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For students of Industrial Engineering , Management, HBS case solutions, Business Case Studies, economic
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HBS CASE SOLUTION

Paradoxical Twins: Acme and Omega HBS Case: Jaguar PLC 1984

Electronics HBS Case: Threshold Sports

HBS Case : Home Depot
Case Symmary for "Paradoxical Twins: Acme and Omega Electronics" by John F. Veiga as
HBS Open Source Case: Salvation or Suicide
discussed and presented in class
Interco 9-291-033
After Technological Product was sold out its two plants under electronic division become Sampa Video Inc - WACC Calculation
two firms Acme and Omega Electronics. Both of the firms are competitor if each other ,
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Acme had annual sales of $10 million and 550 employees and Omega had annual sale of
Capital Structure, Valuation ans cost of capital
$8 million and 480 employees. Acme is consistently more effective and achieve greater net
profits. Priceline.com: Name your own price
Organizational differences between Acme and Omega Newell Company: The Rubbermaid Opportunity
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Acme
Investment Analysis and Lockheed Tri Star

Retained original management and promoted GM to president.(Mr John)

Well defined organizational structure Topics
Decisions taken by top management without consulting manufacturing dept.
Well defined job responsibilities Case Summary (18)

Omega Consumer Behaviour (4)

Hired new president and upgraded several existing personnel within plant.(Mr. Cost Calculations (1)
Jim)
Finance (4)
Organizational chart seems like artificial barrier.
Filling people who could not contribute to solution (participative management) Industrial Engineering (13)
No well defined job specification microeconomics (2)
Project Management (13)
Resource Scheduling (4)
Both of these firm competed for a major photocopier manufacturers project. Photocopier
firm gave 2 weeks time to manufacture 100 prototypes each. Based on the prototype supply chain management (3)

photocopier manufacture will award the final order.

Prototype Development at Acme
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Mr John president of Acme , issued a memo to purchase department , drafting department,
Industrial Engineering dept. and all heads and executives indicating time constrains. Zopso.com 2011 (2)
Purchase dept. notice that a component could not be purchased for next 2 weeks. Acme 2010 (6)
decided to built the prototype except for the one component and add component later. Material Handling 2009 (22)
In haste to make things going production foreman ignored the normal procedure of
contacting the methods engineers and set up assembly line and started assembly.
Wiki
Higher Blogs -
2008 (23)
Method engineers complained to head industrial engineer, who immediately complaint to BlogCatalog Blog December (1)
plant manager. Plant manager ignored the complaint. Directory October (6)
Later , a design error was identified and photocopier manufacture instructed Acme to Bicycle Case
rectify the problem. The alteration in design , lead to disassembly and unsoldering of
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several connections. BRDTracker Cosmetics
After design error was rectified missing components were installed by again disassembly. Case
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This increased the time of production and final prototype was sent without inspection. Supplies Mate,
Prototype Development at Omega WORLD TOP Office
A meeting was called with all head of the departments , criticality of issue was explained BLOGS - Top Supplies
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and department heads agreed to start process at their end. Case
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Purchase dept. notice that a component could not be purchased for next 2 weeks. Head of
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the engineer suggested for substitution. Head of mechanical department stated that in Summary:
absence of the component assembly time and cost will increase. HBS Case Proctor &
SoMuch.com Gamble:
Electrical department inspected the design and came up with substitute. Organizatio
Directory Storm
While building the unit they discover the error in design, Error was corrected and changes n 2005 ...
Directory web
were approved from photocopier manufacturing firm. directory Paradoxical
They developed the prototype before the deadline and final prototype was sent after Twins:
inspection. Acme and
Omega
Result Electronics
Acme had delivery delays. Acmes 10 /100 units were found defective. Omegas all
HBS: Executive
prototype were passed. The final contract was split between the two firms. Acme reduced Decision
its unit cost by 20 percent and was ultimately awarded the total contract. Making at
General
 Case Analysis Motors
Acme had a well defined organizational structure but was information flow was
June (5)
unidirectional. Direct contact between management and technical experts was lacking. As
one of the employee has mentioned that, I wish I had a little more information about what May (11)
is going on. Interdepartmental communication was only possible at management level.
In case of Omega , Its president was from a research laboratory and thus respect input of
every one. Organizational structure and work allocation was not clear. Departmental From Target IAS
communication was strong, when purchase department raise concern for delay in a
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particular component there was prompt response from electrical department for
substitution and mechanical department told that without this particular component cost Land Acquisition Act 1894

and assembly time will increase. Information was flowing in both directions without routing Conditional Cash Transfer
it from president. This enabled Omega to manufacture at time.


In long run, as we know that Acme was more successful than Omega. This could be CSAT
attributed to the fact that job allocation was not clear. Moreover information flow was On Some Fatal Fallacies
better in Omega but sometimes such information flow also create hindrance by creating
interference in each others domain.

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Labels: Case Summary

2 comments:
Ultimate Appliances said...
Interesting and important information. It is really beneficial for us. Thanks

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September 30, 2011 at 12:09 AM

Online electronics store said...

Another informative blog Thank you for sharing it Best of luck for further endeavor
too.Online electronics store
October 6, 2011 at 11:49 PM

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