Throsel-Teskey Drilling free essay sample

Lack of synergies from purchasing Difficult to standardize completely with one supplier because of specific needs Suppliers experienced delivery problems and extended lead-time resulting from demand increase Bottlenecks occurred on equipment and employee How to achieve the target that shareholders expect 25% return on capital? How to renew the awkward information system? How to update inventory records to get timely data? How to reduce inventory levels of the company? What should Alison do? Develop plans to improve the inventory management o Develop time-based supply strategies to bring competitive advantages to the organization ? Identify the functions and forms of inventory ? What are alternatives for inventory management? o ABC classification o Supplier-managed inventories (SMI) o Just-on-time or Just-in-time (JIT) o Enhance the forecasting system (factor correlated with inventory variation) ? Provide training programs for current and new hiring employees 1 ? Improve information and management systems o Implement a new ERP system to provide accurate, timely data; reinvestigate MRP system What are root causes for inventory variance? 2. We will write a custom essay sample on Throsel-Teskey Drilling or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page How to motivate employees after the merger? 3. What management approaches will lead two different supply organizations work well together? Actions: ? Recommend John to develop systematical educational programs ? Improve forecasting systems to in turn eliminate inventory variance o Incorporate qualitative and quantitative forecasting techniques o Collaborate planning, forecasting, and replenishment. Inventory control o Assign a special staff to update inventory records as soon as possible o Determine order quantities and inventory levels; analyze related costs o Reduce in inventories investment; then lower inventory holding, handling, and disposal costs o Consider what service level is appropriate for buffer or safety stocks ? Evaluate the inventory levels with respect to flexibility, responsiveness, and customer satisfaction ? Develop Kanban control techniques Results: ? If improve forecasting system o Provide more accurate data to inventory replenishment o Help the company to make good decisions. Ex. How many materials to be purchased? ? If adopt new inventory management system o Inventories are kept at a minimum level; improve inventory turnover o Better control on inventory process and capability o Suppliers take over inventory responsibility and ownership o Reduce lead times and costs o Consolidating inventory management.