Latino Engineering Company- Analysis

Latino Engineering Company Problem Root Cause Analysis
Name:
Affiliation:
Date:

2
Executive summary
Currently, many organizations are not able to achieve their objectives within the stipulated time.
Others have gone to the extent of closing due to continuous poor performance. The most
common reason leading to the closure of organizations is customer dissatisfaction. Customer
dissatisfaction may be a result of various reasons. Inability to offer quality products and poor
handling may lead to customer dissatisfaction. When customers have dissatisfied it means that
they change the place of buying products. The action of customers negatively affects the
organizations since the volume of sales falls significantly. The accrued revenues end up
reducing. The business organizations cannot, therefore, achieve its goals and when action is not
taken at an early stage, the firm may end up falling. The change of ownership of an organization
can also affect the performance of the business. It is because of change of management team and
employees whom customers were used to.
This paper introduces us to Latino engineering company and its performance after a change of
ownership. The issues resulting to the poor performance of an organization are outlined as well
as their causes. The process of eliminating or reducing the reason is addressed while taking into
consideration the resources required. A continuous development plan is developed to ensure that
the issues are not repeated in the picture. The appropriate tools and techniques are applied to
ensure that the report contains worth and useful information to the manager. The essential
recommendations are addressed to ensure that the firm fully identifies and eliminates the
challenges leading to poor performance.

3
Introduction
Latino engineering company is located in New South Wales and deals with manufacturing and
supplying engineering equipment to the clients. Currently, the company is owned by an
investment group after it was sold by Mr. Dominic who was the owner. The investment group
was very keen while adopting the organization to ensure that the firm continues with its existing
trend. The investment group provided that the name of the team was not changed and most of its
workforce was retained although some senior engineering folks decided to seek other
opportunities.
After twelve months of operation, the company started experiencing unexpected performance,
and many complaints from the clients. Some of the claims were defective engineering
equipment, poor design and development follow up with clients, too long turn around for issue
resolution, non-responsive customer service team and packaging and delivering illegal material
to customers.
This Paper, therefore, highlights the causes of the customer mentioned above issues and
proposing a mechanism for reducing or eliminating the challenges. The paper also comes up with
a continuous development plan to ensure that the problems and the problems are not repeated in
future. Various techniques of identifying business problems are used to determine and help in
solving the challenges facing Latino engineering company. The report outlines quality
management systems and multiple procedures of the continuous improvement plan.
Identification of problems
The issues raised by Latino engineering company customers are:
i. Defective engineering equipment

4
ii. Poor design and development follow up with clients
iii. Too long turnaround time for issue resolution
iv. Nonresponsive customer service team
v. Packaging and delivering of wrong equipment
Having identified and defined the problems affecting the clients of Latino engineering company
it becomes easy to determine the cause (Sekaran & Bougie, 2016). In this case, the cause and
effect diagram is going to be applied to facilitate the identification of the cause problem.
1. Defective engineering equipment
2. Poor design and development of follow up with clients
Causes
i. Availability of raw
materials of low
quality
ii. Incompetency of
employees in their
duty formulation
iii. Poor performance
of production
machines
Effects
Short term
effects
Customer
dissatisfaction
Long term effects
i. Decreasing
customer turn up
ii. Decreased volume
of sales.
Causes
i. Incompetent
staff members
ii. Ignorance of
employees
iii. Lack of staff
motivation