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How can we organize our company? |
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Page 9 of 10 Coordination Concerns R&D Managers R&D Managers can explain the relationship between: - Age and positioning
- Positioning and material cost
- MTBF and material cost
- Automation and project length
- Number of projects and completion times
- Project length and proximity to other products
R&D Managers coordinate with: - Marketing when products are repositioned or introduced;
- Production when products are launched or material costs change;
- Finance over their budget.
Marketing Managers Marketing Managers can explain the relationships between: - Price and contribution margin
- Price and demand
- Promotion budget and awareness
- Sales budget and accessibility; and A/R policy and demand
Marketing Managers coordinate with: - R&D when products are launched or repositioned;
- Production in their unit sales forecast and contribution margin; and
- Finance with sales projections and their budget.
Production Managers Production Managers can explain the relationships between: - Inventory levels and carrying costs
- Carrying costs and opportunity costs (not having inventory to sell)
- Capacity and overtime
- Automation and labor costs
- Overtime and labor costs
- Idle plant costs
- Consequences of selling capacity or buying automation
Production Managers coordinate with: - R&D about new product introduction and material costs;
- Marketing about demand, scheduling, and inventory;
- Finance about plant and equipment changes, inventory levels, and contribution margins.
Finance Managers Finance Managers can explain the relationships between: - Stock issue or retirement and capital structure
- Working capital and inventory
- Dividend policy and stock price
- Emergency loans and cash
- Current debt and short-term interest rates
- Bond issue and prepayment
- All financial performance measures
Finance Managers coordinate with: - R&D over budgets and product introductions;
- Marketing about sales projections, margins, and budgets;
- Production about margins, plant and equipment changes and inventory levels.
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