Ineffective production process at Hoa Khanh kitchen collection co., ltd.

Abstract

This thesis intends to address Hoa Khanh Kitchen Collection Co., Ltd.'s ongoing issues, notably issues with its gross margin and high material cost connected to the production process. The objective is to improve the company's financial health and support long-term growth. Following internal discussions, research, and interviews, it was determined that the key symptom is high material costs. These difficulties begin from a variety of reasons, including poor production budgeting, ineffective purchasing procedures, and ineffective production procedures. To tackle these identified difficulties, the company intends to avoid sales order amendments which impacts significantly to production process, thereby reducing material costs, and increasing production capacity. This strategic strategy is critical for effectively addressing the challenges of high material costs. Recognizing the importance of these enhancements, the organization is constantly exploring solutions. A thorough action plan with two specific solutions to the financial and production divisions is being developed to solve the key problems relating to Sales order amendments. Last but not least, Hoa Khanh is strongly committed to overcoming financial challenges to reduce the company's scrap rate. The emphasis is on attaining success through a concentrated effort to improve costcutting techniques for future sustained growth.