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Question(1) Discuss the basic process and organizational issues confronting this firm: This corporation is an engineering firm whose sales total...
Question(1) Discuss the basic process and organizational issues confronting this firm:
This corporation is an engineering firm whose sales total approximately $140 million a year. The corporation is doing well. Production is doing efficient job, and inventories have been reduced. But lately problems start to rise from traffic manager, production manager, marketing manager, finance manager and purchasing manager. Although no orders have lost yet, several shipments have missed their deadlines. Customers are beginning to complain. In addition transportation cost on incoming and outbound freight that increased to 30 % in the last six months the president of the corporation was concerned with the increase of freight. The corporation cut inventory to save on freight that affected how the products are being shipped. Because of small orders, the volume rates were also affected. The demand of raw materials affects production because delivery of materials is behind that makes lead time to be longer. With all this problems the President of the company made his manager's come up with ideas in paper that they will present to him to resolve the problems.
Question (2) what should Harold Track do? Explain your answer:
Harold Track should work more closely with Joan Glass, the purchasing manager, & Heinrich Holtz, the production manager. They need to develop comprehensive plans in order to insure that Joan orders inventory in a timelier manner while keeping inventory to a minimum. This will allow Harold to receive & ship inventory in larger shipments thereby lowering costs. Heinrich should also keep the others informed of when inventory is needed for both production & maintenance. He can do this by coordinating with Harold Levi, the marketing manager.
In the final analysis, the company does need to develop a materials management division which will probably be lead by Heinrich Holtz.