Major Facts
The Morrison Company is the firm that was founded outside Denver in 2003 by Jason Robbins, the organization’s president and CEO. The Morrison Company is known for creating radio frequency identification (RFID) tags. These are smart labels for the retail and pharmaceutical industries. It is known that the firm has achieved significant results in developing, producing, and selling RFID products in a relatively short period. Nonetheless, according to Shauna Breen, today, the company has weak operations performance that one should properly eradicate.
Major Problems
Among the operations problems at the Morrison Company, production processes’ inefficiency and logistics interruptions should be highlighted. For example, manual documentation maximizes production and increases the risks of errors, inaccuracies, and mistakes. Furthermore, a lack of communication between managers and their employees slows down several processes. Insufficient floor space interferes with customer satisfaction, the customization phase, and the regular delivery of products by the vendors. The Morrison Company needs automation, visual control, the latest technologies, and improved storage capabilities.
Questions
Capacity and Utilization Analysis
Capacity and utilization analysis demonstrates low production rates due to the limited number of machines and labor shortage. The utilization rate for each month is 91% for the pharmaceutical lines and 88% for the retail lines. The utilization of customized products is higher compared to standard ones. The inefficient allocation of resources such as labor, raw materials, technologies, and equipment is a problem that causes under and over-utilization. According to forecasts, the CAGR is 12.1%, a good indicator for the Morrison Company in the industry (Zippia Expert, 2022). In this case, the company has enough capacity for the future.
The Production Processes
Fig. 1. The flow of the Morrison Company’s production process.
Recommendations
To solve these problems, I would advise Shauna Breen to resort to organizational changes and implement new policies. Primarily, these initiatives should be aimed at expanding the technological capabilities of employees for counting goods and increasing the storage space for products. In particular, it is necessary to focus on purchasing additional equipment, hiring new workers, and making adjustments to the work schedule of employees. Adjusting the structural organization further and introducing a transparent planning system is required. The new policy should specify aspects regarding the addition of time and ways to establish communication between employees and managers.
Reference
Zippia Expert. (2022). What is a good CAGR for an industry? Zippia, Inc. Web.