Dashman Company

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CASE STUDY :-DASHMAN Company – 9 Steps of Problem Solving 1. Identification of the Problem::
Hierarchy was not followed by Mr. Post while communicating the change in procedure for purchase 2. Establishment of the Problem:: 2.a) Lack of adequate control over the Purchase Process. 2.b) Every Individual Unit take separate & Independent decision regarding Raw Material procurement. 2.c) Erratic & Irregular Inventory level of Raw Material 3. Objective Related to the Problem:: 3.a) Short Term: Purchase contract above the Set Limit should get approval from Head Office Six weeks in Advance. 3.b) Long Term::Centralised Purchase Process to achieve Timely Purchase and Availability at Lowest Price. 4. Generation of Alternatives:: 4.a) A high Ranked Personnel may be asked to organised & coordinate the purchases between the plant. 4.b) Centralising the purchase activity by authorising One Individual plant . 4.c) Create a Separate Purchase Department in the Company with all powers of purchase in all the units 5. Development of Criteria:: 5.a) Time Saving in monitoring & maintaining the inventory level in the alternative. 5.b) Cost effectiveness of the inventory in the Alternative. 5.c) Acceptability of the Inventory management alternative.

6. Evaluation of Alternatives:: 6.a) Alternative no. 5a may not be accepted by Plant Managers as some of them may not relinquish their authority of Purchasing. 6.b) Alternative no. 5b may not be accepted by Plant Managers as some of them may not relinquish their authority of Purchasing. Also, Divergent views may be expressed. 6.c) Alternative no. 5c may be accepted by all the Plant Managers. 7. Prioritisation of Alternatives::
Alternatives are mentioned below in chronic order from implementable to…...

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