Business Simulation Production Management Report Sample

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| | |ACCT2106 | |Business Simulation | |Production Management Report-SPRING WATER COMPANY | | | | | | |

Instructor: Jis S. Kuruvilla

Group: 8

Student: Huy, Do Xuan

ID No.: S3210998

TABLE OF CONTENTS

1. Executive summary………………………………………………………………Page 3

2. Overview of decisions made…………………………………………………Page 4

3. General company results……………………………………………………….Page 9

4. Management reflection………………………………………………………….Page 11

5. Future plans…………………………………………………………………………..Page 13

6. Conclusion……………………………………………………………………………Page 14

7. References …………………………………………………………………………..Page 15

1. EXECUTIVE SUMMARY:

After three years running our business, Spring Water has become the leader of the Bath fittings industry with 2 main products: bathtub and wash basin. In order to explain deeper how we could be the most successful company, this production management report will be my main communication tool. Throughout these three years, I had made more changes to plans than I expected beforehand. Here is what Spring Water Company has achieved throughout the operation:

- Rank 1 out of 7 companies

- Costs: minimized with no overtime and minimum labor cost. Our current productivity allows us to save more than $50000 every quarter in compare with our beginning productivity.

- Capacity: capable of producing at least $1670100 worth of products each quarter.

- Dilemma: solved successfully without much loss, no reduction on workers’ productivity. The only disadvantage to us was our lowered sales: more than 1000 sales less than the previous quarter.

2. OVERVIEW OF DECISIONS MADE:

2.1. Human Resource Development:
Human Resource Development (HRD) decision: Throughout 3 years of operation, the biggest concern of my department is how to reduce production cost to the minimum amount possible. Therefore, Human Resource Development became one of our tools in reducing labor cost. In the first year, we invested $20000 into HRD just as we planned. In the 5th quarter, however, we raised the amount to $29000, expecting to increase our productivity further for the last 2 years. Our intention changed immediately in quarter 6, when we first experienced a crisis and dilemma. At that time, as a manager, I ran many tests about HRD investment ' how to make use of our Investment most efficiently and cheaply with our current funds. As a result, I discovered that investing at exactly $17000 cause productivity to increase the same as $20000 so we decided to invest that amount for the next 6 quarters. The results exceeded our expectation of a good strategy: [pic]

[pic]

Analysis of HRD decision: As the charts show, we actually benefit more by choosing to invest a lower amount of money than we decided in the 1st year. I changed my decision because the company would benefit more if some adjustments to our strategy were to be considered: we would need only $17000 to create the same results as $20000. Although we made some mistakes by investing too much ($20000-29000)...
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