In the following sample essay, Aisha is a store that knows how to design and sell at a high price. Read the introduction, body and conclusion of the essay, scroll down.
Ai-She Footwear is a store who can design, developed and sell high quality of shoes. It started in 2006 as a merely retailer store, until in 2008 where they were given a chance to start manufacturing their own products and move to a bigger place for their store. After some years of continuous operation, they were able to expand their business and purchase a bigger place for their factory with more than 30 workers in 2012 and continuously growing up to the present.
As their firm grows, the demand for their products also increases. They are not just selling from their store but they are also exporting their products not just around the Philippines but also in other countries like Japan and Paris. Moreover, being such a competitive player in the footwear industry Ai-She became a regular supplier of different footwear brands in Shoe Mart (SM) and Landmark.
The company also offers deliveries along Luzon and Visayas areas for their wholesaler and walk-in clients with minimum of 12 pairs per design and maximum of 5,000 pairs per month for bulk order. However, because of seasonality for demand of footwear in other countries the clients are unpredictable on when they are going to place their order again.
Ai-She Footwear has a total of 60 workers composed of 30 shoe maker, 15 assigned in sewing, 3 heel maker, 1 in house designer, 5 in charge in quality and inventory control and the rest for indirect labor.
The direct labor are compensated per each pair of footwear they can produce. Thus, the production depends upon the number of orders. in this case, pull system is being used in the business. During peak seasons where there is numerous place in orders, the workers necessitate to work overnight just to meet the deadlines. When in some cases that they cannot comply to the given deadline, they were asking for extension or worse either they will not accept the order or the customer will cancel the order. There is a tendency that the firm will encounter an under capacity. But during the sudden decline of the demand for the product the firm is subjected to overcapacity wherein the workers tend to be idle. It is highly evident that there is an imbalance utilization of workforce in the production. Too less capacity indicates that customers won`t be satisfied and too much capacity would result in the operation being under-utilized. (cite)
Having stiff competition in their industry, is one of the hindrances for their success but their key to be unique is to create more fashionable and creative designs that a customer would be excited to wear. So the company tries to adjust their product mix in order to meet the expectations of the clients. Furthermore, Ai-She must be capable of meeting the customers requirements to retain the trust of the clients and attract more potential customers.
On its production activities, Ai-She Footwear successfully does handcrafted workmanship using materials made up of abaca fibers that makes their product more durable and authentic. The raw materials that they are using for the production was carefully check because it can determine the quality of the production process. They also make sure that there will be sufficient supply of raw materials available for production. However due to the changing demand, there are times that they are lacking of raw materials. In that case the production is delayed until the raw materials will be replenished. In other cases, they are needing to use substitute materials to eliminate delays.
The researcher found out that the major problems include the seasonality and variability of demand which continually seesaws back and forth, varying of workforce or capacity of the firm, unexpected customer requirements e.g. deadlines and quantity of orders, and availability of the raw materials for production. After knowing the existing situation in Ai-She`s production system, the researchers find the opportunity to generate a capacity plan towards competency and advancement of the firm. Furthermore, an effective capacity plan can be achieved through the use of proper forecasting techniques.