Current Production Line

STUDY GUIDE FOR DECISION SCENARIO CASES1. Analyzing a Decision Scenario CaseThis study aid is divided into two parts. The first part organizes your notes and thinking about the case. The second organizes the points you want to make for an essay on the case. (For a detailed explanation of how to analyze a decision scenario, see chapter 4.)To begin your work, think about the following questions:What is the decision that needs to be made in the case? Example: Should Trendway make changes to its production line?David Schramm, the chief engineer for Cable and Component Design (CCD), has to decide whether General Motors needs to commit to the RIM grommet for a 1992 model year car. The Product, Process, and Reliability (PPR) committee has the final responsibility to commence the new product development. Still, they have given Schramm the responsibility to analyze and recommend their decision (Mann, 1987).What are the major decision options? Example: The Company can expand its current production line, improve its yield, or build a new line with advanced technology.The company’s major decision is whether they can commit to this 1992 model year car production. This decision might positively impact the company in terms of yields and their automobile industry if they buy into the decision to make the model. Schramm needs to analyze that decision before recommending it (General Motors Corporation, 1968).Exploring the Decision OptionsWhat questions will help you decide which decision option is best? Example: Which option yields the best financial results for Trendway?What is best for the General Motors brand? Will the decision to commit to the 1992 model year car yield the company financial results? Will this decision put the company at the top of the automobile industry charts?What concepts and frameworks might help answer your questions? Example: The concepts of unit cost and breakeven help compare the three decision options’ financial impact.Committing to the 1992 model year car might be the best option for General Motors since it might be a success, causing a sales turnover rate. This new production could put the company in the charts, thus improving their people’s perception and their brand name (Patrick J. O’shaugnness Kathryn E. stock, 1996).Use the following grid to organize your thinking about the decision. Use your questions to study the evidence and identify the decision criteria. Please write down the criteria, the case evidence relevant to them, and which decision option the evidence supports. Your goal is to determine the most strongly supported option by the evidence. You can defer thinking about action steps if you’d rather focus on the decision first.Example: Should Trendway expand its current production line, improve its yield, or build a new line capable of producing future products?

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