The paper "Production Operation Management at Turbo Exhausts " is a great example of a business case study. Turbo Exhausts is an Australian company that designs and manufactures exhaust systems and automotive extractors for the motor racing industry. When it was formed, the company’ s main objective was to develop custom-made high quality and efficient exhaust systems and automotive extractors. As a result of the increase in demand and excellent performance brought by high-quality products, the company expanded its production to include off the shelf high-performance systems. It also received several requests from the private motorist who needed to improve the performance of their motors.
More so, the company received a request from a national car part distributor to supply it with high-performance automotive parts. Arguably, all these requests are coming in the face of limited resources and production. The company operates a single plant which is not enough to manufacture all the demanded requests to supply. More so, as a result of limited production, most of the productions are not completed as it should be. In addition, the company’ s costs are rising, and profits are not the way as it should be.
This paper focuses on identifying the operational challenges the company is facing as well as outlining the root causes of these challenges. In identifying the operational problems, the paper will focus on current production processes, the effect of the new contract with The Performance Shop on the company’ s operations, as well as the consequence that the shift to the production of off-the-shelf systems could have had on the financial structure of the company. The challenges that Turbo Exhausts faces are a consequence of the desire to expand and meet the rising demand for its products.
The company faces the challenge of satisfying the increasing demand with its limited resources. Perhaps the company’ s problems can be said to occur from its excellent reputation. This company has been remarkably successful, which has attracted a massive demand. It is because of the company’ s excellent brand that various companies want Turbo Exhausts to manufacture their products. As can be noted from the case study, the demand from private motorists as well as the general public grew more and more.
The company’ s product and services are of high quality such that every motorist needs to improve the performance of their motor vehicles by purchasing Turbo Exhausts products. Turbo Exhausts’ excellent performance can be also attributed to the company’ s ability to create a broad range of products, which meet the diverse range of market demands. This ability has played a critical role in appealing to the wide range of consumers across the Australian motor racing industry. More so, it has contributed immensely to the development of a brilliant company that is well admired not only as a manufacturer to the Australian motor racing industry but also as a manufacture to the general public and other car sections of the market. One of the challenges the company is facing is how to handle the enormous demands from the motor racing industry, The Performance Shop, and the private motorist.
There is an enormous demand for the company’ s high-quality products, which is putting the company’ s management on the dilemma, which products should be given priority. The orders from The Performance Shop have been increasing and are affecting the production of the off-the-shelf and custom made systems.
Since the production resources are limited and that the plant is used in full capacity, it may not be possible for the company to meet all orders within the existing production resources. Arguably, it is a challenge considering that the company needs all these orders in order to increase revenues and profits as well as for its expansion. In order to enjoy more profits from all the present orders, the company needs to address this challenge and be able to supply all these orders in good time and place as well as maintaining its excellent quality.
While the company has an enormous desire for enormous profits, it is essential that it balances it with the production capacity of the plant (Mahadevan, 2009).
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