The Goal Project

The Goal Project. By: Jose Estrada, Valery Dominguez, William Chavez, Eric Echeverria, Yesenia Cazares.

Background. *Alex Rogo, the manufacturing plant manager has called for assistance in the manufacturing company UniCo *Our team will discuss some of the problems that UniCo is currently facing *We will provide some useful information regarding the problems at UniCo, the information will include solutions to the problems, as well as steps for implementation *Our group will also talk about the benefits of our system that is planned to be implemented.

Company Problems. These are some of the problems Alex Rogo is currently facing: Orders going unfulfilled and being shipped out late resulting in unproductivity Inefficiencies with company inventory management system High operating expenses.

Solutions. We plan to make these 3 improvements in UniCo: Implement a better inventory management system Improve production planning process and reduce costs Increase level of employee training and education.

Solution 1: Implement Better Inventory Management System.

Current Assets Proposed Current Assets: Cash and cash equivalents: 600,000 Accounts Receivable: Inventory: Raw Materials: Work in Process: Finished Goods: Total Inventory: Total Current Assets: 400,000 100,000 120,000 520,000 3,220,000.

Solution 2: Improve Production Planning Process. Decrease and/or reduce unnecessary cost, such as: Direct manufacturing labor cost Indirect manufacturing overhead cost Operating cost Make better use of UniCo’s resources and meet demand on time Benefits: Save company money Increases profit.

UniCo Schedule of Cost of Manufactured Year Ended December 31, 2022 Direct Material Cost: Beginning inventory, Jan. 1 2022 Purchase of DM Cost of DM available for use Ending Inventory Dec, 31, 2022 Direct Material used Direct manufacturing labor Indirect manufacturing overhead cost: Indirect manufacturing labor Supplies Depreciation - plant building & equipment Repairs and maintenance Total indirect manufacturing cost Manufacturing costs incurred during 2022 Beginning WIP inventory Jan I, 2022 Total manufacturing costs to account for Ending WIP inventory Dec. 31, 2022 Cost of goods manufactured ( to Income Statement) 75,000 80,000 155,000 35,000 120,000 52,800 40,040 212,840 37,000 249,840 23,000 226,840.

Income Statement Revenue Cost of Goods Sold: Beginning finished goods, Jan. 1, 2022 Cost of goods manufactured Cost of goods available for sale Ending finished goods, December 31, 2022 Cost of goods sold Gross Margin Operating Costs: Marketing, distribution, & customer service cost General and administrative cost Total operating cost Operating Income 475,000 40,000 245,500 285,500 25,000 260,500 214,500 120,000 94,500.

Solution 3: Increase Employee Training and Education..

Steps for Implementation. Create a budget for the implementation of the solutions. This budget should include the costs associated with the implementation of the solutions, such as training costs, the cost of implementing a new inventory management system, and any other related costs. Develop a timeline for the implementation of the solutions. This timeline should include deadlines for the completion of each step in the implementation process as well as any other specific milestones that are necessary. Establish a team to oversee the implementation of the solutions. This team should include key stakeholders in the organization, such as the plant manager, division vice president, and other key personnel. Develop a plan for training and educating employees on the new solutions. This plan should include the types of training and education that should be provided, when they should be provided, who should provide them, and how they should be provided..

Steps for Implementation Conti.. Develop a plan for training and educating employees on the new solutions. This plan should include a budget including a percent reduction on labor and manufacturing costs due to the effects of having better productive, well trained, and educated employees. (Appendix B) Implement the solutions. This step should include the actual implementation of the solutions, as well as any other necessary steps that are required for the successful implementation of the solutions. (Appendix A and C) Monitor the progress and results of the implementation process. This step should include the monitoring of the progress of the implementation process, as well as any other relevant data that can be used to monitor the progress of the implementation process. Evaluate the results of the implementation process. This step should include an evaluation of the results of the implementation process, as well as any other relevant data that can be used to evaluate the success of the implementation process..