What initially appears to be the problem? What really is the problem(s) in this case?
Initially, it appears that the supplier is not meeting quality standards and on-time deliveries. The
problem is a lack of communication on Avion’s part. They were expecting 1,500 more units per
month and materials four days faster. Which is beyond what the supplier originally informed
Avion they could perform. Moreover, Avion’s material management personnel did not
communicate the issues the supplier was having to the procurement managers sooner. Despite,
the supplier desperately trying to inform Avion.
Overall, Avion Inc. lacks effective communication. By allowing communication directly with
supply chain managers, a solution might have been discovered before the problem escalated.
Moreover, Avion’s internal discussions with the production group would have shown that the
current supplier would not meet Avion’s needs.
