Baker

Wanxing Lin

1. Identify and discuss the primary barriers and obstacles to making the transition to a figure 6 type of culture as described on page 19 of the Baker book.

How can an organization minimize the loss and optimize the entire performance through each process. During those processes, each person needs to share information and cooperate for the good of the enterprise as a whole.

The figure 6 shows that both Purchasing and Assembly affect themselves negatively. For the Purchasing, the reason why they got loss was “higher piece price include amortization of supplier engineering capability”, which means the cooperation spend a lot of money to purchase new suppliers such as materials, machines and so forth. With the higher price, the suppliers are better than others, so that the product engineering and assembly department do not nee extra money to fix or repurchase. Moreover, good quality parts of supplies will reduce the cost of engineering subassembly, because it increases the efficiency and effectiveness to make assembly easier and faster. In addition, the cooperation chosen amortization to purchase the supplies, so they don’t need to pay much at first time, and the negative effect would be short-term. For the long-term, they will gain +2 on the whole system.

For the Assembly part, the reason why they got loss was “incremental cost incurred to retool for large subassemblies and just-in-time (JIT) delivery”, which means the cooperation needs retools process for subassembly parts and JIT delivery to reduce cost, and to make the high cost decreased. Because JIT delivery can lower the inventory cost, on the other hand, it also reduces the piece price. For the engineering process, they always improve the assembly activity to enhance the efficiency and productivity. Therefore, all the effects get together will gain +1 on the whole system.

For the Product Engineering process, all effects gain the positive score, so they gain +3 finally as a...