The job/performer level contributed to the lower gross/profit margin at the expense of the company based on the overtime having to be used to fulfill the quota needed per day. The turnover of employees resulted in machines without operators on a normal schedule, resulting in excessive overtime to maintain the daily need for production. The turnover started approximately six months ago when the merger of the two companies was in discussion. The fear of closing one of the facilities may have been a contributing factor to the turnover. With the completion of the merger; the organization has presented the new goals for the company to increase production to control five percent of the market. The job/performer level team is the …show more content…
Currently, the low gross profit margin is an area the business views as an issue. In the investigation, there were two main items seen as the main contributors. By implementing the following changes, the business will see an increase in the gross profit margin. In modifying the cutting patterns and reducing the amount of excess material it will provide more patterns from a single roll, which will aid our employees in reaching their incentive goals as well as the organization’s major targets. To reduce the employee turnover that creates excessive overtime in production by creating a new incentive plan for the employees that is above the median with all local businesses is expected to attract and retain the top talent by showing sincere appreciation. In recognizing the employees for the commitment, will, in turn, raise our productivity and keep Diapers with Love on track to reach the 23 percent gross profit margin in the next year as expected. In using a quote used by Mnp5116. (n.d.), Socrates, a founder of western philosophy, once said: “The secret of change is to focus all your energy not on fighting the old, but on building the new.” Diapers with Love plans to keep the same exceptional quality and expand with a better and brighter business