Question: Select any manufacturing organization which is currently producing large volumes of standard products in a labour intensive plant that employs hundreds of employees working on an assembly line.

Assume that this company is planning to expand its product mix by developing and launching a new line of precision products in 2023. However, manufacturing of the new precision products will require induction of new technology, both for designing these products, as well as for their manufacturing. Designing the new products will require professionals from different functions to work together, particularly experts from engineering, R & D, marketing, costing, supply chain and procurement. Production of these products will be automated where manufacturing will be done by robots and intelligent computer aided machines, employing only 28 specialized operators and engineers.

The company will follow a low volume-high margin differentiation strategy for the new precision products where considerable learning would be required. And for the standard products the company will continue to mass manufacture in a high volume - low margin strategy focusing on efficiency and low cost leadership.

Question 1. Draw the existing organization structure in 2022.

Question 2. Design a new structure for the planned expansion in 2023. what type of organization structure are you proposing for 2023 and why? Explain its strengths and weaknesses.

Question 3. What contingency factors are affecting this organization design? Explain them.

Question 4. How will you ensure horizontal communication and coordination between the two production lines and the other departments.