Social Analysis of SSM and DCL Companies - Assignment Example

Name: University: Course: Tutor: Date: Social Analysis Preamble Small Scale Machinery (SSM) enterprises and Die Cast limited (DCL) being close commercial partners require to have a program that will enable them have high gains the two mutual companies have to have strategies to have efficiency and increased profits. SSM has depended on DCL to manufacture die caste components in its small scale production enterprises at all times, while DCL has depended on SSM for the production of designs that will be used in the process of die casting. The two small scale companies have had mutual arrangements in the past which has been made both of them successful and focus on future growth (Franks, 1998). The two companies: SSM and DCL. If treated as one entity, the mission can be seemed as to maintain and improve the commercial relationship between SSM and DCL. However, there is a knowledge gap of SSM designers on die-casting. The issue of “virtual organizations” has been talked about by the company administrative structure though not officially and this would revolutionize the two companies in their future endeavors. The virtual organization idea necessitates that electronic information systems be properly structured by the SSM and DCL with a common technology proposal to exchange regular information to enable faster electronic connections coupled with a clear production process for collective information. Alternatively, the presence of a better electronic information scheme for each company i.e. DCL and SSM will be established that will not necessarily need a multi platform (Sommer, 2009). This section deals with the social analysis of this virtual organization of the two mutual companies and the positive and negative impacts of the mutual arrangement. It also seeks to shed light on the social context of the merge i.e. the relationship status, consider the possibilities and feasibility of the mutual deal, and identify all the possible legal and policy acts. Social problems and analyses The two companies (SSM and DCL) have had their share of problems while working alone and sometime pressure on each other. SSM works on the designing part of the process and ignores the processes used to manufacture it. This makes them be more focused on the functional part than production part. SSM also has aesthetic factors which give pressure on the production process on DCL. The two companies have also differed on quality levels when producing die caste. The problems of the two partners are aggravated by the fact that it is difficult to follow up emerging problems. This is because the failures occurring during the finishing stage are linked to the initial stages and they occur frequently. These mistakes are fixed by experienced staff of either company. When such staff move away their expertise is hard to find. There are also problems related with quality which are hard to trace and they also need expertise and sometimes they are impractical, resource wasting, and time consuming. The quest of solving the problems has been through a two paper based system (Process Concern Reports (PCR) and Eight Discipline (8D)) to give complaints to SSM which would entail the problem information, customer information, and the necessary cause of action (Franks, 1998). The PCR and 8D required filling for future reference. The bulk handling of paper work through invoicing, delivery, and ordering requires easier methods that will be effective and beneficial to SSM and DCL. This gives the dire need for the two to have a virtual organization for better information, skills and knowledge sharing and easier coordination of the production of die caste. The social analysis of the virtual organization of SSM and DCL can be broken down as follows. There are several queries that will arise given the merge. Such queries will involve the management, training, new staff, communication around the virtual organization, the risk involved, the benefits, the legal issues, and the sharing of the profits. Management association between the two companies has to ensure that the sending and receiving of information between them is efficient and fast. The slower methods of PCR and 8D need to be eliminated for fast communication. This means that new methods to convey message between DCL and SSM will be easy hence customers will be easily served and errors avoided. The communication can be electrical so as to avoid bulk sending of paper with the two companies collaborating there will be easier access of each other offices that will avoid mishaps of communication in future. The virtual organization will also conserve the environment since most of the paper work will be avoided, hence there will be minimal waste and also since paper pulp (a raw material for making paper) come trees they will be conserved (Sommer, 2009). The SSM and DCL staffs have deficiency in one part of the die caste process. This means that they need to be trained effectively to be able to work on the same process as one company. The project can start by training SSM designers so as to be knowledgeable with the process of casting, this will be appropriate since they are the ones who initiate the casting process. Before the process begins there will be need for change in all company’s policies so as to incorporate the training exchange program. These policies must be comprehensive and legal to avoid any arguments in future (Sommer, 2009). They must also incorporate future objectives and avoid personal interests for it to work out effectively. The most important things (prerequisites) about the process of casting that need to be learnt by the designers so as to comprehend the process of die caste. Staff cooperation when working at the casting process will be necessary to be able to transmit the knowledge of the process mutually. This will depend on the how willing the other staff are to pass the information correctly to the others. The ability of the new staff to grasp the process will also be dependent. When the new staff understands the process quickly the process will take shorter time. The older staff will also be required to pass on their expertise through the program so that their knowledge is left to be utilized in the company. The old staff will be encouraged to transmit the knowledge without fear of being redundant and un-useful or being shed off by the companies. The older reports of PCR and 8D done by the DCL will have to be shared with SSM so that they can use historical experience to correct the present and future. The reports must be studied by SSM staff in order to establish the major problems that were experience and the solutions applied. The designers at SSM will try to correct the mistakes by implementing the said reports. This process requires a mutual trust between the staff of DCL and SSM since it will involve finding the weak points of the company which may be used as negative traits in the future incase the program of virtual organization fails (Wagner, & Krause, 2009). The information has to be passed in the best cost effective manner and the costs should be either shared equally or absorbed by beneficially. The management at DCL need to trust SSM management since the prospects of having a single process that does not depend on other companies would be beckoning and this will be an open chance. The trust is a chance worth taking though it would be risky. Other challenges for the virtual organization would be how to develop systems that process data faster and make it easier to access and implement in the program. This will enable the two (SSM and DCL) develop faster mechanisms and techniques of casting. Better services to customers will be emphasized to offer services that will be devoid of errors. Customer care services could be shared by the virtual organization which will include training more staff in the art through partnership (Rogers, & Kincaid, 1981). The prospects of sharing designer expertise with staff of DCL would be explored though DCL depends on SSM for the production of designs that will be used in the process of die casting. The staffs at DCL have been seen as less educated since they have trade certification qualifications in fitting and turning, boiler making and foundry practice. They may be seen as the junior staff since they don’t have qualifications as their counterparts in SSM who are graphic designers and engineers with Graphic Design Degree and Manufacturing Engineering Degree and others have technical qualifications in drawing. This should not work as a point to intimidate staff at DCL and they should learn their part when taught in order to get mutual benefits. The policies should also work on the employees benefits and assurances that they remain at the company with better plans for them incase the virtual organization succeeds. A mutual agreement on the code of conducts by the staff is necessary to avoid discrimination of the merged staff to ensure they work effectively and efficiently. This will tend to include a changed structure of chain of command to incorporate every one from both companies. The management will include all persons in the chain to avoid any protocol crisis. The manufacturing engineer, the visual design artist, drawing officer, the foundry supervisor, the assistant foundry supervisor, shift supervisor, and foundry tradesmen should be included. Merged departments will be necessary so as to handle the welfare of the companies with similar goal than having two similar departments tackling the same issues (Wagner, & Krause, 2009). The structure will be joined by the liaison officer of the companies and a proposed structure will be as in the figure below. Figure 1: Proposed structure of the virtual organization The expansion of the die casting process will make the region in which it is situated to grow; this will give more opportunities to tap new talent in to the virtual organization in order to diversify and learn more efficient techniques for the companies. Expansion means that competition will be intense but through the strong base and huge asset base for the virtual organization there will be shock absorption (Wagner, & Krause, 2009). The taxes paid by the two companies will be merged thus efforts to ensure costs are low; other costs of production will also be lower since there will be improved efficiency and a merged process of production which will make higher profits. Costs such as advertising, marketing, will be merged giving the organization more strategies that will impact on the future positively. The main requirement that is very important to the virtual organization of SSM and DCL is the full access of data in each process which must be accurate and timely and it must be organized in a clear understandable way. This will require an audit of the assets, liabilities, and credits that will be adopted in the organization. The success of the virtual organization will be evaluated through the knowledge on the process of die casting passed to others, the effectiveness of design creation, the manufacturing engineering efficiency, and the mutual trust that continue to build between the organization(Sommer, 2009). The time required to solve any crisis in the organization will be determined by the goal and objectives set during the business process. The main goal of the organization will be based on reduction of the costs through merging the process. Conclusion The virtual organization will also have negative effects though not enough to guarantee the rejection of it. The risk involved is high put legal measures will be required which may increase the costs. The mutual trust may be broken by misunderstandings within the organization and there may be possible leakage of information, but this can be avoided through clear implementation policies. The virtual organization will definitely be a huge risk but the returns will also be huge and beneficial to the society. The society stands to gain through the SSM and DCL organization if its aims and objectives are implemented and the mutual trust among the players remain loyal to their commitments. The implementation of the business process requires time and dedication which will guarantee its success. The steps analyzed by this report i.e. commonKADS and the social analysis for the virtual organization of SSM and DCL could be duplicated by other small and medium enterprises so as to give them a base to compete with other giant corporations and have a competitive advantage. This will enable businesses to enjoy economies of scales and other economic benefits. Correcting and avoiding all the negative social problems discussed above will help a great deal to ensure success in the virtual organization. List of reference Franks, J., 1998, ‘The virtual organization’, Work Study, vol. 47, no.4, pp130 – 134 Rogers, E., & Kincaid, D. 1981. Communication networks: Toward a new paradigm for research. New York: The Free Press Sommer, R. A., 2009, ‘A planning solution for virtual business relationships’, Industrial Management & Data Systems, vol.109, no. 4, pp463 – 476 Wagner, S. M, & Krause, D. R., 2009, ‘Supplier development: communication approaches, activities and goals’, International Journal of Production Research, vol. 47, no. 12, pp3161 – 3177 Read More