Monday, June 24, 2019
Exam Case Study Assignment Example | Topics and Well Written Essays - 1500 words
Exam Case Study - Assignment ExampleLater to follow ar the recommendations to overcome the stated problems and amend companys performance. Problems faced Primary problems faced by Sunshine Shirts come under the category of delivery delays and bottlenecks in whole step. Delays are attributed to factors like full-grown number of inspections, inventory and warehousing issues and lengthy yield cycle of shirts. Also, type and volume of orders in the three categories also contribute to delays in deliveries. For quality concerns, take down large number of inspections is non proving beneficial since printing is not getting appreciated by the customers. Faulty shirts are also getting in the orders which are resulting in increased number of complaints and reduced customer loyalty. Delays in deliveries and quality pitfalls cumulate to rising costs but no increased profit margins. Thus, an corroboratory offshoot of the above mentioned problems is an urgent need for cost-cutting campaign w hich can not be realized unless careful and meticulous strategic planning is undertaken. Following nigh are specific instances which have led to the above mentioned problems of faulty planning, delays and quality concerns. Sources of problems Superficially, problems seem to be very generic, trivial and operations based. However, upon careful observation and intricate analysis, the sources of these problems vary from strategic planning to inventory circumspection, quality management and even setting up of performance measures. Detailed breakdown of sources of problems is given below strategic planning Strategic planning is a wide concept covering numerous operations within a specific business. From human resources to operations, production to management and even after sales, strategic planning entails setting up of standards, crafting plans according to those standards and measuring actual outputs to find out deviations. At Sunshine Shirts, planning has not taken a serious form. V arious loopholes exist in different functions and domains. Opening sentences where it is mentioned that the company budgeted for but still reported losses is a form example of poor planning. Next for example, the problem of delivery delays can primarily be attributed to planning glitch. Before actual inventory management, it is the work of planning to look on the flow of raw materials, work-in-progress and finished goods. Faulty planning has led to faulty warehousing and chaos at factory space. Secondly, customer complaints have increased at Sunshine Shirts due to printing issues as ink on shirts peels off. This might be due to wrong supplier selection of printing inks which is again a function of strategic planning in a company. Further, regarding costs, company officials and heads of various departments are suggesting different solutions- reducing number of inspections, outsourcing, and charging premium price for make better quality and even enter women shirts market. However, consensus cannot be achieved in finalizing a solution. This is because the company does not know whether its competitive advantage lies in low cost or better quality. As such, direction of its strategic planning is not focused on one of these dimensions, leading to disadvantages and losses in both. To cut costs, managers are recommending outsourcing some of the activities to nations where production costs are lower. However, they do not see that expenses incurred on its three types of customer segments outweigh the returns yielded by these. Thus, even customer profitability analysis is not
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