CASE STUDY

Case Study

Case Study

Case 1: Kimberley Electrical Supplies Ltd.

Task 1

Stock Management

Liam Kimberley is the director of Kimberley Electrical Supplies Ltd (KES). He follows a policy of buying material in bulk quantities in order to get discounts. Liam has noticed that his business and company are expanding in business and size; hence he is expecting his work force to perform efficiently and in a timely manner. Liam needs to expand the warehouse of the company so they can stock inventories. Adequate storage would allow them to avoid overcrowding. The problem is one machinist is there to work whole day, just to take out the materials form the stores. For the larger components and big orders he need to increase his machinist so that they can perform and give best outcomes, increasing low cost machinery with the machinists might be helpful for Liam to avoid the problems he faces in managing the stock of the company.

Figure 1.1 Stock Management Process

Solution

Kimberley Electrical Supplies Ltd is a light engineering business. Due to the nature of its operations, the company is required to hold on to bulk quantities of materials (i.e. electrical fittings).

In order to improve its stock management; the company should imply proper inventory control mechanisms.

The management of the company should forecast the expected sales and thoroughly oversee the demand, stocking and delivery of materials.

Proper planning should be done beforehand; so that the company is able to deliver the materials on time. Planning would allow the inventory managers to adequately deal with big and small orders.

Task 2

Work Scheduling

Kimberley Electrical Supplies Ltd (KES) has a workforce of 22 people. 8 of the employees are the engineering technicians and one trainee. KES has hired two professional engineering designers who work around three hours a week. Liam finds it feasible to pay them £120 per hour. Mr. Seddon who works as a janitor from 7:30 to 9:00 in the morning and 18:00 to 19:30 in the evening, he do odd jobs like making tea, overtime in the during the day time in order to support his tough life at home. The two account clerks keep a check and balance on the updates and invoice issues. They also look after the delayed payments and overall record of the accounts of the company. Liam is responsible for the selling and purchasing functions, he manages his work and his workforce directly. The material is purchased in a bulk quantity and brought up to the stores, it is unloaded through the forklifts in order to save time, once the material is unloaded, machinist are responsible for the handling, holding and managing the inventory or material within the stores. The material is taken out of the stores by machine shop staff in order to deliver it to the customer.

Solutions

Because the company employs only 22 people, managing work often becomes an issue when catering to a big order.

Liam's wife, the personnel manager should deal with the employees in a manner that they are well aware ...