Justification Report Report Sample
Evaluation of Alternatives
Powell, Riezebos, & Strandhagen (2013) in the research explained that the organizations are provided with the IT solutions for the problem, the use of ERP can help utilize and manage the resources in the best possible way. The process is known as the lean production (it is considered as the best way to improve the manufacturing processes) and ERP provides the organization with the processes. Further improvements can also be made to the ERP software. It cause heavy losses and non-effective use of the inventory, the possible way to overcome the issue is to adapt “The Promotion of the Production and Minimizing Costs” (Powell, Riezebos, & Strandhagen, 2013).
Frank Lowe a very renowned Rubber and Gasket Manufacturer. It is using ERP for its production and other processes. It increased the production capacity and also managed the wastage of the raw materials in order to cut down the costs. The company also provides Construction, Furniture and other industrial facilities to its customers. The organization can perform its tasks in an efficient manner because of the software that helps them monitor and control the processes. It is because of this ERP software the company can provide different facilities to its customers without any delays in the given orders.
Ellis & Kuznia (2014) in the research explained the effects of on job and other sources of training provided by the organization and the impact of such trainings on the effectiveness and efficiency of the employees. The analysis illustrated that the Trainings had an impact on the productivity of the employee, his/her performance and the commitment level of the employee towards the organization (Ellis & Kuznia, 2014).
In order to cut the costs, the trainings must be given/conducted by the senior employees of the company that has the experience to share with the new people. It will help build trust and good working environment in the organization. The human resource will be benefitted by these trainings in a way that the people they hired will be more specialized. The potential outcomes of the Training and Development of the employees will help the organization achieve its long-run goals and will be most beneficial (Bednall & Sanders, 2014).
Shell Oil is known for its training management program. It provides its employees with effective trainings so that the employees can work in an efficient manner. The employees are very pleased with the approach of Shell Oil as they learn new and rapid ways of their work. The costs for such trainings are not very high, but the outcomes can be effective for the organization. The production can be done in the best efficient way, and all the process are aligned with one another. It helps to complete the process in a least period. For this reason, training improves the productivity of the employees and in the long run, the goals of the organization are achieved.
Findings and Analysis
Promotion of Production and Minimizing Costs
Cost Efficiency: The company/organization can achieve its goal, but the costs that have to be incorporated are too high that will affect the company’s Cash Flows and the overall Profitability.
Human Resource Consumption: The Company will require experts for running the software and many of the current workforces will lose jobs. For this reason, the Consumption will be Low.
Durability: The results will be durable as there are least chances that the software makes some/any error.
Efficiency: The Efficiency will be increased by the implementation of the ERP software in the organization.
Practicality: The process will be more practical, and the output will be maximized.
Conducting Training of the employees
Cost Efficiency: The Training programs are less costly as compared to buying software like ERP and its implementation also takes monetary values.
Human Resource Consumption: The organization will expand the Human Resource Consumption, as the number of employees the organization has will increase (in regards to specialized workers and employees).
Durability: The durability will increase.
Efficiency: The efficiency of the employee's increases as they become well known of their jobs and the possible procedures to be followed. The employees are also motivated with such trainings and become loyal to the organization.
Practicality: The practical work is done by the employees in an efficient manner that will help the organization to achieve effectiveness and efficiency as a whole (as the company’s working depends on its employees).
Figure 1: Alternatives Analyzed by Criteria
The above mentioned chart shows the two alternatives (Promotion of Production and Minimizing the Cost of Production through ERP Implementation and Training for Employees) and the Criteria as well. The chart shows the Cost Efficiency, Human Resource Consumption and durability. In addition to it, it also represents the Efficiency and Practicality that can be achieved by the organization. Different results for these factors can be observed in the alternative programs of minimizing the cost of Production through ERP and Conducting Training for the Employees. From the chart it is prominent that by utilizing the Trainings for the Employees, better outcomes can be achieved as compared to the Minimizing Costs through the implementation of ERP Software. The final result which the chart shows is that the company that the company must focus on the trainings to their employees as all the factors show positive results through this program.
Bednall, T. C., & Sanders, K. (2014). Formal training stimulates follow-up participation in informal learning: a three-wave study. Academy of Management Annual Meeting Proceedings , 99-402.
Ellis, P. F., & Kuznia, K. D. (2014). Corporate learning impact on employees. Global Journal of Business Research (GJBR) , 8 (4), 1-15.
Moalagh, M., & Ravasan, A. Z. (2013). Developing a practical framework for assessing ERP post-implementation success using fuzzy analytic network process. International Journal of Production Research , 51 (4), 1236-1257.
Powell, D., Riezebos, J., & Strandhagen, J. O. (2013). Lean production and ERP systems in small- and medium-sized enterprises: ERP support for pull production. International Journal of Production Research , 51 (2), 395-409.