Question: I am working to build a strategy plan with specific criteria and I am having trouble grasping where to begin. I would like to see
I am working to build a strategy plan with specific criteria and I am having trouble grasping where to begin. I would like to see an example of how someone does it so I can analyze ways to create my plan. Below is a sample similar to mine, can someone help me understand what goes into creating a strategic plan like this? I will be expected to do it in the future and would like more incite.
Develop a five year Strategic Strategy for a quality driven Manufacuring company with the following criteria:
- ERP system is only used as a financial tool to monitor company cost
- Management team is divided
- Many single point failures in resources
- No HR Manager
- Company has not met financial revenues in 5 years
- No metrics being monitored
- Out the door delivery is at 65%
- No clear vision or mission of the company
- everyone is reactive instead of proactive
- Scrap is over 5% revenue
- Rework is at 20% revenue
- 450 pieces shipped each month of 50 different parts but average of 20 returned parts
- most of managers unskilled to their assigned team
- no training programs
- no employees incentive systems
- machines are down often due to no preventative maintenance program
- no supplier strategy, No make or buy analysis
- spent $10M over last 2 years on new equipment but it is not being utilized
- overhead costs are 50% higher than budgeted
- no financial controller, assistant controller handling the work load
- parts must be made to order, leads times is about 4 months average (lead times should be 4 weeks to 3 months depending on part)
- 4 to 20 pieces of each part are made per month
- shop layout was made just by putting items where they fit
- few competitors due to strict guidelines in Manfacturing process
- work is 50% commercial and 50% defense.
- average customer base of 7 due to being a niche market, currently have 5 customers
- customers sensitive to quality performance and continuous improvement
- Company based in CA (higher wages, higher cost of energy, strict EH&S regulations, employee friendly laws)
- revenue $60M
- inventory turnover 5.0
- employee 160
- 11 managers
- company sells turbine engine components
- low-volume, high-mix
- supply chain 10% of the processes
- material cost is 35% of revenue, production supplies 15%, DL 15%, Overhead 45 %, SG&A 5 %, 5 % depreciation
Define the strategy and what it is based on. How do you translate the strategy into operation success? create an improvement plan to bring back the business to a positive profitability. What are the areas that should be focused on first? Can a long term strategy be adopted to include disruptive technology? How would you plan and execute DT? What are main key metrics needed to drive profitability and growth? What can be a 5 year technology strategy? How long do you believe it would take to turn around the business and why?
Note: assumptions can be used for anything not specified
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