2. Average Standard Machinery Company is meting average standard machines, their efficiency is low and it consumes a lot of maintenance cost. 3. Outer Soal XYZ Shoe Traders are importing outer sole from other manufacturers which exert more cost on each pair of chapel. They have two options either to compromise on price or to compromise on quality. 4. Human Hand work The company is meting a lot of human hand work e.g., Pharma cutting, Leather sheet cutting which consumes time and reduces accuracy standard. Machines can do this work quickly and accurately. 5. Solution Drying The company applies sticky solution on the outer sole and put it in sunlight for drying. It takes a lot of time and space. The company has to face problem of drying in winter. …show more content…
2. Average Standard Machinery: The company should try to purchase new machinery in phases so that it exerts low burden and in few years the company could have all standard, up to mark machinery. Further the company now repairs its machinery from different maintenance shops. The company met made contract from a single person or company. This will reduce maintenance cost and machinery would also be saved from going into inexperienced hands. 3. Outer soal: The company is now purchasing the outer soal at rupees 15 per pair while if the company made it at its own it would cost 5 rupees per pair. If the company purchase the machinery that make outer soal then the machinery cost will increase the working capital but this will reduce the company’s product cost up to 8 rupees. The company is exporting almost 2 lack pair of shoes per month and by making outer soal at your own the company could save up to 16 lacks per month. 4. Human Hand Work: The human hand work can be reduced by importing machinery. This would incur more cost on per pair but it will give quality which would attract high prices & returns and more customers will be attracted towards the company. 5. Solution …show more content…
The company meet give reward to those employees who done more effective work in small time frame. By doing so a scene of competition will start among the employees and this would be beneficial for the company. But the company meet monitor all of its employees to avoid disputes etc. Organizational development interventions for XYZ Shoe Traders • Technological intervention • Traveling Cost intervention • Human process intervention • Electricity Intervention • Skilled Labor intervention • Strategic Intervention Suggestions • The company is now purchasing the outer-soal at rupees 15 per pair while if the company made it at its own it would cost 5 rupees per pair. If the company purchase the machinery that make outer soal then the machinery cost will increase the working capital but this will reduce the company’s product cost up to 8 rupees. • The human hand work can be reduced by importing machinery. This would incur more cost on per pair but it will give quality which would attract high prices & returns and more customers will be attracted towards the company. • The company should try to purchase new machinery in phases so that it exerts low burden and in few years the company could have all standard, up to mark
The company Dirt Bikes is facing the same current dilemma that many companies these days face. Trying to continue to make a profit in this economy and stay competitive and up to date with technology and its ever-changing advancements is no easy task these days. Dirt Bikes has concerns over their current costs of communications between their employees and departments, they are looking to advance their ability to keep up with the developments in the motorcycle industry and the global economy surrounding their organization. There are many considerations their organization must consider when implementing an entire new technology infrastructure. They must consider the overall costs, how the entire infrastructure will affect their organization as well as their employees. They must consider the time and effort it will take to train all their employees on the new technology, including the costs of that training, as well.
Salomon is a company in the manufacturing business that specializes in ski and snowboard equipment. Recently there have been a number of machine malfunctions and problems with the manufacturer machines that cause major delays in the production process. This is a problem because customers’ expectations and the demand for products have to be met and on time. If this problem were to continue we would lose business and would not be able to meet the production needs. Our CEO for Salomon has requested me to write a report on what I believe is the best way to solve this problem in order to improve production time and prevent delays from reoccurring.
MillerCoors can establish the context as generalized machinery failure. Through identifying the risk, MillerCoors can identify the source of machinery failure could happen anywhere from production machinery to delivery equipment, with the causation arising from mishandling of machinery, general wear and tear or even sabotage events. Consequently, failures in machinery could not only create operational delays, but would cause financial loss and increased liability. Depending on the age and the extent of personnel training, the likelihood of machinery failure would vary drastically within the organizations and between brewery operations. To properly evaluate machinery failure risk, all eligible assets should be broken down into different levels, based in the type, age and complexity of the machinery. To reduce the risk and loss potential, MillerCoors, should instill performance measure to within policies and procedures to makes sure equipment is regularly inspected. In addition, the organization should focus on provided proper and frequent training to make sure personnel are educated in the use of the organizations machinery. Therefore, through the risk management process MillerCoors can provide treatment to reduce the effects of machinery
ToolsCorp is not exempt from the need of profit. Financial objectives should be outlined and include increasing income, profit increases, maximizing of investment utilization, and decreasing costs (Dodangh, Mojahed, and Nasehifar, 2010). However, their financial plan goes beyond that of just numbers. It seeks to compensate its employees and investors to allow them to live life. Through continuous quality improvement, the company seeks to reach Six Sigma standards to reach for zero defects and waste, which will pass savings onto the customer. It will also provide a quality product that will create loyalty through repeat sales (Ridley, 2014).
Engstrom Auto Mirror Plant is a private owned business in Indiana that is manufacturing mirrors for trucks and automobiles. The plant has been having some rough times. There were some major organizational issues in the Engstrom Auto Mirror Plant. I am going to mention about three major organizational issues. The first major issue was Ineffective leadership employees were losing trust in this organization due to poor leadership. The employees thought the management was “playing with numbers” because they weren’t paid their monthly bonuses for a few months. The management could not afford to pay employees bonuses’ because of the productivity problems that the organization was having. The second major issue was lack of motivation. There was
However, this results in trade off effects which is giving up of one benefit, in order to gain another regarded as more desirable such as the price versus the quality of the sport shoes, you cannot get both at the same time. A great way to manage and regulate their manufacturing process is to hire a trusted local agent in the factories to monitor the whole process to prevent using cheap and low quality material. You or your agent can then make in-person inspections for quality and conformity to make sure the Sport shoes are not in the bad
Athletic shoes are made from different types of raw materials. The sole consist of three different layers; insole, midsole, and outsole. The insole is a thin layer of ethylene vinyl acetate. The midsole varies depending on the manufacturers, usually consists of polyurethane, gel, liquid silicone, or polyurethane foam. It is designed for shock absorption and support of the heel.
These industry possess characteristics that protect the high profitability of firms, with that said, the threat of entrants within this market is relatively low. This makes entering the market difficult for new startup companies due to the high levels to entry barrier. One of the factors contributing to the barriers to entry is the high capital requirements that are needed in order to compete in the market. Large investments are required in acquiring facilities and maintaining them along with purchasing the expensive equipment relative to manufacturing welding products. Purchasing the equipment is not enough but new companies are also required to develop the advanced technologies before effectively competing in which is really time consuming. With these asset specificities, potential entrants are discouraged to commit to obtaining these specialized assets that have no other means of use or profitability if the venture fails. When existing firms acquire these specialized assets, they are more inclined to resist efforts by other competitors from stealing market share, therefore enhancing the competitive disadvantage for new entrants.
There should be a change in accounting and control system, which places gross margin responsibility at the plant. Marketing department should be like GE MDO…
Signode Industries Inc. - Providing Packaging Solutions Executive Summary SIGNODE INDUSTRY: DILEMMA AT HAND: Mr. Gary Reed, President of Signode Industries packaging division, is in a dilemma as what he should be his course of action to meet the 6.8% increase in price of cold rolled steel- the raw material used in manufacture of Signode’s primary product, steel strapping. There are few options given in the case: Increase Signode’s strapping prices to offset the increased price of cold – rolled steel. Maintain Signode’s current book prices as increasing prices would affect sales force morale. Introduce price-flex model as proposed by Jack Davis i.e. a kind of selective discounting or premium charging for customized services. Recommendations Reason: (All data in accordance to 1983) In accordance to Exhibit 1: Sales of Packaging Division of the company = $285,950 In accordance to Table A: Sales of Apex = 33.3% of $285,950 Sales of BBM = 26.8% of $285,950 Sales of HDM = 33.4% of $285,950 Sales of Customized Products = 6.5% of $285,950 In accordance to Exhibit 4: Similarly, For Apex: As it has a capacity utilization of 71% now, Suppose a sale is $100. Then contribution is $39.15 Therefore variable cost is $60.85. Now if we increase the capacity utilization to 100%, Sales becomes $ 141 since production increases by [(100-71)/71] * 100 = 41% Variable Cost = 141% of 60.85 = $85.8 Fixed Cost = 69.38% * 12.3 = $8.53 Total Cost = 85.8+8.53 = $94.33 EBIT = Sales – Variable cost – Fixed Cost = $46.67 % of EBIT = [(46.67/141) * 100] = 33.09% Suppose the company sales 100x units, the total cost was 69.38. Thus per unit cost was .6938. Now the company sells 141x units, the total cost...
Different jobs require various amounts of labor, expenses and raw materials subject to the superiority of the jobs to be carried out. The quality and size of items demanded can vary. Therefore, such a job might not need a standard manufacturing method. On no account are two jobs precisely similar. The finished product may not be the same. Clearly, the cost of every job will be different depending on the individuality of the work order obtained from clients.
The company is now facing the demand of more products without the capability of producing, and the threat of new entrants into the market is becoming significant. Mr. James M. Elliot, the CEO and Chairman of the Board at Bytes Products, Inc, noticed that the company was facing numerous problems. The existing three plants run on 3 shifts schedule of 24hours a day and 7 days a week using up all possible production. It has now become evident to Mr. Elliot that if the three existing plans were to be running at maximum capacity at all times, the demand of production would still not be met. If the company’s overall supply is unable to meet the demands of its customers it would cause a negative impact on the company by not being able to maintain its current market share.
Inc. They should negotiate with the suppliers in order to bring down the minimum order quantity requirement. Since some of the Chinese suppliers have very limited room and require the manufacturers to order large quantity, the company can consider offering a higher price in return to get a lower minimum quantity.If negotiating with a suppliers still does not work, Sport Shoes, Inc can try to offer to pay a higher price to the supplier. They can at least produce a smaller quantity of products and offer them to pay a higher price, for example 20 to 30%, this is because of considering their low profit margins, it’s often not worthwhile the time, effort and risk involved. This might seem a win-win solution for both parties but sometimes the profit may not be sufficient to cover up the higher material cost. Whatever solution it is, there will always be a risk and careful measurement is
Finally, I have suggested some recommendations for the issues that I have mentioned above. In reference to the first issue, it will be profitable for the company to change to level monthly production.
Woodman, Chester L., Kurt Kuster. ?Small shop, big decision.? American Machinest (Apr. 2001): 78 EBSCOhost. Online. Nov. 2002 .