Lean implementation and supply chain development at Oak Hills Case Study

Lean implementation and supply chain development at Oak Hills - Case Study Example The mergers and acquisitions which characterize the company have an implication on the supply chain and thus it is necessary that the company implements strategies which will not impact negatively on the efficiency and effectiveness of the supply chain. The competition in the market is growing as illustrated by the rise of competitors such as Triangle Corps. The competition is stiff within the market because the two companies deal in the same products and services. The essence of effective supply chain development within Oak Hills is attributed to the fact that the company is in the process of being acquired even though the acquisition process has not been successfully completed. The revenues of the company are expected to rise as the combination of companies is to offer an array of upstream services. Oak Hills is in dire need of improving its supply chain processes in terms of effectiveness and efficiency. The special testing instrument as the main product of the Oaks Hill manufacturing facility requires applying a lean system in ensuring that all of the operations within the supply chain are coordinated. With the headquarters of Oaks Hill being in Houston, it needs to coordinate the activities of all of its branches so that they are integrated into a common business unit. As a result, the special project of the facility in testing oil and gas exploration can achieve its goals and objectives. The most important stakeholder of any supply chain is the customer (Hilletofth and David 264). This means that customers must be given priority consideration in the processing of the activities of a supply chain. Both the external and internal customers of the facility must be given due consideration in the supply of the products so that their needs are met. The effectiveness of a supply chain can only be achieved through the

Discuss and evaluate the various methods available for long term Essay

Discuss and evaluate the various methods available for long term investment appraisal - Essay Example 33). It is essential to conduct any investment proposal (long-term or short-term) appraisal in order to ensure funds invested would accrue maximum gains in future. Since financial resources tend to be limited (in majority of the cases), a business firm, instead of choosing several proposals, must evaluate and select only the ones that are most appropriate for investing purposes (Sullivan and Steven, 2003). Therefore, it can be assumed that there would be certain techniques followed specifically for appraising proposals for investment. In this context, the paper will now examine various methods available for long-term investment appraisal (capital budgeting). Investment appraisal comprises of analysing a firm’s financial plans, its investments, as well as predicting the firm’s expenditure in a certain proposed project (Levy, 2002). Long-term investment appraisal in small firms often takes into account the possibility of future growth, new enterprises, and a future move into a completely new arena (ibid). Factors for long-term investment appraisal are chosen keeping the requirements of company policymakers and stakeholders in mind, and focus on long-term and sustainable growth of the firm (as opposed to short-term profits). Various methods are used for long-term investment appraisal of a firm. These are: Net present value (NPV): This appraisal method calculates the cash flows (deficit or excess), once the customary obligations are completed (Khan, 1993). All forms of long-term or short-term investment appraisals aim at deriving a positive figure for the firm’s NPV. The process calculates the total cash flow of a firm (incoming and outgoing) at a certain specific time (t), at a discount rate (i) at that particular time, which translates to: t-funds invested initially, making NPV inversely proportional to discount rates (Pike and Neale, 2008, p. 123-124). Therefore, NPVs are reduced with rise in discount values (i), while high interest rates