PCI, Case Study, Mia Case Study Essay Example

PCI, Case Study, Mia Case Study Paper Presentation The issue began on February 2008 when the new designated Managing Director of PCI Sdn Bhd, En Ghani investigated 2007 Financial Report and discovered there were late increments in expenses of products sold and inventories. The pace of increment in expenses of merchandise sold had been lopsided with development of deals. En Ghani was educated that one regarding the explanations behind the expansion in cost was a direct result of the present buying framework that adds to repetitive buying and high stock holding costs. Siti Aminah, the Chief of Financial Officer was approached to survey the present buying framework and proposed the need to execute another automated buying framework that would help diminish a portion of its manual tasks and simultaneously would guarantee it has the best possible controls set up. En Ghani mentioned a conventional report on current buying framework and recommendation for another framework before the following administration meeting which would be in about fourteen days time. En Ghani appointed Siti Aminah on the extraordinary errand rather than the senior Chief Production Officer and she didn't have any involvement with framework and innovation. We will compose a custom paper test on PCI, Case Study, Mia Case Study explicitly for you for just $16.38 $13.9/page Request now We will compose a custom article test on PCI, Case Study, Mia Case Study explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer We will compose a custom article test on PCI, Case Study, Mia Case Study explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer The new framework must have the option to diminish costs, improve control and give simple administration of clients and administrations in subjective and quantitative manners. CHARACTERS En Ghani : as the new designated Managing Director of Penda Cable Industry Berhad, who looked into past year Financial Report and requested conventional report from Siti Aminah. Siti Aminah : the Chief of Financial Officer that being solicited to make formal report rather from the Senior Chief of Financial Officer. CURRENT PURCHASING SYSTEM IN PCI Reason : to guarantee the acquisition of crude material (prohibit outside Aluminum link scap) that was required for the assembling of link, conductors and related items. 1) Monthly Raw Material Summary Cik Lim General Manager of Material Resources and Planning En Razi Assistant Purchasing Manager (MRMS) Review first seven day stretch of Forecasted Monthly Every month Material Requirement En Sam General Manager Purchasing (MMR)MRMS Planning Section En Razi 2) Cik Anne Purchasing Clerk RM100 000 En Ghani Filing En Min Raw Material Storekeeper RM 100 000 Cik Lim PURCHASE ORDER COCORDER CONFIRMATION CompetitiveNot En Sam En Razi Vendors Competitive Quotation 3) Suppliers Invoices Cik Lim Cik Anne Coded, Batched and Checked Invoices Delivery Store Received a) Verification Order Notes b) Account Payable Reference No. En Min c) Update Account Payable rundown in Assistant Finance Manager the PC. 4) Enclosed with the arrival receipt of check/TT for notice of installment DO,COC Vendors MaterialRAW MATERIAL STORE RMRR VCAR Financial Department (for installment) InvoicePURCHASING SECTIONShipping Document Shipping PCI BANK Document Voucher Approved Delivery Order RMS 2 Form Purchasing Clerk En Min Assistant Finance Manager Signed QUANTITATIVE DECISION | 2006| 2007| GROSS PROFIT MARGIN(Gross Profit/Revenue)| (12086851/176877312) = 0. 07| (48053370/298146915) =0. 16| OPERATING PROFIT MARGIN(Operating Profit/Revenue)| (6386819)/176877312 =(0. 03)| 35657392/298146915 =0. 12| INVENTORY TURNOVER(COGS/Inventories)| (164,790,461)/27434751=(6) | (250,093,545)/45,575,893=(5. 48)| AVERAGE COLLECTION PERIOD(Debtors/(Revenue/360))| 15,506,128/(176,877,312/360) =31. days| 8,453,275/(298,146,915/360) =10 days| Gross Profit Margin At the point when the organization shows the higher GPM, it demonstrates that the organization is better in controlling their expense of deals. PCI net revenue in 2007 is higher than 2006. It implies that the organization can deal with their expense of deals. For turning out to be years they have to settle on a concurrence with their providers to forestall crude material cost increment. Working Profit Margin When the organization shows higher working net revenue proportion, it demonstrates that the organization is productive. In light of the figuring, PCI current year shows an improvement from the earlier year. For turning out to be years, working costs as far as authoritative and selling costs should be dodged from getting increment to keep up the benefit. Normal Collection Period (Debtor) The shorter the period to gather installment from account holders, the more effective the organization is in taking care of their indebted individuals. End With respect to end, Siti Aminah can recommend just to keep up their old framework rather than new buying framework. This is on the grounds that, the present circumstance didn't brought about an excessive amount of harm to the organization, the organization despite everything can continue despite the fact that they need to purchase the crude materials in more significant expense. PCI isn't the main organization that have issue in buying their crude materials yet all the buying offices over the business experienced comparable difficulty. Their primary quandary included setting up and keeping up gainful provider connections, standing up to the issue of cost increments and guaranteeing gracefully amount. What they need really do is to compel providers to keep costs low when the expense of crude materials diminishes. They can all the more likely do this by keeping their own tabs on the crude materials advertise.