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Analysis on Auto Parts, Inc.Major Project 2

Analysis on Auto Parts, Inc.Major Project 2 - Project 2...

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Project 2 Analysis on Auto Parts, Inc Table of Contents INTRODUCTION .......................................................................................................................... 2 ANALYSIS ..................................................................................................................................... 2 STRATEGIC PLANNING ............................................................................................................. 3 STRATEGIC ACTION .................................................................................................................. 4 INVENTORY ............................................................................................................................. 4 BILL OF MATERIAL ................................................................................................................ 4 QUALITY CONTROL ............................................................................................................... 5 PURCHASING ........................................................................................................................... 5 FORECASTING ......................................................................................................................... 6 SALES ANALYSIS .................................................................................................................... 6 CUSTOMER SERVICE & RELATIONS .................................................................................. 6 PROJECT MANAGEMENT ...................................................................................................... 7 CONCLUSION ............................................................................................................................... 7 PROBLEMS AND THEIR SOLUTIONS .................................................................................. 9
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Project 2 INTRODUCTION Increasing firm profitability has always been a priority for firm leaders. Improving processes means working smarter, not harder. The product mix of a company, which is the total composite of products offered by a particular organization, consists of both product lines and individual products. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. The company, Auto Parts, Inc., is a distributor of automotive replacement parts. It has no manufacturing capability but all the products it sells are purchased, assembled, and repackaged. This company also has an extensive inventory and assembly facilities. Few of its products mentioned include private-label carburetor and ignition kits. In this company there is current evidence that it is experiencing difficulties since last 2 years. There are at least three problems that this company is facing. First, profits have fallen considerably. Second, customer-service levels have declined, with late deliveries now exceeding 25% of orders. Third, customer returns have been rising at a rate of 3% per month. The management team of this company has been discussing and trying to find out where the problem is. Nevertheless, they don’t seem to be reaching to a common consensus. Many troubled companies, over the years, have a distinct story. But each story always includes a phrase, like “We didn’t react fast enough to a challenge or problem. Most companies could have solved the problem if they had only focused earlier on the symptoms. We will look at how to be proactive and recognize a problem early enough to do something about it. We also provide some hints on turnaround action plans. ANALYSIS Undertaking a rigorous analysis is critical if we wish our organization to be profitable, to flourish, expand, grow and return optimum shareholder value. Not all businesses have the Organization Development capacity to diagnose and implement behavioral change. As individuals we take all steps necessary to maintain positive health and take immediate action if we experience illness. Organizations do not always have the same self-regulating
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