinction due to market innovation by its owners. This case serves a point of refute to the traditional management thinking that positively links technological innovation to unremitting competitive advantage. The success of DTI to meet their customer's (IBM and Toshiba, who were also its owners) requirement and overcome the manufacturing bottlenecks is an example of managing radical technological innovation. It was Toru Shima's vision to met the requirement of 100,000 units per month but also overcome the hurdles imposed by the complex technological and manufacturing process.OPTION # 1: Continue to focus on improving output in the existing line.Advantage: It will significantly increase the outputs of the company, although it must come with appropriate production planning. Production planning is a necessary function within the company if it aims to improve output. In manufacturing and technological companies this process is often very difficult because of the fast rate of change and the occurrences of unplanned events. DT uses several methodologies depending on the rate of demand of the customer and the price of the technologies. Nevertheless, the objectives of the company for every transaction do not change: efficiency and effectiveness.Production planning must be implemented by this company in order for its activities and resources to be coordinated over time. This enables the company to achieve its goals with minimal resource utilization. Production planning also enables the company to monitor the progress of their plans at regular intervals and maintain their control over operations. Production planning within the company must involve four elements: scheduling, labor planning, equipment planning, and cost planning.Product planning involves the specification of the beginning, the length or the duration, and end of the different scheduled activities.Manpower planning involves allocating the necessary personnel and delegation of responsibilities and resourcesMaterial and equipment planning involves identifying the types and needs in terms of technology and equipments.Planning of production process and time line for executionCost planning involves determining the costs and the possibility of their occurrence.Disadvantage: Definitely, this option will entail millions of dollars in expenses in terms of purchasing new machineries and technologies as well as hiring the competent manpower in the job market. It is definitely a risk, but it is worth taking since the increase in output will be gradual and well-planned. In one to two years, the overall expenses will eventually be recovered.OPTION # 2: Duplicate the existing...

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