The Charleston Copier rehabilitation facility is affected by various operational and managerial problems. Most of the problems are resulted from lack of regular supply of the copiers from distributors. From the investigation we understood that the arrival of the copiers from distributors through out the country to the facility centre is at irregular intervals and in varying quantities. Distributors collect the copiers from their location and until they physically run out of room then ship the entire quantity. The irregular supply of copiers makes problem to the facility centre. Due to this the requirements of spare parts for the repair cannot be pre determined by the facility.
Thus the optimum level of inventory of materials cannot be maintained in the facility. From the investigation it understood that the repair parts that are controlled by the Charleston facility are out of control. Another problem is relating to the human resource of the facility. In the facility, double checking is adopted in the purchasing department due to lack of trust of personnel. Every single purchase request from the inventory department is kept under validation by the top managers. It results in increase of time and cost requirements in the department. In the purchasing department, issuing of the purchase order is based on five year old EOQs. Usage of obsolete EOQ plan affects the accuracy of inventory decisions badly. Inventory and materials management is not effectively employed in the organization. Thus lack of adequate stock of spare parts result in delay of the rehabilitation process.
Finally in the personal department lack of availability of trained or trainable temporary workers on short notice creates problems. So the department is forced to set permanent staffing levels to handle the periodic surges in work load.
Cohesive plan for correcting the problems
Fixation of time interval for the Distributors
The problems with arrivals of copiers from the distributors in irregular intervals and varying quantities can be controlled through implementation of specific time plan for each distributor. The minimum quantity level of copiers cannot be ensured while following the time plan. But it will help to forces the distributors to supply maximum number of copiers for reducing the transportation cost.
For controlling and maintaining the inventory of repair parts at optimum level, inventory planning has to be followed. The inventory planning should be capable of meeting the requirements in different time periods. The minimum level, maximum level and reorder level for each type of spare parts has to be fixed in the inventory plan. Through this better controlling of the repair part in the facility can be ensured. Keeping specific time intervals in distribution of copiers is effective for controlling the inventory of repair parts also. Sales and demand forecasting can be adopted for finding the demand in inventory.
“Inventory management system and the inventory control process provide information to efficiently manage the flow of materials, effectively utilize people and equipment, co-ordinate internal activities and communicate with customers.” (Inventory Management Inventory Control).
Direction and Controlling
The double checking process in the purchase department resulted from lack of trustworthiness in personnel can be avoided through selection and appointment of well efficient and morale employees in the department. To increase the morale of employees, adequate training and motivation should be provided. Well performing employees should be given adequate compensation benefits. This will help to inspire co-workers to increase their performance. In the inventory department, the reliability of personnel can be ensured through establishing effective direction and control. Supervisors and Inventory managers have to be appointed in the inventory department fro ensuring the well functioning of the department.
Renewal of EOQ plans
Problems relating to the inventory department are mainly resulted from lack of proper inventory control. This department is required to develop new EOQ plans by taking in to consideration, the current business trend and inventory requirements. This will help to ensure the optimum purchase decisions.
Procurement of human resource
In the personnel department, qualified and efficient workers on temporary basis are not available. Due to this the organization is required to adopt permanent staffing system to handle the periodic flow in workload. This problem can be overcome by utilizing the labor force in other facilities during overflow period. Permanent staffing should be fixed by using the labor plan.
From the analysis of the problem area it can be concluded that lack of proper planning is the basic problem in the organization. Inventory management is helpful for the managers to make accurate and timely decisions in the business operations. Sales forecasting and demand management are the basics of proper inventory management. In the above discussed case forecasting should be done on the demand for spare parts during a particular time period.
Thus their inventory can be maintained at the optimum level. In each of the above discussed three departments, accurate planning can be effectively employed for overcoming the default in operations. Inventory management should be carefully dealt by employing efficient and well qualified inventory managers. Proper direction and control measures must be employed over the human resource personnel for improving their efficiency and authenticity. Specific time interval should be fixed for the distributors and thus regular supply of inventory can be ensured. Adequate training and motivation must be given to the employees to perform their duty reliably.
Through this additional costs resulting from double checking and validating activities can be removed. Newly developed EOQ plans must be used in the purchase department. Experienced and well trained workers must be appointed in the centre. Permanent staffing should be fixed by using the labor plan. Periodic flow of workload can be handled by contracting with the related facilities.
Define Customer Service. Your Dictionary. 2003. Web.
Inventory Management Inventory Control. Invatol. 2003. Web.