An Organization Lack Of Profit Performance

1412 Words6 Pages
1. Introduction In this report we are going to describe an organisations lack of profit performance and as a result having a much lower turnover than required. The resultant negatives of this situation are; dissatisfied customers due to the extended build times and the resultant extra costs in rent etc., lower return on investment because the turnover of money in the business is slower, and therefore lower profits to the shareholders as a result of the overheads eating into the reduced profit and finally decreased cash flow. The aim of this report is to introduce a system of Operation and Process Management to fix the current time wastage wherever possible. Overall, these changes should increase the positive experience for the Clients,…show more content…
3. The problems In this section of the report I will detail the problems with the current lack of proper analysing and monitoring of budgeted progress and therefore the process management systems in the construction department and their resultant effects on the organisation. The company agrees to build new homes for purchasers and they then contract with the company to build the home that they have chosen on their block of land wherever it may be in the metropolitan area. This is a lean/thin process as the company has no need for any inventory and all materials and labour are delivered/attend site to complete the work that is required. The materials and labour (supply chain network members) need to be pre-ordered, and then “Called Up” for delivery prior to being needed on site with the appropriate lead times for the different supply chain network members. This process is very similar on most homes, except the obvious differences between single or multiple storey homes, also there is a vast difference between low cost (simple) and very high cost homes needing a greater level of complication and specification. The homes are generally scheduled with a simple Gantt chart at the beginning of construction for the various stages (See Annexure). Both the Site Supervisor and Construction Manager agree on the timeframe for each section of the build and the project starts on the day they agree on the schedule. It would appear that this is the last time the chart is
Open Document