Dashman Case Study

Situation:

The Dashman Company There are about 20 autonomous plants which appear to be functioning normally. The following issues exist:

a) However some shortfall in the essential raw materials required by the plants expected. Why this shortage is going to occur is not sufficiently explained.

b) Mr. Post is appointed to coordinate the purchasing activity by Mr. Manson, the president of the company. Experienced Mr. Larson is appointed as Mr. Post’s secretary.

c) Mr Post decides to centralize a part of the procurement system and announces this through a rather impersonal letter addressed all the 20 plant heads.

d) The plant managers express support and co-ordination but the head office subsequently doesn’t receive any request from any plant for help in procurement of raw materials.

Symptoms:

a) Stated Scarcity of raw materials

b) No notice sent to the head office; no approvals asked

c) The Plants seem to be running normally and therefore there appears to be no real shortage of the materials.

Problems:

a) The clause that all the purchases made over $10000 should be cleared with the head office.

b) The Long existing procurement procedure was disrupted with centralization; with no apparent reason and hence there is a strong resistance from the organization. They are unable to understand why this is happening.

c) The introduction of this centralization drive seems ill timed because it has been announced just three weeks before the peak buying season.

d) Mr Post found wanting in people’s management because he chose to issue such a directive without visiting/consulting any of the plant heads,

e) No follow up until 6 weeks elapse

Observations: about Mr Post

a) Eager to make an early impression. Should have used Larson’s experience and relationship with the plant heads to his advantage.

b) Should have analyzed logistics issues in greater detail before writing this letter.

c) Should have visited...