Summary
This case is about a conversation between Jorge Gonzales, the CEO from Taracare Inc., and his manufacturing manager Alfredo Diaz. Alfredo was hired because Taracare was having difficulties in meeting the deliveries and in quality. After some time and only making little progress, Alfred scheduled a meeting with Jorge to discuss the problems. The main points Alfredo concerns was: Problems with Purchasing materials

Delivery promises from the sales that can´t be meet
New designs, which are nearly impossible to produce and at least the costs are increasing. Equipment utilization is too low
When increasing the equipment utilization they have too much capital tied up in inventory Alfredo thinks the main problem is that he is getting too less support and there is no communication and cooperation between the different departments. Jorge leaves the meeting without saying anything to the problems Alfredo mentioned. He just says that Alfredo has some good points but they are no worse than those of the competitors. At the end he wants Alfredo to send him a memo, so that he maybe call a meeting where they can discuss these issues with the other department heads.

1. Does Alfredo’s previous experience running a plant that made replacement windows qualify him to run a plant that makes outdoor furniture?
Taracera is manufacture factory where it fabricates and assembles outdoor furniture. Jorge Gonzalez as the owner, he purchased Taracare in 2001. Jorge had ambition for Taracare was to expand it form a small regional manufacturer to one that sold to major national retailers. He had some problem and need new manufacturing manager. He hired Alfredo as new manufacturing manager. Alfredo was worked as plant manager of a factory that manufactured replacement window. The previous alfredo’s job where he was worked, it was factory that manufactured material sold by large