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GROUP 1 - CHAPTER 5
Transcript of GROUP 1 - CHAPTER 5
* Slowing down production - Produce upon demand
* Clearing out inventory - Sells from inventory first to avoid overflow in inventory as the demand is low
* Maintain - Top Management / High Skilled - For Training
* Firing - Workers with Low Productivity
* Hiring - Workers with Low Skill and Wages
* Managing Demand
- Proactive Demand Management
- Shifting Demand into Time Period
~ Sales & Promotions
DEMAND MANAGEMENT : MEETING DEMAND STRATEGIES
Solutions Taken By NAM
August 2015 : NAM has initiated stringent cost-cutting measures across all its business divisions, aiming to reduce operating costs.
The cost-cutting exercise was initiated following the layoff of 255 workers at its automotive plant in Gurun, Kedah, which was a result of a decline in its car sales for the past few months.
NAZA Automotive Manufacturing
Naza Automotive Manufacturing Sdn Bhd or NAM in short, is the manufacturing arm of the Naza Group of Companies.
Located in Gurun, Kedah, the plant currently produces Kia and Peugeot vehicles for both the domestic and export markets.
Since it inception in 2004, they have produced over 150,000 vehicles comprising 18 models at this facility.
NAZA Automotive Manufacturing badly affected with the current economic conditions as the Ringgit depreciate.
As the business are involving import and export, the implementation of the Goods and Services Tax (GST) gave an impact on the domestic and export demand.
Issue Faced By NAM
STRATEGIES FOR ADJUSTING CAPACITY : OVERTIME & UNDERTIME
Instead of Layoffs - Adjusting Capacity To Meet Demand
Aggregate Planning is essential to ensure the company remains on track incase the forecast outcome does not happen as planned.
Always revise a contingency plan from time to time avoid company from severe losses drastically.
IN THE NUTSHELL
CHAPTER 5 :
* Undertime - Cut Off Working Hours and Salary
* Production In Line with Demand - Low Cost
* Maintain Skilled and Technical-Know-How Worker - No Need Training
* Good Reputation - Workers Will Not Lose Source of Income