FAQs




  FAQs How can we organize our company? - Coordination Concerns

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

R&D Managers coordinate with:

  • Marketing when products are repositioned or introduced;
  • Production when new products are invented;
  • 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
  • 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 second shift
  • Automation and labor costs
  • Second shift and labor costs
  • Idle plant costs
  • Consequences of buying/selling capacity or increasing 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 marketing budgets;
  • Production about margins, plant and equipment changes and inventory levels.