The logistics team decided that missing guaranteed deadlines and late delivery of goods and increase in the motor vehicles gas bill are identifiable control problems. Analyse these issues and present your evaluation of these as well as present one resolution to each issue.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Neil and Joan a brother and sister duo own a small dry cleaning business NeJoWe Cleaners. It provides several services to its customers. They currently have 5 locations across the capital city, with the sixth location being that of the main office where most of the cleaning and laundry is carried out. NeJoWe believe that personal contact with customers, operational efficiency, fast and quality work has given them the edge in building the business. A key feature of their customer service is soliciting feedback from customers about their service quality, this they were able to do in person on their daily deliveries as one or the other travelled around to each location on a daily basis. These trips would also give them the opportunity to physically check on what was happening in each location and have formal and informal talks with the staff. However, a number of issues are emerging for the young entrepreneurs, there is a city-wide water shortage and water lock-off therefore, the laundry side of their business is growing as clients now find it difficult to wash all laundry at home, paper work has grown with the growth in business; while the locations are connected by email, all processes are still paper based; the accounting system in particular is a nightmare when taxes are to be paid, involving many hours, and deliveries to each shop are made three times a day, because of road works and an influx of more affordable cars, time spent on the road is now eating into the time available to complete main office activities and gasolene purchase for delivery has increased. Consequently delivery times are unpredictable and customer delight has been sliding downwards at 1 % per month for the last 5 months, this has been attributed to a 5% increase in completed jobs being delivered to the wrong location and the inability to maintain the 96% same day delivery target.
NeJoWeCleaners, has been in operations for 10 years. Neil has a first degree in accounting and IT and Joan one in management with minors in human resource and operations management. As the business has grown, they transitioned from managers of the outlets and now manage the business from the head office. Each outlet employs five persons. they company has a low level of absenteeism, low staff turnover and few accidents. They are concerned that the issues, if not managed will lead to de-motivated staff, slide in business goodwill and growth. The business supports 41 persons. including the newly formed logistics unit. They now have the opportunity to buy out and rebrand a competitor’s location.
A 4 man logistics team was put togehter to look at proposing possible resolution to the problems mentioned. The intial problems identified by the team to immediately tackle were missing guaranteed deadlines and the increase in the gas bill. These operational problems if not corrected will continue to negatively impact the financial side of the
organization. Neil see the opportunity to control performance across the various outlets with the use of the customer and job handling IT solution that would come with the purchase. He feels that eliminating the crushing
paperwork along with budgetary controls will bring the problems under control. Joan believes that all they have to do is to employ more drivers, change the delivery times and abandon their same day service. She believes that introducing IT Accounting solution computers will adversely affect the staff productivity and retention as it appears that the entity is moving away from staff related benefits and welfare. Joan believe that an HR software would be the answer to staffing relations. Staff were accustommed to receiving e-alerts of salary lodgement at 10 am every fortnight despite the best laid plans, for the last 6 months the e-alerts come between 2-6 pm on pay day as the operational side takes priority and staff benefits such as approved vacation leave and salary payments are unintentionally delayed. Neil thinks that once the business inflows increases, then the HR software could be had. Joan decided to contract a software designer for HR operations, to ensure that the staff is not neglected during the new acquisition and changes. Neil and Joan has asked your group to give them ideas about designing a
NeJoWe Cleaners!
Prepare a proposal with following:
The logistics team decided that missing guaranteed deadlines and late delivery of goods and increase in the motor vehicles gas bill are identifiable control problems. Analyse these issues and present your evaluation of these as well as present one resolution to each issue.
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