Operations Management: An Integrated Approach, 5th Edition

CASE: Delta Plastics, Inc. (A)

Company Background

Delta Plastics, Inc. specialized in the design and manufacture of plastic containers, primarily for kitchen and household use. Its products were sold through merchandise retailers and were recognized for high quality. Delta also had an active R&D group that was continuously working to develop new plastic materials and new product designs. Delta was a recognized industry leader and was aggressively looking to increase brand recognition and market share.

Delta's R&D group had recently developed a new plastic material that tolerates rapid changes in temperature, from heating to deep cooling. This material could be used to make containers for kitchen use that could immediately be moved from the oven to the refrigerator. Unlike glass containers with this capability, the plastic containers would not break or chip. Delta's marketing group was eager to promote sales of containers made with the new material. Marketing believed the new material could revolutionize the industry, so it pushed for rapid production, arguing that the sooner the new products were available to customers, the sooner the company could corner the market.

The Decision

The decision whether to initiate production or continue with material testing was made during a heated meeting on April 28. Isabelle Harrison, director of R&D, stated that more product testing was needed in order to fine-tune the characteristics of the new material. Although there was no question regarding ...