General Motors: Packard Electric Division

General Motors: Packard Electric Division

Situation

David Schramm, chief engineer for Cable and Component Design, must consider the pros and cons of the RIM grommet. He is tasked with analysis and recommendation as to whether Packard Electric should commit to the RIM grommet for a 1992 model car. Schramm has one week to recommend one of the following options:

1. Go exclusively with RIM
2. Parallel development: IHG be prepared parallel with RIM g
3. Go exclusively with IHG

Questions

        There are a few questions that I would like answered before coming to a conclusion:

Can two RIM machines run simultaneously? How does Packard Electric prioritize risky new technology vs reliable past fixtures? Are there better alternatives to the RIM grommet? Can the deadline on a decision be pushed back to allow further research?

Hypothesis:

        I believe that Schramm should recommend parallel development to the PPR committee. This plan consists of preparing all RIM grommets while also having IHG available as well. This seems to be the best option in regards to Packard Electric’s expectations as well as the cost/benefit of each option.  Although costs would be higher, this option provides an aggressive but reliable route to making the customer happy.

Proof/Action

        This option follows the original plan to implement the RIM grommet for the 1992 cars. Packard Electric had been expecting a plan to replace IHG with RIM so this fulfills that promise.  RIM has so many benefits which makes it the essential move for Packard Electric. For example, the RIM greatly reduces the complexity of the initial feed through design, is cheaper to design, and saves space in the pass through area. Most importantly, the RIM is new technology which would drop costs significantly as employees become familiar with the technology.