FINANCE, ACCOUNTING AND BANKING
Six sigma projects are essential for the growth of a company. Eagle Electronic had had serious problems with employees affecting its production and market share in the electronic industry. According to Faust J. E., (2015), the challenges are related to employees management have made it unable to compete with other electronic firms such as Dell and HP. However, as supervisor or senior employee of the company, I would recommend equity share partnership with employees as the alternative measure to retain employees with innovative concepts which can help the company to increase its market share. The new managements have invested heavy on the new concept to drive the growth but it seems some valuable employees are still optimistic to leave the company and start their own ventures. Through increased equity share partnership on any derived idea by any employees besides funding the concept, the company would like to retain several employees. On the other hand, Eagle Electronics will still fund 70%of the innovative idea.
Eagle electronic has been experienced stiff competition from major computer supplier such as Dell and HP. This has reduced the market share of the company over the last five years reducing its profitability as well. Within the last years, a new concept was derived to drive internal growth through invention of new business ideas related to technology for funding by the company through partnership. The concept has worked well and the company’s market share has increased resulting to higher profit in the last two years CITATION Jus15 \l 1033 (Faust, 2015). However, the new business concept is facing resistance from some employees which can force valuable employees to leave with the company for the own ventures. This will reduce the company markets share and increase competition for the company.
The goal of the Eagle Electronic is to increase its markets share through market diversification by entering into equity share partnership with employees.
Equity share partnership project intends to occur between Eagle Electronics and employees. Eagle Electronics intends to increase the current equity share by 20% to ensure that it can retain all its employees with an innovative idea or a new product to introduce to the market CITATION JEF09 \l 1033 (Faust J. , 2009 ). Increasing equity share means that for every new idea proposed and working, an employee who derived the idea would get 40% stake of the idea. It means that each idea inverted will be owned by the company and an employee at the rate of 40% to 60% employee and Eagle Electronics respectively. This is expected to increase the productivity of the company hence higher market share and profitability.
Critical-to-quality requirements or CTQs of the processes within the scope of this project
The CTQ is critical for the accomplishment of this project. Each product designed should reflect the needs and wants of customers. The product would be designed to meet the market deficit. And therefore, employees with unique ideas would be given the first priority in terms of admitting new concepts which can help the company grow CITATION Lea18 \l 1033 (Michael, 2018). The products innovated should also be unique to be able to be admitted by the company for the purpose of partnership. Eagle Electronics diversification of products is key to customers satisfactory. With several ICT related products, customers would be able to get every product from the company and therefore, customer loyalty would increase. Studies indicate that Eagle Electronic was faced off the computer market because of a single product oriented. Learning from that mistake, the company idea of partnership with employees for innovative concepts is likely to move the market share to a greater height hence increasing its profit as well.
The key metrics for the project would be increase sales, market share, satisfactory level and profitability of the company. Equity share partnership is likely to increase enthusiasm of the employees to work hard to deliver the needed service to clients. Employees would own the process making the project more viable and therefore, the rate of achieving the key metrics is high.
Expected operational and financial benefits of the project
The project will be operated by a team of employees coordinated by head of project management. However, it is expected to cost the company approximately 250 million in terms of funding to the new ideas. It is estimated that within the next 2 years, the Eagle Electronics would be able to finance ten new ideas. The new ideas would be converted to products viable to meet customers’ needs. It is therefore, evident that Eagle Electronic will introduce 10 new products through its equity share partnership with employees. However, it is estimated to earn over $2 billion from the sale of products which due to the current trend in the market. It is therefore, evident that there would be a huge financial benefit from the project to the company. The benefit will be realized within a period of 2 years.
Milestone dates for each phase of DMAIC
The project shall begin at the end of August 2019 and run for a period of 2 years.
The project team members are executive direct in charge of finance, project manager, technology director, Content Manager and customer relations manager.
The project shall be championed by project manager in collaboration of with the content manager
BIBLIOGRAPHY Faust, J. E. (2015). Increase Efficiency Using Six Sigma Methodologies . Manufacturing Competitiveness Depth Area , 2-35.
Faust, J. (2009 ). Increase Efficiency Using Six Sigma . Journal of Business Management , 2-34.
Michael, L. (2018). CtQs in Design Controls Company Presentations. Individual presentation from member , 2-14.
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