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Delta Attempts to Boost Productivity

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Submitted By mneliz
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------------------------------------------------- UNIVERSITY OF NAIROBI
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SCHOOL OF BUSINESS
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MANAGEMENT PRACTICE (DSM 501)
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Group Assignment 1
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LECTURER: DR. KITIABI
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GROUP MEMBERS
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ELIZABETH NYAWIRA MURIUKI REG NO: D61/64188/2013
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PHELLISTERS KERUBO REG NO: D61/64189/2013 CATHERINE WAMBUI REG NO: D61/64191/2013
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JENIFFER AYOO REG NO: D61/64192/2013
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BEATRICE NJERI REG NO: D61/64193/2013
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RUTH MBAIKA REG NO: D61/64203/2013
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DAVID THIONG'O REG NO: D61/64205/2013
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DICKSON HONGO REG NO: D61/64206/2013
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Due date: August 8, 2013
Question 1
An issue is a point or matter in question or in dispute, or a point that is not settled and is under discussion or over which there are opposing views or disagreements. 1. Management Practice Issues in this Case
Some of the management practice issues in this case include; (i) Change Challenge in Regard to Technology (ii) Innovation (iii) Planning Aspect (iv) Cost Minimization (v) Competition

(i) Management of Change
Change management is a structured approach for ensuring that changes are thoroughly and smoothly implemented, and that the lasting benefits of change are achieved
. Address the “human side” systematically. Any significant transformation creates “people issues.” New leaders will be asked to step up, jobs will be changed, new skills and capabilities must be developed, and employees will be uncertain and resistant. Firms that are able to adapt well to new demands normally become successful.(Due to reduced maintenance, some workers may lose their jobs ).Please suggest some points on this.
Managers must have considered the benefits of Engineered-plastic cooling towers as they were: * Dependable-Less shutdowns, non-corroding in industries that uses vast amounts of harsh chemicals and cleaning materials. * Had minimal maintenance
Because of the above reasons, engineered plastic cooling Towers were considered.

(ii) Planning Aspect

An element of planning in this case is as a result of the following reasons; * The need to start manufacturing Engineered-Plastic Cooling towers at Delta. * The process to have their sizes increased and * To make it ideal for high capacity
Therefore the need for the above mentioned definitely required comprehensive plans that managers responsible for the logistics and the decision processes facilitated.

(iii) Cost Minimization

This is the process or goal of incurring the least possible opportunity cost in the pursuit of a given activity. It is discussed to the benefit of the buyer. Cost minimization is comparable to other objectives, including utility maximization and profit maximization.
To ensure continuous, more economical operation, engineered plastic were seen to reduce the expected and untoward consequences of operating a cooling tower, which include * Electric power usage * Water-treatment chemicals * Labor and materials for maintenance and * Unscheduled process downtime for cooling repairs

Engineered plastic cooling towers are therefore are observed to; * Operate at higher cycles of concentration leading to operational savings * Direct drive motors are employed to power the cooling fans, no pulleys, bearings and belts ensuring efficiency and providing substantial savings on energy costs while delivering more horsepower. * Labor intensive jobs such as removal of rust, routing application of coatings and re-gasketing are eliminated.
Managers as the decision makers are opting for the plastic cooling towers in light of new developments highlighted above.

(iv) Competition

Competition is the driving force of excellence.
Competition here has been discussed focusing on enhancing product offering as the way forward.
Apart from the unique product features of the Engineered Plastic cooling Tower, it is highlighted that they are competitive in price, of high quality since they are efficient and also not affected by environmental conditions.
Managers must have had two or three questions here in regard to competitor analysis. One of which is how is their product different t? And secondly how is it the same? What needs is it currently addressing that yours is not? Based on the above questions concerned managers are able to determine how to tailor product offering to meet the needs of target market better than competitor.
We also note that the casings on the towers offered by Delta Cooling Towers are backed by a comprehensive 15-year warranty, Delta actually stands behind its products with the best warranty in the industry.

2. Describe the elements of operations management that highlighted in this case
Elements of Operations Management Highlighted in this Case.
The task of managing the process that transforms resources into finished goods and or services.

Operations Management may be defined as the design, operation and improvement of the production system that creates the firm’s primary products and services. Operations Management is involved in transforming inputs to Outputs. For this transformation process to be effectively administered various elements or factors should be considered. In Delta Cooling Towers various elements of operations management are incorporated. They include service, flexibility, price and facility location.

Service
This consists of the work design of the cooling tower system, the level and quality of service it is capable of offering once purchased. Compared to the Metal Cooling towers the plastic counterparts offer higher level of service. As shown in the case study, the metal cooling towers are negatively affected by water PH, Sunlight, pollution, salt air and harsh process chemicals.
This causes corrosion, rust and leakage leading to frequent repairs of re-welding, patching and coating. The plastic towers are neither affected by water pH nor harsh weather conditions. In addition they carry a 15 year warranty compared to the metal towers which only have a one year warranty.
Flexibility
For effective operations process a product or service should offer flexibility. This means that it should have the ability to rapidly increase or decrease production levels and change from one situation to another. This case illustrates two forms of flexibility, the cooling capacity and the design of the towers. Metal cooling towers are customized on site and require high cost of labour and materials. However, the plastic cooling towers are factory assembled with a 2000 tons capacity. They are thus able to adjust to operational heat load and the outflow changes since they use an extra margin of cooling capacity.The design of the plastic cooling towers is more adaptive compared to the metal ones. This is due to their rectangular shape which enables them to occupy a smaller area and leads to specialization of processes to specific tools.
Price
In this case study price involves the costs incurred in Maintainance and operations. The Metallic cooling towers have very high costs of Maintainance and repairs in comparison to the plastic ones. The plastic towers save costs by reducing or eliminating the possibility of process material contamination. Consequently they preserve the process up time due to their durability and cost cutting capability. Metal cooling towers will incur various operating costs including the power usage costs, water treatment and chemical costs. As shown in the Case, the chemical savings done by plastic cooling towers can exceed $10,000per year. When cost of operation is reduced this means that Delta will maximize the outputs at the least expense.
Location of Facility
Where the cooling towers will be located is a major factor of determining the ease of carrying out the various processes. This brings about the operations strategy of convenience. How and where the cooling towers are installed is vital. The plastic cooling towers have the ease of installation due to their shells light weight which is 40% less than the steel towers. This means it will be quicker and easier to install the plastic cooling towers thus saving time.
3. What strategy or plan should Delta take to remain competitive? Give specific examples from
Industry
Competitive strategies. All companies have one (or more). Sometimes they are clear and well understood throughout the organization. Sometimes they are rather muddy. Sometimes they have been deliberately established; sometimes they have simply evolved. For our purposes of this case study, we are assuming that it is better if the strategies are deliberately established, clear, and well understood."'Customer focus' is knowing what customers want and fulfilling their expectations with innovative products and quality services. To accomplish thisDelta Cooling Towers has identify a better way of providing plastic cooling system that is of lightweight, high-capacity, reducedmaintenance engineered plastic cooling towers to the pulp & paper processing industries i.e. there customers In this case study, we will focus on the development of competitive strategy. We will examine some common strategies that should be used by Delta cooling Towers to remain competitive in the market. We will focus about:
• Environmental scanning and driving forces
• Learn how Delta cooling Towers can do strategic analysis,
• And determine how to maintain its competitive advantage.

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