Salt River Labs Case Study Essay

1425 Words6 Pages
Salt River Labs
Q- What is the major problem at SRL? Who are the people involved and how do they contribute to the problem?

1. There are many problems that are apparent at Salt River Labs. The first major problem is the purchasing process. There are way too many people involved in this process. The current process involves series of five different people, or groups of people. This starts with the Chemists who send requisitions to supervisors, who send the requisition to Suzie Martinez, who sends the same requisition to Barbara, who finally sends the requisition to Arthur who makes the final decision about the requisition. Once a decision to approve or disapprove the requisition has been made, the requisition gets sent to Paul
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All of these trust/hostility issues are caused by a lack of communication among the entire organization. Communication is the root of many of the problems at this company. Equipment breakage is a very pertinent problem as well. Equipment continuously breaks and SRL does not have the money or the resources necessary to fix the broken machines. The machine that has been fixed already has not been picked up from Hewlett Packard because of the fact that SRL does not have the money to do so. So, SRL has a fixed machine that they cannot use because of the debt the company is undergoing. Another problem that is apparent at Salt River Labs is the inventory situation. Ever since SRL moved from their old building to the new building, the inventory has been left in the boxes they were transferred in. Nothing has been unloaded which is leading to the problem of not knowing exactly what is in house. This inventory issue affects Arthur’s opinion on the chemists because he doesn’t think that the chemists thoroughly search for the materials they need before ordering more. All of the problems listed above are causing late orders, and if orders are late or even non-existent, then the company will eventually go out of business. Lastly, Arthur needs to provide a financial analysis that explains where money has been coming from and going to for the past 5 years. He has to have some type of budget plan, and if he is unable to provide an accurate one for the company then

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