Hightone Electronics Inc.
Hightone Electronics, Inc. was founded in Palo Alto, California over 50 years ago. Originally, the company provided radio components to small repair shops. Products were offered for sale through a catalogue that was mailed to prospective customers every four months. The company built its reputation on high quality and service. As time passed, HEI began supplying more than just radio parts, adding items such as fuses, transformers, computers, and electrical testing equipment. The expansion of the product line had been coupled with an increase in the number and type of customers the company served. Although the traditional repair shops still remained a ...view middle of the document...
Facts and other Areas to be considered:
Web-based purchasing in the electronics industry had been growing rapidly. The board felt that HEI needed to offer on-line purchasing to its customers in order to maintain its competitive position. Expanding HEI to include Web-based purchasing seems to be a natural extension of catalogue sales that the company already does successfully. George Gonzales agrees that the company has no choice but to move in this competitive direction. However, George does not agree with the opinion of the board that this would be "business as usual." He believes that there are many operations decisions that need to be identified and addressed. As he stated in the meeting, "Having a slick Web site is one thing, but making sure the right product is delivered to the right location is another. Operations are the key to making this happen." His challenge for the next board meeting was to identify the key operations decision and persuade the board that these issues needed serious consideration.
Alternative course of action:
This can help the business to have a competitive edge in the competition. Operation management can show the company how to make goods or services cheaper, better and faster than others. Operation management is the business function that plans, organizes, coordinates and controls the resources needed to produce a company’s goods and service. It involves managing people, equipment technology, information and many other resources. It is responsible for conducting all the resources that are needed to produce the final product known as the output. Such as designing the product; deciding what resources are needed; arranging schedules, equipment and facilities, managing inventory controlling quality; designing the jobs to make the product. So as it is responsible for all aspects of the process of transforming inputs into outputs. As proper management of operations can leads to company success, improper management of operations can lead to failure and closing of its doors. So, the operations management is critical to the...