This document summarizes a case study about component failures at Aristotle Communication Company. It describes how an employee, Shubhangi, noticed excessive failure rates of the RB175 integrated circuit. After testing, she and colleague Anand discovered that temperature and humidity changes caused a specific circuit to react unpredictably. A task force was formed but made little progress due to delays in validating the problem and bringing relevant teams together. After two months, Anand and Shubhangi were assigned full-time to the task force. It took over a year to redesign the component, incurring significant replacement costs. The document raises questions about management reorganization and employee communication problems at the company.

1. Aristotle Communication
Company
By
Lohit Bharambe
Sai Mahesh

2. Facts of the Case
• Aristotle is multinational and Electronic components and
manufacturing corporation.
• The Wave -16 biggest product of the company.
• This is short-range communicator used extensively in the military.
• Component RB175 is complex integrated circuit made up of the
Wave- 16.
• This component is failing in factory as well as in the field.
• Shubhangi had noticed a trend in factory of excessive RB175 failures.

3. • She further collected all failure and retested them found that 85% of
the failed of RB175 s passed.
• She tested again and this time only 35% of the failed RB175 s passed.
• She approached to Anand for help and require an equipment.
• After two weeks of intensive testing they found specific temperature
changes and humidity levels caused a specific circuit in the RB175 to
react unpredictably.
• Considering high cost and importance of problem a task force was
formed to solve a problem.

4. • ACC – Hosur never observed this kind of phenomenon.
• ACM’s plant manager contacted to ACC’s plant manager.
• Company wants to re-verify the problem it caused four weeks delay
because of poor staffing and general feeling that problem did not
exist.
• Once failure was validated then it was found that the component is
produced by ACC – Hosur and packaged at Pune facility.
• It took another four weeks to bring Chennai group into the task force.
• Further all return to same point where Anand and Shubhangi founded
the problem.

5. • Two months later, a solution was yet to be found all R&D people who
were involved in the RB175 were brought to the board.
• Anand and Shubhnagi had been assigned full time to the task force
and relieved of all other duties.
• Anand’s lab equipment was dedicated for task force.
• Customer was not informed the problem occurred as many projects
were lined up.
• But any failure casued to customer then total cost was incurred by
ACM task force.

6. • Projected loss of Rs 70000 per replacement in labour and parts were
incurred by ACM task force.
• One year later decided to redesign the RB175 and Wave- 16 for less
cost because of new technology.

7. Questions
• What management reorganization may be needed to avoid problems
of the past in the new contract ?
• What employee communication problems can you identify in the
organization of Aristotle Communications Company ?

8. Thank You