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Page 6 of 7 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; and
• 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; and
• Finance over their budget.
Marketing Managers
Marketing Managers can explain the relationships between:
• Price and contribution margin:
• Price and demand;
• Promotion budget and awareness; and
• 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; and
• 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; and
• 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;
• Inventory costs;
• Dividend policy and stock price;
• Emergency loans and cash;
• Current debt and short-term interest rates;
• Bond issue and prepayment; and
• All financial performance measures.
Finance Managers coordinate with:
• R&D over budgets and product introductions;
• Marketing about sales projections, margins, and budgets; and
• Production about margins, plant and equipment changes and inventory levels.
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