The operational improvement plan

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The operational improvement plan
Introduction
This paper looks into the operational improvement as result of data analysis carried out by of A-CAT Company. The company specializes in domestic electrical appliances and has been experiencing inconsistencies in sales of the transformer. Data analysis has been conducted to forecast future shifts in work processes through the use of various statistical tools. The information obtained from the analysis is to be used by both internal and external stakeholders.
Analysis plan and justification
The analysis plan is of importance to both internal and external stakeholders. It comprises of the quantifiable factors, problem statement and the strategy. From the data analysis transformer sales are low at the beginning and the sales peak at the mid-year. This means that the employees have to work extra hard at the mid-year in order to meet customers demand. The firm should consider internal stakeholders who are the employees by offering them bonuses during the peak. The firm needs to introduce the just in time inventory system so as to produce refrigerators as and when they are required. The ordering system will reduce holding/storage costs since internal stakeholders being the customers will pick their order immediately. It is also important for the firm to ensure they have a proper cash management system so as to ensure funds for production are available during the peak season and the firm is able to run efficiently during the off-peak period.

The management can also introduce marketing and promotional strategies during the last two quarters when the sales are low so as to ensure customers are evenly distributed throughout the years. Discounts and after sales services could be key strategies to achieve this goal. The management who are part of the internal stakeholders needed to consider reevaluating their supply of manufacturing materials so as they match with the customer’s demand pattern. Employees in sales and purchasing department can handle the issues of stock effectively with better planning (Peavler, 2018).
It is clear that the firm requires planning in its production. A reliable supply of transformers is essential so as to produce the required regulators as and when required. It is therefore important that the firm adopts the just in time system which will coordinate both the internal and the external stakeholders. The impact of inconsistent ordering throughout the year has an impact on the firm’s overheads as well as the work processes. The statistical control system could also be used to control the production process.
References
Peavler, R. (n.d.). How Just-in-Time (JIT) Inventory Management Can Benefit Your Business.
Retrieved January 28, 2018, from https://www.thebalance.com/just-in-time-jit-inventory-management-393301