Sales

The benefits of globalization have informed management teams to reengineer business practices to take advantage of economies of scale and expanded markets. Riordan manufacturing has opened up plants in foreign markets to position itself strategically with a view to increasing production levels and overall sales. This strategy has succeeded and the China plant is faced with new challenges of meeting increased consumer demand for electric fans. Reducing overhead costs while increasing production outputs, calls for the implementation of innovative business processes that achieve the plant’s goals without compromising on quality.

Riordan Manufacturing has a plant located in China. The company’s China plant manages the distribution for Riordan Manufacturing and organizes the company’s global forecast of electric fan sales, including sales in the United States. The China plant needs to put in practice a new production process of these fans in order to meet the forecasted sales. Riordan Manufacturing’s China plant operates as a decentralized unit of Riordan Manufacturing. This plant manufactures and forecast the sales fans which are manufactured in China and are sold throughout the whole world including the U.

S. Riordan has a timeline to meet. In order to meet all of the forecasted sales which are predicted, the forecast is to be given to all local companies. The electric motors which are used in the fans are completely assembled in the factory. Riordan is required to keep enough in stock at all times. Stock must be maintained by the company. This is due to insufficient on time delivery. The average on time delivery is only about 93%. Riordan needs to have another company produce motors in order to meet the forecast.

Riordan could also divide the manufacturer of the fans among two companies in order to meet forecasted production rate. Riordan doing this will enhance the company’s delivery forecast. Riordan can also forecast the supplies needed which may possibly require maintenance in the stock levels needed. The inventory costs will decrease by maintaining a lower supply of plastic polymer. The polymer is melted and is used for plastic parts required for each fan. The plastic polymer is available in almost every local market which could possibly help lowering costs even further.

Only 93% of the motors required are supplied by the local manufacturer. This is the logical method to follow. With the improvement of this process Riordan will be able to meet its forecasted sales and better schedule its production of fans. Analyzing a process can be useful in improving quality for many reasons. By analyzing processes Riordan Manufacturing will be able to identify the strengths and weaknesses related to those processes. Another reason why it is important to analyze processes is because this analysis performance can be improved.

This can lead to better quality and function within departments in an organization. Assessing processes is also a good way of measuring the effectiveness and efficiency of a process. For example, if Riordan Manufacturing’s Human Resource Department needs to communicate an important message to all employees, instead of gathering all employees for a meeting where there is also a possibility of not all employees being able to attend the meeting, HR can just send that memo by e-mail to all of them. This shows that Riordan’s HR department is being efficient.

Through good training and employee awareness of the importance of checking their e-mail on a daily basis, this will make the process effective because then employees will get the memo. Furthermore, analyzing processes is a good way of getting feedback and be able to continuously improve processes and quality. Riordan needs to have the entire forecast for all required motors in order to be transmitting to the Chinese company and Riordan needs to have the correct deliveries which can be obtained from the Chinese company.

Riordan should also have the manufacturing requirements for the motors as well as all of the information on each delivery received from the Chinese company. Riordan should be able to show the predictions on demands for the whole year as well as an improvement on all deliveries, provided two Chinese companies are to be put into practice as suppliers. Riordan can present the forecast by making charts showing the actual forecast on demand for the whole year and the improved manufacturing prediction of all motors which are stocked. There are three areas of improvement that Riordan could take advantage of.

The first is to improve the 93% on time delivery of its suppliers. Improving the delivery time will allow the company to reduce safety stock and provide better delivery times to customers. The second is to improve the forecasting method. Using historical data gives a manageable forecast but reducing the variability to this number will give a number that is more accurate. This will reduce costs and finished goods inventory. Third, Riordan holds a safety stock of polymer. Reducing the carrying cost of this polymer and working with the supply chain to get better delivery from the local suppliers will reduce on hand inventory.

Improving on time delivery from suppliers is needed to save inventory costs. Data such as days past due from suppliers, inventory levels, and accuracy of forecasts is needed to make an accurate assessment of supplier performance. With this data, conversations with suppliers regarding improvements can be started. Measuring these metrics on a weekly basis would allow Riordan to follow progress made with OTD. The second improvement could be made with the method of calculating a manageable forecast.

Using a historical view of sales is one method of forecasting but a proactive approach is needed. Gathering forecasting data from the customer on these customer specific products will allow for an accurate inventory level. Producing only what the customer will commit to will save on finished goods inventory. A safety stock can be calculated based on the accuracy of this customer forecast. Understanding the future trend in sales will help cost reduction. Finally, the third improvement will require inventory data, lead time from the local suppliers, and cost of the polymers.

This data will allow Riordan to work with suppliers to provide just in time delivery of these materials. Getting on the same page as the local suppliers will provide cost savings. Gathering this data and tracking these metrics will allow the supply chain associates to perform against these continuous improvement initiatives. Before Riordan can improve any part of the company’s process Riordan needs to be able to understand where the areas of improvement is needed. Riordan needs to complete all problems. Once Riordan is able to complete these problems the company needs to collect all data.

By the company collecting the data, it will help to be able to forecast all manufacturing required for the whole year. Riordan should then be able to set goals. In this case, the company’s goals should be to have enough parts delivered or transmitted and in the right amount of time. If any part of the company’s process should fail, then Riordan needs to find where the gaps are in the process and repair them. The new systems that team B has put in place for Riordan’s China plant will allow Riordan to forecast more accurately based on manufacturing parts and the amount sold within a year.

Riordan setting goals to fill in any rough areas will help the company to bring in new business, more profits, which will all lead the company to a larger market share and generated higher revenue (Riordan Manufacturing Virtual Organization). In conclusion, adopting cost effective inventory systems will enable the China plant to save on storage charges and reduce the need to hold excess stocks. Careful analysis of available sales data will provide the management with a realistic estimate of projected business. This information shall assist in planning output levels and ensure accurate forecasts are made by the sales and production teams.

Lower costs of production will contribute to cheaper products which will eventually translate into higher sales. Effective communication between the plant and the supply chain stakeholders improves performance outcomes as supplies are delivered in a timely manner. Consumer feedback and reports on sales figures will inform the management staff of the measures necessary to satisfy demand. Excess inventory will be a thing of the past as strategic reserves replace stocks held on a speculative basis. These developments will reduce overhead costs and position the plant strategically in terms of cost efficiency and price competitiveness.

Operations Management is present in many occupations as well as those of manufacturing and service industries. I belive it to be present in daily duties of any person although they may never notice. With this in mind I see operations management as a skill anyone has with an aim of achieving an outcome of something they are working towards in a logical process with thought of awareness of a system structure. Operations management has been around for some time yet it was Christopher Polhelm (Sweden) first recognised a skill and recorded that ‘Nothing increases demand so much as low prices.

Therefore there is a great need of machines and appliances which will diminish the amount or intensity of heavy work’ (Extract from text book Operations Management – supplied by DMU for open learning please see bibliography) this was around 1700. There are cases in many history books and stories passed down that operations management was present before this yet not identified as operations management. From 1700 business development has grew significantly and seems to have been a notable point of operations management to present day.

In a more modern look operations management has grew and become a dedicated service in its own right as organisations now employ individuals to develop, implement and complete operations management as a specific role. From the next page I will appraise the role of operations management in a manufacturing & retail environment. The Role of Operations Management in both Manufacturing & Retail: The role of ‘Operations Management’ is a collection of successful systems for operations in any organisation.

In order for operations to be effective and efficient, the systems must also be effective and efficient. Michael Porter (1985) the strategic inventor of the ‘Porter Value Chain’ constructed a chain effect understanding that every business should implement for logical understanding and awareness of its inputs and outputs as a business. He separated the business functions into primary and secondary methods, primary being dedicated to the product or service and secondary being supportive methods to aid the primary. (Please view Appendix 1) Porters (Michael Porter 1985) Value Chain (VC).

From Appendix 1 the model suggests, that no matter how many operational units that are involved in the process of generating customer value; these primary activities can be conceptualised into five generic stages. The five primary stages are inbound logistics, operations, outbound logistics, marketing and sales, and service. These primary stages are supported by the firms’ infrastructure, human resource management, technology development, and purchasing and procurement. The stages within the VC should not be seen in isolation but looked at in a wider context and include the interactions between stages not just within the processes.

The relationship between sales, operations and procurement for instance can determine how much stock is to be carried and therefore reflected in cost of inventory held. Operations as systems implement the needs and practice of systems within an organisation. These systems must be understood with a thought of how the system operates its inputs and its control methods and/or output required. Systems are often described as closed or open systems or relatively closed or open systems. Closed systems have no inputs, no interactions within its environment and no output.

Open systems are known as unpredictable inputs with free interactions with its environment that has a varied output as it is known to change. Relatively closed or open systems are known as controlled systems with predicted inputs that are controlled within its environment having a predictable output. The transformation process is a system to note for understanding of the systems and their need to be present as in basic terms; an input will be transformed into an output and is commonly known as the black-box of operation systems.

The 6 Ps of operation are more commonly known as the operation mix. The origin of the 6 Ps is unclear yet Professor Keith Lockyer of Bradford Management Centre (1988) developed an early version to apply a logical thought process to the implementation of operations. In operations management we can apply this mix to new or revised operations for reference. The 6 Ps are: Product/Service, Process, Place, Programs, Procedures & People.

The above result suggests that there is a moderately strong linear relationship between the online retail sales and the total retail sales. This means that as the online sales increase, the total retail sales increase as well to a greater extent.

The correlation coefficient function can be used in a variety of business environment situations. This allows us to understand the relationship between the different variables in the business environment and then to act or control one or two variables for the organization’s benefits.

One of the uses is the finding the relationship and the correlation between the management roles and the different variables such as labor productivity, sales, profitability and return on the capital employed. This is calculated by interviewing the managers and giving them a score on a particular scale. Then that scale is plotted against one of the factors to find the relation and correlation.

Since there is a positive strong relationship therefore, the company needs to implement better management practices to increase productivity of its labor force. Another example is that to find the correlation between the CSP (Corporate Social Performance) of a company and its financial risk. This is an important measure in the current years because social work does build a good reputation for the firm. Since higher CSP signifies lower financial risk, therefore the company needs to increase its social work in the society especially in the areas where it operates to some extent.

Resourses

1. Berk R. (2004) Regression Analysis: A Constructive Critique. Sage
2. Cohen J. (2003) Applied Multiple Regression / Correlation Analysis for the Behavioral Sciences. Lawrence Erlbaum Associates.
3. Reinard J. (2006) Communication Research Statistics. Sage

Who am I? I find this question interesting, I know myself the most and also the least. Often when I am questioned about this my immediate response would be my name, Ella, my age, 14, but these aren’t things that define me and truly show my character. It’s funny, this is such a simple question that nobody really can find the answer to.

Whomever I am is undefined, my personality changes depending on the setting that I’m in. At this very moment in time I am a person who hardly says a word, a person who loves to paint, fighting an illness, but nobodies character stays the same forever, mine could change in an instant. In my head I am someone who is naturally quiet, someone who loves intelligent humor that would go over most people’s heads, and someone who hates rules, or at least I hate conforming to what’s expected of me.

I am the kind of person who is very independent I like to experience things for myself, even if the outcome is bad I will have learned something from it. is undefined, I could see myself one way and everyone else could perceive me in another way, especially as a teenager my identity is always evolving so pinpointing my exact identity is difficult, as long as I stand up for and am kind that’s enough for me to live happily.

Therefore we consider theories of selling, by studying the decision-making process of buyers.Problem In the case study: 1. How will Jan maintain good rapport and close the deal of the purchase. 2. Jan inexperienced customers and unsure of his ability to explain the product in the new surroundings to a more technical audience. 3. He is also worried about demonstrating the product to the office staff since one of the advantage which will become apparent at any such demonstration is the potential staff savings of the equipment. 4.

Jan is dejected and He thinks where did he go wrong and what will he do now? Ian Browsing is a salesperson and has the ability in selling appropriate products to customers need, answering any questions is his capability to communicate. With his being good communicator, he convince and get good harmonious relationship and close to deal of purchase. Jan needs to assure that before he explain to the new surroundings he must be knowledgeable and he learned what his being explain so he need to study first before he proceed to explanation.

Jan dejected as it means Jan can’t continuously become demonstrating the products because only purchasing anger can do what he will do. Jan worried so that he need to talk the supervisor who promoted him as direct business division to also get information about the company premises. The purchasing manager is upset because he has not been consulted about the proposed purchase so Jan has been dejected. He Is also worried about equipment Jan Browsers Is a salesperson promoted to direct division In a computer company.

HIS ability to strike rapport with prospects and reading them well, leaders to purchase is the contribution of his success. When he started working in the local firms he contacts a chemical-producing company with co employees, 1 2 of those is in office and administrative positions. He Is asked before his visits for the demonstration of the sullenest as well as posting relevant details to the company’s office manager. He is worried because he is inexperienced when deals in retail, but much of his 1 OFF by the office manager. He telephoned Jan saying he is determined to block the purchase on pentacle. VI.

RECOMMENDATION For Jan Browsers as a sales person and for purchasing manager they need to have DOD harmonious relationship in order to benefit their company. Jan has to appear to the purchasing manager and convince him and he must use his ability in communicating the purchase manager. For purchasing manager he might be look and try Jan too new direct division if it is effective so that he knows first the capability and knowledge of Jan. Purchasing was believed to be a problem solving behavior undertaken by a rational individual whose goal was to maximize satisfaction by choosing ideal combination from range affordable commodities.

Major Differences There are many differences between the situations In Japan and the U. S. That made the Japanese 7-Eleven experience with prepared foods significantly different than that of the U. S. Stores. First, “convenience stores In Japan faced little competition from gas station mini-markets, and until the early sass they benefited from government regulation that limited the size and operating hours of large- and medium-size stores” (Bell & Hogan, 2004, p. 4). Contrary to Japan, 7-Eleven stores In the u. s. Were faced with fierce competition from a variety of convenience stores with ere similar business models.

Convenience stores in Japan made a commitment to provide expediency in all aspects of daily life. Such stores sold takeaway lunch boxes, rice balls, ready-to-serve dishes, bread and various drinks (Bell & Hogan, 2004). Japanese stores based their business model on customer needs and convenience. “To ensure that customers received fresh quality products, food items were prepared continuously and delivered to the stores three times daily. The strategic locations of preparation plants combined with the high store density, required minimal travel stance and therefore facilitated the speed and ease of deliveries (Bell & Hogan, 2004, p. 7). U.

S. Stores, however, failed to focus on convenience needs as they changed. According to Bell & Hogan (2004) people wanted new products and services and the company did not keep pace; instead, the company fell into the trap of defining market share in terms of number of stores, and they stopped creating value in each new store. Additionally, U. S. Stores “never paid much attention to its Japanese licensee, and therefore never realized that” 7-Eleven had reinvented the store with the fresh food concept (Bell & Hogan, 2004, p. 2). Strengths & Weaknesses Keyes shared the vision implemented in Japanese stores, concentrating on fresh food sales.

He did this by adopting the fresh food concept to offer total convenience to consumers. In order to get all franchisees on board, Keyes required stoneware to buy a significant portion of their merchandise from approved vendors, and in turn allowed for more leverage of the system (Bell & Hogan, 2004). Keyes also utilized Austin, Texas as a test market (Bell & Hogan, 2004). This allowed the company to test various lines of food and pricing options. Perhaps the most Important element of the 7-Eleven overhauls In the United States was the Implementation off chain wide proprietary retail Information system.

Mulching this from 7-Eleven Japan, the system was designed to enable each store to Improve Inventory management efforts (Bell & Hogan, 2004). Keyes missed the boat by not being more in touch with the customer. According to Bell & Hogan (2004) 7-Eleven’s Temperamental weaknesses were Invisible Decease ten company was using ten wrong measures. The company failed to create value in each store and pay close attention to changing trends and customers’ needs. Additionally, 7-Eleven’s failure to constantly innovate and change, as convenience needs changed affected the company’s the success (Bell & Hogan, 2004).

Marketing Efforts In order to make the most of its new capabilities and vision, 7-Eleven U. S. Should undertake various marketing efforts. First, the company should monitor customer- buying patterns to maximize sales by staying stocked on popular items, managing product assortment and merchandising effectively. Understanding that this industry is highly competitive, 7-Eleven must create a marketing strategy that is refined by tidying consumer trends and in-store traffic. This would allow the company to affectively track buying trends.

Ultimately, this would keep the organization up to date on convenience needs as they change, allowing marketing efforts to be focused in both areas of strength and weakness. Furthermore, since gasoline sales contribute to increased traffic, it is imperative that 7-Eleven stores sell gasoline at as many locations as possible. Implications Should 7-Eleven’s prepared food initiative prove successful, there will be a significant increase in measurable competition in the industry. Being that this sector s already highly competitive, convenience stores need to find ways to differentiate themselves from the competition.

Introducing fresh foods will be one way to do so. The success fresh foods would bring to the industry would be game changing. Typically the general image of a U. S. Convenience store encompasses “cigarettes behind the counter, nonfood items displayed on the counter, magazines in front” (Bell & Hogan, 2004, p. 17). However changing the perception of convenience would not only attract new markets but also penetrate current markets. Ultimately, competitors in this industry would need to rethink both merchandising and arresting strategies to ensure they were aligned with the likes of 7-Eleven.

As society places a larger emphasis on convenience and freshly prepared food, the outlook for 7-Eleven’s freshly prepared food offerings is promising. Specifically, recent trends indicate that while there is a push towards health conscious, yet convenient selections, consumers are favoring this option. Furthermore, the key innovation opportunity is to keep innovating with food and taste trends surrounding convenience and health (Carroll, 2011). Since convenience stores aren’t typically noted for having such eating options, management must work to ensure they successfully rebind their image.

The purchase budget and cash budget are lot simpler, since the amount related to production Is the same every month. The budgets assuming stable production benefit the production department, the purchase department, and the human resource department. It helps all these departments easily manage all kinds of resources and activities on a stable level. Disadvantage of preparing master budgets assuming stable productions: 1. If sales are seasonal, stable productions may cause inventory under stock during the best sales season and may cause inventory overstock during the poor sales season.

It would Increase the Inventory and additional finance needed. Data should plan the production budgets based on sales forecast. In order to encourage the manager’s to work as a team, Tat’s bonus system could set an overall goal, for example, the net Income. The bonus will be earned 10% If overall goal Is reached. Second, Data should prepare flexible budgets to estimate total cost for the different levels of satellites. For example, to access purchase budget performance, compare the actual purchase with the budget recess on ten same production level.

It could Aviva punishing ten purchase manger in order to keeping the amount of raw material on hand policy set by production manager. Using flexible purchase budget holds responsibility for variances only under purchase manager’s control and truly reflect the efficiency and actual performance. Third, other measurement should be in a place in order to attain the organization’s overall performance. For sales manager, the percentage of retiree customers in total sales is used to measure the continuing sales growth for Data.

For production manager, the warranty expense and customer’s complaints for poor quality can be used to measure how well Tat’s products meet the market expectation. For the purchase manager, handling material in time can be used to measure to ensure Tat’s production is under schedule. Also the Just-in-time vendor contract can be used to measure the performance of purchase manager, since it would lower the material cost. For finance manager, loan management can be used to measure the performance, since Tat’s uneven sale, managing cash inflow and outflow are important for Data to meet payments due.