Beaver Engineering Group

I. Problem Definition
In terms of the manufacturing process each machine took 20 and 30 eeks to be
manufacture! though the" make the machines in batches the actual stock turn is 3#$
compared to hat the" tr" to achieve at %#$. &he" use '( machines that are cheap and
second)hand hich are dedicated to one operation.
&he" ere holding their groth around *0+ because of poor margin caused b" intense
competition for machine tools in ,nited -tates! though the" have e.ported $0+ of their
product. &heir market sales ere don to * compared to the market hich is $2. Deliver"
schedules ere left behind for eeks.
&he" have to man" suppliers around $/0 for different parts and their machine operatives
ould operate several machines but are limited to one t"pe of machine. 0ne factor of
limiting their profitabilit" is the specifications b" customer and cost of poor 1ualit".
2anagement st"le are restricted to the oner! the" don3t have formal meetings. 2angers
are limited to share their opinions. Product control is like a separate entit" in the
organi4ation! doesn3t have communication ith the other department.
II. 5evie of background information6related articles6documents
Beaver Engineering Group plc as founded in $7/$ in 'orhich. &he compan" is
knon for high technolog" and high performance machine tool in particular ('(
machines. &he" suppl" throughout Europe and other parts of the orld. &he" are knon
for customi4ed machine and their after sales services. &he" are continuing to develop
their product and design. &he" are e.panding in a highl" competitive market.
&he" have appro.imatel" 2/0 emplo"ees hich are recruited base on e.periences. &he"
compan" as formed b" 8ictor Balding an entrepreneur and his son &on" Balding hich
is the manager for marketing! design and ho spearheaded the groth in production.
III. 9nal"sis of :acts6Data
In $7;% the" are e.panding and one of the largest in the market! in $772 through the
development of s"stem and design the" became leader in the field. In $7;/ their turnover
had been <= the" e.pect a <; in $7;% and <$$ for $7;=. &he" have $0 product range
machines! modification change at a rate of % per da".
&he" make their machine for to months suppl" around 20 and 30 eeks. >oe Booth
planned to reduce the batch si4e. &heir machines are secondhand and cheap. &he" believe
that price ? deliver" are their 1ualif"ing criteria. &heir products are customi4ed base on
the customer needs.
&he" have high customer lo"alt" and that the" are ell knon for their after sales
services. &he" have /00 live customers /0 of it is for invoicing ne orders. &he" are left
behind ith their deliver" schedules for eek but the" sa" it3s normal in the industr".
&he" choose their supplier base on price! deliver" reliabilit"! nearness to 'orhich and
illingness to ork >I& meaning the" should be able to have suppl" for to eeks
deliver" and illing to deliver in small 1uantities. In terms of labor their operatives are
fle.ible but limited to one t"pe of machine.
:or their operations changes of specifications is said to be one factor for limiting
profitabilit" that causes repercussion in production! planning! stores ? ordering. (ost of
poor 1ualit" is brought b" in casting ? accumulation of tolerance errors. 2anagement
-t"le is centrali4ed to their oner 8ictor Balding ? his son &on" Balding hich controls
the marketing! design ? production groth.
&he" have (9P2 or computer aided production management s"stem hich link
production ? planning. It controls mostl" inventor" ? stock. Production control has a
build program hich is responsible for parts re1uired and states parts! cost! current
stocks! orders ? average build. Design office and assembl" superintendent ork hand in
hand ith product control! the" also have route cards that monitors hat has been done
ith the machine and hat are the specification it needed and due date. &his process
focuses mostl" costing. &his production control serves as a separate entit" in the
organi4ation.
I8. 9lternative courses of action that can be taken
&he" can create their $0 range product design ithout the need for customer
modification. &he" can suppl" the demand of the customer ithout being dela"ed in their
deliver" and that the" can e.port their product but the donside of it the" have to give up
modification for their customers.
&he" can also continue ith customi4ed product but it ould be nice if ever"
department ork hand in hand for smooth sailing operations. &he problem is there are no
communications ith the department. &he" can create procedure as to ho things ill go.
&he" can also limit their number of suppliers and add also as a 1ualification 1ualit" of
the materials.
:i. their management st"le the" should create a orkplace here emplo"ees can share
their opinions ho to improve their product. @ave regular meetings ith ever"
department and not Aust a centrali4ed operation here the oners have onl" the sa".
8. 5ecommended course of action or conclusion and h"B
&he compan" departments should have meetings and discuss things on ho the" ill
ork things for e.ample marketing department should surve" hat t"pe of products are
in demand! the sales department can forecast probabl" ho much sales can the" produce.
Product control and design can determine base on the surve" hat t"pe of materials to be
use ho the product ould like and ho man" ill the" produce. Base on it finance can
have an estimate of ho much the" have to spend for the production of the product. Cith
their s"stems the compan" can be on top of the game communication is Aust the ke". &he"
can also still do customi4ed product.
8I. Epilogue
If the compan" can produce at least / product ranges similarl" ithout the modification
the" can improve the 1ualit" of the product and the" can limit their supplier. &he" can
also compete for e.port and still be a leader in the field. &hough it is their trade mark that
the" products are personali4ed but it hinders their groth and profitabilit".