Business Report: Managing Innovation at Chrysler - Production Analysis

This report provides a comprehensive analysis of Chrysler's innovation and production management practices, with a focus on the implementation of Material Requirements Planning (MRP) and its impact on reducing inventories and managing delivery times. The report discusses various departments within Chrysler, such as Public Relations and Marketing, and their roles in achieving innovation goals. It also explores the challenges and potential improvements in production processes, including lot sizes, driver efficiency, and the introduction of a QoS system. The report further delves into Kotter and Cohen's principles of change management, particularly the urgency of change, emphasizing the importance of leadership in motivating employees and fostering a culture of adaptability. The conclusion highlights the need for a compelling vision and effective communication to drive organizational change and achieve successful performance and operations.

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MANAGING INNOVATION IN BUSINESS: CHRYSLER
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The main item that Chrysler specializes in is vehicle engines. This progress is seen as a
way to make their efforts easier. The company has also features similar concepts in the
assembling and design production of the tables but modeled them in different sizes and minor
features approach to deal with all their tasks. The company has therefore resolved into using
MRP (Hagberg and Sterner, 2019). This is one of the major boosts that the company has had.
The application of MRP has enabled the company to reduce their inventories and also manage
time in terms of deliveries. This paper will basically discuss and also try to determine the
significance that MRP has brought into the company given the efficient status associated with the
current production operations.
The different product innovation departments will have to achieve their set out goals to
ultimately lead to us achieving the ultimate set objectives. For instance: The Public Relations
department should be able to bring in new ventures from new and existing investors and
shareholders. We shall come up with a realistic number of investors which we expect to have
ventured into our new franchise, within the three years we shall be able to evaluate what is
needed to be improved if the number will be on the downside and implement these new decisions
(Hagberg and Sterner, 2019). As the marketing strategist we shall look at the total outreach of
people that we have and the actual clients we got through our various advertisement. This
business report will describe the reasonable expectations for our new business venture through
coal to the train industry. We will also outline what we should make changes to improve our
chances of success. One of the main foreseeable problems is the pricing. Before any business is
actually implemented, study is done to see how many years it will take for the owner to recover
the cost of production, with our new idea of venturing into the coal and train industry, the cost of
product will be on a higher side meaning when doing our pricing of the different packages of the

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authentic train experience meaning our target market will mostly be the middle and upper class
leaving out a whole group of people like the History majors in school who may be interested in
having the experience as well as people with low income. Our target market may not provide
enough market population for sustainability of our business. We should, therefore, come with
different packages that offer ‘extra’ experiences for the elite class of people and increase their
rates to cover for the middle and low-income class of people.
Ways for Improvement
Since the lot size for sub-assemblies has raised demands for 3079, there is a need to make
major improvements on the same size lot size. Under this section, some of the major
improvements that can be made are as follows;
Considering that only one lot is produced, the savings made each will we will be
approximately 0.25 for each unit which results into $300 in one week. On the same note, we are
told that Ed receives $22 per week and $33 every hour after his shift. This means that to produce
1000 parts, he will get $440 in his 26.6 after shift hours. When the company engages the creation
smoothing arrange, they will recover the $440 since the extra time will be disposed. In this case,
stocking the surplus material will be a benefit. Alternatively, the company can resolve into
finding a more efficient driver who will do this in the given working hours. This means that the
1000 parts will be finished in the 26.6 hours which means the extra time that was been
compensated will be used for loading with considerable compensation.Another way is by
improving the ace calendar to adapt to the needed system of operations.
Let’s say that 1000 sub-assemblies are bought at once. This means that the company will
need 25 of these trips to make. This means that they will have to part ways with a $250 each

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year. A shift on the calendar to oblige with an updated production means that for 100000, it will
take 2 ½ trips which will cost $25.
The other improvement way is by introducing a QoS system. With this system, the
company will be able to keep a close check on every activity. This means that they will
maximize their production at the same time since time will be used appropriately and managed
well for the production purposes.
Urgency of change is mainly aimed at helping personnel or targeted individuals to
overcome situations that are conflicting mainly between the desired course of change and the
cultures and principles of these individuals. On the same account, the authors elaborate on
important ways that leaders in any organization should maximize chances of their personnel
embracing change through urgency of change (Sattayaraksa and Boon-itt, 2016, p 431). They
should make sure that they maximize the urgency of fear among their employees and personnel
while at the same time reduce the chances increasing anger and fear among the employees. To
achieve this, leaders should clearly lay out the main problem in the organization that necessitates
need for change in the organization. Through illustrations, these leaders should make attempts to
try and explain to the problem definitions to the personnel highlighting on key points that show
why the desired change is of urgency to the organization. This makes the first step to change by
Kotter and Cohen since in order for change to happen in any given organization leaders
campaigning for the change need to display and illustrate to the target group the urgency of
change in the organization.
Therefore, use of compelling illustrations such as object or displays that individuals can
see, touch and feel compels them in understanding the urgency of the desired change. On the
same account, Kotter and Cohen explain and illustrate examples of situations that result into a

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sign of lack of urgency that reduces the chances of individuals embracing change. For instance,
the two authors explain that when one focuses on getting the approval of the top management so
as to build a good course for the changes that they desire while at the same time living out all,
other integral parties shows lack of urgency for the change. The thought that an individual cannot
contribute to the different processes of change just because they are not in charge is a clear
indication of lack of urgency (Sattayaraksa and Boon-itt, 2016, p 437). Such situations that
portray or rather that do not bring out the need or urgency of change reduces the chances of
integral individuals needed to necessitate the change from embracing it. This is because lack of
urgency for the specific course of change leads to increased fear, anger and lack of motivation
among the employees of the particular organization. Urgency of change is aimed at motivating
the employees who is significant since it reduces chances of resisting the proposed change.
Commitment from leaders and subordinates is required since it is through energized
commitment and input from everyone that change is revolutionized in the organization. When
determining the importance of change, Kotter and Cohen’s principles and guidelines outlined
under the major principle of Urgency of Change creates the sense of determination among the
individuals involved in the implementation of the desired change. On the same account, it is
important to keep in mind that during development and implementing of change, one of the most
significant steps that leaders of the change should take up is to build a strong and successful
change initiation team through effective leadership that is enhanced through clear vision and
mission statements (Durmusoglu, Hirunyawipada and McNally, 2017, p 44). The visions and
mission statement is used by the leaders on the employees or rather on the subordinates of the
organization that are intended to accept the desired change so as to motivate them through giving

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them a clear picture of how things will be once the change is successfully implemented in the
organization.
Training and guiding the subordinates on necessary skills that they require to successfully
cope in the implementation of the proposed change is important since they need the right skills to
manage and understand the underlying principles of the change. According to Cohen and Kotter
in their book, one of the main reasons that make individuals resist change is the fear of how they
will implement or adapt to the change especially if they do not have the right skills to implement
the change. As a result, with a view to motivate and enhance confidence in the subordinates or
rather on the integral individuals intended to adopt the change, training and guiding the
employees on the important aspects of the change is very important since it will equip them with
relevant knowledge and know-how about the change (Durmusoglu, Hirunyawipada and
McNally, 2017, p 46). Through common managerial and guided principles about the specific
proposed change creates a forum whereby the team shares a common ground and vision towards
the desired change hence motivating them towards the achievement of the change with a view to
benefit from the advantages of the change.
Conclusion
Building on the guidelines and principles outlines by Kotter and Cohen in their book on
the steps those leaders should take up to initiate change in an organization. It is important for
them to create a compelling picture of the desired change. Through creation of a successful and
compelling bold vision, employees are always ready to embrace the change since he vision
clearly shows the credibility of the change and its importance in the organization when
implemented. In reference to the work of Kotter and Cohen, the compelling vision and mission
created by the leaders since it creates a foundation upon which the change.

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When there is push in the shove of an organization, the behavior of change is
experienced. According to the chapter, the only way that we push an organization to become
successful in performance and operations are by sticking to communication as the first
ingredient. Secondly, we have to implement sufficiency in every major skill and technique that
the organization initiates in the various engagements that it made. Continual growth, for
example, makes the necessary major changes in the quest for change since one of the most
crucial way through which the organizations make the urgency need for communication is
resolutions on solid foundations of change since as an organization, the foundations of change
are also based on the sufficiency that is found on continual growth.

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References
Durmusoglu, S.S., Hirunyawipada, T. and McNally, R.C., 2017. New Product Development
Process Implementation in a Business-To-Business Firm: The Driving and Moderating Factors
for Improved Program Performance and Time-To-Market. Journal of Business-to-Business
Marketing, 24(1), pp.35-56.
Hagberg, H. and Sterner, H., 2019. A study about possible digitalization of a product
development process: A business case at IKEA of Sweden.
Sattayaraksa, T. and Boon-itt, S., 2016. CEO transformational leadership and the new product
development process: The mediating roles of organizational learning and innovation
culture. Leadership & Organization Development Journal, 37(6), pp.730-749.