VALEX VALVE COMPANY
May 23, 2016
An organizational structure of a company defines the directions in which activities, responsibilities and tasks are delegated and coordinated among various members of the company to help the organization achieve its desired goals and objectives. The organizational structures plays a vital role in the performance of the company as it provide a link through which the management can reach the workers and also the workers get an opportunity to share their opinions concerning some crucial decisions made by the management. Vilex Valve Company is involved in the manufacturing of various varieties of valves both for domestic and commercial purposes. The operation of the company is grouped under the federal government procurement opportunity for small business category due to the small-scale nature of its operations (https://www.fbo.gov/). Vilex Valve Company deals with the production of various types of valves such as fluid power valves, flash valves, showerheads, plumbing fixture valves, hose fittings, and general-purpose flow control devices composed of metal (https://www.sba.gov).
The Vilex Valve Company has a functional and matrix organizational structure in which various departments in the organization are tasked with different roles. At the upper level of the organizational structure is the General Manager who is assisted by his vice when it comes to general management of the organization. Produced by the production department and sold by the supply department are of high quality that meets the customers’ satisfaction.
Matrix structure of the Vilex Valve Company
The matrix structure is types of organizational structure that group employees and staffs in terms of their functions and the product of their role in the company. To utilize the strengths of the employees and to enhance the areas where these employees have some weaknesses, the company has adopted the strategy of decentralizing various activities in the company. The following diagram shows the matrix roles and responsibilities of the major departments in the Vilex Valve Company.
| General Management The general manger with assistance from the vice general manager is tasked with the responsibility of overseeing the operation of the whole company. | Supply department The supply manager is responsible for delegating and ensuring that activities such as purchases, sales and warehousing of products are effectively carried out. |
| Production department Production department headed by the production manager is assigned the role of producing the valves, machining the valves, and setting up the valves to all the potential customers. | Human resource department The human resource manager takes care of the workers welfare such as performance appraisal, rewarding and promotion, salaries enumeration and ensuring that the safeties of workers are maintained in their work place. |
| Quality assurance department The quality assurance manager is responsible for ensuring that all the valves produced and sold in the market meets the standard required and are of high quality so as to maximize customers’ satisfaction. | Customer relation department The customer relation department is another important department that serves the customers by analyzing the various customers’ needs and complains and finding solutions for such issues. |
A request for proposal (RFP) is a business solicitation, which is often made through a bidding process by a company that is interested in commodity, services or asset procurement. The company interested in procurement then submits its business proposal to potential supplier who produce the intended commodity or products ((Negotiations.com, 2016). The RFP performs a critical role in the production process of a company since it presents the preliminary requirements of the products or services that a company requires thus dictating the exact structure to be used by the company after the supplier’s response. Vilex Valve Company is always involved in the procurement of various raw materials, which the company through its production department uses to produce final products, which satisfy consumer needs and wants. However, due to the changing business environment, the level of business competition has increased making the performance of the company to be relatively challenging. Many rival companies, which are also involved in the production and distribution of valves, have been established in the country, which prompts the Vilex Valve Company to take urgent measures to help it retain its market share.
The company therefore needs to use a competitive advantage approach to respond to the RFP ambiguity, which arises from the fact that numerous rival business companies are also striving to acquire the same raw materials that the company wishes to purchase to enable it produce its products. Because of this intense competition, the price of the essential materials are expected to rise therefore meaning that the Vilex Valve Company must consider the factor of competitive advantage when procuring these materials. The approach of competitive advantage means that the company must be ahead of other competitors by offering supplier’s a higher price so as to entice the suppliers to have a long term relationship with the company in which the company may benefit from discount given to the company because of the nature of its business relationship with the suppliers. It is the aim of every company to increase its shareholders wealth and the only way to achieve such a goal is by making much profits. Through a competitive advantage approach when it comes to procurement, Vilex Valve Company will be able to reduce its long-term cost of production thus making the company to achieve make higher profits thus increasing the company’s performance. The table below shows the procurement schedule and requirement applied by Vilex Valve Company.
| Procurement document for essential supplies and raw material |
| Program description Vilex Valve Company wishes procure essential raw materials for its production from its potential suppliers using a competitive approach to help reduce the cost of production. Program Schedule Three phases which last for a period of one month from Monday to Friday. The major parties involved in the procurement are the production department, sales department and the General management. Calculation of total raw material required 30-05-2016 Designing the RFP 1-06-2016 Evaluation of potential suppliers 8-06-2016 Negotiation between supplier and management 15-06-2016 Purchasing the materials bided 30-06-2016 Special requirement Production report on amount of raw materials used monthly Financial capacity of the company Past contracts undertaken by the chosen supplier. |
Discuss and prepare a work breakdown structure (WBS) showing a condensed version of cost estimates, using the price to win (PTW) cost approach. Use the example shown in Chapter 14 of the textbook as a guide
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