Motorola has endeared itself to the cause of making and marketing electronic and electrical communication equipment and mobile technology for the last eight decades. With a plethora of awards and accolades from all quarters, this global company clocked US$ 30.1 Billion during fiscal 2008. It is one of the big five names in mobile technology along with Nokia, Samsung, Sony-Ericsson, and LG, with a market stake of 12.3% in the global handset arena. (Handset manufacturers, market stats Q4 2007 2008).
What forecasting techniques does Motorola use?
Motorola uses the quantitative nature of the Time Series while encouraging the use of mathematical and statistical models that underpin forecasting studies of this nature. These kinds of models could be used with a high degree of accuracy for short-term purposes. (Gourdin 2001, 164).
When it comes to the need to assess and forecast demand and sales to customers, the causal model is very important. By use of the causal model, it is possible for Motorola to pre-determine with a good degree of accuracy, the causal volumes of sales and off takes of Motorola’s mobile products over a medium ad long-term period.
Thus, it is seen that Motorola uses time series forecasting for short-term forecasting and causal models for medium and long-term forecasting objectives.
How does your selected organization prepare budgets?
It was Motorola that pioneered the concept of Six Sigma some twenty years ago. It is believed that Six Sigma is the most advanced and effective business tool of all times and has been the major cause of Motorola’s success story. Six Sigma envisages DMAIC, which is used for budgetary preparations and control mechanisms. (Six sigma: how it works in Motorola and what it can do for the U.S. army: how can the army increase efficiency across its command structure? Put six sigma to work 2006).
The five facets of DMAIC are as follows
- D- Define Opportunities or tasks: how and what needs to be done. In the case of budget preparations, it is necessary to analyze trends, past history, and future projections, keeping the variables, risks factors, and constraints in mind.
- M- Measure performance or activities: in the case of budgetary controls, it is necessary to have quantitative figures for each aspect of budget costs and it needs to be accurately, and realistically budgeted and assessed in order to be matched.
- A- Analyze relationships: Budgets are related to past performances and future forecasts. Budgets need to take cognizance of the earlier figures, provide a measure of present time analysis and arrive at figures for the future to be attained and realized
- I- Improve performance: It is seen that budgets are intended to improve performances. Costs need to be lowered; efficiencies need to be increased, turnover and income need to be augmented and expenses reduced. Budgetary controls instituted by Motorola just seek to provide avenues for improved performance in all areas of accountability.
- C- Control performance: It is seen that actual performance needs to be matched against budgeted performances, in order to arrive at actual performance and efficiencies. Variances between budgeted and actual need to be identified, analyzed, and rectified wherever necessary.
What MRP concept do you see with respect to your organization?
The MRP concept as seen in the case of motorola is combined with Just in time (JIT) methods. It is very effective in determining capacity plans, scheduling material planning and manufacturing programs, and the overall control of inventory management and even in the case of strategic supply chain management. It also employs Radio Frequency Identification (RFID). It is seen that the use of these solutions could capture material tracking information all along the manufacturing process until the finished goods roll along the assembly lines. (Raw-materials environment solutions 2009).
References
Gourdin, Kent N 2001, Global logistic management, Wiley-Blackwell. Web.
Handset manufacturers, market stats Q4 2007 2008, Mobile Media Consult. Web.
Raw-materials environment solutions 2009, Motorola. Web.
Six sigma: how it works in Motorola and what it can do for the U.S. army: how can the army increase efficiency across its command structure? Put six sigma to work 2006, Goliath. Web.