Company T started work in 2003 and specialized in making cars, batteries, and solar panels. The company came up with models costing less than $35,000 which affected the finances and the company suffered losses. The credit rating of the company also went down. The company’s owner and CEO EM stated that manufacturing of model 3 caused many problems as the model had a high defect rate. Company T cannot maintain the production line for the high arising demand. Company T’s production line suffered due to too much automation, as EM decided for many features to be automated. The idea of automation made production even slower. The idea of EM to add robots became more expensive for companies that employees as high professionals were required to program robots. The models failed in markets due to many problems and even were a lot expensive to the company. However, EM disagreed with the critics and said that they will be earning profit in the coming times. EM agreed that using robots was his mistake and he started working as a nano-manager. The direct oversight of EM helped him manage the production line of Model 3. He temporarily stopped the production line of Model 3 and committed to increasing the production. The company added a production shift, hired workers. Critics said that this is definitely not a good idea and will add more pressure on the finances of the company. Considering all the expenses the company made in expenses, the question is whether the EM will run out of cash or not. To find: The underlying problem from the perspective of CEO EM.

Question

Want to see the full answer?

Answer 1

Question

Chapter 16, Problem 1FD

Summary Introduction

Case summary: Company T started work in 2003 and specialized in making cars, batteries, and solar panels. The company came up with models costing less than $35,000 which affected the finances and the company suffered losses. The credit rating of the company also went down. The company’s owner and CEO EM stated that manufacturing of model 3 caused many problems as the model had a high defect rate. Company T cannot maintain the production line for the high arising demand. Company T’s production line suffered due to too much automation, as EM decided for many features to be automated. The idea of automation made production even slower. The idea of EM to add robots became more expensive for companies that employees as high professionals were required to program robots. The models failed in markets due to many problems and even were a lot expensive to the company. However, EM disagreed with the critics and said that they will be earning profit in the coming times. EM agreed that using robots was his mistake and he started working as a nano-manager. The direct oversight of EM helped him manage the production line of Model 3. He temporarily stopped the production line of Model 3 and committed to increasing the production. The company added a production shift, hired workers. Critics said that this is definitely not a good idea and will add more pressure on the finances of the company. Considering all the expenses the company made in expenses, the question is whether the EM will run out of cash or not.

To find:The underlying problem from the perspective of CEO EM.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Financial Misconduct: Enron Scandal Outline and discuss what “triggered” the regulatory body to intervene? How effective do you think the response was to such a crisis? Outline and discuss two ways that could be used to strengthen the current regulatory environment?

5:06 one REPORT WRITING Cover page - Table of contents Executive summary Introduction Conclusion References Appendix 11 Question 1 Ivan Institute has secured funds to construct an oval-like lecture hall at their new campus at a cost of 3 million United States Dollar As a consultant of the project, you have a mandate to package the project for the most qualified contractor. Carry out the procurement process from advertisement to award ப

Question 2 Your company has been awarded a contract to erect 124 pylons for an electricity company. The table below shows the sequential activities involved in the construction of each pylon together with the estimated labour hours and optimum number of operatives for each activity. The handover rate specified is six pylons per week and this can be taken as the target rate of build. Prepare a line of balance schedule assuming that each gang works at its natural rate. State clearly the contract duration. Assume a five-day working week, eight hours per day, and a minimum buffer time of two days Activity Description Labour-hours Optimum number of operatives per activity 55 A Excavate 4 B Concrete foundations 64 4 145 C Erect tower D Fix cantilever cable arms 90 E Fix insulators 25 885