Lisa Company Final Project Report

Final Project Report -

January 21

2010

The objective of this report is to perform a thorough analysis of the company's present condition; and subsequently, establishing policy and procedures for the company to head in a positive direction

Lisa Manufacturing Company

Table of Contents

EXECUTIVE SUMMARY .................................................................................................................................. 3

PRESENT ORGANIZATION.......................................................................................................................... 3

OVERVIEW ............................................................................................................................................. 3

COMPANY JOB FUNCTIONS: ................................................................................................................. 3

OPERATIONS: ........................................................................................................................................ 4

RECOMMENDED CHANGES ................................................................................................................... 4

EXPECTED BENEFITS AND IMPROVEMENTS.......................................................................................... 4

ALTERNATIVE SOLUTIONS: .................................................................................................................... 5

RISKS:..................................................................................................................................................... 5

CONSEQUENCES OF MAINTAINING THE STATUS QUO: ........................................................................ 6

SUMMARY OF COSTS ............................................................................................................................ 6

EXECUTIVE SUMMARY:

The objective of this report is to perform a thorough analysis of the company's present condition; and subsequently, establishing policy and procedures for the company to head in a positive direction have been recently appointed by the company as Materials Manager, reporting to the general manager, with the task of isolating and identifying the problem areas causing the company's poor performance. This report will outline the findings, implementation strategies, and solutions necessary for the company's turnaround. The recommendations are primarily to install a quality control department who will monitor every phase of the company's operations. The expected results, if carried through successfully, will benefit the entire company as an entity and the employees as individuals.

PRESENT ORGANIZATION

OVERVIEW

The LISA manufacturing company provides a product line made up of 250 various line items consisting of hydraulic and electrical components or sub-assemblies to small and large companies within a 500 mile radius. The company is structured with standard organizational levels, which is illustrated in the organizational chart in Appendix A, to produce quality products at competitive prices. The LISA manufacturing company employs 110 employees. For a company to be successful in achieving their goals and objectives they must maintain a streamline operation; thus, producing profits consistently. Coordination between each department requires cooperative work ethics generating a team effort. However, this requires clear, concise communication from established policies and procedures. If each employee knows their job responsibility, it becomes a matter of each employee achieving their responsibilities monitored by their supervisor.

COMPANY JOB FUNCTIONS:

Currently the company employees outside sales staff of nine and one in house to process the customer's orders. These orders are converted into shop work orders and forwarded to the production department to three forepersons responsible for the corresponding product line. At the same, the manufacturing manager receives a duplicate copy of the shop work order and decides if raw materials should be reordered to complete the work order, or if a larger materials order should be placed, with the balance going into inventory stock. When the raw materials arrive, it is handled y the two receivers in the receiving department. Subsequently, the production foreperson delivers the shop work order to the appropriate eighty assemblers to process the order. When the work order is ready to be shipped, two shipping clerks process the order according to the shipping instructions. Concurrently, the shop work order forms the invoice which is directed to accounts receivable staffed by five clerks. In addition, when the company receives the raw materials' invoice, the accounts payable clerk's responsibility is to process it for payment. The production forepersons report to the plant superintendent who is responsible for the machine shop, press shop, maintenance, and customer service. The maintenance foreperson, supported by a staff of four maintenance employees, is in charge of providing well maintained equipment, so the assemblers can process the work orders properly.

OPERATIONS:

The operations of the LISA manufacturing company are almost structured for a streamline work flow. The necessary departments are in place for an order to be taken in and to go out to the customer. Equipment and machinery are in place to process specific customer