Lack of equipment and raw materials: A case of Company H

Abstract

In 2023, Company H expanded its business activities to include the R&D department, focusing on clinical diagnostic services. This year, the R&D department recorded a sharp increase in the employee turnover rate from 30.4% in 2022 to 40% in 2023. Through in-depth interviews, the research identified the main problem leading to the increase in the turnover rate: a lack of equipment and raw materials. This shortage has led to employees working overtime and under high workload conditions. The root cause was determined to be ineffective operating procedures, including the absence of policies for inventory management and purchasing plans. To address these issues and decrease the high turnover rate, the development of new policies for the R&D department has been chosen as the main solution. These new policies will include processes for inventory management, document management, and purchase planning. Implementing these changes aims to provide a more stable and supportive working environment, ultimately retaining valuable staff and enhancing operational efficiency.