The paper 'Productions & Operations Management at Grandiose Motors" is a good example of a management case study. This was commissioned based on a case study to assess some of the major problems being experienced by Grandiose Motors with regard to the execution of their expansion plans. The main problems identified were that there were no proper policies in place with regards to procurement and inventory management policies. Additionally, it was revealed that since the organization purchased different types of service parts and materials it could not adopt the same procurement and inventory procedures for the different types of parts and materials. A recommendation for procurement management policies is that the procurement department needs to be structured.
The structure is to include giving the department a fresh outlook and have clear procurement objectives, offer training to procurement personnel including incentives for top performers, engage and offer services to other functional areas within the organization and finally integrate and forge ahead together with the other functional areas of the organization. As for the inventory issue, it is recommended that products be obtained from the vendors on credit terms, and the vendors be paid only after the products have been sold within 90 days subsequent to the date of sale. Finally, on the issue of different procurement procedures with respect to different material parts, the recommendation is that the 80/20 technique be adopted. The Purchasing Manager Grandiose Motors 11th May, 2010 Felix Fabulous, CEO Grandiose Motors, Dear Sir Acting on your request, the Purchasing Manager at Grandiose Motors has prepared a report assessing some of the major issues that are affecting the successful execution of the organization’ s expansion plans.
The intention of this report is to reveal the findings of the research carried out with respect to these issues and offer recommendations for the appropriate steps of action to be taken to circumvent the same.
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