When you navigate with a high amount of water under the keel, you will feel much comfortable compared to a place with low tide. in low tide, there is danger beneath the surface which increases the probability of causing damage and it makes the boat flounder. in instances where things are working as planned and profits are high the presence of layer of fat is assumed to be in place and this holds all corporate activities and waste (Black, Ronald and DeGarmo, 67).
When the water level is lowered, more rocks will be exposed hence the company will implement new measures to rectify failures experienced in the past. This will help to reduce the risks that interferes with the survival of Smith ford Pharmaceuticals.
During the company’s growth, it was left out in the cold to grow in any direction rather than in a way that will benefit the architectural design that was planned earlier.
When the water lever was not lowered, the company’s departments expanded to a more complicated scenario. This led to massive recruitment of new workers to offer services in the areas that had expanded without regulation. More systems were put in place to help solve the complexities that surrounded the growth of the company. Data about the company became too much for handling and the organizational structure was deformed. In the end, the production process appeared to be an illogical, multifaceted and wasteful state that served no good to the company. When the water level is lowered, it will be easier to deliver the set goals and the visions will be realized.
In order to keep Smitheford Pharmaceuticals from immediately raising the inventory as soon as an outage occurs, Just in Time inventory control method can be established. This method will ensure that the pharmaceutical supplies are delivered the time they are only needed. However, high level of trust and coordination with the suppliers and efficient production must enhance to ensure that this method is effective in keeping the inventories as low as possible.
Inconsistent quality product: if inconsistent quality product persists, the production team must engage in the quality assurance and quality control process, which in turn delays the production process and make it costly.
Poor forecasting: with the poor forecasting, the production team might order fewer raw materials than required and this may lead to a deficit in the production. Consequently, the firm is unable to meet the demand, and it is likely to reduce the market share.
Product outages: When there is shortage or shutdown of product production, the production team is required to pull their socks and engage in the production of sufficient product. This increases the production activities and cost in the company.
Lack of employee involvement: in the production process, this reduces goal orientation between the employees and the managers, mistrust by employees in the management, thus reduce discretionary effort in production and reduce attention to quality, as well.
Incorrect specification limits: with this problem the production team is unable to ensure that the measurement processes are appropriate. This may lead to some errors in the production that result to default finished products.
Product defect: the cause of the defective product reveals that there exist measurement errors during the production process. This increases cost of production since the defective product must be replaced and cost of reviewing specification limits.
Lack of management support: with poor management support in the production, lack of innovation, coordination and administration may be experienced and this result to reduce production in the firm.
Poor supplier’s relationship: this inconveniences the way company works and communicates with its supplier. Poor communication may lead to late supply of raw materials which in result may delay the production process. In a nutshell, poor suppliers’ relationship affects the efficiency in the production process (Boniface, William, and Stephen, 23).
Variable raw material quality: Varying quality of raw materials affects the ingredients of the products and the finished goods. Therefore, the quality assurance process must be engaged to ensure that the raw materials meet the standards, and this in turn increases the cost of production.
The operators in the line of the production tends to operate and different rates regarding the speed and quality of work. If those lines are not balanced, there will be inefficiency in the line of production, and in result may affect the quality of the product.
The factors discussed above can be used as the core aim to improve process and reduce inventory in the firm if they are rectified. This implies that the company has to improve their forecasting, balance their lines, improve management support, and engage in employee involvement and correct specification limits.
Black, J T, Ronald A. Kohser, and E P. DeGarmo. Degarmo’s Materials and Processes in Manufacturing. Hoboken, NJ: John Wiley & Sons, 2011. Print.
Edwards, Jack E. Dod’s 2010 Comprehensive Inventory Management Improvement Plan Addressed Statutory Requirements, but Faces Implementation Challenges. Washington, DC: U. S. Govt. Accountability Office, 2011. Internet resource
Boniface, William, and Stephen Gilpin. The Great Powers Outage. New York: HarperCollins, 2008. Print