Megacorp's Crane Manufacturing company (CMC), operations management, SWOT analysis, Porter's five forces, supply chain management, just-in-time (JIT) manufacturing, CRM system
Megacorp's CMC manufactures cranes which can be used for different factory and process line operations in various factories. They manufacture small and large cranes which are able to hoist different rectangular containers. For fifty years, the company has been relatively successful in the industry and has expanded its market to the entire EU region. Nevertheless, Megacorp's management are looking for ways of improving its service delivery currently and into the future. This paper therefore examines various problems that the company faces and suggests various solutions which can be used to curb these challenges.
[...] That is, the areas that needed improvement included purchasing, marketing and operations. Based on the goals of providing high-quality products in a cost-effective way and timely manner, the researcher suggests two strategies that can enhance the operations in the identified three areas. The two strategies include Just in time (JIT) manufacturing based on a computerised material requirement planning (MRP) system and an integrated customer relationship management strategy. Just-in-time (JIT) manufacturing Since the demand for cranes and parts is irregular, the company should only order for materials when there is demand. [...]
[...] The paper found that the crane manufacturing plant was crippled with issues such as long lead times and the high cost of operations. In order to reduce the lead time and cost without compromising on the quality, the researcher suggested a JIT manufacturing strategy that was facilitated by two software applications i.e. the MRP and CRM systems. These applications were found to bear low upfront and maintenance costs despite the numerous potential benefits they could avail to the company. References Construction Review, (2015). [...]
[...] Proposed changes In order to implement the strategies identified, the company must ensure that operations within certain departments changes. First, the company must ensure that information is shared among the departments in order for the identified computer-based systems to be effective. Second, the company must consider automation of some of the routine production works in order to improve the quality and effectiveness of operations at the company. Third, the company must avail more avenues to collect customer data such as encouraging feedback reports, social media platforms and enhancing follow-ups and competitor intelligence activities (Watada, Xu and Wu 2014). [...]
[...] Information & Management, pp.115-129. Watada, J., Xu, B. and Wu, B. (2014). Innovative management in information and production. New York, NY: Springer. [...]
[...] Apart from the design department, other sections of the company have not embraced the use of technology in operations. Other wastages that contribute to the inefficiency of operations at CMC include a lot of worker movements and time wasted due to machine idling. On the other hand, longer lead times are a factor that can lead to dissatisfaction of the customers even if the product quality is high. The company must therefore ensure that lead times in production can be shortened. [...]
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