Spl Company Case Study

...

Not modernizing the packing plant

The packing of the production is another most important point for increase sales and profits. It should be more attractive one and should mention in it all necessary details like as expired date, ingredients etc… Otherwise lack of some these information will be a reason for declining the sales and profits.

Keeping inefficient assets like as old machinery and vehicles for usage

Those inefficient assets are used in the organization. But the probability of braking down these assets is very high. So it may waste more time for repairing those assets. And also it may incur additional cost to the company. If employees regret to use these inefficient assets, they will be demotivated as they have to work with these assets and the efficiency of the work will be weakened. So for these reasons the sales & profits will decrease.

So, according to these reasons the sales and the profit were declining those 3 years.

Alternatives for these issues

The current employee turnover is 12%. It should be reduce to single digit like as 8%.We can reduce the turnover by motivate the employees such as;

Giving high pay

Supply good working conditions

Give other benefits

Good working hours

Good grievance handling practices etc….

So that the employee satisfaction & job security will be in high level. So there will no need for them to leave the organization. The employee motivation is very high, so that the employees do their job of their maximum. According to that the company production will be high and thereafter the sales and the profits also will be high.

We can modernize the existing packing plants by using the new technology. There should be good labelling, marking and packing regulations for attract the customers for our products. It communicating product information between buyers and sellers and serves some primary functions:-

- Provides basic product information on characteristics, such as the common name, list of key ingredients, net quantity, durable life dates, grade/quality, country of origin and name/address of responsible manufacturer, dealer or importer.

- Provides health/safety and nutrition information including instructions for safe handling, nutritional profile or other specific information relevant to recommended possible uses of the product.

- Provides information on ‘non-use’ characteristics, such as the environmental import or moral/ethical elements surround the product’s manufacturing process ñ e.g. ‘halal foods’.

- Provides a vehicle for marketing, promotion and competition as it can advertise and promote product sales and trade via their labels, promotional information and label claims.

Like as there should be a good packing which involved theses primary functions. The packing should be more attractive one to attract the customers from other company products. Therefore modernize packing plant will be a point to increase sales and the profits.

The inefficient assets bring more cost to the organization. So no need to keep those assets in the company. We can sell those assets for big price like as one million. So the one million of selling inefficient assets will add to the company capital.

Most people like chocolate. So we can increase our market share of chocolate 10% to 20%. Let see how market share calculate;

Market share = company’s sales

Total industry’s sales

Most of companies usually try to increase market share with a defined strategy combining effective marketing campaigns and expansion of stores or distributors. We can keep an open channel for customer ideas because one of them might be the next hit chocolate product.

Also, we can increase our soap production from 25,000 units to 35,000 units. By using the high motivated employees and new technological machineries will help to increase the production. We can also use new cost effective methods and advertise those products in a creative way for attracting the market share.

According to these alternatives, we can definitely increase the sales to 100 million, the current sale is 75 million so that it is a small gap to fulfil the sales into 100 million. So we can fill that small gap by using those alternatives.

Suggestions for how I will introduce & implement the PMS system at SPL Ltd.

First of all let see what performance management is;

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities in order to meet a company’s goals. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves the organization.

What type actions should include the performance management system?

- Develop clear job descriptions.

- Recruit potential employees and select the most qualified to participate in interviews onsite.

- Hold multiple addition meetings, as needed, to get to know the candidates strengths, weaknesses.

- Select appropriate people with an appropriate selection process.

- Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.

- Provide effective new employee orientation, assign a mentor, and integrate new employee into the organization.

- Provide ongoing education and training, as needed.

- Provide on-going coaching and feedback.

- Conduct quarterly performance development discussions.

- Design effective compensation and recognition systems that reward people for their contribution. …etc….

According to above details the performance management system process should be like as follows;

[pic 2]

According

...