Reference no: EM132171992

Two months ago, you were selected to become the new Vice President of Continuous Improvement of Megatronics, a manufacturer of test and measurement equipment with $10 billion in annual sales revenue. The position, Vice President of Continuous Improvement, is a new one which replaces the previous position, Director of Continuous Improvement. The continuous Improvement departments at corporate headquarters and the four operating divisions manage a total annual operating budget of $75 million. During the negotiation leading to your employment, you and Megatronics’ CEO, Frank Lazarus, agreed to the following term:

Hiring authority: You may hire a maximum of 30 new professionals. You can then decide where each will be assigned, whether to corporate continuous improvement or one of Megatronics’ four divisions.

Transformational training: You are authorized for a training budget of $3.25 million per year. This budget is to create and implement a program in continuous improvement that focuses on collaborative opportunities.

Obligations: Simply stated, your obligation is to reduce the cost of purchased goods and services by an average of 5 percent per year, or $1.575 billion over the next six years based on this year’s expenditures.

Success will be based on a combination of action plans and documented success implementing the above goals.   

Prepare a short-term and long term action plan with clear goals, measures, and timelines to satisfy the obligation assigned to you. Make sure you incorporate the TQM and LEAN learnings. You can use any format or approach to structure and answer (powerpoint presentation, create a table, DMAIC approach, etc.)