ACT 132 Background The Goal Project Instructions The Goal walks you through Plant Manager Alex Rogo's journey to improve profitability for one of UniCo's production plants. Now that he is a district manager, his team is faced with planning strategic capacity that can sustain improvements to their bottom line. Objective As a group, present a specific procedural or personnel change that can be implemented within 1 year that will improve UniCo's bottom line. This is a creative exercise. You are basically being asked to make-up a problem and propose a solution (samples on how this project has been tackled by previous groups have been provided). Note that selecting the idea of applying the measures already made in the Bearington Plant in the book, to the other hypothetical company plants is not allowed. The objective is to justify the group's recommendation by conducting a cost-benefit-analysis of what you are saying already exists and how it could be better using your new proposals, using cost-accounting methodologies to calculate relevant revenues and costs impacting the company's operating income. Detailed schedules with realistic numbers must be used. Deliverables Group Charter Agreement with Proposed Idea You may organize your group to assign responsibility to each person. Suggested responsibilities include but are not limited to the following: Brainstorming and developing the topic Coordinating the research Coordinating the preparation of the Executive Summary Coordinating the preparation of the PowerPoint Presentation Executive Summary & Supporting Documents (Due Dec 6th by 11:59 p.m.) A Single-Spaced Executive Summary of no more than 2 pages (not including appendices) with your recommended plan should be submitted on Canvas. The body of the summary must contain the following sections: General Background and Assumptions 000 Statement of the Problems Solutions & Benefits Steps for Implementation (Must include budgets as appendices) References. Make sure to cite the use of any external literature if used. Use APA citation style. In addition to the above make sure to add the following: Appendices that include all budgets cost calculations to complete cost-benefit analysis (i.e. "Status Quo" versus "Proposed"). No page limit. 2 34 The Goal Project - Executive Summary 5 General Background At a manufacturing company called Unico in Bearington, Alex Rogo works as a manufacturing plant manager. Unico, until recently, has been unable to fulfill orders on time and is lucky enough to be able to get any order out the door on time. The company has been sending out orders days late or even months. They as well have been receiving many complaints about late shipments from many consumers. Alex Rogo was paid a visit by one of his superiors Bill Peach who is the Division Vice President of Unico, to discuss about the plant's current status and its future. For some time now, the plant has not been productive or profitable. It has been losing money with high inventories and large backlogs. As well, with many working overtime to fulfill orders, the plant hasn't been making enough money. Peach discusses how he was given a year to turn the plant around or else the plant will close. The plant has been facing the worst losses in the history of the company. Peach has given Alex 3 months to improve and make changes towards the plant or else the plant will shut down risking putting many without jobs including him and his superior, Bill Peach. Rogo needs to deliver results and ultimately make the company more profitable and productive to earn revenue. Statement of the Problems UniCo is confronted by a number of issues that are costing the company financial losses and could eventually force its closure. Due to numerous orders going unfulfilled and being shipped out late, the company is not operating as productively or efficiently as it would want. There are inefficiencies within the company's inventory management of not being able to keep track of inventory and facing high volumes of work in process inventory. Due to bad production planning, operating expenses are high resulting in the company to lose profits. As the division manager, Rogo is responsible for raising the level of performance across the board. He must design a practical plan that can be put into action in his division within a three month period. Solutions and Benefits Steps for Implementation 7