Diapers With Love Case Study

Diapers with Love
I would like to announce the merger of Daffy Diapers and Snuggles Diapers. With the merger, the name of the company will now be Diapers with Love. The merging of the two companies is an opportunity to improve our quality, total sales, reduce employee turnover, and to increase profits. Both plants will remain open, with no plans to close either facility in the future. The current plan for the merger does not entail any layoffs on the shop floor; the plan is to increase the headcount for the company’s current production needs and for future targets that are in the planning stages. There will be some reorganizing of office personnel. However, there will be opportunities in other organizations within the company for those involved

The key finding was the gross/profit margin for the merged company. The findings showed the current gross/profit margin for the new company is currently 6.25 percent in combining both facilities revenue and cost of goods sold. The goals for the system level team is to increase the gross/profit margin to 23 percent over the next year. To reach the goals, Graham et al. (2015) describe the use of a balanced scorecard to enable individuals or groups to understand how they contribute to the overall strategies of the business. The team leading the implementation plan for performance improvements selected four of the six areas of the scorecard to work from to benefit the systems, process, and job/performer levels in finding the areas for

The goals of the organization according to Rummler and Brache (2013) initiate the goals of the process and job/performer levels to satisfy the organization level goals (p. 17). The current average gross profit margin for Diapers with Love is 6.25 percent (See Appendix B for calculation). The new target goal is 23 percent with a steady monthly increase to reach the 23 percent profit margin. Our dedicated improvement plan will include monitoring the gross profit margin weekly using the developed spreadsheet (see Appendix B) to look for any delays in the expected climb of the business 's gross profit margin. If the spreadsheet shows changes, the systems level team will contact the implementation plan team to discuss the findings with the process and job/performer teams to investigate the cause.
In looking for ways to reach the system levels needs, the implementation team created sub goals and selected two common goals that were described by Anjoran (n.d.), to improve quality and reduce cost. To find what was needed to reach the sub-goals, investigations were done to see the necessary improvements in the process to achieve the desired targets. In the study for the cause of the low gross /profit margin, contributors presented themselves in the process and the job/performer levels in the