Good Essay About Making Operational Decisions At Shuzworld

Type of paper: Essay

Topic: Management, Company, Business, Development, Cost, Production, Time, Strategy

Pages: 10

Words: 2750

Published: 2021/02/10


The companies have to take educated and informed decisions in order to create maximum level of profits, and every managerial decision would have to have the support of philosophical economics, and the fiscal rationality had to guide the managerial path choosing as well. The production focused stature of this report would not have to fool the managers because they have to apply organizational creativity to develop new commercial products. With the passage of time, the companies start to develop status quos those kill the creativity altogether. The human resource department has to step forth in this regard by establishing a significant relation between the personality of the employee and the relevant organizational job that he or she had to perform. The organizational resources have to perform creativity at a product design level, and the managers have to develop teams those operate by cultivating teamwork between executors and strategists. With the passage of time, the management is a scientific field that creates unconventional ideas into traditional and tangible products those the customers can purchase in order to extract value out of them, additionally, the resource dependence theory argues that the organizations have to develop social linkages with the surrounding societies so that the companies can obtain needed resources those the managers have to transform into finished goods and services, and this report is working to develop operational plans, but the real secret of competitive advantage originates out of innovative ability of those who play the roles of organizational designated gods.
The human development provides the grounds to realize true organizational developmental potential, and the passing of time will only record flattening of the organizational structure and the culture of teamwork will find applicatory grounds in the certain setups those operate in order to build integrative model between human resources and technological means. However, the managers do not have to follow the developed plans in the upcoming sections of this report, and the managers have to consult with the lower ranks of the organization in order to practically adapt the visions so that the routes can receive realistic touch. The managers cannot even think about implementing the planning before interacting with line managers and staff as well.
The communicative model of the organization is going to motivate the workers beyond measures because as a consequence of the application of teamwork will create confidence at each organizational level and levels of collective efforts would enhance as well. The participative management will hold the creative key that would indeed unlock the deep potential of the most valuable asset that the company will ever imagine to hold, and according to the profound statement of Steve Jobs, any manager cannot work without activating

Problem 1

The management has to take some considerable decisions in order to streamline various activities so that the relevant timeframes can experience reduction, and the management can make the process more efficient as well. However, the managers have to keep the attached costs of the activities in order to generate maximize the profits through application of cost reductive strategic regimes, and the fresh pair of eyes has the ability to see the events with a new perspective, and therefore, I came along in order to provide with management with the plan to revitalize production system that is taking longer than the expected time, and the current management was too much into the prevalent systematic approach, and they lost the ability to clear flaws in the system that provided basis for systematic model that was present beneath the organizational of the company under study. Following plan, I developed in order to cause lessening of time spent in production of Rugged Work Boots: -

9-3-6 3 8

The activity A will take ten minutes and this task would not have any other one that can be conducted in parallel so the management will experience a forceful compelling to start and complete the opening activity in isolation. However, tasks B and C share the same prerequisite activity, and the management can conduct both activities at the same time, and this decision will shave of three minutes from the interactive productive process. The completion of B and C will lead to the transpiration of D, and the managers have to take the initiative of linking activities E and F together that will result in cutting off 3 more minutes, and the conjoined execution of E and F will create space for the happening of G that will lead to final step of H. The planned changes will cause the process to transpire in 40 minutes instead of 46.

Problem 2

The following table shows the figures related to the production of a newly designed: -
The workforce of the company is having a learning curve of 80%, and therefore, they have the uncanny ability and power to reduce the cost of production by the factor of 0.80 when the level of manufacturing doubles. The second batch will see a reduction of 80% while both of the proceeding ones have 40% lessening in this regard each.

Problem 3

The reliability of machines operating in order to produce Deck Shoes has a critical value in terms of sustaining operational quality of the facility , and therefore, we need to calculate the overall confidence level that the management can bestow over the dedicated hardware: -
The total reliability figure has been derived by multiplying the individual figures of the machines, and the total number reached is 0.76, and the machine one has to receive a backup support as it carries the lowest possible reliability figure.

Problem 4

The below tabular structure is developed in order to demonstrate performance of different workers who possess the capability of performing numerous tasks those collectively operate in order to make the production of a specific product possible: -
In ideal settings, the operator one has to perform task 3 because his cost related figures are the best amongst the others. Operator two has to get the task four done because of the same reasons, and operator three will receive job one as an assignment, and finally, the operator four has to undertake taske two. The management can use operator one and two for the second job in the process in case the performer four is not available for some reasons. Operators one, two and three will perform task 2 with equalized quality, and operator one and two have the competency to uptake task three, and in the end, operator three can work instead of his colleague working at task four. Remaining two operators will have similar performances regarding conduction of recently discussed task as well.

Problem 5

The management has to go through complex calculations in order to know the optimal level of production is going to create least of the costs in this regard: -
EPQ for Shanghai = sqrt. 2KD/F (1-x) D = Capacity= 1300
EPQ = sqrt. 2(4) (1300)/4(0.46) P = Production = 2800
EPQ = 75.18 units per carriage K = Ordering Cost = 4
X = D/P = 1300/2800 = 0.46
The above conducted calculations revealed the company needs shipping 75 units per carriage in order to minimize the carrying and transportation costs. However, the management will have to keep the average demand in view before deciding on the shipment’s size and the mathematical calculations will always talk about the perfect world that does dwells in realistic terms, and therefore, the management is suggested to seek acceptability rather than perfection in this regard. The management is looking to have headless growth in terms of its production capacity, but they have to postpone their relevant plans, and allow the demand to rise before making relevant strategic choices. The managers have to make the customers pay for increasing costs of shipping from Shanghai F to warehouse 3, and the partial rates will be transferred to the consumers while, the customers will view as increment in price that will be represented in cents, but at a strategic level, the management will equalize the shipping costs of the all the factory outlets.

Problem 6

The following calculation effort will generate the figure that has to be produced in order to have the least possible costs regarding holding and shipping of the inventories produced: -
EOQ = sqrt. 2(D) (S)/Holding cost
EOQ = sqrt. 2(300,000) (125)/0.10
EOQ = 27,386 units

Problem 7

The sales management department is planning to have a sale during every ten minutes, and each transaction will take five minutes to process on average. However, the management cannot expect anybody in the queue because the staff is going to process sales at twice a rate that the customers will follow while entering the facility holding the selling point.
Total Sales Expected Per hour = one sale in ten minutes means 6 transactions in an hour
Total Sales per Day = 6*24 = 144
Sales Processing Speed = Each transaction will take five minutes so the twelve transactions will take place in one hour
Sales Processing Speed per Day = 12*24 = 288 Transactions per day
In the perfect setting, the customer would leave the outlet before another one enters, and therefore, the management will not have to waste resources over hiring an additonal selling clerks, and the managers have to analyze the demand levels constantly before taking relevant staffing decisions.

Problem 8

Predetermining Production Capacity: The Critical Strategic Choice
The company has to produce Samba Sneakers by taking following productive strategic choices: -
Reconditioning of Existing Production Capacity
Fixed Cost = $ 50,000
Variable Cost = $ 1000/ batch and if we produce 10 batches per year then the cost will be $10,000
Total Cost = 60,000

Buying New Equipment

Fixed Cost = $ 200,000 long
Variable Cost = 500 per 1000 units and 5000 for 10 batches
Total Cost = 205,000


Fixed Cost = $0
Variable Cost = $ 3,000 per 1000 units and if we create 10 batches then the cost will be 30,000
The option of outsourcing to China would produce least level of financial burden on the company, and therefore, the management has to choose that in order to enhance profitability in both long and short term perspectives

Problem 9

The company’s management needs a detailed and statistically proficient report that will help them knowing the expected levels of demand throughout various time periods: -

Problem 11

The management has to establish control functions in order to guide production of a certain product line. The following calculations establish the minimum and maximum levels of density of the sole the workforce had to maintain in order to conform to industrial norms: -

99% confidence interval for mean density of the rubber used as a part in

t value – s/sqrt. n < = Mean < = t value + s/sqrt.n
2.845 – 0.5/sqrt. 16 < = Mean < = 2.845 + 0.5/sqrt.16
2.72 < = Mean < = 2.965

The management has to maintain the average density of the soul between lower and upper bounds mentioned above.

The workers creating eyelets for men’s shoes have following statistical figures those helped me in the process of developing a following confidence interval:-
t value – s/sqrt. n < = Mean < = t value + s/sqrt.n
4.64 – 0.5/sqrt.20 < = Mean < = 4.64 + 0.5/sqrt. 20
The resultant density of the sole must lie in between the lower and upper bounds those are mentioned above, and the workforce had to manage the average between the suggested limits.

Problem 12

The research developed by our market analyst was brilliant, and the results of the efforts t me to deduct some empirically valid strategic choices, and I would suggest that the company should avoid building a new a store on a location where the facility would carry 50% probability to see a failure, and in strategic terms, the choice of opening a store in given circumstances would not represent a rational strategic decision.

Problem 13

Reorder Level
Average Demand = Total Sales/ No. of Days
200/6 = 33.33
Average Lead Time = Weighted Sum of Lead Days/ Sum of Weights
76/6 = 12.67
Reorder Level = 33.33*12.67 = 422
The manager has to place a replacement order wherever the inventory level would reach 422 units in stock. The company has to install a Management Information System that would allow the management levels to automatically send an order to the cheapest possible supplier available at the organizational disposal.

Problem 14

Following is the determined production mix that the company has to generate in order to create a proper and lucrative balance between the costs and profits: -

Problem 15

The Critical Path Analysis is a method that assists the company’s management in terms of identifying an activity that will generate maximum time reduction the project with making the management face a least level of costs. The following diagram is allowing the management regarding identification of Critical Path of the expansive project that the company is in plans to sponsor in a short while: -
The management has to decide about the way and method those will allow them to crash the opening activity of the project to gain five extra days so that the planned effort can develop abovementioned number of days as slack time, and that management will have the option to kill the endeavor well before its time.


This paper has been developed in order to highlight strategic inevitabilities those the management is confronting at Shuzworld, and the innovative spirit at the featured company is dying out with the passage of time. On the other hand, the currently conceptualized products are not having applicatory nature in the practicalized world of the 21st century. However, the company is running behind the fantasy of opening a new store that would have an equal probability of going down as it will have of experiencing success so the project will be planned application of foolishness, and therefore, I have not recommended during body of the paper, and the company is lagging behind regarding upgrading of strategic nature, and the management is looking to manage the routine when actually,. they have to practice and support organizational creativity and the leadership has to simulate out of the box thinking and resultant greatness will utilize their spiritual inventories those will make the most lively product designs possible in the world. Additionally, the management is not concerned about employee welfare, and that attitude will have destructive effects on the long term survival of the company because the innovation of effective nature will act as a unified driving force behind the need to ensure survival of the company operating in whatever industry. The marketing department of the Shuzworld is less than active, and the managers are not actively pursuing the creative product development, and in a year or so, the company will grow a need to have effectively designed products, and the management will have none at its disposal. The companies are arena of political power where managers have to guide the destiny of the organizations those operate under them. The Shuzworld is a family owned business, and therefore, an elderly father along with his young daughter is running the company, and they think that they will successfully manage the corporation without the need to change, but the requirement to have a major overhauling in due time, and by the look of things, I could take a wild guess that the organizational setup will go outdated, and the company has to hire an external consultant in order to get help in strategic change that will definitely has a psychological dimension to it as well because the employees have to posses inspiration to create something unbelievable and unique that the customers will happy to pay for as well.


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