Finding the Path to Operational Excellence at ZENI Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Finding the Path to Operational Excellence at ZENI Case Study Solution

Along with the financial metrics, the company could also use some non-financial metrics, such as customer satisfaction scores as the percentage of the customer repeating the purchase of product. Additionally, the Net Promotor Score would also help the company inindicating the long term growth. Through determininga number of customers lost or gained, the company would be able to understand whether or not it is fulfilling the demands of its customers. By doing so, the company could easily draw the picture of the effectiveness of its new production planning system at the Forestry Industry Unit (UFI).

Planning management function facilitate operational improvements

The planning management function could be organized through maintaining flexibility, creating an open environment, optimizing the equipment usage and improved the on-time delivery of the product or services. It would lead to faster delivery of the product, which in turn would increase the customers’ satisfaction and would influence the customers buying decision in the company’s favor. With faster product delivery, there would be increased chances of getting a buy button in a competitive market place. In addition to this, a hybrid system approach could be responsive to the company’s growth strategy, which would allow the company to reach a wider base of customers. With the provision of the periodic training to the employees, conduction of training sessions and fostering the culture of openness and communication, would lead to an operationalimprovement of the company.

Furthermore, an automated system could be implemented as it would help the business operations in a number of ways,which include: an automated manufacturing, order planning, project scheduling, cost analysis, inventory management and so forth.(Anindita, 2018).

Implementation plan

The company should implement Just in Time (JIT) inventory, because it would allow the company to reduce its various overhead cost and to improve its efficiency (as less space would be required to store the products (warehouses) due to a faster turnaround in the inventory) and to minimize the number of goods that are hold at one time. To implement the Just in Time inventory management system; the company would be required to build a strong relationship with its suppliers and bring a significant reduction in the complexity of its various functions. Just in Time inventory system would enable the company to hold enough inventory to cater to the customers’ demands, improves its efficiency, reduce its cost and improve its profitability.(Karmarkar, 2016).

In addition to this, the Support System should include a dashboard introduction, a fixed time to make a complete discussion on escalated issues and training, in order to ensure that the employees of the company have the right skill-set. The supply chain management changes should include an ability to support the “pull” philosophy, whereas the cultural changes should include a sense of team belongingness. By doing so, the company would be able to foster the culture of communication, collaborationand team work. Moreover, the lean approach would bring many benefits within an organization, such as: a sense of worth of employees in the organization, improvement in the teamwork and co-operation among the employees, productivity increase with a decrease in the chances of errors, efficient performance and time management.

Conclusion

The forestry industry unit (UFI), which is an important area of ZENI has been carrying out its operations and featuring high investment level in technology as well as equipment used for the processing of timber. Despite of the long run growth and strong financial position, the profitability of the company has reduced partly, because of the domestic situation of the economy, which was marked by an increase in cost as a consequence of the annual rate of inflation. Also, the company is facing some internal issues,which include: autocratic decision making on the manager of plant, lack of control and supervision at the production plant, an irregular raw material usage and low labor productivity. The company should revamp its manufacturing process for the purpose of increase its efficiency and customer satisfaction.

To deal with the issues being faced by the company;it is recommended to implement the combination of push and pull based manufacturing system, due to the fact that the pull based production planning system would lead towards improved commercial performance and operating flexibility.It would also allow the company to meet its future demand for the products, whereas push based production planning system would allow the company to maximize its efficiencies in the operations at the plant......................................

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