Case Study: Infolab Technology

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JCT Task 1 Western Governors University Cristina Gottilla Introduction The first fiscal year has been completed for Infolab Technology. The results were not great, given that the company suffered from profit losses. This gave a financial score that was below zero, resulting in an overall score that was above zero. While this is obviously a concern for the shareholders, this report will underscore how the areas of weakness came to be, and what management is going to do about them. This report will also highlight some of the company's strengths. One bad year does not a failure make, and Infolab has the ability to leverage its strengths from superior performance in the coming years. We performed well in…show more content…
Mantkelow (2014) explains lean manufacturing as based on "finding inefficiencies and removing wasteful steps that don't add value to the end product." Lean operations helps to reduce waste in production by using resources to only produce what the customer is demanding. A company that is using lean operations has measurable throughput. “Every minute that a product is not sold the cost accumulates and the competitive advantage is lost, this is the manufacturing cycle time” (Heizer and Render, 2010) this analysis could have been used to scale down production in the third and fourth quarter when it became obvious there was excess inventory. For starters, there is no value in holding 60 days' worth of inventory, to adopting lean principles would immediately help us to commit to inventory reduction and better alignment between production and demand. Consider that demand was stable for the past two quarters; we should be able to achieve such…show more content…
We also feel that we can improve quality as well. Continuous improvement is based on the Deming model of Plan, Do, Check, Act. The hard part is planning, because that is where we must recognize an opportunity to improve the product. Remember, however, that we have good people, human resources is our strength. We must put some money into research & development in order to leverage this strength for improved quality, by encouraging innovation and implementing innovations to continuously improve both our products and our processes. Nobody ever won a race by standing still – even the tortoise was moving – and we aren't going to try to do that, either. Our R&D will emphasize statistical process control, which seeks to eliminate defects and improve performance (ASQ, 2014). A continuous improvement program will help us to identify areas where we can improve, develop techniques for that improvement and then test the effectiveness of those techniques. The continuous improvement plan should constantly sight facts, information and on sight analysis to determine why inefficient conditions exist. We will need to study our strategy, operational structure, and staff. We also need to observe our competitors and external market factors. Once we have identified the issues, we need to look for opportunities to improve and identify the priority in which the improvements can be made. It is
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