HP Distribution Centre - Essay Example

It is misleading to think that the advantages accrued from specialization are lost or diminished when a team is created from specialists in different fields. On the contrary, a cross-functional team is an environment where the benefits of specialization can be realized to a greater extent. Members of such a team approach the problem from different perspectives. As a result, working together they can see the "big picture" and work out a better solution.

Diversity is not a limitation; it is a success factor for a team. 3. In my opinion, Loretta Wilson's team was successful in achieving its objectives. Consolidation, automation of sorting, packing, and crating activities, redesign of work stations, and use of modern technologies were "smarter and simpler ways to handle parts fewer times at several points in the distribution channel". Rethinking the way distribution was done allowed the team to fulfill the self-formulated goal and at the same time achieve the initial requirement of a four-hour limit for parts delivery.4. Wilson's team has demonstrated the characteristics of the high-performing teams, and the text contains explicit and implicit proofs of it.

The team had clear goals - "to find smarter and simpler ways to handle parts" and started working quickly and with passion, which requires unified commitment. The team members had relevant skills as they were experts in their fields and, most probably, they had good negotiation skills because the project undoubtedly generated a lot of discussions and some resistance. In order to actually develop a complex and innovatory solution, good communication, mutual trust, and effective leadership by Loretta were indispensable.

On the other hand, without strong internal (top management, employees in involved units) and external (partners, e.g. FedEx) support the implementation of the solution would not happen. Case Study 2: Merriwell Bag Company1. After consideration and testing on the historical data, the following forecasting method was chosen: to forecast aggregate sales volume for month X year 200Y actual sales for month X year 200Y-1 are multiplied by the growth rate calculated for the year 200Y-1 (see table below).

Despite its simplicity, the method corresponds well to all the requirements. It reflects the seasonal fluctuations of the retail activities and is based on the assumption that the market is quite stable and no aggressive acquisition of new customers is planned, therefore the actual growth rate for the previous year is a good indicator of the future sales increase. The moving average method was rejected because of the seasonality. The growth rate is calculated yearly rather than for the period of several months as it compensates for the changes caused by the shifts in promotional activities schedule.2. For forecasted aggregate demand by month, please see the table below, column 2005 for.

The accuracy of the forecast can also be improved by: Gathering information on the customers' promotional activities to be reflected in the forecast; Actively involving large customers in the forecasting process, possibly offering discount rates as an incentive for "well-done" forecasts.4. No mathematical forecasting method will fully substitute Ed Merriwell's feel of the market because the forecast is based solely on historical data and takes into account a limited number of factors. Ed should review the forecasts produced and may adjust the growth rate or the aggregate sales volume figure based on his knowledge of the current market situation and trends.