Howto Minimize the Loss of Iron Material
Howto Minimize the Loss of Iron Material
OurMaster Business Plan involves the use of Iron scrap metal which JackDaniel firm had been making a loss due to poor financial management.Therefore, in our (MBP) we shall explore and make good use of thelocally available resources. Our major agenda is to minimize theamount of wastes, which was experienced by the firm for the previousfiscal year. The Iron manufacturing industry of Jack Daniel Cooperageis a firm that had been experiencing an inevitable loss in theprevious financial year, which amounted to a total of 13034 pounds,which was approximately 7.5% of the total cost of income. Therefore,to reduce such losses in the next period of the financial year, JackDaniel firm should analyze what was the cause of the previous waste,and how it will be improved. The following strategies will be used tominimize on that.
Atfirst, Jack Daniel firm should employ a project management processespersonnel. The experts will evaluate the value of the Iron scrapproject of the last fiscal year, thus this enables them to determineexpected amount of capital required for the firm to make a profit.Committee will identify the responsible stakeholders who willfacilitate the Iron-manufacturing firm with other resources. Thecommittee shall appoint a project manager. However, the personnelwill have to determine most of the decision to be undertaken by theemployees to minimize the cost waste.
Similarly, we shall carry out a field study to identify the exactneeds of the loyal clients and exactly what quality of the Iron theywant as compared to the last year`s demand. The report should bedocumented for future reference and the management panel adopts aone-page report on the same. This report must be approved by thesenior management for the project to start.
Inaddition, Jack Daniel processing firm should have a group ofplanners. This group shall, therefore, identify the work to be doneand to estimate the cost of initial capital of scrap Iron, theavailability of resources and the project will move to the next levelof approval.
We shall clearly define the main areas, which the projectwill be mostly involved. In the same way, the decision maker mustestimate the time frame needed for the entire project to be completedat a minimal cost while considering the resources available for thework to be completed (Heaslip, 2014). With the kids of experts, theremust be an estimation of total costs to enable stakeholders and theshareholders to raise sufficient funds for the project to becomplete. The initial Iron project should be closely monitored toallow evaluators to analyze and adjust the plan to avoid furtherlosses. The manager must write a risk management plan and document itas a future reference during carrying out of the process. As allthese have been done then, the first personnel should have anapproval and the project to be launched
Forthe successful minimization of the cost of manufacturing iron, ourinitial plans should be outlying the previous mistakes that were theprimary causes of the loss experienced. There must clear somedepartments needed in all manufacturing produce to avoid overspendingon payment of labor. In addition to that, the required technology assuch of competitors should be used. The technology to be used shouldnot be ousted one, which might give competitors an upper hand on themarket. The market study should consider what the client wants andtheir changing needs as their priorities hence this will be as aguiding link to have in the planning penal hence minimization of thelosses to be incurred.
In the first place, the Iron firm must have available raw material atlow cost to enable maximization of profit (Phillips, 2014). This isconsidered regarding initial cost price, the transportation costs,labor incurred in the process of acquiring these raw materials fromthe principle source. At the time of processing, the consideration oftime for the finished products is a key factor. Quantity to beproduced, so that to compete with other related firms on the marketmust be put into consideration.
Weas the control management team alongside the supporting staffs weshall monitor and facilitate efficient running procedures. Themanagement team should have categories by the line of duties to beundertaken. For instance, the management should comprise of a team ofprocessing personnel. This group has the obligation to collect rawmaterials and convert it into finished products. Furthermore, theyminimize on the issue of waste materials so that no loss should incurby the project undertaken. In the same breath, the top manager mustemploy a launching group, which will mostly involve in branding,sorting, and packaging of the produced products. Besides that, weshall have a large group of marketers to do advisement and personalselling to customers. This group will involve majorly in customercare services that will enable the presentation of the regularprimary consumers and more of referrals hence obtaining a significantmarket share of the Iron products.
Consequently,due to the high level of risks in the whole process, risk managementpersonnel must be employed to carry out risk assessment, riskidentification and monitoring of it to avoid eruptions, which willhamper both the employees and the products.
Inconclusion, the experts in the closing process they should representthe report from the clients approving their satisfaction of theproject that meets their needs (Ng & Coake, 2014). Therefore, weshall write a final report to satisfy stakeholders to finalize theirfinancial support that we need. Finally, we shall conduct apost-implementation audit to verify the precise financial state ofthe current year to determine what profit Jack Daniel firm gain.
Heaslip,R. J. (2014). Managingcomplex projects and programs: How to improve the leadership ofcomplex initiatives using a third-generation approach.New Jersey: John Wiley & Sons, Inc.
Ng,W., & Coakes, E. (2014). Businessresearch: Enjoy creating, developing, and writing your businessproject.London: Kogan Page.
Phillips,M. (2014). Reinventingcommunication: How to design, lead and manage high performingprojects.UnitedKingdom: Routledge.