1.4 Inter-Department Coordination

1.4.1 R&D and Marketing

R&D works with Marketing to make sure your product line meets customer expectations.

1.4.2 R&D and Production

R&D works with Production to ensure assembly lines are purchased for new products. If Production discontinues a product, it should notify R&D.

1.4.3 Marketing and Production

Marketing works with Production to make sure manufacturing quantities are in line with forecasts. Marketing’s market growth projections also help Production determine appropriate levels of capacity. If Marketing decides to discontinue a product, it tells Production to sell the product’s production line.

1.4.4 Marketing and Finance

Marketing works with Finance to project revenues for each product and to set the Accounts Receivable policy, which is the amount of time customers can take to pay for their purchases.

1.4.5 Finance and Production

Production tells Finance if it needs money for additional equipment. If Finance cannot raise enough money, it can tell Production to scale back its requests or perhaps sell idle capacity.

1.4.6 Finance and All Departments

The Finance Department acts as a watchdog over company expenditures. Finance should review Marketing and Production decisions. Finance should crosscheck Marketing’s forecasts and pricing. Are forecasts too high or too low? Will customers be willing to pay the prices Marketing has set? Is Production manufacturing too many or too few units? Does Production need additional capacity? Has Production considered lowering labor costs by purchasing automation?