The falling revenues that the company is experiencing coincide with delays in manufacturing. These delays, in turn, are due in large part to poor planning in purchasing metals. Consider further that the manager of the department that handles purchasing of raw materials has an excellent background in general business, psychology, and sociology, but knows little about the properties of metals. The company should, therefore, move the purchasing manager to the sales department and bring in a scientist from the research division to be manager of the purchasing department.”
Author has provided evidence from the daily operation of the company to claim that revenue is proportionately related to manufacturing delays and devised a solution by replacing the purchasing manager with a research scientist. There are following weaknesses identified which are detailed below:
Firstly, authors claim that reason for decreasing in revenues is an outcome of delays in manufacturing. There is a possibility that the falling revenue is due to the entrance of competitors who are eliminating our market share and low demand for our product and might be possible that manufacturing is delayed to curb the huge stock holding cost. And it is advisable to deploy effective costing and selling techniques rather than thinking to replace the purchase manager. I the author would have provided plausible evidences that the company is unable to reach optimum position due to lack of support from back end then it might get strengthened.
Secondly, delay in manufacturing is correlated with external and internal factors. Likewise, the quality of metal that is produced in a country might not be advisable for procurement. Liquidity position of our major supplier is at stake due to which we need the top decision makers of the co. to decide the final alternative or it can be political reasons which are causing delays or any factor which is not controllable or calculative by the company. Internally, the leverage to use of finance might be hampering the purchasing unit to perform accordingly. Therefore, reason for delay must be supported with evidence to strengthen.
Lastly, argument related to background of manager is not enough to judge his capability. Manager is position which manages tasks in order to get them inline with the overall objective of the company. The academic background is necessary in order to know what is management, but having the skill to manage depends totally on the ability of the person. Moreover, a manager of the purchasing department is not necessarily expected to know the properties of metal but he is assigned with the task to make an efficient decision from the best available information provided to him. If it was provided that incorrect decision has borne cost to the company than it could have been strengthened.
Therefore, the claim to place the research scientist could have been justified if delay in manufacturing was supported with evidence of purchasing department planning failures and that the scientist having crude information about metal is not only a man of knowledge but also a man of skills to manage
Thank you-- need you comments
My English I don't think is going in the right track, I have points in my mind but to express it needs more practise. Plus please tell me recommendation can be given? while pointing the weaknesses?