Morgan Motor Company Assignment Example | Topics and Well Written Essays - 3000 words

Morgan Motor Company - Assignment Example The profile of the Production manager shows that he is not trained in the techniques of production. Mere knowledge will be of no use unless one knows how to do things in sequence at a fast enough rate of speed so that out put is maximised and prices are made competitive. This is one example of how company is run as far labour recruitment is concerned. Hence the company to move forward from its century old stagnation, must implement Human Resource Development policies and train the existing labour force including supervisors and managerial level to work at optimum efficiency levels on par with current management practices and recruit new hands following scientific management methods. Besides, stocking pattern of raw materials is not in accordance with norms of working capital management. There should be forecast of raw materials and components required so that stock are maintained at optimum levels to ensure against locking of capital in non and slow moving items which can result in n on availability of funds for the much needed components for lack which production might have been held up and labour force in all other divisions will also be idling as a result. The company seems to believe in long waiting list of customers as a status symbol of its products in demand and also ensure future production. It simply believes that if the order book is full and customers are made to wait indefinitely under some false notions, the company's future is guaranteed and product's prestige is enhanced. . The only USP of the car is that its components are hand made and there are enthusiastic car lovers around to take care of the company's future. These are false notions and in modern management thinking, overflowing order book is an index of company's inefficiency and poor management. It is not the case that overflowing order book is seasonal and hence expansion for the purpose is inadvisable. The company's ability to produce cars is not more than 500 per year but the demand is much more going by the overflowing order book. It can be still higher if only deliveries are prompt which potential company has failed to realise. It is also difficult to digest that the company has not installed computer for use in its day to day management. These days, lack of computer is a serious handicap for any business or for that matter any one as the computer can give up-to-the-minute if not second update on stocks position, bills payable and receivable positions which are crucial for working capital management and accounting information such as Balance Sheet and Profit and Loss Account will show if the company is running profitably or at loss and how much it has earned or lost. so as to make future planning practicable instead of planning in darkness. Besides CADD is completely absent in the company's dictionary. There is no R & D arrangement to keep innovating and stay ahead in the market. The company's obsession with old traditions and hand made cars should not stand in the way of innovations since they need not be at the cost of old traditions and hand made cars concept. Like old wine in a new bottle, the hand made car can still be made with innovative concepts and achieve cost cutting and fuel efficiency. The ancient form of ayurveda system of medicine is now taught under modern conditions. Stethoscopes, imaging technologies are now used in