Recommendation - 3. Computer assisted inventory levels are...

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Recommendation(s):  1. Restructure the organization to align properly with business 2. Control Production costs 3. Manage Inventory Properly 4. Improve worker morale 5.   Focus on one competitive strategy Rationale:  1. The current profit sharing plan is not working . It’s based on overall as well as divisional  performance. This penalizes even the groups that meet their budgets. No bonus was  introduced the very first year 2. The production control employs more people yet still produces the same volume as it did in  2002 but contains five times the number of people
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Unformatted text preview: 3. Computer assisted inventory levels are still too high 4. Worker morale is suffering as 850 jobs are cut and Walters clearly states that “. .everything depends on the competence and motivation of our people”. The current way of doings is clearly not as employee morale is quite low 5. The company currently focuses on differentiation for its heavy cranes and cost leadership for its medium cranes. This results in conflicting objectives for the production department...
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This note was uploaded on 03/01/2011 for the course ADMS 4900 taught by Professor Jungchinshen during the Spring '10 term at York University.

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