The following appeared in a report presented for discussion at a meeting of the directors of a company that
manufactures parts for heavy machinery:
"The falling revenues that the company is experiencing coincide with delays in manufacturing. These delays,
in turn, are due in large part to poor planning in purchasing metals. Consider further that the manager of the
department that handles purchasing of raw materials has an excellent background in general business,
psychology, and sociology, but knows little about the properties of metals. The company should, therefore,
move the purchasing manager to the sales department and bring in a scientist from the research division to
be manager of the purchasing department."
Discuss how well reasoned ... etc.
Essay:
In the argument the author states that the falling revenues of a company is just because of the Purchasing manager who have less knowledge on properties of metals. Though it may be one of the reason of the cause but it may not constitute in the whole loss. Drop in revenues of a company may have several reasons like poor quality of the product, advance models, poor customer service, lack of brand reputation and so on.
In today's competetive world, we have many manufacturing companies who are launching advanced models for the same product into the market in order to gain more profits that their competitors do. For example, gas stoves, microwave ovens etc. These may vary in the design, quality and quantity of metal usage.A product to sustain in present market conditions requires scientists who have good knowledge on metals. But,its not justifiable to replace a Purchasing manager with a scientist. Only, the managers with considerable background in Purchasing can only negotiate on the cost of the materials with the suppliers. Instead, company can pass a document with details of the metals to be purchased.
The other main reason of the down market of the company is due to lack of suppliers of the metals. This constitutes to the major part of poor production planning and inturn, has an effect on the deliveries of the products to the customers.For example, Tata motors, an automobile manufacturer, purchases metals like steel in bulk quantity. If there is a delay in deliveries of steel by suppliers, automatically the production stops till the material arrives. This will have a greater impact on the reputation of the company.
Moreover, most of the manufacturing companies have a Quality management department to test the quality of the product purchased.This department has a predefined set of test of every product which is used in the manufacturing of a final product.The arguments provides no information on the process of how a vendor is selected to
supply a certain raw materials.
In conclusion, for a manufacturing company to be successfull needs a manager who has sufficient experience in general business to market the products and as well as a scientist to improve the product in order to compete with the other similar manufacturers.It would be reasonable if the authors had provided sufficient information on the process of procuring a raw metals, quality of the product produced and the reputation of the company in the market.
manufactures parts for heavy machinery:
"The falling revenues that the company is experiencing coincide with delays in manufacturing. These delays,
in turn, are due in large part to poor planning in purchasing metals. Consider further that the manager of the
department that handles purchasing of raw materials has an excellent background in general business,
psychology, and sociology, but knows little about the properties of metals. The company should, therefore,
move the purchasing manager to the sales department and bring in a scientist from the research division to
be manager of the purchasing department."
Discuss how well reasoned ... etc.
Essay:
In the argument the author states that the falling revenues of a company is just because of the Purchasing manager who have less knowledge on properties of metals. Though it may be one of the reason of the cause but it may not constitute in the whole loss. Drop in revenues of a company may have several reasons like poor quality of the product, advance models, poor customer service, lack of brand reputation and so on.
In today's competetive world, we have many manufacturing companies who are launching advanced models for the same product into the market in order to gain more profits that their competitors do. For example, gas stoves, microwave ovens etc. These may vary in the design, quality and quantity of metal usage.A product to sustain in present market conditions requires scientists who have good knowledge on metals. But,its not justifiable to replace a Purchasing manager with a scientist. Only, the managers with considerable background in Purchasing can only negotiate on the cost of the materials with the suppliers. Instead, company can pass a document with details of the metals to be purchased.
The other main reason of the down market of the company is due to lack of suppliers of the metals. This constitutes to the major part of poor production planning and inturn, has an effect on the deliveries of the products to the customers.For example, Tata motors, an automobile manufacturer, purchases metals like steel in bulk quantity. If there is a delay in deliveries of steel by suppliers, automatically the production stops till the material arrives. This will have a greater impact on the reputation of the company.
Moreover, most of the manufacturing companies have a Quality management department to test the quality of the product purchased.This department has a predefined set of test of every product which is used in the manufacturing of a final product.The arguments provides no information on the process of how a vendor is selected to
supply a certain raw materials.
In conclusion, for a manufacturing company to be successfull needs a manager who has sufficient experience in general business to market the products and as well as a scientist to improve the product in order to compete with the other similar manufacturers.It would be reasonable if the authors had provided sufficient information on the process of procuring a raw metals, quality of the product produced and the reputation of the company in the market.
