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'Operations' is about the functions and procedures regarding the day-to-day processes, while 'strategy' is about the direction and scope of an organisation over a long period of time. The operations strategy in this case is to optimize the resource deployment involved in the project to increase long-term efficiency.
Process Improvement Plan. The 'just-in-time' stock optimization method will be adopted through the entire project. JIT manufacturing being a philosophy by which organizations seek to continually improve their products and processes by eliminating waste, will help the logistics and production systems run smoothly without any picks or valley that translate into costs for the organization (Swanson & Lankford, 1998).
Operational Efficiency/Operational Effectiveness Improvement. Due to the improvement generated by the project, the company should expect lower logistics cost and a potential production increase.
VI. Technical Process/Information Management Plan
Information System Objectives. A study made by Aberdeen research (2008) revealed that more and more projects nowadays are focused on the desire to improve customer service, expense management and sales operations performance. Therefore, a sound measurement of KPIs is essential to maintain a high efficiency level. Informatics systems with a high degree of complexity are believed to generate the desired impact in this case. SQL-based data mining tools and statistical software will be added to the daily analysis activity.
Hardware/Software Requirements. The implementation of RFID requires both a software part and a hardware one. Each product that enters the company's storage has to be tagged. The tag will allow the tag reader to collect information about the entry time, duration in the storage room and exit. The information is transferred to the storage database, from where it can be analysed. In addition to this system, the logistics team will require data mining and statistical tools to improve reporting on logistics activities.
Conclusion
RFID implementation is meant to optimize supply chain-related activities in United Biscuits organization. This project will show how important the logistics systems are for a company with complex manufacturing and distribution activities....
The procurement has to be coordinated at global level, which increases the complexity of this function. The company has to be joined by its suppliers in its technological upgrade. Thus, the company may have to replace those suppliers that won't adopt RFID; however, it is believed to pay off in the long run. The product development management can now synchronize with the global procurement. Inventory, distribution and customer service are expected to improve in terms of duration and costs with the synchronization between production output, storage and delivery to the consumer.
References:
Aberdeen Group. 2008. Operational KPIs and Performance Management -- Are Your Daily Decisions Based on Fact?, http://www.aberdeen.com/
Cooper, M. & Lambert D. 2000. Issues in Supply Chain Management. Industrial Marketing Management, vol. 29: pp. 65-83.
Johnson, J. C. And Wood, D.F. 1996. Contemporary Logistics, N.J.: Prentice Hall Upper Saddle Creek.
Keah C.R.K. And Handfield, R.B. 1998 .Supply Chain Management: Supplier Performance and Firm Performance. International Journal of Purchasing and Materials Management: pp.2-9.
http://www.informationweek.com/news/mobility/RFID/showArticle.jhtml?articleID=171203904
http://www.unitedbiscuits.com/about-ub.php
University of Wisconsin Milwakee, EDI notes, website accessed July 2007, http://www.uwm.edu
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