The report is about Koffer Technologies on how it produces aircraft parts and distributes it to its clients. The parts are the tails of aircrafts which have been produced by the company for a period of 15 years since its establishment. The tail is composed of two parts are the horizontal and the vertical parts. The horizontal has two elevators that are involved in the regulation of the altitude and the vertical part which is to fly the plane in either the left or the right direction. Tail production has to undergo production processes in its formation by the company. This includes the supply of the required parts to their warehouse either from the ones made by the same company or those that are purchased from the external suppliers.
The parts are stored and released when required. The tails are delivered in the next step called “in-jig” process by the sub-assemblies. In the “in-jig” process several activities are carried out for both horizontal and vertical parts. Examples are the frame building of either part, the drilling of holes in the skin and the whole body, and the installation of the various materials into one full body. The above is preceded by the sealing of the skin and doing the painting. The vertical and the horizontal parts are then integrated and the final inspection, paper work, packaging, and ultimately the shipment to their clients.
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A closer look at the Koffer Technologies shows that the production of tails increased drastically across the years which reflected an improvement in the general performance of the company due to varied reasons. These might be attributed to the increased quality of the tails in comparison to the ones produced in the previous years or those produced by other companies. However, the increase in was accompanied by a rise in the working capital of the company in general that was reflected in overall costs. This was not in the plans of the company because a lot of working capital was to be invested in the development of a new and complete tail in the next business jet generation. The company also has some problems related to the money exchange. Some companies make payments to the tail parts in other currencies which usually cause problems when it comes to the exchange process. The company has to go on negotiating with banks just to make adjustments to the risks involved in the exchange. Besides the difficulties in the currency exchange, fluctuations in currency prices too pose problems in the exchange ratio.
From the analyzed statements of the company it is evident that a lot of shortages are experienced at the beginning of the assembly line of the manufacturing process, which in turn leads to the depreciated quality of tails produced. It also makes the working in progress in the assembly very high. Time consumed in the assembly on quality problems such as drilling holes in the wrong place and the reworking on the aluminum surfaces which involve polishing them is usually high. This is compensated on lots of overtime that are scheduled on the weekend. The overtime however, impacts on the organization negatively since the workers have to be paid for the particular job done. It in turn lowers the profits that might have been gained by the firm. Finally, the problems experienced at the lower chains are not clearly communicated to the supervisors due to the fear created between the management and the subordinate workers.
