Analysis of Latino Engineering Company's Poor Performance Issues

This report provides a comprehensive root cause analysis of the performance issues experienced by Latino Engineering Company after a change in ownership. The analysis focuses on key problems such as defective engineering equipment, poor design and development follow-up, lengthy turnaround times for issue resolution, a non-responsive customer service team, and the packaging and delivery of incorrect equipment. The report utilizes cause and effect diagrams to identify the underlying causes of these issues, including low-quality raw materials, employee incompetence, lack of staff motivation, and communication breakdowns. Furthermore, it proposes a detailed performance improvement plan (PIP) addressing each problem, outlining specific actions for supervisors, the quality control team, and the production team. The plan emphasizes the importance of employee training, customer relationship management, and efficient issue resolution processes. Finally, the report highlights the financial resources required to implement the proposed solutions, including investments in machine maintenance, technology upgrades, and employee training programs to ensure long-term improvement and customer satisfaction.

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

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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.

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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

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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
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

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2. Poor design and development of follow up with clients
Effects
i. Decreasing
customer turn up
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

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ii. Decreased volume
of sales
iii. Decrease in accrued
revenue
3. Too long turnaround time for issue resolution
Causes
i. Unreliable channels of communication
ii. Ignorance of customer care staff members
iii. Lack of staff motivation
Short-term Effects
i. Lack of interest from customers
ii. Declined levels of trust with the clients
iii. Customers shift to other engineering equipment dealers
Long-term effects
i. Decreasing customer turn up
ii. Reduced volume of sales
iii. Decrease in accrued revenue
4. Nonresponsive customer service team
Causes

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i. Presence of unqualified staff members
ii. Lack of knowledge on how to handle customers from the existing staff members
iii. Ignorance and incompetency of customer care staff members.
iv. Lack of employee motivation and training
Short-term Effects
i. Lack of interest from customers
ii. Declined levels of trust with the clients
iii. Customers shift to other engineering equipment dealers
Long-term effects
i. Decreasing customer turn up
ii. Reduced volume of sales
iii. Decrease in accrued revenue
5. Packaging and delivering of wrong equipment
Short term effects
i. Declined levels of
Causes
i. Carelessness
existing
among
employees
ii. Improper
packaging and
labelling of
equipment

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trust with the clients
ii. Customers shift to other engineering equipment
dealers
iii. Decreased customer turn-up
iv. Decreased volume of sales which lead to
decrease in revenue accrued
Curbing the problems
To control the issues affecting the organizations, a plan has to be developed (Hammer, 2015).
The developed method should aim at solving the problems while stating the available resources.
The plan should be based on the concept below.

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The plan should be developed in initial stages then implemented, the results are checked then the
actions are taken aiming at improving the solution.
1. Defective engineering equipment
Performance improvement plan (PIP) is to be developed; the plan should address the causes of
the production of faulty engineering equipment (Keohane & Olmstead, 2016). The project aims
at ensuring that the supervisor is keen on his or her duties together with the quality control team
to ensure that goods produced are of satisfactory quality.
Supervisor
The production of defective equipment means that the supervisors are not keen in their duties
since they are expected to control the production process (Latino, 2016). It is done by ensuring
that responsibilities are assigned concerning qualification and experience. The supervisors

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should ensure active participation and maximum concentration of the production team. The
following are areas which should be addressed by supervisors to minimize of curb production of
defective engineering equipment.
i. The supervisor is to be always present during production.
ii. The supervisor should assign duties concerning experience and qualification.
iii. The supervisors should ensure that all employees are concentrating and active during the
production of goods.
The quality control team
Quality control team is an essential team to any organization (Jeston & Nelis, 2014). They are
professionals who are responsible for ensuring that the goods produced are of satisfactory quality
concerning the standards set by the government. Quality control work hand in hand with the
quality assurance team. They perform their task by sampling method where they test a certain
number of products from a given set. They use reliable machines to sense any defect within the
product. Once the product is found to be defective, it is recycled for quality improvement
(Chang, 2016). The challenge facing Latino customers of supply of broken engineering
equipment is a prof that the quality control team in the company are not fully executing their
duties (Allen, 2016). The quality control manager should be in a position to address this issue.
The following are ways to which the production of defective equipment can be mitigated.
i. Ensuring that the quality control team is composed of experienced and qualified staff
members.
ii. Ensuring that the quality control team perform their duties with a lot of keenness

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The production team
These are the individuals based in the production stage composed of the machine operators and
their assistants (Dale, 2015). The challenge facing the company of defective engineering
equipment production starts in their department. The operators should rectify on the following
areas to ensure that the creation of faulty equipment is mitigated or reduced significantly.
i. Continuously checking the production machines to ensure that they are on the expected
right track.
ii. Being keen during machine operation to ensure that they produced goods of high quality.
iii. Actively participate in their duties, ensuring that they are always sober and performing
their duties with interest.
The process will involve financial resources since the company will need to ensure continuous
machine checks and acquirement of good performing machines.
2. Poor design and development follow up with clients.
When the design and development of following up the client are weak, the company is likely to
fall (Goetsch & Davis, 2014). It is because clients are critical people in any organization and they
should be handled with care (Burke, 2017). If a firm is not concerned about addressing and
following up issues affecting clients, the clients end up changing their place of purchase. It ends
up reducing the volume of sales and henceforth the profit margins (Dessinger & Moseley, 2015).
The following issues should be addressed in the Latino engineering company to ensure that
customers are satisfied with the services offered.

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The management
The management should ensure that there is a strong existing relationship between customers
and employees (Lam, O’Donnell & Robertson, 2015). A platform should be initiated based on
modern technology to provide that communication between the two parties is efficient (Hibi
et.al, 2016). Incorporation of advanced technological devices within the organization will ensure
that the employees can follow up clients and address their issues accordingly. The management
should also ensure that the employees are satisfied as they perform their duties. It involves
rewarding and offering promotion services reasonably (Ren, Ling, Wei & Fan, 2015). Once
employees are satisfied and interested in their place of work, they usually give their best. The
company should first address the issues of employees before going for the external matters
(Silva, Medeiros & Veira, 2017). The employees should be trained on the best ways of handling
clients.
The employees
The employees of Latino engineering company should play the significant role in ensuring that
the design and development follow up with clients are improved (Bernal, 2014). It can be
achieved through various processes.
i. Performing their duties skillfully
ii. Establishing a healthy relationship with the customers
iii. Always ensuring that the issues raised by customers are firstly addressed and following
up to ensure that the provided solutions efficiently work.
Financial resources will be required in acquiring and maintaining modern technology devices.
Continuous assessment of employees will also need funds.