Mazda Electronics Essay

584 Words3 Pages
Mazda should proceed with the low-cost ME2001 under two reasons. First of all, there is a recently incorporated medical group was interested in installing 1 million electrocardiogram monitors over the next 5 years. So, that is an opportunity to the organization to obtain a higher profit and cost competitive advantages if the screens and frames could be supplied at an all-in-cost of $100 per unit. After discussed with R&D and Financial department, the calculated initial cost $85/unit is achievable to take the contract. $65 (Variable production cost) + $20 (Overhead) = $85 Meanwhile, there are many competitors are craving for this order. Therefore, Mazda have to strive for it in order to maintain or increase the market share. Secondly, even though there were different negative comments suggested by every department during the meeting. That implies the problem appeared in the previous experience have not been fixed. It may be caused by lack of technology and skill in the organization. Then the problem may occur repeatedly and accumulate. Hence, the main point is Mazda have to solve these problem rather than evading it. It also proves that why continuous improvement is important in the organization. Therefore, Mazda should take action to establish an effective plan to develop a new product before it start production or launch. For example, gathering information that the problem occurred before and seek a solution to solve it. In order to implement this improvement, some relevant department of the organization should get involved. Such as Research and Development, Production, Purchasing, or even suppliers (like Burton Plastics). Moreover, organization can consult external expert about the technology or skill that they lack of. Also, all the performance could be measured by data. Like as hardness and impact force. By setting the standard, the performance or

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