Business Process management
There are various number of problems that exsist in the chip’s current business process.they are,
Heavily depend on paper based manual methods for the most essential departments
Ex:- purchasing material, controlling production, satisfying customer orders etc..
Less contribution and effort by top level management in to developing a better organized business process.
Chip’s business strategy is centred on differentiating based on quality and customer responsiveness. But this strategy has not yet been translated into goals and objecting and the process and activities of the organization have not been organized in a manner to achieve them.
Inefficiencies in most of the main business processes.
Lack of a proper stock controlling mechanism.
Inappropriate tracking methods.
Unnecessary delays in purchasing from suppliers and making payments.
The customers have not been given a choice as to which address the invoices should be sent.
Actions for purchase requests are taken based on order date ignoring level of urgency.
Lack of communication among inter-departments and conflicts among directors.
The organizational structure has not been designed efficiently.
Risk of bad debts and future liquidity problems which shows poor financial management.
Highly depended on a few number of suppliers.
Since customer responsiveness is one of the two dimensions that chip’s business uses to differentiate its production over competition, it is important that orders are fulfilled in a timely manner.Hence, delay in satisfying orders is the main and most urgent problem that needs to be solved given the current nature of competition and the unfavourable global economic environment both which can be considered as threats in SWOT analysis.A delay in declining orders is a multifaceted problem which has resulted from an interrelated set of other problems. Some of the possible causes and consequences of this problem are depicted in the following table.
Causes
Heavily depend on paper based manual methods for the most essential departments
Ex:- purchasing material, controlling production, satisfying customer orders etc..
Less contribution and effort by top level management in to developing a better organized business process.
Chip’s business strategy is centred on differentiating based on quality and customer responsiveness. But this strategy has not yet been translated into goals and objecting and the process and activities of the organization have not been organized in a manner to achieve them.
Inefficiencies in most of the main business processes.
Lack of a proper stock controlling mechanism.
Inappropriate tracking methods.
Unnecessary delays in purchasing from suppliers and making payments.
The customers have not been given a choice as to which address the invoices should be sent.
Actions for purchase requests are taken based on order date ignoring level of urgency.
Lack of communication among inter-departments and conflicts among directors.
The organizational structure has not been designed efficiently.
Risk of bad debts and future liquidity problems which shows poor financial management.
Highly depended on a few number of suppliers.
Since customer responsiveness is one of the two dimensions that chip’s business uses to differentiate its production over competition, it is important that orders are fulfilled in a timely manner.Hence, delay in satisfying orders is the main and most urgent problem that needs to be solved given the current nature of competition and the unfavourable global economic environment both which can be considered as threats in SWOT analysis.A delay in declining orders is a multifaceted problem which has resulted from an interrelated set of other problems. Some of the possible causes and consequences of this problem are depicted in the following table.
Causes