Manufacturing Operations Management at Promanager PLC - Dissertation Example

? Topic: Mmanufacturing operations management Due: Manufacturing operations management Introduction Promanager PLCis accompany that manufactures and market a range of product for oil and gas industy.As the report notes, the two product manufactured measure and control various processes on rigs and oil production plants that include pressure, temperature, humidity, viscosity, flow rates and measure such process to indicate whether such process, procedures are efficient and effective so as to trigger an appropriate decision to be executed. Two of their major products is controller standard and controller complete, with the main differences being in terms of functionality and mechanisms. Their products are global, which implies that they attract global competition from superior products and better quality. Promanager analysis As pointed out in the article, Promanager faces a lot of problems. First, the company delivery system’s performance is poor and traditional. It fails to achieve customers’ delivery dates which frustrate the customers. As argued out by the Quinn (1986: PP 1-5), failure to deliver on time loses a substantial confidence and trust in product offered in the market. In this company, the product exhibits high levels of commonality and are similar in both aesthetic and performance attributes. It is argued that this firm’s the product look similar from outside and are confusing instead of exhibiting realistic and meaningful simple operating procedures. The products lack creativity and innovativeness has enabled their products to be inefficient and ineffective. This has led to dwindling of sales volume and subsequent squeeze of the market share. As the suggested in the article, the market has been flooded by the products of the Asian competitor implying that customers have shifted their loyalty from the firm’s products to the competitors’ making the company lose their customers, reputation and may lose jobs in the long run if the rate continues. There is a possibility from the report that the products are of poor technology. This has fuelled and oiled the competitors’ impetus in gaining the market share in the oil and gas industry. Second, there is a problem in the actual production process. Companies which have been in the market leader employ the customer-driven focus in their production processes. This corporation uses the batch production system based on the mass production with emphasis being given to marketing and other advertising strategies. There is a possibility of heavy operating costs that are incurred by the firm as a result of heavy and massive marketing and advertising campaigns. This is also expensive and unprofitable. As a result, it has led to fear of making bold investment by its executives in ventures such as product and market development. The company lacks a strategic approach in their course of management as evidenced. There is no evidence that the company undertakes strategic planning, no evidence of industry analysis having being carried out, there is distinct strategy that differentiates this firm from others in the same business. It can also be noted the company is on the bream line of perishing for lack of simple and operable policies, procedures and vision. The entrepreneurial culture in this company is null and void because there is no creativity and innovativeness in its operations, product outputs and service rendered to their customers. The firm also lacks a systematic and structured manufacturing and planning schedules. This is evidenced in the lack of accuracy and forecasts. This has led to mismatch between demand and supply of their product thereby resulting in failure to reach optimal results. This firm lacks strategic manufacturing plans, sound policies and actions plans that set in motion the policies to effect and assist the company leapfrog in sales, growth and profitability. In terms of human resource, there lacks motivation on part of employees especially the sales force. This is detrimental as it has led to a slump in sales as they can not meet targets and even though they meet, there is no benefit or ‘congratulation’ in terms of incentives and other packages. This reduces the morale and productivity of staff leading to a depressing performance. The company only offers discounts at the end of the month where they expect more sales. This implies that they lack continuous promotional and advertising tools and techniques. There are a lot of discrepancies between data systems and the real life. It has resulted into poor performance in inventory planning, monitoring and control. The manual system is slow, inaccurate and inefficient which affects the entire value chain process. The chain distribution is marred with a lot of quality problems such as taking long in delivery lead times. This frustrates the customers as they have to wait for long before their orders are placed and executed. In the presence of a strong competitor, their substantial market share and the competitive position will be lost to the competitors. Subsequently, it can lose other intangible assets such as goodwill, reputation, brand name and the support of the general public. The rate of defect products is very and has necessitated the need for spending time in reworking on the defect products. This has increased the operational costs in terms of time and other pecuniary costs such as loss of customers’ loyalty and confidence. This tarnishes the brand name, recognition and reduces the strength of core competences. As noted in the article, the company reacts to quality programs as it lacks quality continuous programs. Recommendations The first radical step in this company that seems imperative is the communication and articulation of corporate missions, visions, values and policies upheld in this company. This will motivate the staff and keep the management on track and prevent it from derailing. It will also aid in defining of the values of the firm such as integrity, honesty, steadfast, quality, customer excellence, type of communication, culture and leadership style mostly valued in this company. This will assist each and every stakeholder to aware of his responsibilities thereby increasing the rate of commitment (kuratko, 1995: 23-32) Second, the management should restructure and reform the kind of leadership in the Promanager international so as to conform to global standards. They should institute the democratic style of leadership where employees are fully involved in decision making process; they are delegated work so that each staff is solely responsible for his/her work. Morgan (1986: Pp1-10) points out that the structure should match the strategy undertaken. Grand strategies such as operational excellence, cost leadership and customer intimacy should be instituted in their value chains systems to match their choice of structure. For instance, they should pursue customer service by reducing the time taken for orders to be placed by their customer. (Quinn, 1980: PP 1-5) As pointed out in the article, their production policies lack the customer focus thus failing to respond to the needs of their customers. Instituting quality continuous process in their systems will improve and monitor the quality of products produced and their solutions identified in good time. As author notes, quality continuous programs saves time and cost of reworking as evidenced in this company. It also satisfies and exceeds the customer needs thereby improving the sales volume, reputation and the general profit margins for the firm. For instance, there has been a decline in customer base as a result of poor quality of products as well customer service. There are also many defects implying that the system is ineffective and inefficient. This has made their product lose touch with customers’ expectations thus leading to poor performance. Using scientific approaches in quality improvement programs such as quality circle, quality teams , business reengineering process and the quality principles such as those outlined by a renown quality Guru, Juran , will assist the firm in regaining its market share and margins.( Heelas & Morris,1992 : 1-3) In the personnel wing, there is a lot to be reformed and restructured in the human resource strategic planning process. First, the firm should have sound and attractive packages policies to motivate and encourage staff in carrying out their duties. For instance, sales force should be given commission; delegated duties to be responsible for their own jobs, there should be a warm relationship between their leaders and the team. The management should institute policies on the kind of employees and their relevant qualifications to be hired so as to keep in pace with quality of service rendered to their customers. The key to success in most of the firms today lies in the quality of employees in terms of human capital, potential and talents they ought to posses. Morgan (1986: 1-10) points out that the firm ought to improve the research and development team to oversee all research aspects in the firm such as the quality of product produced, the globalization and their effects on the changing demand for products, the nature of distribution system in place that will ensure that orders are executed with speed. Information technology and communication issues should be tailored in their value chains systems; so that faster communication means are adopted, blue-sky incorporate in their product development procedures and automation of their operation systems. Lastly, the company should recognize that in a firm that has a vision and aspires top grow, survive and be profitable, a continuous learning through education and training programs is inevitable. Other policy structures that need reform in this firm include pricing, marketing, advertising strategies. This will boost the firm to a global leader in oil and gas industry. The diagrams Figure 1 shows a lack of co-ordinations and harmony between different departments like the case for Promanager international which has dismally affected their market share, reputation and profit margins. The diagram below should be incorporated into their value chain working processes qto enable a systematic flow f work. Throe should be a clear assigning of responsibilities that has a logical and coherent manner to ensure a delineating of roles in an organization. The value chain in this system shows a sequence of processes that flow to effect exchanges between different departments. This avoids redundancies and mismatches between demand and supply ,and enable staff to respond to customers’ requests just in time. All the value chain processes is as shown in the diagram below. There is no coordination between different departments a shown below. Labels 1 to 5 indicate departments that seem to lack harmony. The above diagram is a refined and reformed diagram indicating how systems should be coordinated to improve the working of a system for Promanager where there is an enhanced flow of resources such staff, inputs, processes and outputs in a systematic manner. One step in the process; the step is written inside the box. Usually, only one arrow goes out of the box. Direction of flow from one step or decisions to another Decision based on a question. The question is written in the diamond. More than one arrow goes out of the diamond, each one showing the direction the process takes for a given answer to the question. (Often the answers are “yes” and “no.”) Delay or wait Link to another page or another flowchart. The same symbol on the other page indicates that the flow continues there. Input or output Document Alternate symbols for start and end points Bibliography I. Heelas,P. & Morris, P.1992.The Values of the enterprise culture: the moral. Taylor & Francis.PP 1-3 II. Kuratko, D.1995: Developing Entrepreneurship within organization is today’s challenge. Entrepreneurship, Innovation and change, 2:23-32 III. Morgan, G., 1986.Images of Organization, Sage, London.PP 1-10 IV. Quinn, J, B., 1980.Strategies for change, Irwin, Homewood, II. PP 1-5 Read More