Wallace, a general manager of PAD, has decided to propose a new strategy for the company. Concerns about cost, delivery, quality, and flexibility have led to the need for new objectives. These objectives include shifting from low-volume to high-volume production and moving from custom designed products to high-quality manufacturing designed products.
Regarding cost, under the old strategy, ADAPT was able to pass its high costs to customers by charging high prices. However, the new business strategy will not allow for this. Producing high-volume products will increase competition for ADAPT, putting pressure on them to lower prices and increase sales. Thus, ADAPT needs to focus on reducing costs in order to generate the desired profit.
In terms of delivery, ADAPT must improve its delivery system in order to provide better services and attract new customers in the more competitive market. This includes reduci
...ng delivery times and better managing inventories by implementing a new automatic system of delivery control and inventory control to replace the existing manual system.
Furthermore, The Division must establish delivery time goals. The commitment to quality should be maintained, as it will provide a competitive edge in the new market. However, the shift from on-demand to high-volume product production has decreased flexibility in meeting customer demand. Nonetheless, flexibility can be improved by enhancing time management capabilities, potentially enabling the production of more products annually. This would allow for quick adjustments to customer requirements if necessary.
To achieve the manufacturing objectives, various aspects including processes, organization, equipment, workforce, capacity, scheduling, quality management, and production and inventory control systems need to be improved and revamped. Shipper needs to reduce machine changeover time, improve process flow
by bringing processes closer together, and redesign products for faster production. Additionally, effective communication of the new business strategy to all employees is crucial.
Once employees are aware of the new objectives, they will understand the purpose of their work and be motivated to perform better. Furthermore, the production of new products may necessitate the acquisition of new equipment.The Division should install automatic systems to improve inventory management and reduce delivery downtime. Additionally, they should assess workload and predict production volume to estimate workforce requirements and determine if additional employees need to be hired. Managers need to enforce quality control management for high-volume products by increasing their presence on the floor. A sound production flow is crucial in achieving objectives in Shipper Manufacturing. Engineers should design products that are not overly complex and can be quickly and easily assembled. Managers can facilitate goal achievement by providing easily comprehensible instructions and setting clear tasks.
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