THE EXCELLENT MANUFACTURING COMPANY & CAPA Capa building is an aspect of a company’s growth and expansion. UNEP defines capacity building “as building abilities, relationships and values that will enable organizations, groups and individuals to improve their performance and achieve their development objectives” (4). In this definition, you can see that people are very important resources when they are given potential; they work to effectively achieve the goals. Ricket (2000 7) observes that, “Capacity building seeks to improve the performance of work units, departments, and the whole organization” capacity building is a system of organized efforts aimed at improving the performance of organizations through result-oriented reflections, development and actions.
On a wide perspective, it takes focus at the current position of the organization and compares it with the expected future position, through this analysis it chats its way there. This process has many benefits to organizations, and according to Redman, “When a business increases its capacity, it creates extra product that it stores in inventory until it is ready to be sold” (2). This enables it to save on cyclical running costs that would be needed to make new products.
In this report, I have made a plan that can help Excellent Company to create capacity and save its forecasted declined in performance due to its reduced capacity to handle the increasing demand. TO: THE BOSS FROM: CAPACITY MANAGER SUBJECT: CAPACITY CREATION FOR FUTURE GROWTH REVIEW OF THE CURRENT SITUATION Excellent manufacturing company has been experiencing a tremendous growth in the demand for products. The company has been recording a lot of sales due to its rising demand. Despite of this growth, there is a pending about its ability to produce enough output, which is equivalent to its rapidly growing demand.
Currently, the existing capacity is not sufficient for the production requirements for the market. Excellent manufacturing has not been having an expert officer in charge of quality control. This seems to be bringing major issues, which may in turn affect the market. So far there haven’t been much criticisms from clients. However, the problems affecting quality issues may later prove harmful if not corrected in due time. The company has received goods returns from customers about the kind of quality that is given on some of them.
There are customers who have complained about poor finishing and plating. There are others who have felt that the edges on the brackets are very sharp, pausing dangers to the respective users. Falling out of inserts has also been cited among other complains. It is feared that if the quality controls are not properly dealt with the number of complains is likely to go up. So far there is a record 49 complains in a span of only four months of operation.
This is a very alarming rate, and the company therefore wants an effective action plan that is able to solve the problem both in the short term and the long term. GOALS AND OBJECTIVES In creating a sustainable solution to this problem, the following will be the plan’s main goals and objectives; To increase the rates of production by 50% in the next four months To create a productive and efficient human capital able to meet the production demand of the company To be the leading suppliers of construction and building materials in the region. ACTIONS/PLANS Quality control has been largely affected department by inadequate staffing.
The fact that we have had complaints from customers about quality issue on some products means that the quality control department needs serious streamlining. The first thing is to create enough quality officers and to orient them to the standards that are expected on the final products before they are made ready for sale. The company needs to higher twenty quality control officer, who will be able to handle the increasing output. In addition there should be in-house training for the staff that is currently available; this will reduce the pressure on the quality control managers.
They will be able to oversee the functioning of the junior staff which will increase efficiency in quality checking and other matters about branding and packing and other final adjustments doe on the products before they are dispatched for sale. In order to establish as the sole supplier of building and construction materials in the region, the company will have to fund a market research into new markets that have not been tested by the company.
This will increase the market share of the company and make it have a competitive advantage over its rivals. The customer care department will have to be instrumental in this. They will be needed to formulate feedback systems from clients where they can assure them of better products and something, something that will enhance customer loyalty and retention. Task By who At what costs Hiring of quality control managers Human Resources department Current wage rate Training of staff on quality control Human resource department Quality control managers Current wage rate Market research Marketing department Current wage rate Customer care feedback system development Customer care department Current wage rate JUSTIFICATION OF THE PLAN Full implementation of this plan will enable the company achieve the set objectives in full.
You realize that we seem to be having serious problems in capacities. We need to have diversity in skills and experiences of people whereby staff that have been in the company for a long time can mentor new staff into the business and help it grow. Through implementation of this plan, there will be a large pool of staff with complementing skills, which will solve capacity issues by a great percentage. In addition, implementation of the plan is going to create a management system of customer complaints.
This will have the effects of boosting customer loyalty and helping to retain customer’s loyalty into the company. The benefits that implementation and achievement of this plan will have largely outweighs costs and other investments into it. Since the overall aim of the company is to remain relevant in the company by increasing capacity and customer satisfaction, then investments into a worthwhile plan is justifiable References Redman B.
(2014). The Advantages of Building Up Capacity in Anticipation of Demand. Retrieved from; < http: //smallbusiness. chron. com/advantages-building-up-capacity-anticipation-demand-20963.html> Rickett D. (2000). Capacity Building. Retrieved from; < http: //www. gmi. org/files/Capacity%20Building. pdf> UNEP. (2006). Ways to Increase the Effectiveness of Capacity Building for Sustainable Development. Retrieved from; < http: //www. unpei. org/sites/default/files/PDF/institutioncapacity/Ways-to-increase-effectiveness-SD. pdf>