There are a number of problems in the operations at the Oregon Facility which significantly impacts on its production. These problems include growing internal pressure for a new distribution facility in the Pacific Northwest. As well, there are quality related problems in Nebraska as well as material and inventory handling problems which also lead to an increase in production cost.
Despite customer service being a very important aspect in the positive growth of any company, the facility is also coupled with customer service problems within its distribution locations where most customers end up wasting a lot of time in picking up their products. All these problems have since led to a decline in the performance. These problems have their significance in that they trigger the divisional research and engineering departments located at these facilities to provide internal consultation for the divisional research and engineering groups.
Therefore these departments are motivated to look into the matter thus they can also identify other looming problems before they arise. (Mason & Jablokow, 2006, pp. 78-82). Another significance of the problems encountered in all the three facilities is that these problems enable the use of operation management tools geared towards improving the existing problems by developing ways that lead to significant changes and these impact on the whole facility at large not just the areas facing problems. (Simester, 2006).
Solving the aforementioned problems at the T, P and S facilities, will subsequently lead to relative benefits that may subsequently arise. These benefits include the realization of increased performance for the capacity. Increase in their performance may also result to lower production costs and in turn this may also lead to fair prices that may attract the consumers. (Pearson, 2007). Solving the customer service problems means that the customer satisfaction will be raised. When customers are satisfied they are likely to keep on buying products from the Oregon facility and this will increase the facility’s sales volumes.
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