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EMSCAI Group Reaction Paper Group 4

SWOT Analysis The groups SWOT analysis was very comprehensive, but perhaps the company should only focus on two areas. To address all four elements of SWOT would require a lot of resources and time. It might be difficult for the company to spend commit their resources all at the same time. Also, some items in the different areas are conflicting. Because of the complementary nature of the items in Weakness and Threats area, we recommend having a WT strategy. Phasing out manual assembly will help reduce the companys susceptibility to labor laws. They can compete with the cheaper labor of foreign competitors and the various USPs of local competitors by being more efficient. Supply Chain Although EMSCAI already has a world-class supply chain, they should still work to maintain, or even improve, their supply chain. EMSCAI doesnt purchase its own direct materials, because their clients provide it for them. They simply process the materials. However, they still need to manage the delivery of the direct materials to avoid late or incomplete deliveries. EMSCAI should also focus on managing its supply chain of tools and other equipment, as machine breakdowns can be costly and can cause delays. Some of their equipment could be expensive or hard to source, so they should maintain good relations with their equipment and tool suppliers to negotiate good deals and assure a steady supply of spare parts. They could even negotiate for repair and maintenance services to extend the life span of their equipment. Both late/incomplete deliveries and machine breakdowns can severely impair their operations. A severe impairment of operations can ruin its reputation as a reliable component assembly company, which is why EMSCAIs supply chain should be carefully managed. Total Quality Management and Lean Operations Admittedly, EMSCAI is exemplary in its application and execution of operations management concepts. They explicitly and strictly adhere to 5S, Six Sigma, and in general, Total Quality Management and Lean Operations to the point that it seems obsessive-compulsive. Though it is obvious that this let them achieve their admirable efficiency in terms of production, our group cant help but question the effort the company puts into monitoring and communication of such policies and practices. For EMSCAI, they proved it to be a successful system especially in an industry where accuracy and precision counts for a lot. We just have to stress that the company, just like any other, should be careful in evaluating how costbeneficial such efforts are.

Another issue our group would like to point out is the fact they have two unused production facilities. EMSCAI prides itself in adhering to the concept of Six Sigma and having little waste, but it should be noted that the unused facilities can be viewed as a type of waste since the company fails to utilize an otherwise beneficial asset. We respect that the properties are there to provide the opportunity for expansion to the company in the long run, but for the meantime, if management shows no intent to expand in the very near future, we believe that these properties should not remain idle and should be used for some other function. If not, to increase income, these should at least be leased out for the period management believes there will be no expansion or use for them. Production Flow EMSCAI, as mentioned, is very efficient in its assembly lines with their culture emphasizing quality and team dynamics. As an added improvement, the presenting group recommended the use of ergonomics in its production rooms. We agree with this, but how exactly can this be done? We noticed in the floor plan shown by the presenters, that the placement of the assembly lines, the coiling machines and the quality inspection points are all already optimal considering they only have one inventory room. One may suspect inefficiency and realize that the operators of the coiling machines walk the farthest to and fro the inventory room to pick up the raw materials; on the other hand, the finished goods end up very close to the quality inspection points where they are examined and then brought back to the inventory room. Though, at first look, the difference in traveling distance of the different parts of production make the system seem inappropriate, our group realized that what the coiling operators carry back and forth are the raw and most basic materials while the finished goods must usually be complicated and fragile as it has gone through all the delicate processing, thus, justifying the current system. We can further improve this production flow, however, after proper cost-benefit analysis by the company, by considering having separate incoming (close to the coiling machines) and outgoing (close to the quality inspection points) inventory rooms which minimize unproductive movement or traveling in the room. Another alternative, again after cost-benefit analysis, would be to install a conveyor-belt-like machine to bring the raw materials from the inventory room to the coiling machines. These would prevent handling mishaps and help the company maintain their already low spoilage rate. Culture of Innovation EMSCAI definitely has its own ways of promoting and encouraging its employees to contribute innovative ideas to the company. The group mentioned that EMSCAI practices Kaizen philosophy through their quality circles and their E.D.G.E. Team. However, due to the recession back in 2008, the said E.D.G.E. Team was abolished to cut costs. Two years have passed and companies have been getting back in the competition and EMSCAI must be able to continue competing against other companies in the industry. Relying on innovative ideas solely from employees and quality circles may not be enough for EMSCAI to gain competitive advantage in this information age. The E.D.G.E. Team must be revived to take advantage while its competitors are still regaining from the recession. The company can easily bring it back as it has already been strongly established in EMSCAI since 2004 until 2008. Employee Performance Management In terms of employee mindset, EMSCAI employs a team-based compensation system for more employee accountability and liability. Yes, our group agrees that this stimulates team work and accountability. However, with that system, the employees are not directly compensated for their individual performances thus lesser incentive for the employees to improve and grow individually. Team performance is not a sufficient measure and basis for

compensations since their process technology is described as labor intensive. Thus, EMSCAI must also consider individual performance as a basis for employees compensation together with team performance. On the side, EMSCAI must be wary of a contingent liability regarding their policy of hiring only women. It is stated on the Philippine Labor Code Article 3 that Declaration of basic policy. - The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work.