Xt Music

Joey Huffman - 5384862 XT MUSIC CORP Sept, 27, 2012

Size-up:

Item | So What ? |

Person responsible for solution: Lisa Hutz | She has only recently been hired for the company. It is hard for her to understand company culture and what they’re way of doing things. Since she is so new she shouldn’t be the one given the task. The task should be left to higher management. |

Company has been using rough guesses from previous month to estimate demand. | If they have been short almost everytime why has someone not thought to change forecasting methods for the current product already? If there’s a good demand for their product they are clearly not very competitive and should probably have thought of something sooner. |

Time constraint | Time is of the essence more in this case than any other. Since Lisa is new 1 week to prepare such an important proposal is too little. This could give her poor results. |

Not involving a cross functional team. | By not using a cross functional team involving all the necessary departments, her recommendation will hardly be able to reflect the needs of crucial departments. |

Strategic solution required instead of tactical | This is a response to a problem and they need a quick tactical response. However if they do not approach this and look for a strategic solution, this problem or similar problems like it will reoccur in the future. |

Problem Statement:

Missing shipments and having an inaccurate forecasting method that leads to a poor production schedule that does not reflect actual demand.

Analysis:

Strengths–Having an innovative product that big companies are selling and are very profitable.

Weaknesses–Poor operational processes and the inability to keep up with demand

Opportunities–Big world-wide market, having products that are in obvious demand

Threats–Many other companies in the market, most probably producing in cheaper labour countries with better supply chains

Qualitative -

*Addressing the...