Production and Planning Department

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Once these documents have been accepted, the company will be granted a certificate of incorporation and can start to trade. The certificate of incorporation sets up the company, as a legal body in it own right. The company (not individual shareholders) enters into contracts and can sue or be sued in a court of law. Gap has a number of objectives that it tries to achieve every year. Gap had a disappointing year in 2001 and now there main objective for 2002 is to get back being there best.

Gaps other objectives are to be committed to delivering the quality, value, style and fashion to their customers that they expect from Gap. Gap are trying to put the right teams in place, making sure that they have the right talent and leadership in merchandising, marketing and design as well as in there stores. Gap is always tying to consistently deliver products with iconic style and balanced assortments with a strong point of view. It means that Gap has to make sure that it keeps updating customers favourite casual clothes with the right fabrics. Simple, classic style for everybody is another objective Gap aim for. Gap does not just have these aims for the company but it also sets all these aims for the stores that operate around the world, and the stores can set there own aims and objective as well as the ones that Gap give them.

Gap is trying to simplify the way they work at Gap brand. They have split the brand into domestic and international divisions. By making key areas of the business more manageable, these changes will sharpen Gaps focus and help them serve their customers better. Gap also has three aims they try to stay with all the time and these are: 1) Offer the right products in the right assortments 2) Be consistent in everything you do 3) Always keep it simple

Gaps have 6 functional areas and they are Chief Operating Officer, Gap Adult, Marketing, Product Design and Development, Stores and Gap Body. In these functional areas Gap have an organisation system which has in it production, marketing, finance, human resources and research and development. Each department is responsible for different things.

In finance the chief accountant is responsible for supervising the accounts and finance department. The accounts section must keep a detailed record of all money paid in and out and present the final balance sheet. On the balance sheet they must show sources and use of funds, profit and loss accounts and other financial records at regular intervals. Gaps accounts are stored on computer files, and accounting procedures are greatly simplified because they use specialised software. Within finance there is two main subdivisions.

The first is financial accounting function that is responsible for keeping records of financial events as they occur. Gaps accounts need to be kept of all money paid to or by the Gap, and records must be kept of all debtor and creditor transactions. The payment of wages also requires calculations involving deductions for national insurance, pensions and other factors. As well as keeping day-to-day records, the financial accounting function will also be responsible for producing periodic records such as the annual accounts and figures for discussion at meeting of Gap directors.

The management accounting function has the responsibility for nudging Gap into certain directions, based on analysis of figures for the present and predictions for the future. Management accounts will break down figures, to extract information about Gaps present performance and what sorts of improvements can be made in the future. Using systems of budgetary control, Gap will set targets for achievement and limits for spending for various parts of the business.

In production the director of Gap is responsible for making sure raw materials are processed into finished goods effectively. The director must make sure that work is carried out to an appropriate standard, and must supervise procedures for enabling work to be carried out smoothly. Production managements are often referred to as ‘operations management’. In Gap, as you can imagine it is a modern workplace, and many operations are no longer concerned with old-fashioned manufacturing. Many of Gaps modern operations are concerned with dealing with customers. For example greeting people as they enter the store and dealing with customer queries over the telephone etc.

In Gap’s industry, the production function involves organising resources efficiently to offer the best quality for the best value while Gap can still make a good profit. In Gap, the production function is split into five main sub functions: 1) Production and Planning Department 2) The Purchasing Department 3) The Stores Department 4) The Design and Technical Support Department 5) The Works Department The production and planning department will set standards and targets for each section of the production process. The quantity and quality of products coming of the production are closely monitored.

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