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One more essay.. Please evaluate..Thank you very much..

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Joined: 01 Jun 2012
Posts: 3
One more essay.. Please evaluate..Thank you very much.. [#permalink]

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New post 01 Oct 2012, 12:21
The following appeared in a report presented for discussion at a meeting of the directors of a company that
manufactures parts for heavy machinery:

“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.”
Discuss how well reasoned . . . etc.


Given argument states that poor purchase planning resulted in manufacturing delays, which are coincided with falling revenues. Argument reasonst that, purchase manager's lack of knowledge is the reason for poor purchase planning and recommends that a scientist from research division be made as manager of purchasing department. This argument has gives no reason as to how knowledge in materials will help purchase planning.

First, fall in revenues could result from lack of demand for company's prodcuts or better quality and low pricing of competitor's products etc. To link fall in revenues to manufacturing delays, argument should provide details pertaining to pending orders, customer complaints, inventory levels in product supply chain etc. Without this information, it is not correct to conclude that manufacturing delays are the reason for fall in revenues.

Second, argument states that there are delays in manufacturing. Argument should provide details of how many products were not delivered as per plan, what is the duration of delays and reason for delays. There could be delays because of production machinery maintenance, insufficient manpower etc. Statistitcs pertaining to number of delays attributed to poor planning of purchase in materials will substantiate argument.

Third, argument links poor planning of materials purchase to purchasing manager's lack of knowledge of properties of materials. But, it fails to provide how this knowledge will hep in proper purchasing of materials. For proper plannign of purchase of materials, purchasing manager should have knowledge of inventory managmeent, production orders , vendor management etc.

Next, Knowledge of properties of materials will be useful, if company is planning to introduce new varieties of products into market, requires experimentation with various types of materials and requires purchasing manager's judgement on material selection. However, generally design department takes the decision pertaining to selection of type of material.
Specific information regarding requirement of purchase manager's knowledge on properties of material would have been useful in evaluating argument and supportting claim that scientist from research division be made purchase manager.

Last, argument fails to provide details as to how a scientist can have knowledge regarding inventory management, vendor management, general business etc. If there are any specific conditions in which company operates, argument should have stated them to understand the requirements of company.

To conclude, argument would have been strengthened, if it had provided sufficient reasons for its statements. Without these reasons, it is difficult to support the argument.

One more essay.. Please evaluate..Thank you very much..   [#permalink] 01 Oct 2012, 12:21
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