Analysis and Recommendation for the Mod Iv Product...

Background/ Introduction The Heating, ventilating, and air-conditioning controls (HVAC) is one of the Honeywell Building Controls (BCD)’s four product areas. In 1989 HVAC controls was pitching a multimillion project on the Mod IV--- an advanced motor used in HVAC applications. It was envisioned as â€Å"Golden Egg† by a senior manager because it was a main pitch of the company, and once it was ready to produce and successfully introduced into the market, it would account for 30% of the division’s profits. The central issue revolved around the division’s product development team and their commitment to meet the schedule. This led to multiple lower-level issues, such as communication disparity among various groups, mistiming in changing the†¦show more content†¦Fortunately, the General Manage, John Bailey was well aware of the essence and benefit of the Contingency Theory. He soon realized the necessity to reform his structure in response to the unp recedented challenge. They started to embrace what they called the â€Å"Parallel Development† structure. Basically it was a more organic structure with cross-functional team. The core team consisted of people from three critical functional areas--- manufacturing, marketing/sales, and engineering. It was basically a Project Organization assembled specifically for the Mod IV. While this change absorbed some benefits, such as better communication and teamwork, some substantial problems such as perspective disparity among functional areas remained unsolved. In addition, it created new issues for BCD as friction arose when workers were reluctant to adopt change. They grumbled that the team was over-loaded and management involvement and support was lacking. Therefore, the change was only partially successful. There are several reasons why the change could not achieve its full strength. One of them is mistiming. Even John Bailey admitted it was his mistake to implement a new organizational structure and new product simultaneously. This did not mean BCD did not have the right people for the job nor their people were not enough to implement the change. It was just that they were too overwhelmed by the complexity of the sudden change and Mod IV’s design and pressing schedule.Show MoreRelatedHoneywell Building Controls Division2157 Words   |  9 Pagesstarted to build Mod IV; the great promised product with better quality of its motor and cost reduction. The BCD built the cross-functional Mod IV team combined from manufacturing, marketing/sales, and engineering. In addition, to be more competitive, the BCD dropped sequential development in favor of the parallel development with a desire for faster and better products. The skate was high but the BCD had an inferior Product Development that slowed them down. 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