ReorganizationA Company which have 100 people, has just gone into liquidation, being unable tomanufacture furniture of sufficient quality and provide enough to satisfy thedemand for it. In order to solve the problem, we have already thought up a plan. The bank manager have already accepts the financial and marketing aspects of theplan, but he is unsure of my management ability and how I would improve theorganisation and management of the collectively brought about the company’sdownfall. So I am now have to reassure him and persuade him that I know not onlyhow to manage people, but also how to set up and organise appropriate businessprocesses.
For the business problem that we are working with. It is require a range ofskilful and craft workers, So that the aim of the plan is to provide a goodquality and sufficient amount of products. Satisfy the demand for it. Show thatplan to the bank manager, give him a confidence. So that we can borrow thisbudget form him then we can put the company on track again.
These are all internal problems within the company; management of workers,suppliers, costs and budget. THE OBJECTIVE. FIRST the workers. Due to the fact that it must have the following problem insuppliers area. The quality of the raw material must have not reach the standardthat is aimed. For examples: the may ordered some cheap materials or expensiveraw materials where they can have poor quality of work done with the expensivematerials and good quality of materials done by poor quality of work or it couldbe the other way round.
So it need to reorganise and have real thought about it. For the problem which just mention can be relayed to the workers. The workersalso have problem in; not happy with their salary, relationship problems betweenall workers themselves (neighbour trouble), also not happy with their rawmaterials where they are working with. To solve the problem above I must monitor in depth on the suppliers.
Look attheir raw material that they are provided and communicate with the craft workersand see if the materials are what they really want and what really keen onworking with e. g. a worker may not be happy working with pine wood because hething pine wood is not the right raw material e. g. too light or not metspecification for the furniture or some other strange reason and where I mustreally consider about his thought rather than just do what I wanted to do. In other words if I’ve ordered some expensive raw materials, but it still end upwith poor quality of product.
There may be a problem something like between therelationship of workers (neighbour trouble). Some one may have argue with somebody and cause problem with the communication. Other possible case where theyhave neighbour troubles are, not happy with their working environment e. g. theworking environment are too cold or too hot, bad air condition etc.
These allhave got to be done even those need to cost more overhead. Sometimes workerswill unhappy with the company with sensitive saturation like asking to increasetheir salary. So that we must try convince them, tell them the saturation, butnot telling them we are in liquidation saturation. But something like thequality of our product aren’t good enough at the moment so that we need all ofyou to give twice as much as effort to the furniture that you are working withand guarantee you will have more salary. One other strategy is to set up acompetition for getting a premium salaries race between workers.
Also buyingmachinery are important for the apposite. That will help the workers do lesswork and save their power and energy. We will take action straight away soon wehave got the money. However the workers must be satisfied. And work happily intheir working environment and give them the best morality to let them achievetheir best performance on the products. Another saturation is where the worker are really not very good for their worki.
e. poor of work which I will go through them, ask them a lot of questions. Orby employing a supervisor for the responsibility for all workers see if theirreally can do the job up to the standard. And if they did really bad things tothe company then sack them and employ new workers. All new workers are going tobe well train before they are going to do the actual job even those they havelots of experiment in this area. SECOND the supplier.
We must have a good relationship between the company andthe supplier in order to reduce the cost of overhead. For example, order a largeamount of the raw materials, let the supplier make more profits at a time. THIRD cut the cost. This is probably the most important thing in our case. Forabove solution e. g.
buying good raw material, machinery, employing supervisoretc. these all need quite a lot of extra money by the time we have solve theabove salutation. Cost could be cut on the overhead, e. g. the electricity we areusing, administration expenses, factory expenses etc. just any thing that couldbe think of but it won’t affect the workers and the products.
e. g. salary. FOURTH the budget. We now gone into liquidation. One of the reason is from thebudget.
If this time we can borrow the money from the bank manager. We must havea budget forecast. A forecast of fix cost must be done in the coming year (acash flow forecast) to keep the budget right. We have to think positive. So ifthere is a big increase like wood are more expensive in the coming year, workersask for more salary, machine down time and the fixing cost are more than whatwe thought or any thing on that line.
We must first think how we going to attainmore money to match it. A cash flow forecast can be done by Regression bycollecting all raw data. And put all the data into a computerise system. Than welook at the expenses.
And the expenses have got to match. If we have anincidence next year that couldn’t match the cost. We have to increase the price. However it is better than nothing.
