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Industrial Management: Situational Review and Key Areas of Difficulty - Essay Example

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An essay "Industrial Management: Situational Review and Key Areas of Difficulty" reports that the first problem facing the plant is that the market for its products, including pumps for fuels, chemicals, oils, and industrial effluents, while stable, faces an uncertain future in growth…
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Industrial Management: Situational Review and Key Areas of Difficulty
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"Industrial Management: Situational Review and Key Areas of Difficulty"

Download file to see previous pages The first problem facing the plant is that the market for its products, including pumps for fuels, chemicals, oils, and industrial effluents, while stable, faces an uncertain future in growth. This is especially true for more expensive and complex products. However, the company does have product designs that compete favorably with other suppliers and could be developed to cope with any future requirements, although these products only exist in their design stage. Additionally, the company is making losses, especially due to the return of many products for repair or rework because of low quality. Suppliers are also increasingly reluctant to deal with the company and are not delivering their components on time. Additionally, customers are not placing long-term repeat orders because the quality problems are frustrating for them. The plant also has old manufacturing equipment and test machines that break down on a regular basis, with spare parts hard to come across. Finally, despite the enthusiastic and loyal nature of the employees, morale is low ever since rumors of the plant’s closure started flying around. This tool acts as a high-level visualization of the process that serves the customer. It stands for Suppliers-Inputs-Process-Outputs-Customers (Allen, 2010: p21). The suppliers provide the process with inputs, which define material used by the process for the production of outputs; the process can be comprehended as a series of activities that add value to inputs, and the outputs are the products that the customer values, while the customers are the final users of the processed outputs. SIPOC can be viewed as a high-level map of processes that are used to define the phase of process improvement as it will aid the plant to understand what the scope of the process is (Allen, 2010: p24). It acts as an initial point for the identification of the customer’s voice. It will give the plant insight into vital inputs of a process, which has a significant effect on the output. SIPOC should be created as a group activity, which needs brainstorming to uncover the hidden details regarding the reason why the customers are not making repeat orders. This team should consist of all stakeholders in the process being put under consideration. Brainstorming can be carried out iteratively for every element of SIPOC, with the idea being to move backward from the customer to the supplier (Allen, 2010: p25). During the discovery, as well as documentation of the processes at the plant, SIPOC is created from the definition of the process to the identification of the outputs, the customers, inputs, and finally the suppliers. In this case, the suppliers are those who provide the material for building the pumps, as well as the spare parts for the same pumps.  ...Download file to see next pagesRead More
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