cost cutting

How to Hire A Great Project Manager

Posted on by peter30111f14

'Among my many talents, not shown on my resume, is that I can say 'multivarient transformative interactive analytical heterogenacity in management leadership' three times fast.'

 

Hiring good project managers is critical to any business’ success, yet so many companies are going about hiring them in all the wrong ways. Russell Harley provides us with five simple, cost-effective ways to ensure you are hiring the right project manager for your business. Picking the right or wrong applicant for your company’s needs can make or break your company. If hirers take these five simple measures- they will be far more likely to hire a great project manager that will better the company.

Stop Using Generic Job Descriptions

It seems as though every job description/qualifications section for a project manager job application is a broad template that could be applied to just about any position or company. “Must have good communication skills,” “Be a self-starter,” and “Work well with teams” are all examples of what you will see in just about every job description for a project manager position. In order to find the right person for the position- these need to be more specific to what the company values and expects from the candidate. Such broad language will invite hoards of applications into your inbox, turning your hiring process into a “needle in a haystack” type of task. You are more likely to get responses from project managers that are a good fit for your company when you clearly specify what is expected of the person. Not only will these generic job descriptions hinder your company’s hiring process, but is also not fair for the applicant to come into a position that they are not prepared/qualified for.

Decide Exactly What You Need

Doing this is really just another way to narrow down your pool of applicants. Prepare an in-depth analysis of what aspects of your company struggles with and needs improvement. For example, if your company is struggling with the adoption of a new type of software, ask for knowledge and experience using that specific type of software. This will cut down on training time/costs and help your company operate more efficiently.

Critical Projects Need Dedicated Project Managers

With cost-cutting being a reoccurring measure taken by almost all companies- it is important to get the most bang for your buck when hiring a project manager. Sure, the overseeing and delegation aspect of project management is very important, but you also want a project manager that is willing help out with the workload. Having a project manager that is willing to get his hands dirty will earn the respect of team members and increase efficiency. Make sure to find a project manager that doesn’t want to just sit a desk all day; find one that is willing to do whatever it takes get a project done the most efficient way possible.

If You Need a Specific Methodology Used, Say So

Some project managers favor certain methods for getting a project done and not all of them will work for what you need done. Make sure you know what methods of management your employees respond best to and that the project manager you hire is familiar and experienced with those methods. Using a methodology that your employees do not respond well too can cause a project to fail quicker than almost anything.

Eliminate the Essay Questions

 It is very common for companies to ask for written responses from job candidates answering questions like “What makes you a good leader?” Nine times out of ten you are going to get a fluffed up response with little merit. Going through all of these responses can be a lengthy, time-consuming process. Look to their experience and references- that should answer just about any essay question you are thinking about putting on an application.

Do you agree/disagree with Harley’s suggested practices in the project manager hiring process?

Thanks for reading.

http://www.forbes.com/sites/groupthink/2014/05/07/how-to-hire-a-great-project-manager/

HTC First to HTC Last

Posted on by spr1323rsenatore

 

Facebook-hoaxImagine if you were Mark Zuckerberg, the CEO of Facebook, and your product attracted 175 million people on a daily basis.  I don’t know about you, but I would be thinking of other ways to capitalize on this already loyal fan base and try to introduce more products targeted toward their needs without stemming off the confines of what has made Facebook successful.  Hey, what about a cell phone?!

This idea has apparently caught AT&T’s eye when they decided to allow the new Facebook Home software to be integrated in the HTC First cell phone.

Facebook Home is software for your phone that allows Facebook to essentially take over your phone.  This allows users to take advantage of their already established social base on Facebook and communicate with these friends on their cell phone “more conveniently”.  It consists of features such as the cover feed that allows you to glance at your phone for photos and posts, chat heads that allows you to send and receive texts and Facebook messages in one place, allows notifications to be accented on your home screen and an app launcher.

To me, the advantages this product are allowing cell phone users to no longer have to pay a texting fee due to the chat heads feature and from a company point of view it allows Facebook to mass distribute its product without consumers having to buy a cell phone.   However, from a product design standpoint, I don’t think Facebook Home targets the cell phone market very well.  It tries to reinvent the cell phone world too much by focusing the cell phone software design around people instead of apps.  As a consumer would you enjoy having your cell phone constantly flowing with your friend’s pictures and status?htc-first-slide-01

Apparently the majority of Facebook Home users did not enjoy having their phone being constantly engulfed with their friend’s updates when the first month sales reports came back.  “BGR.com says that sources at AT&T indicate that fewer than 15,000 of the phones had been sold by the end of its first month.  By comparison, in the three months of the year AT&T sold 6M smart phones, of which about 1 M were android phones- an average of more than 300,000 per month. “AT&T then cut the original $100 price to $99 cents on-contract. The mistake HTC First made to integrate their product with Facebook home has seemed to have left them with an essentially useless product with a lot of inventory.  Now it is rumored that the HTC First will soon be discontinued and unsold inventory will be returned to HTC.

I would question management’s decisions during the product development stages when designing the product, how they reviewed Facebook Homes design, and most importantly how they tested the market.  If these stages were done efficiently I feel that AT&T could have better understood the consumer demand for the HTC First Facebook phone and could have been more aware of this disaster before it occurred.

As a consumer would the HTC First Facebook phone satisfy you?  How do you feel management could have avoided this disaster?

 

 

 

 

 

http://www.foxnews.com/tech/2013/05/13/no-home-for-facebook-at-att-htc-first-to-be-discontinued/
http://www.techhive.com/article/2039633/facebook-slams-brakes-on-htc-firsts-international-plans-following-poor-home-reception.html
http://www.facebook.com/help/558055177560569
http://www.guardian.co.uk/technology/2013/may/14/facebook-home-app-htc-problems
http://news.cnet.com/8301-1035_3-57329634-94/facebook-phone-who-would-buy-this-thing/
http://www.theatlanticwire.com/technology/2013/05/htc-one-isnt-saving-htc-facebook-phone/65486/
http://news.softpedia.com/news/175-Million-People-Use-Facebook-Every-Day-133744.shtml

Airline Industry Summer Strategy: Have lessons been learned?

Posted on by spr1313aperrotin

“As an airline, if you’re not excited about summer, you’re in the wrong business,” said Mike Van de Ven, Southwest’s chief operating officer. In other words, if you cannot handle the heat get out of the kitchen. This summer, airport crowds are expected to be the largest in the U.S. since 2008. In 2012, all airline flights including regional had an average 76.1% on-time flight arrivals (flight stats analytics WSJ). That will not “fly” this summer.

image_security_linesWhat method of forcasting informed Airlines that airport crowds are expected to be higher than recent years?

United had a terrible summer last year—only 67.9% of flights arrived on-time in summer months. Customer complaints soared. The airline blamed computer system problems related to its merger with Continental Airlines and an attempt to schedule planes and crews more tightly. The plan backfired because it created longer delays and widespread disruption when tighter schedules couldn’t be met. The use of Gantt charts to schedule turnover time is a simple strategy Airlines use. They are constantly coming up with new ways of speeding up this complex process. Southwest does not have to purchase many Airlines because of how fast they can turnover planes. They plan to use spare airplanes this summer to accommodate stuck travelers more quickly. Southwest plans to routinely keep operating late into the night rather than cancel flights on stormy days. This is a contributor to why Southwest is a leader in customer satisfaction.

What is a disadvantage to scheduling each project to tight with each other?

United says they are better prepared for summer because it has more staff and better scheduling. In addition, the airline has rolled out new graphics screens for its computer system to make it easier and faster for airport agents to use. United also is introducing new boarding lanes at gate areas. Five different boarding groups will line up in different areas, similar to how Southwest lines up customers by groups, so that each group will have a designated place to wait. A brilliant new seating system is set to take off. The coach cabin will board window-seat passengers first, then middle seats, and aisle seats last. With the “Wilma” system, as United calls it, seats fill faster because people already seated don’t have to get up as much to let a row mate in.  Now there are more reasons than one to get an window seat.

The industry as a whole have made changes that fliers should be aware of before making travel plans. Budget cuts in Transportation Security Administration overtime will likely lead to longer security-screening lines. Make sure travel plans are set in stone because domestic ticket fees change  to $200 from $150, and international change fees went to $300 from $250. United Airlines, Delta, American, and US Airways collected a total of $2.3 billion in reservation cancellation and change fees last year, according to the Department of Transportation.

Will higher change and cancellation fees persuade fliers to book with other airlines?

What may be the reasons Airlines raise these fees? http://online.wsj.com/article/SB10001424127887324659404578499162528986162.html?mod=WSJ_hpp_LEFTTopStories

Changing the Game in Prescription Drugs: Walgreens and AmerisourceBergen

Posted on by spr1323amueller

In March of this year, Walgreens and AmerisourceBergen announced a partnership to take over part of Walgreens prescription drug distribution. This partnership will give both companies a leverage in size and help them better compete in the already large industry. President Obama’s Affordable Care Act will extend health care coverage to a lot of people who previously did not have it. For the pharmaceutical industry, this means a lot, and companies will be fighting to keep prices low. “To win, companies must capture enough new volume to offset the effect of pricing pressure on profit margins” (Cahill).

The news of this merger is very relevant to Operations Management, because of the changes it will mean for Walgreens supply chain. Previously, Walgreens had used Cardinal Health Inc. for some of their distribution needs, but not nearly to the extent of the new AmerisourceBergen partnership. However, the contract Walgreens had with Cardinal is up in August, and they will be using this opportunity to change how they run their distribution. For Cardinal, their stock price has already been falling.

In a quote from Crain’s Chicago Business, author Joe Cahill sums up what this means for Walgreens supply chain: ”Walgreen’s agreement to buy $28 billion worth of drugs annually from AmerisourceBergen will pump more volume through the wholesaler’s distribution network, boosting asset utilization and profitability. At the same time, wholesale costs should fall as the bulked-up middleman leans on suppliers.”

One of the main reasons for the merger, besides the cost-cutting, is their new-found access to specialty drugs. The company that has been known for their bulk prescriptions, is now able to sell drugs for, “cancer, rheumatoid arthritis and multiple sclerosis, which have higher profit margins but are also more expensive to keep on hand” (Humer and Wohl). Previously, Walgreens was not able to supply all of these drugs because their delivery trucks came from Cardinal only once a week. Now Walgreeens will be receiving daily deliveries from AmerisourceBergen (Japsen).

This partnership does not only mean new things for Walgreens, but AmerisourceBergen as well. This contract will be worth $400 billion over the ten years that it is in effect. It is becoming increasingly more difficult for small companies to compete in this economy for this type of industry. This partnership really allows Amerisource Bergen to focus their efforts on, “generic and branded prescription drugs around the world” (Japsen). Being able to concentrate their efforts in specific areas, allows AmerisourceBergen for further cost-cutting

Thoughts for discussion:

Do you think rival CVS/Caremark will begin to change or rethink their distribution after this news?

What does this mean for other pharmaceutical companies? Are the industry giants, the only real players now?

Will other companies take note of Walgreens change in supply change?

Sources: http://www.chicagobusiness.com/article/20130323/ISSUE10/303239984/the-one-word-reason-for-walgreens-amerisourcebergen-deal#ixzz2RocEDyrl

http://www.forbes.com/sites/brucejapsen/2013/03/19/walgreens-amerisourcebergen-play-creates-worlds-largest-drug-buyer/

http://www.reuters.com/article/2013/03/20/us-amerisourcebergen-walgreens-idUSBRE92I0EP20130320

Be GREEN, or be SQUARE!

Posted on by suhanip301s12

More and more customers now are looking for companies to be transparent, but it’s kind of hard to be competitive and sustainable at the same time.  Companies are now using value chain processes to get the job done fast.  They are not only focusing on suppliers but also taking into account By-Product-Synergy, which is “taking waste from one part of the production process and using that waste in order to generate a new product.” But how can companies become more sustainable if only “80 percent of management uses just 20% of the available opportunities?!”  The remaining 80 percent is where management needs to focus the rest of their energy.

It’s crucial for management to set goals and assess their risks, thereafter they can easily seek out opportunities for future improvement.  The first step to become a transparent company is to implement a sustainability program, and of course to develop a strategy.  The next step is to identify the companies “main processes and map data throughout the value chain.”  By using life-cycle-assessment software, the companies will have a more clear idea of how to lower their costs.

A similar approach was taken by ThyssenKrupp (FWB: TKA), a German elevator company.  Since ThyssenKrupp uses a considerable amount of steel in the manufacturing process, they thought the operational aspect had the greatest environmental impact. To their surprise,  the “company’s elevators themselves left a greater carbon footprint then their manufacture or any of the company’s other operations.”

As a result, ThyssenKrupp dramatically changed their product line after implementing a sustainability program.  They made the following changes to their products and services:

  • Elevators use LED lights which reduce energy consumption by 80%, and automatic fan and light shutoff which reduces CO2 emissions by 193,000 tons per year.
  • Getting rid of harmful chemicals used to manufacture the elevator.
  • Using petroleum based biodegradable fluid, with a vegetable-based option called “enviromax.”
  • Elevators are equipped with regenerative technology, meaning that the energy generated from the braking system is put back into the building.

In a way the article gives motivation to other companies who are taking their first steps towards becoming a transparent company.  It gives them few ideas and pointers on “unlocking supply-chain opportunities.” It’s important for different industries to decipher various ways to be more environmental friendly.  After all, there is more to being sustainable than just showing off your environmental initiatives.

Do you think ThyssenKrupp can take additional measures to make their company more sustainable?  Or better yet, are there any companies that you want to see become transparent in the near future? How would they need to change there operations?

Links:

http://www.thyssenkruppelevator.com/Sustainability/products-services

http://www.greenbiz.com/blog/2013/04/26/whirlpool-thyssenkrupp-supply-chain-transparency?page=0%2C1

https://opsmgt.edublogs.org/2012/06/28/transforming-waste-into-profit/

 

It’s Not Easy Growing Green

Posted on by spr1313aperrotin

They call it weed because it can grow anywhere but it requires rigorous effort.

 

Making a legitimate business out of marijuana requires high labor costs and extreme costly maintenance. Hundreds of Medicinal Marijuana Entrepreneurs have gone under because of competition or cost. The CEO of Pink House Blooms, Elliot Klug (pictured above) explains, “In order to survive in any business, you’ve got to be cost effective, so that was one of our drivers.”

Pink house and other commercial growers are required to document the life of each plant from the time it’s a cutting to the time its flowers are sold and the state of Colorado requires cameras in every room that has plants to prevent marijuana from entering the black market. These extra requirement are not comparable to any other industry or cheap either.

The Marijuana flower is trimmed by hand because the machine would damage their Trichomes, the part of the plant that is rich in the high-inducing THC. This results in high labor costs.  Payroll can make up more than a third of production costs. Retaining employees who learned their trade by growing clandestinely, is also a challenge because “they aren’t used to being part of a regular society”, says Jason Katz, chief operating officer of Local Product of Colorado.

Growing space can cost $100 or more per square foot and Pink House Blooms has a 6000 square foot warehouse. To have operation costs as inexpensive as possible they use every inch of their warehouse. To save on air conditioning costs, Pink house developed a system that uses water to cool the powerful lights that make marijuana grow.  Those lights, causing a $14,000-a-month electric bill, are on 24/7 making their electricity bill a huge portion of their expenses and preventing the company from paying back the borrowed money.

The employees may have gauges and there are Pink Floyd posters covering the walls but it is not as mellow as one would think, It is a tough business. They have supplier issues because many companies do not want to be associated with a pot-growing business.

Is this still a touchy subject or is there something  operations managers do to convince suppliers to work with them?

Operations Management for this industry is not typical at all. They have to create new equipment specialized for their product because it cannot be found on the shelf. This business could have high costs because it is relatively new.

Is it possible that over time, operation managers will find better ways to lower their costs? Any specific ideas?

Colorado and Washington has approved the use of Marijuana for Medicinal use and recreational use effect by next year. Will a higher demand leading to higher profits  make it possible for these companies to increase production efficiency?

What methods might this industry use to forecast. Why might the naive approach lead to too much forecasting error?

Source: http://online.wsj.com/article/SB10001424127887324345804578426963236807452.html?KEYWORDS=marijuana

How Six Flags could learn from this class

Posted on by spr1322tgutheil

http://socal.catholic.org/images/local_ad/2010024016magic.jpg

Six Flags Entertainment Corporation filed for bankruptcy protection in 2009 after years of being in devastating amounts of debt, poor management and multiple changes in who owned the company. This initiates the first issue as there is no way there can be a good way to manage a large company like this with so many changes in leadership. By the time the people that work for Six Flags got used to the new style of leadership, the ownership changed again therefore messing up the whole system again. A long-term plan should have been established with somebody that would be there the whole time this be through the different stages of ownership.

The company started doing a little bit better again in mid-2010, and today in 2013 analysts say that the company can have a good season ahead of it as it has new attractions that can improve the attendance and therefore the revenue. Through finally having good management again the company has improved season pass sales, less discounting and more financial income through parts of the business such as dining. What the earlier owners and managers should have realized is that forecasting plays a huge role in how their business is doing. They should have realized that discounting is good but definitely can not be the end all be all as it may attract people, but there has to be a line draw to make sure it is still profitable for the company and therefore the employees.

The fact that there are a lot of new rides and attractions posts a lot of opportunity in terms of that a lot more people will start showing up. One of the reasons that Six Flags Corporation had been struggling is that old customers were getting saturated with the rides and attractions that were available to them because they had been to the parks so often. With the new rides a lot of the long-time goers will start going again and the season ticket sales will go up again.

Management also mentioned that this will not be the old Six Flags ever again as it will establish a new business plan and “has willingness to rethink its business model and track record of success.” It seems as if this new set of management knows how to promise the company future success, but the question is if it will actually be able to successfully implement all of these new strategies to guarantee they won’t slide into losses again. The keys to success for a company like Six Flags are good forecasting for what needs to be done in order to get a lot of tickets sold, good management of the employees and facilities, along with making sure the rides and attractions provide variety and do not get boring.

http://www.businessweek.com/ap/2013-04-19/credit-suisse-initiates-coverage-of-six-flags

Apple – Samsung = What Kind of Quality?

Posted on by f1223nlopez

After hearing this news about a month ago, I decided to post it and get others responses to it.

It seems although they are in a bitter legal battle with each company suing each other, Apple is still doing business with the Korean company Samsung, but for how long? The relationship started because the companies that previously provided the displays for the iPads, weren’t meeting with quality standards and were dropped. These companies included LG and Sharp Inc. Now it seems that because the legal battles that are happening, Samsung will also be dropped. It seems that the new company to step in and win over Apple’s iPad Mini, is Innolux. Innolux already provides Apple with the displays for the big iPad, and iPod Touch, so the change should be easy.

For those of us who have iPhone, we all noticed how the maps changed when Apple and Google parted ways. A lot of us found out that we were driving or walking into the middle of an ocean when we would look for destinations, or the maps wouldn’t fully load correctly, of course now its fixed after a couple of updates. So will another debacle like this happen when they part ways with Samsung? As consumers, we hate it when the quality of a good product continues to decline and there are a lot of Apple consumers who are very happy with the components that Samsung provides to these devices. Not only are they providing the display panels, but they also manufacture the chips for the Apple devices.

The major question that will be looming is will the quality of Apple products start to decline? It’s been said that Apple is dropping Samsung because of the costs that are now being demanded, so will looking for lower costs, lower the quality? I find it natural that Apple would want to drop Samsung because of their legal battles. Why would they want to help and contribute to their competitors? Samsung is stepping up in the technology industry and is becoming a big competitor to Apple and it’s in their best interest to part ways before the blueprints to their best selling devices are found out.

As news of “The Next Big Thing,” the Samsung Galaxy S4 has come out, will it make a splash big enough to make some new converts? I’ve heard some of the new features on the phone and I find them a little bit weird. The biggest one is the ability to wave your hand to switch screens. Just picture yourself waving your hand at your phone and think about how you will look. I’m not knocking it all, I just find it funny. Each phone is targeting different customers, but are always pinned each other for top spot.

Let me know what you guys think about the new move and if it will or will not effect the quality of Apple products. Feel free to chime in on the new S4 as well.

 

http://forums.appleinsider.com/t/156712/apple-said-to-drop-samsung-turn-to-innolux-for-ipad-mini-displays

http://www.neowin.net/news/apple-may-abandon-samsung-for-retina-ipad-mini-displays

 

 

Improving Service by Cutting Costs

Posted on by spr1321bavitia

Airlines are often seeking ways to cut costs. A Canadian airline, Transat, is implementing new changes to their airplanes, which aims to lower overall costs. One of the ways an airline can lower costs is by reducing the weight on airplanes, which ultimately lowers fuel costs. Transat plans to use slimmer seats to reduce weight on planes. “We can’t say it’s more space, but it’s a better experience,” says Joseph Adamo, the vice president of marketing. The seats will be using less cushioning and material, which will make the seating roomier.

Aside from the seat changes, the airline is also adding new entertainment systems, which will replace its outdated systems. They will be adding touch screens so that passengers can easily enjoy movies, books, and games. Transat will also add LED lighting inside their planes that can switch colors. All changes will reduce plane weight by about two tons, which will result in about $300,000 savings annually, per plane.

Transat is hoping to increase profits this year in order to stay competitive. Some of their competitors include Sunwing and WestJest Vacations. Transat had a difficult year during 2012 due to customer discounts significantly reducing their margins.

In 2012, because of financial problems, employees delayed wage increase payments. Staff also recently planned to eliminate one flight attendant on planes in order to increase savings. Additionally, Transat reduced their number of routes, which may be a poor decision considering summer, a popular travel season, is approaching. However, Adamo says Transat is still attractive to consumers because they offer direct flights from many Canadian cities to 28 destinations in various countries. There are no layovers due to their direct flights, which means there is no lost baggage and passengers can get to their destination quicker, according to Adamo.

Eventually, Transat plans to reduce its number of planes from 21 to 16. Transat is taking measures to reduce costs. They are doing this in a way that does not negatively affect passengers’ experience; in fact, it may improve their experience. This strategy seems to be an effective one because they are trying to provide the maximum value for customers.

Transat is making changes to their service in a way that benefits not only the company, but the consumer, as well. After a difficult year in 2012, they must also be seeking a competitive advantage. Transat is bettering their service so that they can stay competitive and keep up with other airlines.

Should Transat be adding new technology even though they have been struggling in the past few years? Should they focus on other ways to significantly cut costs? Will making many changes alter the experience for passengers? What else can Transat do to gain a competitive advantage?

 

Original article: Transat article

The Cost of Cutting Costs

Posted on by spr1311ballen2

Have you ever gone to the store only to find that the shelves are bare and you can’t get what you’re looking for? Many Walmart customers nationwide are complaining that they cannot find what they need at their local Walmarts. Because of this, Walmart lost many of their customers to their competitors such as Kohls, Target, and

Why the empty shelves? Since the recession, Walmart has tried to cut costs. To accomplish that, Walmart cut staff. “In the past five years the world’s largest retailer added 455 U.S. Walmart stores, a 13 percent increase, according to company filings in late January. In the same period its total U.S. workforce, which includes employees at its Sam’s Club warehouse stores, dropped by about 20,000, or 1.4 percent.” So as Walmart continues to open new stores throughout the country, they also continue to cut their workforce. This has had some severe consequences. Some of these include longer checkout lines, less help available to customers throughout the store, and disorganization.

These issues have caused Walmart to place last amongst department and discount stores in the American Customer Satisfaction Index. This is the sixth consecutive year that Walmart has tied or taken the last spot. The lack of customer service due to a lack in staff is definitely to blame. Walmart has so much inventory in back, but not enough staff to stock the items on the shelves. Customers cannot find what they are looking for and cannot find an employee to help them. When the customers go the check out, they are faced with long lines and few checkout lanes open.

In the past, other retailers have viewed labor as a controllable expense that is an easy way to cut costs. In the early 2000s, Home Depot had the same thoughts as Walmart. They could easily cut expenses and grow profits by cutting staff and relying on part time workers. Eventually customer services and satisfaction plummeted causing sales growth to fall throughout established Home Depots.  If Walmart continues to cut costs by cutting labor, they could face the same fate as Home Depot.

Adding five full time employees to Walmart’s U.S. stores would cost around $448 million a year. This would add about a half-percentage point to Walmart’s selling, general, and administrative expenses. For such a big company, a half-percentage point is nothing, especially when looking at the future and long run of the company.

If Walmart continues to cut costs by cutting labor, they will fall into a vicious cycle. With no staff to stock the shelves, the company cannot sell things that are not out and made available to customers. Eventually customers will choose Walmart’s competitors over Walmart for all their shopping needs. A change definitely needs to occur or Walmart will have many problems in the future. What are some ways that Walmart can cut costs without cutting out customer service and satisfaction?

 

Reference: http://www.businessweek.com/articles/2013-03-28/walmart-faces-the-cost-of-cost-cutting-empty-shelves#p1