Case Let Analysis:

Oman Commercial Vehicle Manufacturer Company is one of the largest companies in the Sultanate of Oman. It is the third-largest manufacturer of passenger cars. Extensive quality enhancement and cost reduction task was initiated in September 2018. The outcome of this task helped the company to reach a profit of 28 million while the loss in the year ended March 2017 was 500 million.

The company followed the cost cutting system and saved more than 300 million of the companys expenses over the last two years. The positive turnaround of the cost-cutting resulted in huge money gain, which does not even go beyond the projection. The vice president of the company Mr. Ahmed, who is at the manufacturing, was given the title of Cost-cutting champion, and he oversee the entire initiative.

Four Specific Areas Were Identified

Direct material costs (which constitute roughly 65 per cent of all costs);

Variable conversion costs (power, fuel, water, tools, etc.);

Fixed costs- (labour, marketing, corporate expenses, plant operations, research, and development).

Financial restructuring (working capital, debt restructuring, balance sheet, etc.).

In order to implement, drive and monitor the across the organization, three teams are formed namely members, leaders and champions. The teams focused on cost-cutting measures, getting back the company to financially stable. For better communication across the company, employees were co-opted.

In order to achieve quality management project goals and cost-cutting exercise, which go simultaneously, employees helped each other. More importantly, the message conveyed to the employees was cost cutting measures were no way cutting corners. The employees in the same teams were involved in both exercises. This resulted in many win-win situations.

Answer the Following Questions: (10 Marks)

1. List and explain the roles of teams in the above case. Any four (4 Marks)

2. Identify and explain the four specific areas that Mr. Ahmed identified and how this cost plays essential roles in reducing the expenses for the organization. (4 Marks)

3. List and explain the roles of top management related to the above case. Any two. (2 Marks)