Learning Curve Theory

Applying the Learning Curve Theory
Edwin Punzalan
Feb 23 2011
Mr. Taousakis

Understanding a process is an essential element in ensuring the success of a company.   If a competitor uses a process that is more efficient, it will cost them less. After planning an automotive keyless entry fob, it is concluded that a single international company has been chosen to supply a control chip that has a time delivery rate of 82%.   This low rate has the ability to slow down the manufacturing process and will cost the company significant money.   The best business practice is to consider an alternate process for the organization.   The aim of this essay is recommending and examining cultural factors of a new supplier, statistical process control techniques, and tests of the existing process.
Cross Cultural Factors
The first process contained a company from Canada that would supply the control chip for the remote.   Based on the discovery of their on time delivery rate, it would be in the company’s best interest to use a Chinese company as an alternate supplier.   The goal in choosing the right supplier is always to have a scenario in which the two groups are being benefited.   According to Deresky, international negotiations are complex because of “differences in cultural values, lifestyles, expectations, verbal and nonverbal language, approaches to formal procedures, and problem-solving techniques” (Deresky, p. 153).   The fact that the supplier is in a different country means that the organization must do research and prepare for all of these items relative to the Chinese culture.   This point is important due to the fact that a failure to communicate properly with the Chinese will lead to a potential loss of an alliance and a good quality control chip.  

Statistical Process Controls
After securing a Chinese supplier, the company will need to ensure that the quality of the product and the process is exceptional.   This can be done using a...