Category: Process Management

Abstract

The inability of the manufacturing division at the Going, Inc. to meet the deadline is likely attributed to the inefficiency of the chosen mode of operations. The current paper argues in favor of lean process adoption. Combined with repetitive focus process type, the change is expected to eliminate unnecessary complexity, minimize delays in production, and eliminate overages and shortages of components. In addition, its compatibility with JIT inventory management approach has the potential to optimize storage and manufacturing capacity.

Introduction

Since its market entry, the Going, Inc. has experienced an unexpected surge in demand. As a result, the manufacturing division was unable to meet the deadlines, followed by the creation of overage of some parts and shortage of others. The following paper outlines the changes in mode of operations and inventory management that are expected to alleviate the encountered difficulties.

Suggested Changes

The first aspect of Going’s production that needs to be addressed is the company’s mode of operation. The data on production numbers and sales orders suggest a significant gap between supply and demand, and, more importantly, the possibility that this gap will widen in the future. Specifically, it is evident that while by 2004 the company is close to reaching its estimated maximum capacity production of 15 planes, this figure is insufficient for addressing the current average demand of 18 planes per month. In addition, it is possible to expect further increase in demand due to a clear growth trend observed throughout the three-year period (Belobaba, Odoni, & Barnhart, 2016). Therefore, it would be reasonable to suggest lean as a preferred mode of operations. The most apparent advantage offered by the proposed mode would be the reduction of excess inventory and, by extension, relocation of resources resulting in the elimination of inventory shortage (Slack, Brandon-Jones, & Johnston, 2013). In addition, lean mode of operation is expected to increase value of the offer for the customers.

As can be derived from the available information, the main advantage of the company stems from the high quality of its product and the appeal of flying an airplane with a distinct brand name. In addition, it is possible to assume that timeliness of delivery is also an important aspect. From this perspective, lean approach would allow for greater focus on value created in the process. For instance, it would be necessary to review the location strategy, which currently presents a major bottleneck in terms of alignment between planning and manufacturing since the assembly hanger and the corporate headquarters are located in different states (Dennis, 2015). Addressing this issue would allow for more efficient planning and increase overall efficiency of the production process.

Next, considering the high variety and complexity of the current inventory combined with a low number of basic final product models, it would be reasonable to suggest repetitive focus as a new process type. Plane production relies on the assembly of multiple modules that are relatively homogenized despite their complexity. Therefore, it is possible to achieve a high degree of efficiency using tightly-coordinated and organized assembly lines. Repetitive focus is also highly suitable for long-run production of products that have little variety. Since planes are highly standardized products that utilize modules as their principal parts, it would be reasonable to expect an increase in efficiency as a result of adoption of this process type.

Another advantage is the alignment of repetitive focus with just-in-time (JIT) inventory techniques. The involvement of more than 10,000 parts in the manufacturing process introduces the possibility of errors in the inventory management process and creates additional storage capacity requirements. JIT techniques will ensure that only the parts that need to be used within a short time span will arrive at the warehouse. This adjustment is expected to reduce production costs and, more importantly, reduce the time necessary to complete an order, effectively increasing the supply of products (Wild, 2017). It is also worth mentioning that JIT can be effectively integrated as a part of lean mode of operation since the latter is commonly viewed as a logical extension of the former.

It should be noted that repetitive focus is associated with relatively low requirements for employee skill level and is often used as a way to decrease education costs of the staff, which is unacceptable considering the high quality and safety requirements characteristic of the industry (Gudmundsson, 2014). However, in the scenario at hand, it can be viewed as a way of ensuring the necessary level of proficiency without a significant increase in expenses on training. In addition, repetitive focus has the potential to minimize changes in job instructions (Heizer & Render, 2016). By extension, it may reduce the risk of compromised quality of the final product resulting from excessive complexity.

Finally, it is necessary to point out the benefits of JIT approach for inventory management process. Currently, about 30% of the stock is kept in the assembly hanger, which is where all of the manufacturing activities occur. While such an approach supposedly allows for the minimization of delivery time, it also creates significant waste, especially considering the multitude of components involved in production. The introduction of JIT inventory management is expected to optimize hanger space utilization, thus increasing both storage and production capacity and, by extension, simplifying the production planning process.

Conclusion

The inability to meet the deadline in the case of Going is likely attributed to the inefficiency of the current operation mode. The implementation of lean mode would allow for the use of JIT inventory management approach and the utilization of repetitive focus process type. The suggested change is expected to minimize the complexity of inventory, increase the capacity of storage and production, and eliminate the existence of overages and shortages.

References

Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2016). The global airline industry (2nd ed.). Chichester, England: John Wiley & Sons.

Dennis, P. (2015). Lean production simplified: A plain-language guide to the world’s most powerful production system (3rd ed.). Boca Raton, FL: CRC Press.

Gudmundsson, S. (2014). General aviation aircraft design: Applied methods and procedures. Waltham, MA: Elsevier.

Heizer, J., & Render, B. (2016). Operations management: Flexible version (10th ed.). Boston, MA: Pearson Education.

Slack, N., Brandon-Jones, A., & Johnston, R. (2013). Operations management. Thousand Oaks, CA: Pearson.

Wild, T. (2017). Best practice in inventory management (3rd ed.). New York, NY: Routledge.

This memo aims at providing basic information about how budgeting processes are developed and what steps should be recognized by managers in their work. Many employees admit that they know enough about budgeting and its peculiarities in certain fields. However, this information should help my co-workers understand the essence of the budgeting process and explain how managers may use this information to manage their work and make their decisions in a proper way.

A budgeting process is a procedure during which an organization makes significant decisions on how to build its budget and implement all necessary steps. It is not enough to introduce a paper with a list of steps to be taken. It is necessary to think of all organizational and working aspects to clarify if a company and its workers clearly identify the goals and have enough sources to meet them. A budget is usually used to set the expectations for revenues and possible expenses that may be observed in the future and influence the quality of the work (“Budgeting procedure,” 2017). To introduce a successful budgeting process, Kilmer (2017) suggesting focusing on the following aspects:

1. The involvement of relevant players who are aware of what is expected to be done and what can be actually done in the company;
2. The creation of a realistic project in terms of which budget expenses do not lead to negative outcomes only;
3. The understanding of budgeting sources and relationships that may be used and developed in the organization;
4. The identification of all stakeholders, potential investors, and other tools that may improve a budgeting process.

Many companies find it helpful to create special checklists and follow them during the creation and implementation of a budgeting process. Leaders admit that these checklists help to avoid difficulties and unpredictable complications based on obligatory training and monitoring (Lidia, 2014). However, these lists may be useless in case people do not understand the goals of a budgeting process.

At this moment, the three main purposes may be identified in the field of business. Rubin (2016) introduces accountability (i.e., the presence of the money that can be spent and the identification of the authority who is responsible for money spending), decision-making (i.e., the evaluation of up-to-date information for all organizational workers), and openness (i.e., the awareness of the financial conditions that have to be improved or changed with time). However, some organizations are ready to define new goals to make sure that their budgets are appropriate and effective.

Finally, to give a better understating of what a budgeting process is, I would like to focus on several examples and explanations on how managers should use this information and make their decisions. Today, many people are eager to try something new and choose innovations to achieve success and recognition. For example, some companies refuse the idea of ordinary annual budgeting and use a radically decentralized model, “Beyond Budgeting” (Sandalgaard & Bukh, 2014). Such a model helps to make fast decisions and consider the changes with the help of which improvements are possible.

However, radical models are not always appropriate in companies. Therefore, general suggestions and examples are used to understand what kind of work should be done by budget managers. Peavler (2017) compares operating and financial budgets to explain what plan is the best option. Managers investigate prices, evaluate the abilities of the company to pay for its progress, and think about the time that is required to cover all organizational needs.

Such work is a unique opportunity to comprehend how to improve and stabilize a financial situation of a company and involve as many people as possible in the solution of organizational problems.

References

Budgeting procedure. (2017). Web.

Kilmer, D. (2017). 9 considerations for creating a budgeting process. Web.

Lidia, T.G. (2014). Difficulties of the budgeting process and factors leading to the decision to implement this management tool. Procedia Economics and Finance, 15(2014), 466-473.

Peavler, R. (2017). Example of a financial budget for a small business: What you should include in the financial budget. The Balance. Web.

Rubin, I.S. (2016). The politics of public budgeting: Getting and spending, borrowing and balancing (8th ed.). Los Angeles, CA: CQ Press.

Sandalgaard, N., & Bukh, P. N. (2014). Beyond budgeting and change: A case study. Journal of Accounting & Organizational Change, 10(3), 409-423.

Introduction

An economic recession generally refers to a period of negative economic growth, which plunges economies into chaos. For instance, the last global recession instigated widespread adverse economic impacts across the world with only a handful of countries escaping its scathing effects (Sum et al., 2009, pp. 2). The global business environment turned hostile forcing many businesses out of operation.

With the threat of bankruptcy at hand, business organizations implemented cautionary measures aimed at sustaining their operations. Business process management (BPM), which became popular in the wake of the recession, is one of such remedial measures. This essay explores the reasons behind the widespread application of BPM in the wake of the last global recession in a bid to decipher the link between the recession and BPM.

Main body

In order to achieve this feat, it is imperative to understand the economic impacts caused by a recession. In the light of this knowledge, the implications of those impacts on the business scene become easy to understand and relate to the measures that businesses take to mitigate the adversities of a recession. In this case, the adverse effects of the last recession are explored while simultaneously investigating how they influence the widespread application of BPM across the world.

Economic recessions are characterized by difficult economic times for both individuals and businesses (Sum et al., 2009, pp. 1). The typical reaction to such circumstances is that businesses strive to increase sales in order to maintain their profitability whereas individuals strive to spend less since there is a reduction in disposable income. As a result, most people only spend when it is necessary and, when they do, they ensure that they get the real value for the money spent.

The implication of this development for businesses is that they are compelled to eliminate all inefficiencies from their operation circles in order to exceed customer expectations and demands with minimal resources. Enhancing business efficiency may call for strategies such as BPM.

Moreover, when customers become extra cautious with their money, competition among businesses tightens up since every business strives to maintain its profitability or at least avoid bankruptcy (Sum et al., 2009, pp. 2). The primary aim of every business is to make a profit. However, when the economic scene becomes volatile, businesses shift their focus to survival. Thus, a recession plunges businesses into a state of desperation where they implement every available measure to ensure sustainability. As a result, businesses can easily implement BPM as one of the pro-sustainability strategies.

In the larger picture, a recession can lead to a credit crunch in the economy of a country (Sum et al., 2009, pp. 5). Unfortunately, most businesses rely heavily on credit facilities to keep their liquidity at acceptable levels. Consequently, when the lender community limits the ability of the business community to access credit facilities, businesses are bound to experience liquidity problems that can easily bring them to a state of bankruptcy.

It is worth noting that a recession generally affects the entire economy, but in most cases, a specific sector takes the biggest blow (Sum et al., 2009, pp. 5). If the sector in question turns out to be the financial sector, financial institutions become the first to experience liquidity problems thereby plunging the economy into a financial crisis. In order to survive in such conditions, businesses have to use their financial resources sparingly but effectively. This need again pitches BPM as the best way out since it involves the optimization of every business process (Zairi, 1997, pp. 64).

Conclusion

Apparently, the relationship between a recession and BPM is such that it (BPM) is considered by many businesses as the panacea for the numerous woes instigated by the recession (Zairi, 1997, pp. 65). BPM gives businesses hope in the face of the uncertainty that is typical for recessions since it provides a platform upon which all business processes undergo an evaluation to stamp out all causes of inefficiency. Thus, the widespread application of BPM in the wake of the recent global economic downturn is because it proved invaluable in the recovery process.

References

Sum, A., Khatiwada, I. and Mclaughlin, J. 2009. ‘The economic recession of 2007-2009: A comparative perspective on its duration and the severity of its labor market impacts’, Northeastern University, vol. 2, no. 4, pp. 1-25.

Zairi, M. 1997. ‘Business process management: a boundaryless approach to modern competitiveness’, Business Process Management Journal, vol. 3, no.1, pp. 64-80.

Product Manager Presentation

‘People are definitely a company’s greatest asset. It doesn’t make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps.’ Mary Kay Ash.

The success of any company is dependent on the way its employees perform; it is not an easy task to find an effective and qualified product manager bearing responsibility for all his occupation responsibilities. Nevertheless, according to the words belonging to Mary Kay Ash, ‘People are definitely a company’s greatest asset. It doesn’t make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps’; that is why it is necessary to analyze and present one of the most effective and successful candidates to take the position of a product manager.

Product Management

• Customer;
• Industry;
• Trends;
• Competition;
• Marketing;
• Development.

The slide reflects the basic elements of any product management sphere, through which one can identify the basic goals and tasks of a required specialist.

Candidate’s Background

• Business administration – Master’s Degree, Drexel University;
• Trainings – Statistics, Business Law, and Economics;
• Profound Knowledge of Business Software;
• 7 year Experience in Electronics and Computer Manufacturing.

The background of the candidate.

Candidate’s Skills

• Persuasive power;
• Computer and statistical skills;
• Presentation skills;
• Interpersonal and communication skills;
• Knowledge of marketing;
• Customer focus.

Skills which are presented, were developed by the specialist through constant hard work and deep involvement into the sphere of product management.

Candidate’s Strengths

• Leadership;
• Research skills;
• Prioritization;
• Multitasking;
• Creativity;
• Domain Knowledge;
• Strategic thinking.

The qualities demonstrated are the basic strengths of the candidate.

Candidate’s Weaknesses

• Little experience in Advertising Sphere;
• Little Experience in online trade.

The only weaknesses of the candidate are lack of experience in advertising sphere and online trade; though these.

A Few Harmless Flakes Working Together Can Unleash an Avalanche of Destruction…

I would like to underline the idea that all combined qualities and skills of the candidate can be reflected through powerful and effective work of the introduced candidate.

The Candidate’s Privileges

The candidate to take the position of the Product Manager will be able to develop a product in the identified time limit; his skills will allow him successfully conducting risk assessment and providing effecting business presentations.

The slide represents the features obtained by the candidate which provide privileges among all mothers.

Conclusion

‘The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man” – George Bernard Shaw.

This quote by Bernard shaw is demonstrated to underline the importance of a qualified leader to take the position of the product manager; the candidate introduced is an experienced leader reflecting all the skills and qualities of a professional specialist working for the product management sphere.

References

Budjac, B.C. (2006) Conflict Management: A Practical Guide to Developing Negotiation strategies. Prentice Hall.

Haeussler, A. (2003). Employee Process Management – from Vision to Product. Web.

Lehmann, D. and Winer, R. (2001). Product Management. McGraw-Hill.