Chapter 4, Problem 1CFCA

Summary Introduction

To Explain:

How accurate is Adam Wainwright's analysis of the situation at Guitarras Dominguez? Do you think craftsmanship is incompatible with increasing productivity in this company? Why or why not?

Given:

We want More Guitars!

Adam, Wainwright's early-morning call from Valencia, Spain, initially started his boss, Vincent Fletcher. Adam, a true salve to the latest techno-gadgetry, never called. Yet here he was, at 8.a.m pacific time, on the phone to the CEO of Fletcher Guitars in Los Angeles.

"what did they do-lose your luggage with all of your toys inside?" Fletcher joked. "Did the plant burn down?" "No, I just decided to call you on this one. I've been here for a week, looking over operations. Forger the idea of getting any substantial increase in productivity. I don't think these guys are capable of upping production by ten guitars per year," Adam complained.

"Isn't that an exaggeration?" Fletcher asked.

There was a momentary silence on the other end of the line. "Adam, did I lose you?"

"No"

"Look, part of our reputation is based on the quality and craftsmanship of the acoustic guitars produced by Dominguez and his workers. This is all high-end stuff," Fletcher said in a voice that always reminded Adam of actor Jason Robards. "Now, with the tremendous rise in the popularity of Latin music, we want to encourage increased production. That's your task, Adam. I shouldn't have to tell you that your success with this assignment could lead to some great opportunities for you."

"I know". Adam paused, carefully weighing his next words. "Salvador and his people do a fabulous job. Just walking through his operation, I have been blown away by the craftsmanship. But the slow pace of work is unbelievably frustrating. These guys act like they are birthing a baby. Everything is so precise, so touchy −feely with every guitar. I used my iPad to create some workflow specs for increased production. Salvador took one look, laughed, and said' you Americans."

Poor Adam, Fletcher thought. That had to be a major stab in his high-tech heart. Maybe I sent the wrong guy. Nope. He has great potential in management and he has to learn to work through this and deliver. Fletcher's thoughts were interrupted by Adam's voice, flustered and increasing in volume.

"They go off to lunch and come wandering back in here hours later-hours, Fletcher."

"They're Spanish!" Fletcher replied. "So they take two hour lunches. They work their schedule. It's just not our schedules. You may be a lot younger than I am, Adam. But you need to lighten up. Listen, talk to Salvador and see what works for them. They've increased output before and they can do it again. Get this done, Adam. And e-mail me."

The international rise in Latin music over the past decades, punctuated by the clear sound and dazzling rhythms of the acoustic guitar, created a sense of urgency for guitar makers around the globe to increase the availability of these classical instruments. Wanting to ride the crest of this musical trend, increase his product offerings, and tap into high end market sales, Fletcher discovered master craftsman Salvador Dominguez and his Spanish company, Guitarra Dominguez, while attending the prestigious Frankfurt International fair in 1980.

Salvador liked to tell that among the first sounds he hard following his birth were the words of his father's lullaby, accompanied by an acoustic guitar. As an adult, Salvador combined his lifelong passion for guitars with brilliant craftsmanship, and he started his own company in 1976. Located in the Poligono Industrial Fuente del Jarro-Paterna, Valencia, Spain, the company now employed more than 30 craftspeople in the production of acoustic and flamenco instruments. A thin, wiry bundle of energy with graying wavy hair and large eyes with that surprised "Salvador Dali look," the guitar maker could grasp a piece of wood and, running his hand over the surface, by suddenly transferred into a patient, tender sculptor of sound. To watch this luthier work was almost mesmerizing. Salvador's total silence and habit of leaning his right ear close to the wood as he worked suggested that he was actually hearing the music of the instrument as he created it.

Following the phone call to Fletcher, Adam returned to the planet, determined that Salvador would now hear from him.

"Salvador, you do beautiful work. Latin music is one of the hottest trends in music, and musicians are clamoring for the instruments you make." But we can be doing so much more here. There's plenty of room for expansion in this place, and we could nearly double production within the next few years. I have visited companies all over the United states and analyzed their operations. If you will take time to look at the plan I've drawn up, you will clearly see the potential for cranking out more product and meeting the needs of more customers."

"wait, wait. I'm just saying that there are changes that can be made here that will make this operation more productive. In the states, I see a flow to their operations. Here, we have starts and stops. The Nato mahogany used in many of your acoustic guitar bodies provides a beautiful and unrestricted wood. But Carlos has been off in a corner most of the week, wearing protective gear and experimenting with his notions about the potential tonal qualities of wenge in acoustic bodies. The bottom line is this: we simply must streamline this operation in order to increase your production."

"No, senor. My bottom line is this: Guitarra Dominguez will not lower our standards of craftsmanship to meet your plan."

Introduction:

The world has changed after globalization 2.0. The businessman cannot survive in throat slit completion on the virtue of man power only, they must use high end technology to survive and grow.