The decision to stop the production line and make the changeover is not appropriate for the company because the production process is almost finished, and only one week is needed to complete the standard run (Munter, 2009). If the changeover is realized, this specific switch can affect the whole process, and there are no guarantees that the line will work effectively. Instead, there are risks that the employees, who have not performed the changeover for six months, can experience significant difficulties while working with the custom order and returning to the standard run.
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As a result, it is possible to expect increases in production costs, delays, and customers’ dissatisfaction. In order to redesign the production line, the company can need more resources and more time than it is predicted; therefore, risks are rather high, and they should be taken into account. Those customers who will not receive their orders on time can choose another company to complete the work because the main principle of this firm is the on-time provision of good services at low costs.
On the one hand, it is possible to agree that the company should focus on completing the standard run in order to address the needs of regular customers. The advantages of such an approach are stability, customers’ loyalty, and the high quality of the produced items. Still, it is also important to pay attention to the fact that this position has disadvantages. The reason is that the company ignores the opportunity to attract new customers and improve the production process with the focus on optimization.
Therefore, on the other hand, it is possible to discuss the positive aspects of accepting the order from the large customer because this experience is important to attract larger clients, modernize the production line, and receive more profits. Moreover, premiums for providing the customized services are higher than premiums for standard orders (Munter, 2009). Furthermore, it is important to note that the required changeover can be made easily, and the company will receive a good chance to improve its procedures.
In order to make a reasonable decision, it is necessary to analyze the situation with reference to possible strengths and weaknesses of two options. First, it is important to refer to the previous experience associated with making the changeover and analyze what resources are necessary to perform it effectively (Munter, 2009). Second, the focus should be on assessing positive and negative outcomes of accepting the large customer’s order. The question to ask at this stage is whether it is possible to complete standard and custom orders simultaneously and satisfy the needs of all clients, as well as to contribute to increasing profits.
From this point, the proposed decision is the adjustment and organization of the production process with the focus on completing both tasks without delays. As a result, the other questions to ask are the following ones: (a) How can the standard production line be improved to reduce the time necessary for completing orders for mid-sized customers? (b) What resources are necessary to organize the changeover in the shortest time? (c) Is it important to inform the regular customers about possible delays? (d) What steps should be taken in order to prevent any delays in completing the orders for mid-sized and large customers?
Munter, M. (2009). Interpersonal professional communications. New York, NY: Pearson.