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Introduction The management of AlliedSignal Aerospace has realized the urgent need to lower the deteriorating TAT and thus assigned Jacques Esculier a manager with both strong technological and managerial backgrounds with the task to improve the TAT performance Both the internal and external environments have an effect on AlliedSignals operations and decisions that need to be made Industry Environment There is intense competition among existing companies and new entrants in the industry especially in the Asia Pacific region The firms are all competing for competitive advantage on the basis of their TAT and the quality of service that they offer Aftermarket sales are increasing at more than double the industry average thus making the aftermarket an area of major growth Since aircraft tends to have a long product life this market would provide an excellent source of revenue stream With growing competition the industry would reject those suppliers that are inefficient thus influencing competitors to offer their customers the best value Additionally there is a trend in the industry for airlines to reduce their operating expenses and seek out those suppliers with more complete serviceproduct offerings The external environment places pressure on AlliedSignal to ensure that it is operating efficiently Allied Signals Internal Environment There are several negative facets of the shops internal environment which are impeding the proposed change plan of lowering the TAT Primarily both the managers and employees do not have a focus on saving time during the various stages of production In addition there are also no penalties for failing to comply with deadlines The various operations stages are not well organized leading to a lot of wasted time between stages In addition employee morale in the company is low Employees do not believe that their participation will make any difference There also appear to be communication problems between management and their subordinates as well as between administrative staff and shop floor staff Summary of Problems
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