BRIDGING THE GAP BETWEEN PLANNED & ACTUAL PERFORMANCE

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Date
2014
Authors
Abdulkareem Gh. Odeh
Muthanna Hajj
Riham Sabbah
Rima`a Odeh
Haneen Anabtawi
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Abstract
Anabtawi group has been encountered mismatching between the set and actual targets in production, sales and marketing departments. This mismatching adversely affects the organizational performance of the group. The main aim of this project is to bridge the gap between the planned and the actual targets to eliminate the mismatching. The project will be implemented they in Identifying and tracking progress against organizational goals, Identifying opportunities for improvement , Comparing performance against both internal and external benchmark . Reviewing the performance of an organization is also an important step when formulating the direction of the strategic activities. It is important to know where the strengths and weaknesses of the organization lies, and as part of the Plan Do Check Act cycle, measurement plays a key role in quality and productivity improvement activities. We will use the gap analysis which contain many useful tools such as ( key performance indicators (KPI) , scenario planning. , performing an analysis , target setting, , forecasting techniques , business forecasting , software etc. ) ,Smart criteria and cause and effect diagram to find where is the problem and to solve it .                 discussion First, the problem is imbalance in the achievement of the objectives of the internal supply chain as planned. Through our study of targets set and compare them with the actual, shows that there is a gap in the achievement of goals . so, we did gap analysis to explain that there is a gap in the achievement of goals and also did questionnaire to monitor the possible reasons for the occurrence of these problems. Finally, we put the truth causes leading to the problem through fish bone Diagram. And the reasons that we reached them, which was influential in the problem of not achieving the objectives as planned and how they affect the occurrence of the problem as follows; 1-Material (major causes) - Defect in the lack of raw materials that causes disruption of the production process and therefore not achieving the required quantities to the customer and this affects on the sales department in terms of the non-delivery of the goods required on time; Not to renew the contracts of suppliers that lead to instability in the quality of raw materials and lack of ease in the process of control of the damaged material and counting it ; Delay in delivery time leading to customer dissatisfaction and this affects the reputation of the company; Lack of standby pieces that leads to disruption of the process of production and not to deliver quantity on time; Decrease in finished goods for sale, which affect the reputation of the company and also the not to deliver the request on time. 2-policies, methods and tools (major cause) - Lack of management performance for internal supply chain .For example, purchasing department dont adopt policies that define the purchasing process clearly, don't adopt specific system for evaluating suppliers and There is no system for the characterization of materials required, which is considered one of the most basic functions in the purchasing department. As for the sales department noted ignore the goals set by the administration related to marketing and development ,but in the production department, there is a lack of commitment to prepare plans for maintenance management and management of the damaged which this go back to the negative impact on performance of the production department in general. With regard to in the Department of warehouses, which is one of the best departments in performance, notes default only in the classification process (Coding System), that leads to the existence of a person only able to manage the warehouse and in the absence of that person will become the process of running the warehouse is not easy and this affects the performance of the warehouse as well. 3-communication tool - Effective communication process ( one of the most important foundations in order to achieve the goals effectively ) , where it was observed a significant shortcomings in this aspect . There is a lack of regular meetings , which are gaining importance through update data periodically and solve problems as soon as they happen. Where it was noted that there is a lack of backup machines and a lack of orders and the presence of some surprise orders by sales department .And The process of communicating via e-mail is not effective in a company where there is a lack of commitment to respond quickly to inquiries that arrive via e -mail , which leads to delay in the activities necessary to perform the work properly .And all departments doesn't adopt a system for feedback in order to improve performance. 4-administrative behavior of department(major cause) - Administrative performance and estimated future outlook is one of the most important tools for the development of the department and the company in general,58 where it was noted that there is a problem in this behavior in some departments and private sales where this department ignored and largely the development targets of the department. Also, there are shortcomings in the process of accounting staff and reporting of mistakes .And is not taken to develop plans periodically for all the goals and especially marketing plans and there is no follow-up system for these plans .Also, One of the problems which the most visible is the lack of coordination between departments and there is no urged by the administration for the coordination and cooperation between the departments and there is no obligation by the administration of the need and importance of the documentation process.   5-information management and data analysis ( major cause) - The first step in a process of continuous development is the documentation process and this process can be argued that it is absent from most of the departments of the company where there is no system for documenting and there is a lack of reporting. In some cases, can't be delivered detailed reports and this problem has created many problems as there is no specific system for the study of the market and the market share where they are relying on the study since 2008 as it affects on forecasting system , and is not taking into account seasonality and specificity of the region for each of the four areas in the forecasting system where it will affect on selecting the monthly target for each region and on the internal auditing system and also lack of data affect on selecting safety stock. And not adopt documented mechanism to assess operations and plans that affect on the follow-up process.59 conclusion and Recommendation: Production Department Recommendation: 1. Improve the coordination process between the sales , production and procurement departments to make sure that the required raw material will be available at needed time . 2. Develop an effective maintenance plan with implementation scheduling and determine the spare parts needed then an official request of these parts should be sent to procurement department. 3. improve a suitable KPI`s to determine the waste and losses in the production area. 4. Provide a measurement devices to measure the quantity of the oil entered to the production line to make the KPI`s more effective. Procurement Department Recommendation: 1. Adopting a person from each department to characterize the required material and set the required specifications and also take it as a reference in vender evaluation process. 2. Design clear criteria to evaluate the vendors with take into consideration the required specifications. 3. Adopting the purchasing polices and determines the range for each (Direct purchasing, request for quotation which need a vendor list and bidding process). 4. Renewal of supplier contract: Develop an effective communication plan with vendors and improve the relation between the company and the vendors to keep them in contact.     60 Warehouses Department Recommendation: 1. Develop a coding system to increase the efficiency of management process in the inventory. Sales Department Recommendations: 1. Improve the documentation process and data analysis. 2. Develop an efficient forecasting model with take into consideration the seasonality and privacy of each area (west bank, Gaza and Palestine 48) and determine the monthly target based on this. 3. Perform periodic studies for the market share and updating the data regularly. 4. Documented feedback system and put it into reports to discuss them with procurement and production departments. 5. Update the marketing plan for each area individually and set a procedure to measure and evaluate these plans. 6. Develop the relationships between sales department with procurement and production departments. 7. Use customer relationship management (CRM) system. General Recommendations: 1. Improve the documentation process in the company. 2. Improve the communications between the departments to increase the coordination between them. 3. Develop the administrative behavior for the head of each department by given them a training courses to show the importance of administration process and set a development targets.  
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