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? Tasks: ? 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 info rmation 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 (CPFR) ? 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.