Structure and Features of CGC System

Questions: 1. Discuss the criteria to consider in specifying the structure and features of CGCs new system. 2. Identify the data that should be incorporated into CGCs new system to provide adequate planning capability. Explain why each data item it is important and the level of detail needed for the data to be useful. Answers: Introduction The company, Citizen Gas is one of the largest distributing and domestic gas supply companies in the United States. The company has its business operation activities, which includes the provision of the industrial and commercial gas supply forces. The company has been facing several difficulties during his business operations due to the inflation in the economy in the global market and the demand and supply of gas services in the United States (Citizensenergygroup.com 2016). The gas manufacturing company has been working on its service improvement activities by providing a better gas supply in the domestic and global market by considering the different market conditions and scenarios in automatic level. The overall business analysis of the company shows that the gas consumption of the consumers in the country has been increasing in the winter season when the total supplies of gas for the company is lowest at the point of time when the supply chain management is facing difficulties wi th the distribution cycle. The company Citizen Gas outsources its gas from the different pipeline enterprises based on the contract. Moreover, as per the demand the consumers, the company has been keeping the gas storage in its factory storage. The supply chain management related to the company and has been influencing the planning of the gas pipeline and which requires to be considered by the company in the future. The company is currently planning to reduce the constraints between the supply and demand of the gas products within the specified period. According to some situation analysis, it can be evident that if the company were able to handle the process of the supply and demand of the gas products in the domestic market, it would be able to create beneficial scenario in the global economy (Citizensenergygroup.com 2016). Owing to the mismanagement in the supply chain management of the company, it can be predicted that the demands of the consumer is relatively higher than the sup ply, which the company is incapable of fulfilling the demand of the products for the commercial and industrial consumers at the same time. This error has been a major cause where the company has been facing losses in the market. The company has appointed a director who would be responsible for all kinds of planning related to the corporate business environment in order to meet the demand and supply of the gas products in the market. The main objective of the project is to provide a business report based on the new demand and supply system to be introduced by the company in terms of preparing the appropriate monthly sheet with the support of the systemic decision-making process within specified period. Company background Citizen Gas Company has been one of the largest gas suppliers in the United States, which has been producing natural gas since its establishment in the financial year of 1887. This company has been initially operating by the public charitable trust for the benefits of the market consumers and society. The major business activity of the company has been engaged with the domestic customers who are the clients of the company and who utilizes natural gas for the household activities and commercial purpose industrial uses as well. According to the database, it can be evident that the company is holding maximum number of market share on day-to-day bases in the household consumer supplies the gas service supplies that the company has been providing. According to the database, it can be shown that they are having more than 1 lakh customer all around the country. Out of the regular customers, half of the population is domestic and household uses of the gas suppliers.Moreover, 38000 commercial customers and 2000 industrial customers who are holding by the customer base of the citizen gas company. Recently, the level of consumption that the gas supplies as provided by the company has been measured to be the highest for the house hold consumers. The main reason of the companies is to fulfill the promise of the trust in order to serve the communities and customers with unparalleled excellence and integrity. Moreover, the overall supply chain management activities of the company can be evident to be providing reliable services to their target customers with the proper management scenario. Structure of the company Figure 1: Business Structure of the company Source: (Citizensenergygroup.com 2016) The overall organisational structure of the company can be highly synchronization structure in order to enhance the business processes by focusing on the functional aspects relating to the companies it can be noted that the company has been under maintenance of charitable trust and there's no such interference for the business functions rated by the company within specified period time pointed by Jesus has been handling process of some other activities of the company. The various departments of the citizen gas company are comprised of sales and marketing department distribution and PR department Human Resource Department accounting and finance department as well these are some of the departments which details of the companies are hiring to record the chief executive officer of the company related to the business operations being performed by the companies with financial period the organisational structure of the company simple and proper organisational hierarchy has been implemented the manager's being appointed in his department of the company has been efficient in managing the responsibilities towards managing the operations at different department and performing at their optimal level for the growth of the business in the market. Business scope for Citizen Gas Company The company is associated with the business operations related to the natural gas service and the customer service activities in the local market. It should be noted that the company has not been able to capture the Industrial and commercial segments for their customers. Moreover, the company is getting supplies from 10 pipeline companies for the natural gas products (Attaran and Attaran 2012). The company has not been able to fulfill the customer service as there are no production activities as conducted by the company where in the company is planning to take the gas supplies from other merchant companies. The Citizens Gas Company has also been facing problem while fulfilling the demands of the customers. Owing to less supply chain production from the merchant pipeline companies, the Citizen Gas company is unable to supply Industrial and commercial segment of customers. This inability of the company in metering up with the demand of the customers has been the main reason for the los ses in respective of business operation activities where is it is unable to generate desired revenue from the supplier activities. From the analysis of the overall business activities of the company, Citizen Gas Company can be shown to be having scope of growth in the economy as it has been able to establish its gas pipeline and resource storage for providing instant natural gas supply to its active and potential customers (Seuring 2013). It should be also noted that the company is capable enough to plan an organisation facility in order to properly handle business operations white consultancy demand forecast and supplies for targeted customers. Current pipeline system for Citizen Gas Company Figure 2: Current pipeline system for Citizen Gas Company Source: Created by author The gas pipeline system of the company can be divided into three different supply levels viz., (i) purchasing gas from the direct supply of the natural gas to the target customers, (ii) directing supply of natural gas to the target customers and (iii) keeping storage services related to the purchase of the gas products (Poompipatpong and Ho 2013). The company has also made plans of making contracts with different gas pipeline companies for the next 5 to 15 years (Chen and Baldick 2012). The supply companies are bound with the contract for providing the gas storage to the company for the contract period. Most of the merchant companies are also bound with the contract for providing gas production in a fixed amount. The payment activities have been the major causes for losses for the company at the time when the demand for the gas is lower and the supply from the merchant companies is more. The second factor of collecting the resources for the companies requires the establishment of own storage facilities for supplying gas to the active and potential customers. The company has been facing problem in maintaining the products stocks for fulfillment of the demand for the customers. The company has also been keeping the production stocks while collecting the natural gas being provided by the merchant companies (Chen and Baldick 2012). The third factor is to provide the supplies of the natural gas products to the targeted customers. The company has been planning the supply of the products from different pipeline companies based on the actual demand to the customers. The company also provides services to the potential customers based on the supply of natural gas production related to the commercial and industrial customer segments (Monczka et al. 2015). Sales budget Month Sales figure residential (2015) Budgeted residential figure (2016) Sales commercial (2015) Budget commercial Sales industrial (2015) Budget industrial (2016) -2016 Jan $ 1,90,00,000.00 $ 2,00,00,000.00 $ 21,00,000.00 $ 20,00,000.00 $ 31,00,000.00 $ 30,00,000.00 Feb $ 1,70,00,000.00 $ 1,60,00,000.00 $ 11,00,000.00 $ 13,00,000.00 $ 11,00,000.00 $ 13,00,000.00 Mar $ 1,30,00,000.00 $ 1,40,00,000.00 $ 10,00,000.00 $ 14,00,000.00 $ 10,00,000.00 $ 14,00,000.00 Apr $ 1,40,00,000.00 $ 1,40,00,000.00 $ 21,00,000.00 $ 25,00,000.00 $ 21,00,000.00 $ 25,00,000.00 May $ 1,00,00,000.00 $ 1,00,00,000.00 $ 31,00,000.00 $ 35,00,000.00 $ 31,00,000.00 $ 35,00,000.00 Jun $ 1,10,00,000.00 $ 1,20,00,000.00 $ 29,00,000.00 $ 30,00,000.00 $ 29,00,000.00 $ 30,00,000.00 Jul $ 80,00,000.00 $ 1,10,00,000.00 $ 30,00,000.00 $ 45,00,000.00 $ 30,00,000.00 $ 45,00,000.00 Aug $ 1,00,00,000.00 $ 1,00,00,000.00 $ 31,00,000.00 $ 30,00,000.00 $ 31,00,000.00 $ 30,00,000.00 Sep $ 1,30,00,000.00 $ 1,20,00,000.00 $ 11,00,000.00 $ 25,00,000.00 $ 11,00,000.00 $ 25,00,000.00 Oct $ 1,20,00,000.00 $ 1,30,00,000.00 $ 10,00,000.00 $ 25,00,000.00 $ 10,00,000.00 $ 25,00,000.00 Nov $ 1,40,00,000.00 $ 1,50,00,000.00 $ 22,00,000.00 $ 20,00,000.00 $ 22,00,000.00 $ 20,00,000.00 Dec $ 1,50,00,000.00 $ 1,70,00,000.00 $ 33,00,000.00 $ 30,00,000.00 $ 33,00,000.00 $ 30,00,000.00 Total $ 15,60,00,000.00 $ 16,40,00,000.00 $ 2,60,00,000.00 $ 3,12,00,000.00 $ 2,70,00,000.00 $ 3,22,00,000.00 Total $ 22,74,00,000.00 Table 1: Sales budget forecast 2016 for the company Source: Created by author Purchase budget Month Purchase budget (2015) Actual sale (2015) Purchase budget (2016) Jan $ 2,00,00,000.00 $ 2,20,00,000.00 $ 1,80,00,000.00 Feb $ 1,60,00,000.00 $ 2,00,00,000.00 $ 1,70,00,000.00 Mar $ 1,40,00,000.00 $ 2,10,00,000.00 $ 1,60,00,000.00 Apr $ 1,40,00,000.00 $ 2,20,00,000.00 $ 1,50,00,000.00 May $ 1,00,00,000.00 $ 2,30,00,000.00 $ 1,70,00,000.00 Jun $ 1,20,00,000.00 $ 1,50,00,000.00 $ 1,80,00,000.00 Jul $ 1,10,00,000.00 $ 1,40,00,000.00 $ 1,50,00,000.00 Aug $ 1,00,00,000.00 $ 2,00,00,000.00 $ 1,50,00,000.00 Sep $ 1,20,00,000.00 $ 1,70,00,000.00 $ 1,20,00,000.00 Oct $ 1,30,00,000.00 $ 1,80,00,000.00 $ 1,30,00,000.00 Nov $ 1,50,00,000.00 $ 1,90,00,000.00 $ 1,40,00,000.00 Dec $ 1,70,00,000.00 $ 2,20,00,000.00 $ 1,60,00,000.00 Total $ 16,40,00,000.00 $ 23,30,00,000.00 $ 18,60,00,000.00 Table 2: Purchase budget forecast 2016 for the company Source: Created by author Expense budget Operating Expenses Actual Expense (2015) Budget expenses (2016) Difference Accounting $ 8,50,000.00 $ 6,50,000.00 $ 2,00,000.00 Marketing $ 15,00,000.00 $ 2,00,000.00 $ 13,00,000.00 Dues and Subscriptions $ 20,00,000.00 $ 2,20,000.00 $ 17,80,000.00 Depreciation $ 12,00,000.00 $ 9,50,000.00 $ 2,50,000.00 Insurance $ 28,00,000.00 $ 2,50,000.00 $ 25,50,000.00 Maintenance and Repairs $ 40,00,000.00 $ 2,80,000.00 $ 37,20,000.00 Interest Expense $ 78,00,000.00 $ 8,40,000.00 $ 69,60,000.00 Office Supplies $ 50,000.00 $ 30,000.00 $ 20,000.00 Rent $ 30,000.00 $ 30,000.00 $ - Payroll Expenses $ 7,00,000.00 $ 8,50,000.00 $ -1,50,000.00 Salaries and Wages $ 15,90,000.00 $ 15,90,000.00 $ - Web Hosting and Domains $ 11,00,000.00 $ 11,50,000.00 $ -50,000.00 Taxes and Licenses $ 2,00,000.00 $ 20,000.00 $ 1,80,000.00 Other $ 8,00,000.00 $ 1,20,000.00 $ 6,80,000.00 Total Operating Expenses $ 48,61,00,000.00 $ 4,68,80,000.00 $ 43,92,20,000.00 Table 3: Expense budget forecast 2016 for the company Source: Created by author Supply chain management activates The company is planning to organize a better gas supply pipeline process in order to target the customer segments such that to meet the specific demands on a specific period. Moreover, the company is also planning for creating storage facilities in order to store the raw materials and products from the different merchant companies for their potential customers within the given period. The higher database of the company for supply and demand is also required to be managed on a monthly basis (Zhu and Sarkis 2014). Besides, the company is also planning for expanding and incrementing the business plans as well. According to the new appointment director, the new supply chain management as designed would be fulfilling customer demand within the next 5 years. The Incredible initiative of the company would be helping in creating profitability in the future (Seuring 2013). Moreover, the future planning of the organisation is related to the storage planning within the coming financial year, wh ich would help in enhancing the financial scenario in the future. Evaluating planning capability of Citizen Gas Company It is very essential for the company to collect the database and restore the essential monthly sales and purchase data related to the application of contract with 10 different pipeline system such that to manage the demand of customers in the future (Winter and Knemeyer 2013). The three different kind of functional areas help in properly maintaining the correlation between the forecasted data in corresponding to the various attributes of the structure of the pipeline systems. The operational activities of the company would be helping in making it easier for the operational activities to abide by the total consumption of the gas products. The primary line of the customers of the Citizen Gas Company is residential with the highest supply demand (Joskow and Kahn 2012). The new structural information system would be helping the company in the proper management of the total demand and supply of gas products as required by the company to stock the same in its storage facilities (Winter and Knemeyer 2013). Conclusion The project report deals in illustrating the lack of proper storage facilities and planning of the Citizen Gas Company which has been making it incapable to capture the market. The company is also unable to fulfill the demand and supply of the customers in respective of the demand of the gas products. This is creating problematic situation for the company. The company has contracted with various merchant companies such that to provide gas products which is also not matching with the expected demand of the active and potential customers of the company. Moreover, in order to eradicate the issues, the company has appointed the director of the operational system who would be focusing on the total supply and demand of the organisation in the future. The project report deals in measuring and focusing on the current operational activities of the company such that to reduce the losses being incurred within the company during the specific period. References Attaran, M. and Attaran, S., 2012. Collaborative supply chain management: the most promising practice for building efficient and sustainable supply chains.Business Process Management Journal,13(3), pp.390-404. Chandrakar, R., 2012. Overview of green supply chain management: operation and environmental impact at different stages of the supply chain.International Journal of Engineering and Advanced Technology,1(3), pp.1-6. Chen, H. and Baldick, R., 2011. Optimizing short-term natural gas supply portfolio for electric utility companies.Power Systems, IEEE Transactions on,22(1), pp.232-239. 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