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TERMS OF REFERENCE Mr Jim Harris plant director of Electronic Components Assemblies ECA commissioned this investigation and report on the 22 August 2001 Mr Harris is concerned about the potential impact of new technology and its effects on production systems He has commissioned Management Consultants International to review and make recommendations concerning the existing ECA policy His specific instruction were to 1 review strategic options for the business in terms of h procedures and systems for material planning and control h manufacturing processes h stocking policies h factory layout h production management systems and h human resource management policies personnel and payment systems 2 report on implications on proposed changes for management staff customers and suppliers 3 develop an implementation plan based on recommendations 4 draw conclusions and make recommendations 5 submit report by 26 September 2001 EXECUTIVE SUMMARY 1 INTRODUCTION Subject This report describes the result of an in depth analysis of the current policies that ECA employs Historical Background of ECA ECA currently manufactures electronic deflection units for computer monitors for its holding company International Electric IE in South Africa ECA operates as a cost centre within the commercial goods division of IE The plant was established in 1973 and is based in the Western Cape and operates in parallel with a plant in Botswana Jim Harris the plant director has recently observed a decline in the sales of computer monitors at a time when production capacity is expanding This has resulted in fierce competition and has forced ECA to reconsider its product sourcing policies Objectives of this report The objectives of this report are to identify problems within the existing ECA policy and offers possible solutions It also identifies the impact of these proposed solutions on ECAs current policy and provides a framework for implementation Scope and Limitations This analysis was restricted to the information
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