A. Analysis
B1.
To make my pro-forma statements I had to plan for future goals, I intended to make up the money I used in the first three quarters by quarter 4. I tried to backwards plan by adjusting the numbers to hopefully meet the criteria. Each quarter my cash flow increased by about 300,000. I did not increase my effectiveness with pro-forma statements or budgets to ensure adequacy of funds.
The production capacity in my first 2 quarters was low but only because it was upcoming product and needed to be tested on the market. By launching it and seeing what the demand was I altered my next quarter numbers and redirected my target product based on the numbers produced by my previous quarters. I also made a risk …show more content…
Creating an extra product was more expensive and took away from my original products. I opened up another distribution area in third quarter which helped sales with an increase but my production demand I believe was a bit low.
B2.
The Just in Time (JIT) method, would have been an extremely efficient way to start up my business and overall operational efficiency, because it would require the smallest amount of inventory and cost, which would have helped maintain budgets at a minimum. Since JIT is a system that operates on a “parts and supplies delivered just as needed in the quantity needed” (Wesley, 2010). JIT would have eliminated my spending also by looking out and keeping up with Ohno’s seven wastes into this new upcoming business I could have been much more successful. By avoiding overproduction I could avoid holding on to inventory that is just taking up space and money. Queues, idle storage or inventory banks; which also just take up space. Transporting only when needed and where needed. Inventory control would again eliminate unnecessary use of space and money. Motion, over processing and …show more content…
Work cells eliminate work the waste of space, reduces direct labor, and heightens employee participation and awareness, and reduced investment in machinery and equipment.
B4.
My inventory management wasn’t very efficient ended up with no left over stock which created a problem when the demand increased and my production did not. By the end of my 4th quarter I lost sales by not being able to deliver 1062 computers, which lost me a lot of customers, I failed to project high demands as a beginning company. My inability to cater to the exact needs of the customer effected my likeliness to succeed, if I could re-do it I would implement the JIT method and the safety stock, so that we could create exactly what the customer asks for and send it off in a timely manner, creating less waste of funds and maximizing the customers’ needs. Safety stock would have also been an effective way of managing my inventory, by having that buffer I could have avoided losing so many sales due to lack of resources in this case inventory. By being able to implement the JIT method I would be able to run a more efficient company that provides the right amount of production at any given