Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
The factory's short-term focus of just completing one order after another forces employees to also be very short-term in their work ethic as well; each order is a battle between employees and the managers of the factories. This dynamic appears to play out across the entire industry.
Basing compensation purely on piecework as a measure of productivity will nearly always lead to work slowdowns by workers to force up the rate per piecework, especially when the order is large and has a short deadline. Workers see these orders as an opportunity to earn more money.
The workers are actually running the factory right now to their benefit, despite any illusions Mr. Lou Baijin has of being in control. They are dictating when the order gets done to extract higher wages from Mr. Lou Baijin.
Cost structures are out of alignment to a significant degree when 60% of the cost of an item is labor; this introduces a very high level of variable cost to each item making gross margins and profitability nearly impossible to predict reliably.
Opportunities:
Develop a consortium of manufacturing companies to spread the risks of unpredictable...
In constructing this consortium, Mr. Lou Baijin could recommend that the group of companies begin to define supply chain participation standards including cost of the materials and develop standards for supplier performance. The consortium to also assist each other in developing more evenly distributed production levels.
Much higher levels of productivity are possible if Mr. Lou Baijin chooses to use operations research to analyze the workflow processes in his factory and develop a series of "specialization hubs" that specialize in one specific step of the Cutting, Manufacturing & Trimming (CMT). Using operations research methods, Mr. Lou Baijin needs to trim as much wasted time and materials as possible from each step in the CMT process.
With long-term stability and retirement being the major objective of the workers who often save up to a decades' worth of wages, Mr. Lou Baijin needs to consider having a compensation plan that pays a minimum wage level and then pays bonuses on top of the baseline salary to reward exceptional performance. Trimming back the 250 workers he has to the top 20%, or 50, and keeping them on
It is not impossible for a company to end up with ERP systems that they do not need simply because they thought they wanted something and then changed their mind. Conversely, it is also likely that companies will end up with ERP systems that they do not need because they were talked into them by overzealous vendors. The most important thing that vendors know about the implementation of ERP systems
All items their old system could not handle. Critical Success Factors: According to Bingi, Sharma, and Godla (1999) Implementing an ERP causes massive change that needs to be carefully managed to reap the benefits of an ERP solution. Critical issues that must be carefully considered to ensure successful implementation include commitment from top management, reengineering of the existing processes, integration of the ERP with other business information systems, selection and management of
In addition, the software can be used to track data that is only being used by the person who is creating the data. This would be much the same way as having the software for personal use, only it would be used for organizational purposes. Because the software is useful in many different kinds of situations and for various types of data, that makes the software much more valuable and
The SME can then refine the description of the requirements and the formulation of the company's questions to the vendors. Each requirement is ranked according to the risks and opportunities identified by each user group and an aggregate of the data allows the user groups opinions to be consolidated (Krystkowiak et al., 2004). Finally, Figure 3 below is an OPAL screen that shows how the SME weights each requirement by
Enterprise Resource Planning Enterprise Resource Management Planning for Business Success The Youtube video covers Enterprise resource planning (ERP) which is a process that integrates all external and internal management information across an entire business organization. This process embraces the finance/accounting, sales and service manufacturing, customer relationship management and other aspects of an organization. ERP systems fully automate all of this organizational activity with integrated software whose purpose is to help with the
The real demand i.e. The received orders are taken into account in this system, whereas the Material Requirements Planning system is based upon the concept of expected orders. The Material Requirements Planning system continues however the design might get further modifications, whereas in Enterprise Resource Planning system require a system based on coding parts which is expected to determine the tracking and requirement analysis. The products are booked into and