DHW has been going in loss for the past 10 years. This has been due to many reasons. My main focus at DHW would be to increase the employee morale. The employees at DHW take sick leaves, which mean that the absenteeism rate is high. It is very important to keep your employee morale high and to keep them motivated in working hard towards the betterment of your company. Happy employees translate into happy customers, leading your stockholders to be satisfied.
The main area of concern for me would be the high costs spent at the main warehouse. This warehouse allocates only 40% of the inventory, meaning that 60% is going to waste. Efficiency is a very important factor when you’re trying to keep your costs down. The warehouse should be fully utilized, resources should be allocated efficiently in order to cut down costs.
The daily production reports are not going to be of any use if no changes are going to be made about the management and operations at DHW. The production report should be read and analyzed by a manager in order to identify areas where there is inefficient allocation of resources and any areas where they might be need for extra investment.
The best solution for DHW at the moment would be to focus on costs reduction, these costs reduction should be done by efficiently allocating resources and selling off any machinery that is not needed. Furthermore, the employee’s morale should be kept high at all times. They should be given benefits and their insights should be taken into account when making any decisions. This would help the company in developing a work environment where employees would want to come and work and give their 110%.
Bibliography:
McCrimmon, M. (2008). How to manage absenteeism. Vancouver: Suite 101.
Tozzi, J. (2008). Shifting into cost cutting mode. New York: Bloomberg Business week.
