Introduction
The data relating to the operational problems in the three facilities in Oregon shows that lack of communication and inventory control is the core cause of these problems. It can be described as below.
Communications
Facilities T & P claim that parts from the S facility sometimes do not arrive on time whereas the S facility has recorded that those same parts were loaded onto trailers and that the semi-trailers left on time. This shows that the inventory transshipped from the S facility was not received on time by the T & P facilities even though they were waiting for the inventory. It is mainly due to the communication gap between the facilities. This indicates that there is no proper communication between the T & P facilities and the S facility. “Ineffective communication is a major obstacle in business. Management needs to encourage effective communication. To communicate in the best interest of the organization, all parties have to understand each other.” (The Importance of Business Communication). Ineffective communication between the facilities is one of the root causes of the issues of delay in inventory transshipment between the facilities.
Materials and inventory
Facilities T & P claim that parts from the S facility sometimes do not arrive on time. This causes breakdown in production process in the T & P facilities and it causes heavy loss in their business operations. The contractual obligation of the facilities is also not properly met due to the production breakdown. Facilities require shipment of products in same quantity on all the operating days. The missed contractual shipment dates resulting from the production breakdown were affecting the business operations badly. Materials and inventory management is not functioning well in these facilities. Misplacing or loss of work-in-process (WIP) within the stamping department indicates inefficiency in inventory management of the facilities.
Order entry
The order entry system of the three facilities seems to be inadequate for keeping the production operation away from material problems. Facilities’ productivity and enhanced customer service greatly depend on the order entry system followed by the facilities. In the facilities T & P, the order entry system is based on just in time. The just in time inventory system is not favorable for these facilities as there is no warehousing arrangement near these facilities. The just in time transshipment of materials from the S facility to these facilities may be affected by several factors. Thus the order entry system in the T& P facilities is not supportive for keeping the production operation on a regular and uninterrupted manner.
Supervision at the plants
Defects in products have occurred due to malfunctioning of the single molding machine, and it causes business loss. The small quality control group in the S facility is not capable of handling the quality checking in the entire operation. The management has not provided adequate training and equipment to them for the quality control checks. Hence they are not capable of functioning well in the quality control operations. Adequate number of supervisors is not employed in the facilities due to the economic problems. This also affects proper functioning of the production operation in the facilities. “The effectiveness of any organization depends on its workforce. Supervision is important as a means of promoting managerial accountability. It also offers staff and their managers the opportunity to identify problems, acknowledge achievements, plan action together and improve motivation for improved individual and project performance.” (Support and Supervision Meetings: The Importance of Supervision).
Quality of the materials used for production is not ensured before the production and operation and this affects the quality of the product. For the quality control no specific arrangement is existing in the facilities.
General production flow
Availability of materials, labor and other factors at the required quantity and quality is necessary for keeping the general production flow in proper condition. Inventory management and order entry system should be supportive for keeping production flow in operation. The production breakdown in S facility also affects the production operation in T & P facilities because most of the parts used in the T& P facilities is produced and supplied by the S facility. Missed shipments from the S facility to the T & P facilities are also affecting the general production flow.
Recommendations
Effective communication between the three facilities has to be ensured by the Top Management for filling the communication gap between the facilities. Through this, delivery of materials between the facilities can be carried on efficiently and timely.
By applying efficient order entry system in the facilities, the productivity and customer service can be greatly enhanced. The timely detection of defects in plant is essential for ensuring production with targeted quality. Adequate supervision has to be maintained on the production process in the facilities. Through this, malfunctioning plants can be detected in time and thus product defects can be avoided. For keeping the general production flow in the facilities, separate warehousing arrangement must be made in the T & P facilities. This will be helpful for reducing the materials and inventory management problems in between the facilities. Thus transportation costs can be highly reduced.
Summary
Operational performance of the three facilities at the Oregon is greatly affected by improper inventory and material management and communication problems. The communication gap between the facilities causes delay in transshipment of inventory between them. As a remedy to these issues, empowering of communication and inventory management is placed before the top management. The production flow can be maintained through proper supervision, inventory control and ideal order entry system in the facilities.
Works Cited
Support and Supervision Meetings: The Importance of Supervision. 2009.
The Importance of Business Communication. Nuirka. 2007. Web.