TO: VP of Operations
FROM: SYLVESTER HOUSE
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SUBJECT: The Problem with Plasti-brack: Issues with Customer Order Backlog
REVIEW OF THE CURRENT SITUATION
I was assigned to this project as a result of my knowledge of the Plasti-brack situation and the current problems associated with the customer order backlog. As you know, we currently have a 5-6 week backlog on all customer orders; something that I believe we may all agree is an unacceptable state of affairs. The backlog appears to be a result of the capacity issues that we are currently facing within Machine Group 251 as a result of the excessive downtime being logged by one of the machines in particular. In order to work to turn this around, we need to determine what needs to be done in order to address the concerns with Machine Group 251, what their budget has room for, and how to cut costs while still improving productivity, for the purposes of getting the delivery times back up to where they once were.
GOALS AND OBJECTIVES
The goals and objectives that we wish to accomplish are to improve productivity, decrease our current overhead costs, work to improve capacity, especially in regard to Machine Group 251, and work to bring our backlog down and our delivery times back up to par.
ACTIONS/PLANS
In order to address each of these actions, we must first determine the total budget for Machine Group 251, determine the exact reason for the downtime on the machine (i.e. does it need fixing, replacing, or is there another issue), where costs are inflated and the reason for these inflations, and how best to increase our productivity and capacity in order to bring the delivery times back down. Once we have the answers to our first questions, we may proceed with a detailed plan of action to resolve each of the subsequent matters.
EXPLANATION/JUSTIFICATION
By working to thoroughly investigate each area of concern, we will have enough information in order to create a definable action plan, ensuring that we are able to find targeted and specific solutions to each matter. Once we have this information we should be able to implement the action plan within a few weeks’ time, getting us back on track for delivery times by the end of next month.
