"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, 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."
The author of the statement states that the falling revenues that a company which manufacturers parts for heavy machinery is experiencing coincide with delays in manufactures. The author mentioned a reason behind this delay is due to poor planning in purchasing metals. Another reason according to the author is that the manager has little information about the properties of metals. This, it is said that the company should bring a scientist replacing the manager. The statement of the author is seriously flawed in the following ways.
To begin with, the author states that the falling revenues and the delays in manufacturing are because of the poor planning. This is an invalid reason. Falling revenues may be due to decrease in demand of the products and delays in manufacturing could be because of outdated machinery, poor resources, technical problem or any other reason. But it could not be because of poor planning. For example, if there is proper and efficient planning in the company with no proper equipments or labor, there could be delays in manufacturing. Furthermore, if there is proper planning but no demand for the product, there would not be increasing demands. Therefore, poor planning alone is not a hindrance over here.
Secondly, solely because the manager knows a little about the properties of metals, one cannot assume that he is responsible for decrease in revenue and delay in manufacturing. Nevertheless, the manager has excellent background in business, psychology and sociology; he doesn't have the power to increase the demand for the particular product to increase the profitability of the company. Additionally, bringing a scientist from research division in place of a manager is of no help to the company, rather it decreases the expense of the company in dealing with the scientist.
In conclusion, to increase the revenue and to stop the delays in manufacturing, the company could provide new equipments and introduce innovative schemes and techniques; rather to blame the manager or the poor planning of the company. If the author would have cited some examples or any evidences with reference to the performance of the company; it would attain success in explaining the reasons behind this statement.