Assignment Unit 4 - about something chert o perrt velm kon baba kos kesh PDF

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about something chert o perrt velm kon baba kos kesh...

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Summary: A newly recruited with less experience procurement manager facing potential production delay and layoffs due to the shortage of fabrication material supply which is known to be below the standard of good manufacturing practice from alternative suppliers available in a very critical time. Facts: 1. Nasira is a new and less experienced procurement specialist 2. The existing supplier of fabric has closed and potential new suppliers one in the Midwest and another one in Overseas, has a quality, environmental issue, and alleged mistreatment of its workers. 3. K9CDC has been marketing its products as Made in USA as a key selling point. 4. The company is thin in margin. 5. Timing to get the right material is a real issue and potential production delay and possible layoffs are imminent. Learning about the situation for this case study, I am using Root Cause Analysis (RCA) as a tool to identify the problems with the “5 Whys strategy” which is popularized by Toyota company in 1970 but proven to be simple and useful for small to medium scale case complexity. It is especially important to know the root cause of this problem which potentially has serious consequences to the employees and the company. According to mindtools (n.d.) The 5 Whys strategy is a simple, effective tool for uncovering the root of a problem. You can use it in troubleshooting, problem-solving, and quality-improvement

initiatives. By using this tool, we would be able to identify the root cause of the problems then solutions can be presented. This approach can be done with open-minded and clear objectives that are set up to determine the cause and finding effective solutions to the problem. Hence, everyone involved needs to participate with a clear mind. Questions such as Why did they short on the stock of the fabric? No suppliers identified have the right product with the standard of good manufacturing practice that we require. Why is that? there is no other alternative for the time given to source the fabric and the previous supplier has closed operation. Then you need to ask Why is it late? failure to start the procurement process early may cause the delay. then ask a further question? Why is it overlooked? If a lack of control systems? Ask again Why is it lacking? no par level set up … last-minute big buying … then by the time you have reached the conclusion of the problem stop in there. It should not be more than 5 Whys questions. The next step is finding solutions. It appears that late submission of purchase order potentially occurred in this case study, and based on the facts presented with challenges of the 2 alternatives suppliers and the consistency that K9CDC wish to keep as Made in USA product, I would propose the following solutions to be considered: 1. If the aim is to keep their product as Made in USA with the thin margin, then they need to order their fabric from All-Fabric Inc. in the Midwest. Thus, bearing the consequences of potential hazards which can be minimized by having a warning tag stitched to the cot. The design of the cot can also be altered technically to enhance durability by having another layer of protection. As a result, this will increase the selling price to gain more profit. Another benefit of ordering within US is mitigating potential delay of shipment, avoid import duty and taxes as well as shipment cost too at the same time supporting local jobs. However, you need to ensure the

sufficient stock is available and continuation of supply, since the potential disruption of an environmental issue with river pollution may pose a risk affecting the production of goods. Having to delay production in lieu of the right material with full compliance of such standard of practice and quality while facing possible layoffs, will not be the option in my opinion. The company reputation is at stake and it is going to cost the stakeholders dearly. 2. If the quality of the fabric is placed at utmost importance and the company needs to increase the margin. The best option out this scenario would be ordering from Fab-right Inc. Located overseas with the conditions that the labeling Made in USA, needs to be changed to “Made in USA from imported materials”. Providing truthful and substantiated information to the buyers is the right thing to do, therefore it complies with trade practice and regulations. The marketing team of this company needs to find a way to navigate through at the expense of brand integrity. This scenario is a catch 22 situation, as such you still need to decide which action to take out of this worst-case scenario. By doing so we have challenged the beliefs, assumptions and provide diversification of thoughts which critical thinking is all about. Reference: Mindtoolsteam. (n.d.). 5Whys, Mindtools. Retrieved September 27, 2020 from https://www.mindtools.com/pages/article/newTMC_5W.htm...