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< previous page page_148 next page > Page 148 forecasts of demand being incorporated into the model, but the dynamics which gave rise to demand were in reality just too complex to model. Finally, a design or "problem dissolving" approach was tried. The "problem" was formulated as one which required a reduction in the fluctuations in (rather than simply a response to) existing demand and the organisation was redesigned to achieve this. It was found that demand for road-building equipment was counter-cyclical to that for machine tools and, furthermore, production of road-building equipment required much of the same technology and marketing and distribution skills, and some of the same parts and sub- assemblies. Adding road- building equipment as a product line reduced combined fluctuations in demand to a small fraction of the fluctuations from machine tools alone. Stable employment was achieved with a consequent improvement in productivity, cash flow difficulties and the industrial relations climate.
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This note was uploaded on 04/21/2011 for the course MGT 03 taught by Professor Kasra during the Spring '11 term at Tanta University.

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page_148 - Page 148...

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