Case Study 3 - Micro Kool Electronics Micro Kool Electronics is a mid sized manufacture of six specialty electronic components used for medical testing equipment. Todd Chapman, the Operans Vice President of Micro Kool Electronics has recently been tasked by the board of directors to find a solution for declining share value of the company. Extremely upset by a follow-up call he had terved from the CEO at early hours of Monday. he called his operations manager Eric Johnson into offer to verify whether there had been changes in quality of products that could have caused the decline in company's share value. "Eric, I don't understand what is going on in the stock market" said Todd "but my fear is that our testing devices could have failed leading to bad produtsending up in those medical equipment. What is happening on the production floor?" Eric reported that the production has had no testing issue in past six months whatsoever. Todd picked up the phone and called the sales and Marketing department to see if there had been any returns or complaints about their products. He was assured that no quality concerns had been raised for company's products. However, Todd recalled that the Vice President of sales and marketing had mentioned company's competitors are reporting higher earnings/profits. Todd asked Eric to prepare a production abstract report and requested the latest earnings on the six products from Sales and Marketing Department. The next day, Eric reported the following daily production details outlining output, cost and testing procedures (in minutes). In his report he mentioned that all products go through testing using three testing apparatus A, B, and C, which have to be calibrated after 2, 3.5, and 3 hours of service respectively. Eric also reported that traditionally they have been producing roughly the same quantity of the six products 2860-W Full Mother board 700 Semi conductor 800 circuit Relay switch 500 6 10 Cost per box (S) P h level reader 900 12 Optio reader 3400 12 1200 Test A 14 24 12 20 Test B Test C Sales Department reported that the market demand for all the products have been stable and they don't foresee a decline in demand for any of the products. They also reported the revenue for the six products as follows: Full Mother board $4000 Relay switch $2400 Semi conductor Ph level reader $2600 Optic reader circuit $5200 Sales Revenue per -box $3600 $7600 Looking at the data received, Todd was convinced that sales were strong production was smooth and customers were happy with the quality of products. He figured for higher profitability things must be done differently and wondered if they were not using their resources effectively. He has asked your group for help. How do you evaluate the situation and what do you suggest? Adopted from Professor. Hezret al (2016) Case Study 3 - Micro Kool Electronics Micro Kool Electronics is a mid sized manufacture of six specialty electronic components used for medical testing equipment. Todd Chapman, the Operans Vice President of Micro Kool Electronics has recently been tasked by the board of directors to find a solution for declining share value of the company. Extremely upset by a follow-up call he had terved from the CEO at early hours of Monday. he called his operations manager Eric Johnson into offer to verify whether there had been changes in quality of products that could have caused the decline in company's share value. "Eric, I don't understand what is going on in the stock market" said Todd "but my fear is that our testing devices could have failed leading to bad produtsending up in those medical equipment. What is happening on the production floor?" Eric reported that the production has had no testing issue in past six months whatsoever. Todd picked up the phone and called the sales and Marketing department to see if there had been any returns or complaints about their products. He was assured that no quality concerns had been raised for company's products. However, Todd recalled that the Vice President of sales and marketing had mentioned company's competitors are reporting higher earnings/profits. Todd asked Eric to prepare a production abstract report and requested the latest earnings on the six products from Sales and Marketing Department. The next day, Eric reported the following daily production details outlining output, cost and testing procedures (in minutes). In his report he mentioned that all products go through testing using three testing apparatus A, B, and C, which have to be calibrated after 2, 3.5, and 3 hours of service respectively. Eric also reported that traditionally they have been producing roughly the same quantity of the six products 2860-W Full Mother board 700 Semi conductor 800 circuit Relay switch 500 6 10 Cost per box (S) P h level reader 900 12 Optio reader 3400 12 1200 Test A 14 24 12 20 Test B Test C Sales Department reported that the market demand for all the products have been stable and they don't foresee a decline in demand for any of the products. They also reported the revenue for the six products as follows: Full Mother board $4000 Relay switch $2400 Semi conductor Ph level reader $2600 Optic reader circuit $5200 Sales Revenue per -box $3600 $7600 Looking at the data received, Todd was convinced that sales were strong production was smooth and customers were happy with the quality of products. He figured for higher profitability things must be done differently and wondered if they were not using their resources effectively. He has asked your group for help. How do you evaluate the situation and what do you suggest? Adopted from Professor. Hezret al (2016)