Markham Instrument Company

Section 1

1a. Executive Summary

This case study focused on the Markham Instrument Company and the current state of the company as it stood in 1959. With the impending forced “retirement” of Plant Superintendent Ed Greene, the company and its management executives were faced with the daunting task of not only replacing Ed Greene but also addressing numerous issues between the Production Division and the other divisions within the company that were negatively affecting profitability.

1b. Business Issue

The most pressing business issue present in this case is that scheduling of production was too complex and varied for the different divisions within the company. These complexities and differences between the divisions were further complicated by management’s desire to keep inventory low because of space limitations for storing the inventory. Forecasting was also impacted by a rapid increase in the number of products and by the uncertainties about the future demand for new products. These numerous forecasting problems ultimately prevented the company from achieving maximum profitability and growth.

1c. Behavioral Issue

The main behavioral issue present in this case is the personality conflicts that existed between Ed Greene and the executives of the other divisions, most notably the Sales and Engineering Divisions. The Production Division had created a tight-knit cliquish environment where established norms and roles prohibited them from being able to work effectively with members in the other divisions. Further complicating things was the fact that the Production Division felt that top management didn’t appreciate their contributions in saving the company during the postwar period. This caused them to have ill sentiments towards the company and upper management.

1d. Operational Issue

An operational issue is also present in this case study. The Markham Instrument Company needs to look at the design of the factory. There is a possibility that the divisions that are having the most problems in the case study, Production and Engineering and Sales, are set up too far from each other. Bringing these divisions closer could potentially eliminate some of the design and forecasting problems that are causing so much conflict.

Section 2

2. Casual Chain Analysis

This case study was broken down in to 4 main sections which included:

1. Introduction: Why is Ed Greene being “forced” to retire

2. Production Department and Markham History

3. Production Division in 1959

4. Relationship Between Production and Other Divisions

1. Introduction: Why is Ed Greene being “forced” to retire

a. Roger Finlay, President and Frank Roberts, Executive Vice President of Markham are looking to find a replacement for Ed Greene, Factory Superintendent, whom they asked to retire at the end of the summer

b. Finlay & Rogers believed increasing problems between Production and Engineering and Production and Sales were a result of Greene’s personality & inability to work with executives in other divisions

c. The engineers felt they would welcome Ed’s participation during the design stage but he wouldn’t do it

2. Production