Operation Management of MLM Company, M-Plan

Topics: Customer, Customer service, Management Pages: 13 (2844 words) Published: September 27, 2011

The minutes been retrieved from Mar 1, 2010 ,The CEO of M-Plan Sdn Bhd ,Mr. H H Tan said at the Peak Leaders’ Meeting t after the celebration of CNY, • Everyone must have effective plans and strategies to produce outstanding results for the company to reach the target of 5 million sales. “ The Minutes retrieved from the month of June, 2010

“Mr Tan expressed concerns about the results of sales for the past 6 months. The objectives of RM5 million sales/month had been announced on last December ,2009. The results of sales were not satisfactory. M-plan, an MLM /networking company and it had been established since 14 years ago.. the core business is health food products, health supplements, skin cares ,personal cares and household products. The objective of M-plan is to reach RM 5 ,000,000 sales .per month. However , the objective seemed very difficult to reach despite of many types of promotion, new marketing promotions plans , trainings , demos, being established and executed for the past few months. Please see below figure 1

• The moving average of health supplement has been going toward down trend • The moving average of household products has not been smooth , even though during April the nbusiness been keeping up • The moving trend for other was not improving overtime. • The chart indicated that the sales for each month not even reached targeted sales as RM5 million


Figure 1 Sales of M-Plan - Jan 2010 - June 2010 in terms of ‘000.


In viewing of the poor performance in sales , the CEO made a decision to appoint Miss Lynne Ng, an MBA degree holder who had been working in the field of MLM business for more than 15 years to be the M-Plan special business consultant . Her job is to help the company to establish a competitive capability procedure to which allow the operation management to maintain and improve performance by using the five types of objectives ; COST,QUALITY,SPEED, DEPENDABILITY AND FLEXIBILITY .

3. Kaizen Project -

Lynne work beginning of July 2010, two weeks later,in order to bring the positive change in M-Plan , Miss Lynne had decided first to use one of the “Kaizen” projects to review and integrate the various operation and communication process. On 3rd week of july, Miss Ng passed the evaluation form and project timeline to all HODS , the functional structure of the departments of M-Plans are: • Marketing department

• Account department
• Purchasing department
• Distribution department/store department
• Human Resources and administrative department
• Customer service department
• MIS Department

Her objective is to e analyse the problems and process of each department. All HODS are required to submit a list of areas of challenges/problems encounter in his/her department, at the same time they have to provide input to Management on the resources which that would be helpful to improve productivity in the respective department. “ without clear vision and definite commitment from all , even the most capable and energetic members of the leadership team will hesitate to raise new ideas for moving forward and the less proven executives will feel reluctant to speak their mind about what is wrong and how to improve things.”(Robert H .Miles,Jan-Feb 2010,Haward Business Review Page 71)

please see the form and time lines as below FIGURE 2 AND 3 (APPENDIX 1)

Team Members to submit to Lynne by 20 July/2010 (Attach simple relevant workflow chart where possible)


Team Members:
All HODs - Vun/Lim/Bryan/Siew Ping/Hj Su/Kochu/Ding Ding, Vani & Jolene



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