On the the h of August the UP of operations made a comment about running out of parts for production in the staff meeting. G. On the 14th of August the UP of operations commented that the parts being purchased were of poor quality deceasing production. H. The president’s secretary called twice about the poor service of the janitor’s service contract. L. Mary Jacobs the head of administration was also complained about the quality of reproduction paper. J. The robot maintenance wanted was sole sourced from Fenwick Electronics and made the proposed $5. 5 million balloon to $7. 2 million.
K. GAG Performance Data: a. 743 transactions b. 98% delivery on time or before c. 87% supplies and material purchase are or within 5% of target price d. 9% late deliveries e. 5% rejection rate of materials and supplies received II. Major Problem Eagle Manufacturing Company does not accurately forecast and develop the total requirements that are necessary to neither maintain the current pace in order to increase profit Lack of communication between department heads Is a contributing factor. Knowledge of how Items are procured and sourced In every department Is lacking. Ill.
Possible Solutions A. Forecasting Meetings quarterly Have a forecasting meeting quarterly for every department where each department will forecast there requirements for the upcoming quarter. B. Making each department write their own solicitations Have each department head submit completive research on each item then need purchased prior to submitting a purchase request, the research in turn will generate a more detailed solicitation for items needed. C. DOD study of each department and then a training class that articulates what each section does and how they all elate to purchasing.
In hopes of generating clearer requirements Conduct an operational training on how purchasing and supply chain management affects each head articulate how their individual department works with all parts of the other departments to help create a profit. The end result will be a well trained staff that is able to clearly define their requirements. D. Based upon the budget set caps for each section for spending and request outside of their set spending budget. In efforts to reduce cost and holding each UP accountable for their department give them a budget. IV.
Implementation A. Based upon the budget set caps for each section for spending and request outside of their set spending budget. A. Hold a meeting with the SCOFF and CEO first to get approval for setting budgets, following that hold a meeting with all department heads giving them a heads up of what is to come. I would take their considerations into account for the size of there budgets but ultimately I would rely upon the SCOFF to make that determination. Following that I would ensure that the SCOFF always kept some funds for a buffer in case the departments went over there budget.