Sue Miller, president of T.T.S. Candle Company, has just completed a two-day seminar on project management and is anxious to use the new techniques on a recurring problem faced by her company. About 60 percent of T.T.S.'s gross revenues result from the pre-Christmas sale of the firm's major product, XMAS-PAK. XMAS-PAK consists of twelve candles, all of one color and size. There are six different colors available In three different lengths. XMAS-PAK was introduced eight years ago, and sales have been increasing by approximately 20 percent per year.
Because of the seasonal nature of the product, all orders unfilled on December 16 are lost. Ms. Miller estimated that XMAS-PAK sales would have been about 10 percent higher last year were it not for lost orders. It was a frustrating problem because the loss was not due to a shortage of capacity. Sales forecasts were not very accurate, and her manufacturing managers had strict instructions to minimize investment in finished goods inventories. Miller was sure that project management could somehow help solve the problem without appreciably increasing inventories. -
On her return from the seminar, she assigned Sam Joseph, marketing manager, and Kenneth Knight, vice-president of manufacturing, as project managers for this problem. She reviewed the problem with them and gave them eight years of historical sales data, broken down by line item and geographical region.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.