Margo Company case study
Case Study: Margo Company
Margo Company is facing increase in overhead cost which is brought by too many paper work reports generated from various departments in the company. Though these reports are essential to the running of various projects in the organization, they should be closely monitored to avoid surging cost in overhead. The Margo Company could employ quite a number of strategies to reduce the cost.
The Company could issue guidelines to each department to avoid producing hard copies of the report instead produce the reports in soft copies. Each department should have re-writable compact disks which could be used to carry the report.
Departments should go online. This is most likely to benefit the organization in the sense that the report would be read in soft copies and many changes could be made. The company’s customers could also be convinced to open up email addresses in order to be sent soft copies of the reports if they all require them.
The paper work issue is a common issue in project management organization. This is due to the nature of the work they usually handle on daily basis which cannot be avoided at all cost.
The previous years’ overheads cost can provide a basis upon which the subsequent year’s overhead costs can be budgeted for at the beginning of the year. In other words the essential report can be planned for in the organization to avoid producing unnecessary information which does not improve the value of organization
The increase in overhead costs occurs in organizations because of failure to align operations with current technological advancements in the market. It also results from the lack of proper channel of supervision of the reports produced can also create an avenue for producing unnecessary information.