Dynamics on the factory floor of AES : Any 'credits' for short-sighted behaviours?

Abstract

AES was established in Singapore in the mid 1980’s as a low-cost manufacturing base for an American electronics company. Over the first decade the plant was reasonably successful, yet found that by the mid 1990’s their focus had to change. Many products needed to be produced to satisfy market demand caused problems on the factory floor. Two groups, the production workers and the manufacturing engineers, needed to use of the same machines for different purposes. This case presents some issues in production facilities and illustrates how such conflict often appears to favour short-term solutions to problems. The key issues addressed in the case study are: What is the root cause of the short-sighted behaviour and its analysis to resolve the conflict?

Includes questions for discussion.

NOTE: This case is also available as a teaching case from the University of Auckland Business Case Centre, Case number: UA-2005-002