The Morrison Company has been a market leader in the production and distribution of RFID cards. The company has been able to capitalize on low market entrants to make its presence known regionally. However, the company has in the recent months experienced a plethora of issues that require attention, otherwise the company survival will be lower than normal.
Main Issue at the Morrison Company
The main issue in this company is that there is poor planning. Apparently, all the issues surrounding the company’s underperformance appear to revolve around planning. For instance, the company’s centralization of all its operations has restricted further company expansion bearing in mind that all surrounding lands are already in use or leased …show more content…
Despite all the workload and the demands that the company keeps receiving, the administration have restricted operations to one eight-hours shift (Wheeelwright & Myers, 2011). This restriction may explain the huge lag in the production process, especially in the past few months. Secondly, the company has poor resource management. An investigation into the company’s production process indicated that the production floor lacked the necessary computers to assist the workers in entering the required data into the machine. Workers were forced to write lists using their hands and then look for the nearest and vacant computer to enter the information into the system. This dual activity was time consuming, repetitive, and highly inefficient, leading to a lot of time wastage. Thirdly, the company has a poor supplier management practice. Apparently, the company does not appear to have a sound vendor management system because vendors keep delivering products well beyond the agreed deadline (Wheeelwright & Myers, 2011). Primarily, it would seem that the Morrison Company does not explore ways to improve the efficiency level of its suppliers. Besides, the company itself is highly inefficient in its production process. Despite having a five months planning cycle, vendors still deliver goods late, which shows a consistent problem in its planning …show more content…
All operational issues in the company are caused by poor planning. However, Shauna Breen should consider implementing a comprehensive Enterprise Resource Planning (ERP) system that will help the management in planning every aspect of the company (Lambert, 2008). A good ERP system will provide all the necessary resources to deal with all the issues. Shauna should also consider developing new contracts with vendors and review their processes to identify inefficiencies that cause late product delivery (Lambert, 2008). Moreover, Shauna should introduce at least none more shifts to help deal with the existing and perpetual backlog in the production