Risk, Financial Impact, and Management: Contech Engineered Solutions
Risk and Financial Impact
The risks associated with a new product launch can be roughly defined as demand risks and supply risks. Erhun, Goncalves and Hopman (2007) defines demand risks as those that reflect the market for the new product and supply risks as internal processes for supplying the product. The primary potential risks to the company associated with the introduction of Multi-Plate are the upfront costs of plant and equipment modifications (supply risk), properly training the sales and manufacturing teams (supply risk), raw material forecasting and upfront cost (supply and demand risk), managing customer expectations (demand risk), and properly training installers to ensure safe and successful installations (supply and demand risk). Upfront costs will not be recuperated until incremental orders are fulfilled and invoices are paid. Therefore, if the business does not take-off as forecasted, the company will have to absorb those costs. Conversely, if orders are greater than anticipated, lead times and raw material
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Understanding the customers’ needs and whether they were met is a privilege that a company like Contech must earn. Many times a dissatisfied customer will just not repeat their business. However, by providing quality products through continual improvement, quality is expected of Contech products by its customers based on past experience. It will be very important to get feedback early and often. Communication is also important in employee involvement to ensure proper training and go-to-market messaging. If Contech does a good job of managing expectations prior to product delivery, the customer already knows what they are getting and how it should perform. Any customer feedback that does not meet this expectation should be used to make process improvement
In this analysis includes a summary of the characters and the issues they are dealing with, as well as concepts that are seen that we have discussed in class. Such as stereotyping and the lack of discrimination and prejudice, then finally I suggest a few actions that can be taken to help solve the issues at hand, allowing the involved parties to explain their positions and give them a few immersion opportunities to experience their individual cultures.
Customer feedback is important because in this way the company not only found out problems but also gained better knowledge of what customer wanted and demands.
However, comparing with the current situation, the lead time is longer, the manufacturing cost is a bit higher due to lower economic of scale in the labelling operation. Moreover, even though the inventory is reduced, the overstock problem of particular product types still exist. Which means that the repackaging process still very likely to happen. High remanufacturing cost remains the disadvantage point in this MDP position.
A. As Human Resources Director for Techfite’s new location in Dellberg, I feel it is necessary to implement policies that reflect and maintain our company culture of workplace collaboration and leadership development. In an effort to also encourage employee empowerment and engagement in corporate decision making, I propose the following corporate policies that reflect a virtue-based perspective of ethics, be implemented immediately.
Customers. The company’s products and services are best to be scrutinized by the customers because they are the ones that have to use the service. They are in the best position to find defectives part of fault in the process. Bindroo, Mariadoss, Pillai (2012) state that customers have information regarding the products and services that used that can be advantageous to the company. This is free marketing information that can be used by in order to improve products, processes or services. These improvements are regarded as incremental innovation
This threat is especially high when The buying industry has a higher profitability than the supplying industry. Forward integration provides economies of scale for the supplier. The buying industry hinders the supplying industry in their development (e.g. reluctance to accept new releases of products). The buying industry has low barriers to entry. In such situations, the buying industry often faces high pressure on margins from their suppliers.
Akamai Technologies, Inc. is an organization which delivers the content over the Internet. It is one of the largest organizations which provide the distributive Computing Platforms; it provides a cloud based services to the end user. It serves 30% of the overall web traffic. Akamai provided numbers of servers which are located all over the globe and stores the web application of the clients. It provides a faster access to those applications because of the distributive contents in to various servers around the world. Akamai does not want the long routes to it distributed the data based on the locations, it works as like a work or a task which is not possible to be completed by a single persons is divided in to multiple process or threats or assign to teams to complete their individual part, so that task can be complete faster, in the same way the contents are stored at different servers based on their access mechanism.
Meditech is an organization that produces endoscopic surgical instruments. The company manufactures and market low cost endoscopy surgical equipment to hospitals and independent surgeons. New products were critical to Meditech’s strategy of product development, but these product needed to be introduced flawlessly in order to protect Meditech’s reputation and sales of their other products. Three years after Meditech spun off from its parent company, the Largo Healtcare Company. Meditech captured a majority of their market by competing aggressively, developing new, innovative instruments and selling them through a first-class selling force, causing a success in a short period of time. In the past, the organization was experiencing a good customer service, however despite the success, customer dissatisfaction has been growing. Due to the fact that the delivery of surgical equipment on time is very important, this has become a big problem for the organization. Some of Meditech’s customers have been waiting for more than six weeks for products to be delivered, this is not acceptable so Meditech has to come up with a solution.
...product that suits that needs of the customer is part of the planning process. To do this, customer needs can be speculated and then an information gathering plan is developed and then the information is gathered. The results should be analyzed and checked for validity. Based on the conclusions, the product changes can be made. Customer feedback can also be used to make product improvements.
We claim that it is the customer's entire experience with us that determines his or her declaration of satisfaction. We say that this experience is not objective at all but totally subjective. It is the customer's call. That call is based upon the customer's perception of the experience. This perception is his/her interpretation of the value received played back against his expectations.
Customer service is constantly evolving. A few decades ago, businesses considered customer service an unnecessary expense. Now, companies view it as a competitive advantage in the marketplace. Research reveals that “80% of CEOs believe they deliver a superior customer experience, but only 8% of their customers agree”.
The second way is to achieve low direct and indirect operating costs is gained by offering high volumes of standard products and offering basic no-frills products. Production costs are kept low by using less parts and using standard components. Limiting the number of models produced to ensure larger producti...
Finally, follow up with the customer. Business and companies have an opportunity to make sure that the customers needs or issues were met and resolved. You can follow up with your customer by phone, email or even a letter to make sure that the issue or solution was solved to their satisfaction. If it wasn’t solved or resolved at that time that you will continue to find a workable solution and keep them informed. Sometimes going above and beyond will exceed the customers expectations and they will become loyal customers as well as customers that will share creating new customers.
Consumers are concerned not only about a product breaking down but also about the time before service is restored, the timeliness with which service appointments are kept, the nature of dealings with service personnel, and the frequency with which service calls or repairs fail to correct outstanding problems. In those cases where problems are not immediately resolved and complaints are filed, a company’s complaint-handling procedures are also likely to affect customers’ ultimate evaluation of product and service quality.
There is a need for continual improvement and the organization should always try to understand the needs of the customer. Quality must be built in the design stage. Improvements in the processes may include better allocation of human effort and study of records. Continual work with vendors is also an improvement in manufacturing (Deming, 1986).