Rio Bravo IV Case

Below are the main problems identified regarding Rio Bravo IV.

2.1 The main problems identified at Rio Bravo IV

MAIN PROBLEMS CAUSES AND EFFECTS

1. Lack of Leadership Hastily manner in which the Rio Bravo IV plant was created. Jim (plant manager) and his team were unskilled, and hardly spoke the foreign language (Spanish). Lack of customer focus; Lack of team motivation

2. Lack of customer focus at Rio Bravo IV Managing customers: Rio Bravo does not know the customer requirements; Not knowing what customers want and need; Not knowing which products the customer value

Lack of skilledExperienced stuff: It is clear from the Case Study that the background of the assembled team to lead the Rio Bravo IV production plant could not deliver a quality service to the customer, as it did not possess the necessary experience and skill to run a production plant. Almost all of the team members are misfit to their appointed positions.

3. Lack of Operations Management Strategy No proper mission statement put in place for Rio Bravo IV; inexperienced management team was appointed, thereby creating problems for NUMMI(they did not possess the necessary skills, knowledge and experience in setting up this kind of manufacturing plant) even the resources allocated to this project lack experience.

4. Lack of communication Hardly spoke the foreign language (Spanish). The fact that there was a language barrier indicates that the level of communication between the workforce on the production lines and the management team was not acceptable.

5. Lack of Quality Control , TQM and JIT Problems are noticed only at a late stages, only the maintenance person was left to spot issues that impacted the entire production line. Furthermore, problems are picked up by the client.So NUMMI/Toyota people not "nit-picking" but are justified in the complaints.Rio Bravo IV had poor quality-check system and none of their top managers had a proper quality-check background.

6. Steps that add no value to the process Figure1 shows a lot of unnecessary steps performed by the production team that costs a lot of money and time wasting

7. Lack of Supplier Partnership Every time when the Rio Bravo IV receive come backs because of quality of their delivery it impacts on the costs and benefits, the company losses money for rework and the client gets delayed because of late deliveries which result on the client losing money and not benefiting from the association between them and Rio Bravo.

8. Doing business with people in different geographical areas Incorrect plant location generally affects cost parameters, transportation, and quality and customer satisfaction even response times can be affected.

9. Lack of project team governance structure No effective structure was put in place for this manufacturing plant.

10. Uncontrolled Inventory Ordering more than what's required can be expensive and a business killer (Principle 13). This is demonstrated by the manner in which Jim broke the bottles.

3. LACK OF LEADERSHIP

According to Fred Fiedler, leadership performance is based on two interrelated factors:

* The degree to which a situation gives the leader control and influence to get the job done (position power)

* The leader's own motivation i.e. the level of self-esteem in accomplishing the task and having close supportive relationship with others. The model provides for situational control, leader-member relations, and task structure.

Situational theories propose that the effectiveness of a particular style of leader depends on the situation. According to Robert House goal-path model, a leader behaviour is acceptable when subordinates view it as a source of satisfaction. In addition, leader behaviour is predicted to be motivational to the extent it:

* reduces roadblocks that interfere with goal accomplishment,

* provides the guidance and support needed by employees,

* ties meaningful rewards to goal accomplishment

(Maxwell 1999:17) states : Competency goes beyond words, it is a leader's ability to say it, plan it, do it in such a way that others know that you know how and know that they want to follow you. According to (Hill, 2003:55) the central thrust of business strategy is how to build and strengthen the company's long term competitive position in the market place.

These were some of the challenges that Rio Bravo IV faced with regards to lack of leadership:

* Hastily manner in which the Rio Bravo IV plant was created.

* Jim (plant manager) and his team were unskilled, and hardly spoke the foreign language (Spanish).

* Lack of customer focus

* Lack of team motivation

* Lack of General Manager support/ involvement

4. LACK OF CUSTOMER FOCUS

It is evident from the Case Study that Rio Bravo IV did not have a strong customer focused strategy; this is demonstrated by lack of in-depth knowledge they have aboutthe customer,

4.1 Managing customers

* Rio Bravo IV does not know the customer requirements

* Not knowing what customers want and need

* Not knowing which products the customer value

4.2 Lack of skilled and experienced team

It is clear from the Case Study that the background of the assembled team to lead the Rio Bravo IV production plant could not deliver a quality service to the customer, as it did not possess the necessary experience and skill to run a production plant. Almost all of the team members are misfit to their appointed positions.

5. LACK OF OPERATIONAL STRATEGY

"Business strategy is the game plan for positioning the company in its chosen markets, competing successfully, pleasing customers, and achieving good business performance (Steyn 2012:23)."Furthermore, (Steyn, Schmikl and Van Dyk 2011:18), describe Corporate Strategy as"the pattern of major goals, objectives and essential policies that lead to improved benefits, the prime purpose being to add value to the organisation." The authors