February 16, 2015
Angela Koch
Operations Management – 3380
FHE, INC – CASE STUDY

Discussion Questions

1) What steps should Donaldson take to improve the new-product development process at FHE?

I would be remiss if we didn’t start by mentioning that the problem actually started with the Executive Management Team and the CEO. The organization chart shows a lack of cross-functional decision making which results in the inability to integrate operations. I don’t believe it is his place, but Lum Donaldson should suggest that Phil Thomas, vice president of corporate development and marketing who is currently responsible for both areas of marketing and design engineering split his duties and Merle Alison who is obviously in charge of the engineering group be put in charge of design engineering. Phil, needs to do what he does best and lead the marketing team to working with customers to create demand of the company’s products. This way there can be clear direction designed for the coordination of successful introduction of new products. With an extended Executive Committee consisting of Phil Thomas, Merle Alison and Norman Hart there will be more collaboration and better insight to running a new product through the companys processes.

Lum Donaldson needs to coordinate the relationship between product managers, technical program managers, and marketing managers. Lum needs to clearly define the requirements necessary at each phase of project development so that the engineering services department is able to produce results in a more efficient manner than is currently possible. The new product development process can also be improved by greater communication between manufacturing and product design managers. As stated the product design department admits that once a product is developed it is typically “thrown over the wall to manufacturing”, because of this