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shop floor
IS2104 Flextronics
Lecturer: Dr. Sharon Tan
[AY 2011/12 Semester II]

Group 2
Swarit Kumar Agarwal – A0075127H
Dong Qihao – A0077966H
Shum Chee How – A0073997H
Tan Wee Kwan – A0074053M
Tan Hong Chuan – A0067407A
Nah Zheng Xiang Philson – A0067379M

Problem statement
With the launch of the Xbox just seven months away, Jim McCusker seems to have reached an impasse. The industrial parks at Mexico and Hungary are at loggerheads over the decision to choose a unified software system. Both Flextronics and Microsoft are anxious for a firm decision to be made by McCusker on this issue. In a company culture that values fast, decisive action, McCusker wonders whether he has the authority to make the decision himself and, if not, how he should involve the other parties who are keenly interested in the outcome.
Problem Analysis
Although Flextronics won the bid to produce XBox for Microsoft, its progress is currently not up to Microsoft’s expectations. This is primarily due to Flextronics’ promise to install a single shop-floor system across its manufacturing facilities in Mexico and Hungary. Each facility has grown accustomed to using its respective software systems, namely, DataSweep and Virtual Factory, and neither party is willing to change. In addition, the pressing delivery schedule that Flextronics faced further aggravates the dilemma at hand for McCusker.
Although he does not want to impose decisions on either Mexico or Hungary, he must come up with a solution that will suit the interests of all the parties. At the same time, he is concerned with the “global synergy” between each of the facilities for future projects.
To sum up our analysis, we find that the major factors that lead to this sticky situation are the lack of communication between parties involved and the resistance to changes of the manufacturing facilities.
Why Option 1?
Keeping in mind of the current situation, we surmise that Option 1 is the most practical solution. We



References: 1. Amason, A.C. (1996). Distinguishing the effects of functional and dysfunctional conflict on strategic decision-making: Resolving a paradox for top management teams. Academy of Management Journal, 39, 123-146. 2. Lencioni, P. (2002), The Five Dysfunctions of a Team: A Leadership Fable. 3. Ruble, T.L. & Thomas, K.W. (1976). Support for a two-dimensional model of conflict behavior. Organizational Behavior and Human Performance, 16, 143-155. 4. Fairness from the Top: Perceived Procedural Justice and Collaborative Problem Solving in New Product Development. (January 01, 2007). Organization Science: a Journal of the Institute of Management Sciences, 18, 2, 200.

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