Challenges and Overcomes of Increasing Production in Company X
- Forecasting for products demanded: company X might face difficulties in forecasting demands for the future. The main problem might be the company does not have an directory55 tool for reporting that allows estimation of how many items they are supposed to sell in the next few months or the coming year. This results in a product that fails to meet the demands of the customer, and it will lead to low sales. To solve these issues, company X is supported to use accurate reporting tools that make it easier in targeting sales as well as estimating what and how many items they are supposed to produce in the future.
- Inventory control: managing inventory is one of the main challenges in the production industry, but all thanks to the solutions that are automated, which has made it more accessible. Nevertheless, company X might face a challenge if it is managing inventory manually. To track inventory consumes time, but this process can be streamlined by using the software. If company X checks its stock manually, it will be inefficient as well as prone to errors; this might lead to shortages, overstocks, and inaccuracies, and also unidentified damages. For company X to avoid purchasing raw material and equipment that is unnecessary and lead to dissatisfaction of customers, it is supposed to have the right inventory management strategies. For instance, it should always carry out regular audits to identify discrepancies between the numbers recorded in their books and the actual number of items at hand. The company can also use the barcode scanner to speed up the process of tracking.
- Improvement of efficiency at the production plants: company X might have the challenge of looking for effective ways to cost reduction and improvement of productivity at their plants. The company might be forced to sacrifice the quality of its products to reduce the cost of production. Still, this action will minimize profitability because customers will not be satisfied, and they will stop buying from company X. The solution to this is optimizing efficiency at the production plants through modernizing the process as well as systematizing the workflows. The producers in the company will need to minimize time consumption and intensify labor, reduce waste materials, optimizing the use of equipment through reduction of damages as well as simplifying the chains of supply.