25+ documents containing “Business Processes”.
BUSINESS MANAGEMENT
BUSINESS OPERATIONS AND SYSTEMS
FINAL YEAR
QUESTION
Part 1
Outline the essential components for effective business operations management for a UK business of your choice whose products are delivered to the door (e.g. Amazon). In the context of the company you have selected evaluate "The parcel delivery conundrum" using an appropriate systems methodology and support your discussion with appropriate business operations models.? You should include CATWOE, Root Definition and produce a detailed Rich Picture? (hand drawn) to illustrate your answer.
Part 2
Recommend how the business should respond to this conundrum (keeping in mind the possible technological and environmental (CO2) impact). By means of a business process plan illustrate the changes including ?AS IS? and ?TO BE?.
Part 3
Discuss the managerial qualities and resources that are necessary for effective implementation of the new process. By means of relevant models discuss how the business performance can be measured post implementation.
Assignment (Project) 1500-2000 word
The assignment (the project) must be consistent and all parts must be linked together and coherent. The assignment length should not exceed 2000 word and should not be under any cases less than 1500 word, excluding references list, figures, tables and appendices.
1. Definition of e commerce
2. E-commerce as modern business methodology
3. What are the characteristics of Internet market vs. traditional market
4. Benefits of e commerce
5. What are critical success factors of e-commerce.
6. E-commerce applications.
7. Types of E-commerce e.g. B2B, B2C, C2C etc.
8. Security and Legal issues of e-commerce.
9. Analyze and discuss how Apple Inc. benefited from e commerce in terms of cost saving, profitability, business process, what application it use etc.
The recommended structure of the assignment is as follows:
1.Introduction; must include the aims of your project, purposes, scope, industry, and main issues covered in the project, (approximately 150 words)
2.Literature review: Getting some literature support relevant to your topic from journal articles and books and other relevant sources (700 words approximately).
3.Analysis and discussion and the case or the company (Apple Inc.) that is covered in your project (400 words approximately). In addition to your opinion and critical reflections.
4.Conclusions and recommendations
Format of the paper:
1.Double-spaced, 12 point font with one inch borders
2.No grammatical or syntactic errors
3.All references contained in the Reference List or Bibliography conform to a bibliographic standard, e.g., APA.
4.No citation issues. Plagiarism is strictly prohibited.
5.Pages are numbered, and section have titles and sub-titles
6.Include Table of contents
7.Include Table of figures
8.Use figures, diagrams, pictures, table etc.
Boethius, you prepared stage 1, reason why I'd rather you be the one to do stage 2 (of 4). Thanks for your help.
Case Study, Stage 2: Business Process Analysis and Technology Solution Proposal
Before you begin this assignment, be sure you have read the XXXX Haircuts Case Study, XXXX Haircuts Stage 1 Project and the Walmart Example. You will use the strategic business area and process that you selected in Stage 1; review the feedback you received for any recommended changes to your Stage 1 project prior to starting this assignment and be sure you have an appropriate process identified.
Purpose of this Assignment
This assignment gives you the opportunity to apply your analysis skills to model a business process. Modeling the process as it exists (and as it will exist) will aid in the analysis, design, development and implementation of the technology solution. This assignment also gives you the opportunity to apply your knowledge of technology solutions to improve a business process. This assignment specifically addresses the following course outcomes to enable you to:
analyze internal and external business processes to identify information systems requirements.
identify and plan IT solutions that meet business objectives.
Business Process Analysis for the UR XXXX Healthy Fitness Center
In order to apply technology to a process, the process must be thoroughly understood and models are used for this purpose. The model also supports business process analysis and redesign when the process is deemed to be inefficient or ineffective. In addition, models are used to design the to-be process that describes the desired end state after the technology solution is developed.
For your Stage 1 Project for the Case Study, you identified a strategic business area for improvement of the XXXX Haircuts business, and you identified a process that could be improved with the use of technology. In this stage, you will create a model of that process that will define in detail the steps in the process as it is done today to aid in the analysis of the problem, and you will create a model of the proposed new, improved process, and explain your proposed IT solution to support that improved process.
The proposed information technology solution should address the revised business process and should be appropriate to XXXX Haircuts. The solution will be briefly described, and an explanation given for why and how this proposed solution will improve the business process. Be sure to read the instructions for the remaining projects in this Case Study (Stages 3-5) to get an understanding of the future projects that build on the proposed solution and to help you in deciding upon your solution. You want to propose a solution that can be used in the assignments that follow this one, so be selective and choose an appropriate solution.
Assignment
For this assignment you will use the process identified for improvement in your Stage 1 Project. There are 2 parts to this assignment.
Part 1: Business Process Analysis - Models of the AS IS Process and the TO BE Process. The various course resources provided for Week 2 illustrate several different methods of modeling business processes. You may use any of the models shown (or follow the example provided in the Walmart Example), to analyze the process you identified for improvement, breaking it down into sequential steps and modeling it. You may use Microsoft Word, Excel or Power Point (or compatible software) or clearly and professionally hand-draw your model and scan it into an electronic file format. Which model format you choose to use is not as important as making sure you have included all the major steps in the process and appropriately sequenced them. The process that you model must be the one you identified in your Stage 1 Project (or the one suggested by the instructor) and it needs to be appropriate to XXXX Haircuts. First, you will model the process as it is currently performed at the shop; this is the AS IS Process. Then you will model the way that you expect the new process to function after your proposed technology solution is implemented; this is the TO BE Process. Note: See Stage 1 for the definition of a process and examples of processes at XXXX Haircuts.
Tools for Creating the Models
The following website has a more detailed description of Flow Charting and its uses: http://web.archive.org/web/20130718234318/http://www.hci.com.au/Hcisite2/toolkit/flowchar.htm
To create a flow chart or process map in Excel:
? http://web.archive.org/web/20130619031235/http://www.breezetree.com/articles/how-to-flow-chart-in-excel.htm
? http://office.microsoft.com/en-us/templates/flowchart-simple-layout-TC001018440.aspx
? http://www.youtube.com/watch?v=exFFCCr66LI [cc is ok, demo is self-explanatory]
To create a flow chart in Word:
? http://www.youtube.com/watch?v=5hNGkxoM_ak
[closed captions and transcripts are not helpful, but demos are self-explanatory]
? http://www.youtube.com/watch?v=RkN0dekcsmw
[closed captions are in German, but demo is helpful]
To create a flow chart in PowerPoint:
? http://www.youtube.com/watch?v=XRplZxP6RFg
[closed caption, but demo is self-explanatory]
Business Process Example: If a grocery store had a need to reduce expenses and improve customer satisfaction, a process needing improvement might be improving the inventory process to ensure availability of products for customers as well as to reduce cost related to spoiled inventory. The model could include the steps necessary to record inventory information, update inventory when merchandise is sold, place orders for additional inventory from suppliers, etc.
Part 2: Technology Solution Proposal. Using at least one external resource (a source other than those provided in this class), write a short paper 1-2 pages in length, not including References page and cover sheet, responding to the bulleted items below. Remember to correctly cite and reference your sources using APA format. Use the Grading Rubric to be sure you have covered everything.
Create a document that includes the following:
1. At the end of your Stage 1 assignment, you listed the strategy, business area and process selected. These should be provided at the beginning of this paper to set the stage. Be sure to incorporate any recommended changes, and show:
GENERIC STRATEGY:
STRATEGIC BUSINESS AREA:
PROCESS TO BE IMPROVED:
2. Briefly explain the business process identified in Stage 1 and why it could benefit from a technology solution.
3. Propose a specific information technology solution, describing it in a few sentences. Note: Its tempting to propose integrating lots of new technology but focus on a single solution that would improve the process you identified and modeled.
4. Next, briefly describe (in one to three sentences each) the components of the IT infrastructure required for your proposed IT solution, as they would be implemented at xxxx Haircuts. The components of the IT infrastructure are described and explained in the Course Module 2, Solution Building. They are:
? services - the people or organizations that run, support, and manage the other infrastructure components; can be internal staff or external contractors or service providers. You should include who will run, support and manage the infrastructure components for your proposed solution.
? hardware - devices that perform the input, storage, processing, and output functions. Include the major, important hardware components needed to implement your proposed solution.
? software ??" identify the type of application software to be used; if you are proposing to use a software package, provide the name of it.
? telecommunications ??" identify what kind of telecommunications will be needed for the solution, including local connectivity and internet access, if appropriate, and whether it will be used for data, voice and/or video.
? facilities - what facilities will be neded to house the equipment and support staff; state whether the hardware be housed at xxxx Haircuts or at another facility.
5. Explain how the proposed technology solution will improve the process.
6. Explain how the proposed technology solution will support the selected Generic Strategy and the selected Strategic Business Area.
Technology Solution Example: If a grocery store wanted to improve its inventory process, a proposed technology solution might be the implementation of hand-held scanners for customers. The hand-held scanners could update inventory real-time as customers make their purchases. This solution would require purchase of hand-held scanner devices, software that can collect the data, appropriate wireless network, etc.
Submit your Part 1 and Part 2 paper with your last name included in the filename(s). If possible combine Part 1 and Part 2 into one file; otherwise be sure each file is clearly labeled identifying the Part of Stage 2 it represents.
Note: Your models will be evaluated on whether they are applicable to the process identified, all major steps in the AS-IS and TO-BE processes are included and correctly modeled, and they are appropriate to the XXXX Haircuts business.
Your paper will be evaluated on whether or not you correctly incorporated the course concepts and addressed all parts of the questions. You need to do some external research on at least one aspect of the assignment - your choice - and incorporate it and cite (and reference) it in APA format in your response. What, exactly, you propose as a technology solution will be evaluated as to whether it is appropriate for xxxx Haircuts and could actually improve the process identified, and whether it is fully thought-out and supported with application of course concepts and research. Remember, this is an information systems management course, and your solution must be an information technology solution.
Customer is requesting that (Boethius) completes this order.
Using the the attached information, write a paper.
In your paper address the following:
1. Select two business processes and perform an analysis on each.
? Option 1) create an ?as-is? and a ?to-be? analysis of each process
? Option 2) perform a business process reengineering analysis on each process
? Option 3) perform one ?as-is/ to-be? and one reengineering.
Note: Be sure to document the steps of the process, create a visual image (flow chart or mapping) and describe the analysis process in detail.
Include a title page and 3-5 references. Only one reference may be from the internet (not Wikipedia). Please adhere to the Publication Manual of the American Psychological Association (APA), (6th ed., 2nd printing) when writing and submitting assignments and papers.
I have started this to give you a begining to start off with.
Term Paper Outline Instructions
General Instructions for working with the Term Paper Template:
1. All words in brackets [ ] will eventually be deleted and replaced with your own words. Make sure you delete the brackets, too.
2. The major section headings (which are all centered) should not be altered. These will be the same in everyones term paper. However, you will customize the sub-headings according to your own content.
Specific Instructions for the Term Paper Outline:
1. Customize the title page for your own paper. This includes editing the Running Head in the page header, the title of your paper, and your name. I have put the title in as Waste Not Want Not.
2. For each major section of the paper, you need to customize the sub-headings. You may add additional sub-headings, as needed, but each section must have a minimum of three sub-headings. Be sure to be descriptive in your sub-heading names, so that I know what content you intend to cover in each sub-heading.
3. Add 1-3 sentences after each sub-heading, describing the specific content that you plan to cover in that section of your term paper.
4. Write a 150-250 word abstract for your term paper (on p. 2 of the Term Paper Template). Once you have completed the above steps, you should have sufficient information on what you intend to cover in your paper to write your abstract.
5. Write the introductory paragraphs of your term paper (on p. 3 of the Term Paper Template) underneath the title of your paper. The introductory paragraphs should be at least one page long. These paragraphs should provide the reader with an overview of the business you are creating, including your rationale and reasons for starting up that business.
?
Tips Regarding the Content of Each Section of the Term Paper:
1. Overview and Structure of the Business ??" What is the mission of your organization? How is your organization structured? What are the job roles and responsibilities of the different parts/units or your organization and the different employees of your organization? How do the roles and responsibilities of each unit and/or employee fit together into the mission of your organization? Are there different levels of employees, such as managers and lower level workers who will have different information technology needs? I am looking for a big picture view of your organization in this section. Later in your term paper, you will discuss the information technology of your proposed business in more detail. But here I am just trying to get a big picture of your organization itself and how everybody fits together to fulfill the mission of the organization. The organizational overview section should describe the structure of the business that you are proposing, focusing on the different levels of employees in the organization (upper management, middle management, operational management, and lower level employees, such as production and service workers, and data workers) and their IT needs (chapter 1). Other topics to cover in this section could include a description of the main business processes in your business and the types of information systems and enterprise applications you will need to efficiently run the various business processes (chapter 2), and an analysis of your business against Porter's competitive forces model, along with a recommendation for an appropriate strategy for your organization to gain a competitive advantage (chapter 3).]
2. Your Companys Infrastructure and Information Systems Needs ??" Topics to cover in this section include your plan for your companys IT infrastructure (chapter 5), use of telecommunications, networking and wireless technologies (chapter 7), use of functional information systems, such as production and operations, marketing and sales, accounting and finance, and human resource information systems (chapter 2), use of enterprise applications for supply chain management and customer relationship management (chapter 9), and an analysis of your companys internal operations against Porter's value chain model, with a recommendation for how IT can be used in your organization's value chain to increase your organization's efficiency, effectiveness, and competitiveness (chapter 3)
3. Your Companys Management of Data and Knowledge ??" Topics to cover in this section include your organizations current use of data management systems (chapter 6), problems and difficulties faced by your organization in regards to data management (chapter 6), your organizations procedures for collecting, storing, managing, and updating data (chapter 6), and types of knowledge management systems currently used by your organization (chapter 11)
4. Your Companys Use of the Internet ??" Topics to cover in this section include how your organization is affected by the digital economy and what issues they need to consider in regards to doing business in the digital economy (chapter 1), current messaging and collaboration software and Web 2.0 technologies in use by your organization (chapter 10), and your companys use of e-commerce technologies (chapter 10)
5. Your Companys IT Planning and Analysis Processes - Topics to cover in this section include your organizations IT strategy and planning process (chapter 13 and 14), your organizations use of management decision support and intelligent systems (chapter 12), and your organizations IT security policy, acceptable use policy, business continuity plan, and disaster recovery plan (chapter 8). Be sure to also take ethical and social issues into consideration in relation to IT planning (chapter 4)
6. Conclusion - In this section, you should summarize the key points you have made in your paper and bring your paper to a close. You may also want to mention any challenges you anticipate facing in implementing the plan you have laid out in this paper, as well as what steps you plan to take to overcome them.
There are faxes for this order.
Case study - Cordys : innovvation in business process management .
Reference : Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition,
FT Prentice Hall .
Questios to be answered :
1- Conduct a SWOT analysis to identify the issues facing CORDYS , to evaluate its present situation and to help think through the dynamics of the process management software sector .
2- What features of the external environment have influenced the strategy development at CORDYS ? Analysis should include ( Industry Life Cycle , Pest el , Stakeholder analysis ,etc ....)
3 ? Use Porter's five forces analysis to identify the relative importance of : i ) Competitive rivalry ii ) the threats of substitutes . iii ) The bargaining power of buyers . iv ) The bargaining power of the suppliers v ) The threats of new entrants .
How might these 5 forces change in the future and how might this impact on CORDYS .
4- What do you consider to be CRODYS strategic capabilities ( i.e. resources and competences ) , which would enable it to build a sustainable competitive edge . ( Resources / Capabilities ? must be subjected to " acid test " of VRIO ( Value , Rarity , Inimitability , Being organisationally exploited ) .
In this web research assignment, you will compare business process methodologies.
Be sure to understand the business process methodology used in this lesson.
Using the Internet, briefly research business process methodologies and locate an alternative business process methodology from the one presented in the lesson.
Write a one-page (250-word) paper that includes the following:
Define a business process and give an example.
Compare the book's methodology to the methodology you found in your research.
Include a sentence or two on what you think about these methodologies.
Text: Kroenke, D. M. (2013). Using MIS (5th ed.). Upper Saddle River, NJ: Prentice Hall.
Compare and Contrast Trends/Results from ?The State of Business Process Management 20xx? ? Due Week Three ending.
From http://www.bptrends.com download the current version of ?The State of Business Process Management 20xx?. Select one of the sections from the report, listed below, and develop a synopsis of significant trends and results. Then, compare and contrast your synopsis with trends and results from a minimum of five (5) scholarly, journal articles to strengthen the thesis of the paper. The paper should conform to the style and format of the Publication Manual of the APA (6th ed.), be 8-12 pages in length and demonstrate proficiency in scholarly research and writing. Select one section from the following: How Organizations Understand BPM Today; Process Maturity; BPM Spending; Corporate BPM Activity Today; Plans for the Future; or Types of Business Process Software Tools.
This case study is a comprehensive assessment of procurement and contracting process. By the end of my analysis with this case study has to touch all aspects of contracting process plan purchases and acquisition stage through the select sellers phase. It will consist of outsourcing multiple business units, which all has to be throughout each contracting piece for business unit. The case study needs a Purpose/Objective (objective of my case study), Revelant facts (business process or areas are needed to run a business, processes or areas that could be outsourced. Would it save time and money, and the pros and cons to outsource that particular process. Conclude this section (revelant facts) by discussion these processes or areas you plan to outsource? Why? Which processes or areas do you plan to keep in house? Why? This should be a column table showing pros and cons to outsource a process. There is a chart with the case study outline, full explanations and background information to complete this task. Written in a executive summary or bulleted list/tables clearing identifying your purpose, relevant data, decision-making thought process and conclusion. Introduce a variety of tables, graphs and charts. APA format 10 point Times New Roman and 1.5 spacing. SEE ATTACHED FILES (3)
BUS499 - BSBA Integrative Project
Module 3 - SLP
The Internal Business Process Perspective
NOTE: I have attached the assignment as a word document so that the chart would come up correctly. Please refer to the attachment for this paper. Thanks
Instructions:
The most important product of the business continuity plan is the business impact analysis. Business impact analysis involves identifying the critical business functions within the organization to determine the impact of not performing those critical functions. Not all business functions are critical to the survival of an organization, so examining functions and operations allows organizations to build contingencies. Understanding how different functions of an organization might be impacted by an unexpected event or disaster allows leaders to examine and prioritize the organization?s requirements to survive a disaster or crisis.
This assignment is comprised of two main components:
Complete the Business Function and Criticality Matrix Worksheet.
Identify the organization's major business functions and processes.
Using the criticality categories outlined in the worksheet, identify the criticality of each business process.
Using the data from the Business Function and Criticality Matrix Worksheet and the Risk and Vulnerability Analysis Worksheet from Unit 4, write a Business Impact Analysis Report. Your Business Impact Analysis Report should:
Drawing from the Business Function and Criticality Matrix Worksheet, describe and prioritize the mission-critical business processes and functions.
Determine any resource interdependencies of those business functions within the organization.
Identify the maximum tolerable downtime for each function including acceptable recovery times for each division or department involved in the mission-critical function. Consider that time should be managed in terms of money.
Drawing on the high-priority threats identified in the Risk and Vulnerability Analysis assignment, determine the impact on the organization and those mission-critical functions if each one of those events were to occur. Be sure to consider the financial, operational, and legal impact on the functions.
Analyze the impact to the organization as a whole based on those threats and mission-critical functions. Identify both the tangible costs, such as repair, replacement of goods, fines, penalties, compensation, and legal costs, and the intangible costs, such as loss of employees, customers, public confidence, market share, and so on.
Identify and evaluate the resources needed for an organization's recovery from a disaster. Resources may include any manual processes or work-around procedures that could keep the organization operating, funding needed for repairs or replacement, and the minimum number of staff you need to operate and begin recovery.
Submit your Business Impact Analysis Report along with the Business Function and Criticality Matrix Worksheet to the assignment area.
Do not Fax
Assigmment:
For the majority of manufacturers, the plant floor is the weakest link in their supply chains, yet that is where they are apt to find the biggest payoff from e-manufacturing. Industrial equipment manufacturers, for example, have been fairly slow to jump on the e-business train. About 11% of these manufacturers are actively tying the plant floor to the Internet. Two exceptions are the semiconductor and computer equipment industries, where ferocious competition is impelling manufacturers to connect their plant floors with the top floor of their enterprises. The number of companies that have plugged their shop floors into the Internet is not what one might expect, but it is rising rapidly, according to some experts.
Write a 4-5 page paper answering the above question. Please turn this in to me by the end of this module
Sources:
Factory Floors Go Online -- Pioneering manufacturers close the final gap in their supply chains
InternetWeek; Manhasset; Mar 12, 2001; Michael Alexander
Abstract:
For the majority of manufacturers, the plant floor is the weakest link in their supply chains, yet that is where they are apt to find the biggest payoff from e-manufacturing. Industrial equipment manufacturers, for example, have been fairly slow to jump on the e-business train. About 11% of these manufacturers are actively tying the plant floor to the Internet. Two exceptions are the semiconductor and computer equipment industries, where ferocious competition is impelling manufacturers to connect their plant floors with the top floor of their enterprises. The number of companies that have plugged their shop floors into the Internet is not what one might expect, but it is rising rapidly, according to some experts.
Full Text:
(Copyright 2001 CMP Publications, Inc. All rights reserved.)
For the majority of manufacturers, the plant floor is the weakest link in their supply chains, yet that is where they're apt to find the biggest payoff from e-manufacturing.
Industrial equipment manufacturers, for example, "have been fairly slow to jump on the e-business train," said Reinhard Geissbauer, head of the North American industrial equipment practice at strategy consultancy Roland Berger. About 11 percent of these manufacturers are actively tying the plant floor to the Internet, the company stated in a new report that found the manufacturing sector being slowly e-transformed (see graphic, page 22).
Two exceptions are the semiconductor and computer equipment industries, where ferocious competition is impelling manufacturers to connect their plant floors with the top floor of their enterprises. The number of companies that have plugged their shop floors into the Internet is not what one might expect, but it is rising rapidly, according to some experts.
Printer maker Lexmark International Inc. has been deploying systems that are used over the Internet to manage and monitor its ink- cartridge manufacturing at all of its plants worldwide.
Although the project is far from complete, these systems already are capturing manufacturing data on Unix servers and generating reports in HTML for viewing on thin clients. Lexmark is installing Camstar's InSite manufacturing execution system (MES) to use as a common platform for capturing and processing data at all of its plants.
It will take nearly two years from inception to complete the project, and it is too soon to quantify the savings from using the Internet to monitor production processes. But Todd Sills, IT project manager at Lexmark, is confident there will be bottom-line benefits.
Lexmark's primary motivation is to reduce the number of defective products or unusable manufacturing leftovers, which many manufacturers call "scrap." Last year, Lexmark had $1 million worth of scrap returned to one of its plants in a single lot, and plant engineers lacked sufficient data to pinpoint the source of the problem. Costly problems like this clearly showed that "engineers did not have adequate information online and in real time, and they couldn't do preventive and continuous process improvement," Sills said. "All they could do is react to a crisis."
Plant engineers now monitor ink cartridges throughout the production process and can also measure product quality, with real- time access to information on product tests via the Internet.
"For example, an engineer, after doing some studying of a returned or defective product, could come in through a thin client and put that entire batch on hold anywhere in the world," Sills said.
Perhaps the main reason so few manufacturers have transformed themselves into e-manufacturers is the complexity of adapting their existing manufacturing infrastructures. Although manufacturers have deployed technology on the plant floor for several years, they are likely to be proprietary or legacy automation systems that cannot talk to the rest of the enterprise's systems, said Ken Crater, president of Control.com, a manufacturing controller consulting company. "The shop floor today is where computing technology was in the '70s," Crater said.
The plant floor has focused more on manufacturing quality, optimizing production processes and productivity, and less on customer demand. Sophisticated controllers, other intelligent devices, LANs and MESes all collect data that could be used for marketing or customer service, but those data rarely cross the plant floor to an ERP, which may or may not be capable of processing that data.
Rob McKeel, vice president of marketing for GE Cisco Industrial Networks, said providing basic connectivity to an ERP is hard enough, but the advent of the Net means many customers are seeking to change their business models from a build-to-stock to a build-to-order model. Such moves require "another level of complexity requiring cultural, process and technology changes," he said.
Crater said manufacturers need to see this transformation as inevitable or they risk going out of business. E-business customers are demanding more customized products, faster delivery schedules and instant access to order status.
Manufacturers stand to benefit too. Ways to lower the cost of business include more accurate demand forecasting and planning; streamlined production scheduling; higher quality; and fewer errors as information moves from one business process to another.
"If you look at the problems that manufacturers say are their top challenges, a lot of them relate to competitive pressure, the need to respond [to their customers] faster, and to achieve top-line sales goals," Roland Berger's Geissbauer said. "Things like that actually lend themselves to e-business effects."
Manufacturers already using the Internet see annual cost savings of 6 percent across the value chain, from procurement to Web-based supply chain management and after-sales service, said Geissbauer. It may be possible to cut costs by as much as 8 percent to 10 percent, he said.
Semiconductor manufacturers, and many of the larger computer companies that have transformed themselves into e-manufacturers, are demanding that their key suppliers connect their plant floors to the Internet so they can get visibility into their supply chains-even peer into what's happening on the plant floor itself.
In fact, Lightwave Microsystems has accelerated its plans to connect its manufacturing processes to the Internet because customers such as Lucent are requiring it, said Doug Barnes, Lightwave's manager of IT development.
"We have to do it because if we don't, our competitors will," Barnes said. Lightwave is furthering the trend by requiring its suppliers to become e-manufacturers, he said.
Lightwave, which makes circuitry for optical communications, is busy trying to figure out "whether it has enough mileage in its ERP system for the supply chain or whether we have to go to a different platform," Barnes said. The trick will be not to "splinter the existing technology" the company already has, requiring IT to support a multiple of platforms, he added. "The better you can plan your supply chain, the more competitive you're going to be."
Barnes estimated that the company will have a pilot deployed by the third quarter of this year. He anticipates that it will cost about $500,000 for hardware, software and development work for the first phase of the project, and $500,000 more for a fully Internet- capable manufacturing supply chain.
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Automotive Design & Production. Cincinnati: Aug 2002. Vol. 114, Iss. 8; pg. 70, 3 pgs
Abstract (Document Summary)
There is room for improvement in automotive's management of inventory. First, automotive should do unto logistics management as it has done to production management. Second, automotive should infuse the supply chain with more information. Third, automotive should do a better job collaborating with its supply chain partners. Last, automotive should implement new software. The best bet is to lean out business operations. Implementing supply chain collaboration is a great opportunity for taking some of the empty costs out of the supply chain. Another approach to inventory management is to apply service-parts technology to the inbound supply side.
"It's not like the automotive industry has all this inventory lying around," says Karen Peterson, vice president and research director for Gartner Inc. (Stamford, CT). In fact, adds Paul Hebeler, automotive industry director for Oracle Corp., from his office in Troy, Michigan, "The industry has inventory as tight as it can get without sacrificing cost and service." The 11 sweet spot" nowadays in automotive, he says, seems to be in chasing premium freight cost reductions. But there is room for improvement in automotive's management of inventory. First, automotive should do unto logistics management as it's done to production management. Second, automotive should "inf use the supply chain with more information-replace inventory with information," says Peterson. Third, automotive should do a better job collaborating with its supply chain partners. Last, automotive should implement new software.
Implement "lean" appropriately
Inventory results from at least one of two conditions, says Kevin Prouty, research director at AMR Research (Boston, MA). "Ignorance equals inventory. Or variability equals inventory," (Even the leanest of automotive manufacturing operations, namely Toyota, keeps inventory, he adds.)
In the first condition, if you don't know what the guy upstream or downstream is going to do, you keep inventory just in case. (Optimizing asset utilization is another reason, but this article will skip over that.) In the second condition, you can have all the inventory in the world, yet you still might not have enough for optimized manufacturing because of the variability driven by demand spikes (namely customer orders), by the manufacturing processes themselves (such as the effect of automotive options on assembly schedules), by logistical upsets (think September lith), or a combination thereof.
When companies try to circumvent Prouty's Little Law of The Conservation of Inventory, somebody gets caught holding the, uh, inventory. "If you push inventory away from one partner operation, it'll move out in either direction-either to finished inventory or down to the suppliers." That's fine in the short term for reducing localized costs; namely, for the partner pushing inventory somewhere else. But in terms of lifecycle costs, the carrying costs add up and too many instabilities creep into the supply chain.
The best bet is to "lean" out business operations. North Amer ican automotive companies have done this in manufacturing, says Prouty, but they haven't leaned their supply chain processes. "And I don't mean 'lean' to the point where you don't have inventory; I mean lean in the way you operate the company." For instance, instead of fighting change and trying to create a steady-state supply chain, come up with ways to better respond to change faster and more efficiently-even if that means building up inventory.
Gain visibility
Implementing supply chain collaboration, says Jim Kowalski, group vice president of automotive for Manugistics Group, Inc. (Rockville, MD), is a "great opportunity for taking some of the empty costs out of the supply chain." By the way, Kowalski defines "collaboration" as "real, two-way communication, where there are discussions about what should be done." For instance, Kowalski suggests joint capacity planning, where supply chain partners share in calculating capacities across multiple suppliers and tiers. Helping such collaboration is, for example, the Supplier Network Collaboration that Manugistics helped implement at DaimlerChrysler. Rather than transmit a series of ever-truncated electronic data interchange (EDI) commands from one tier to another over what used to take 14 days, DaimlerChrysler broadcasts demand and production information down through all the tiers of its supply chain simultaneously using email. All partners in the supply chain get notification within 24 hours-and can reply in kind, and in time to offset any anomalies coming down the supply chain.
Oracle offers similar capabilities. Suppliers can surf over to the OEM's Web portal to see data at the granular level, including customer demand, production data (line, date, and time), and billing. "There's no software to load," explains Frank Prestipino, vice president of SCM and worldwide marketing for Oracle Corp. (Redwood Shores, CA).
What are these companies doing? Answers Oracle's Hebeler, "Upgrading their technology to be more collaborative."
Better decision support
"Pure visibility by itself is real-time access to bad data," points out Prouty. Advanced planning and scheduling (APS) tools can filter those data to improve inventory visibility. In the past, optimization and constraint-based planning, says Hebeler, focused on machine capacity and production bottlenecks. Now these same tools are being applied to inbound logistics.
Deere & Co. (Moline, IL), for example, recently implemented a transportation command-and-control center using Manugistics' supply chain applications. This center helps Deere optimize its logistics scheduling and maximize transportation loads based on real-world data, such as truck trailer size, transportation rates, and day of the week. As a result, Deere has reduced logistics costs approximately 10%.
By including event management and workflow, users can set up thresholds and other parameters for a wide variety of variables associated with forecasts, customer demand, production, material movement, and logistics management. These tools watch the incoming data and then send alerts (email and even voice mail) when appropriate. For instance, if you're a carrier, the software can tell you when new loads are tendered. If you're a supplier, the software can alert you to major changes in the forecast so you can adjust your production plan accordingly.
Enterprise resource planning (ERP), says Prestipino of oracle, "was supposed to deliver this wonderful thing called 'ATP'available-to-promise. Up to now, that was impossible to do. At best, ERP could inspect your warehouse. if the inventory requirement wasn't in your warehouse, then ERP would backorder the requirement. Full stop." Now enterprise systems comprising ERP, APS, and warehouse and logistics management can "peer" into your warehouses and your suppliers' warehouses around the country, even the world. Moreover, they can analyze manufacturing schedules and actually look inside the supply chain. From this, they can. respond with the particular day inventory will be available-even if the physical inventory is nowhere to be seen.
The lesson here? Evaluate-and implement-the integrated enterprise applications coming onto the market today. Or, at the very least, implement individual software applications that follow those standards that make seamless software integration a reality.
Improve marketing
It's a fact of life, explains Karen Peterson of Gartner: Projected demand in the automotive industry can change 400% up or down-daily. That has to be smoothed out-from the very beginning. One way is to limit the proliferation of options. Asks Peterson, "I mean, who's going to want a pink car with yellow seats?"
Mitsubishi America, for example, rationalized the number of options it was providing. Doing that improved the OEM's ability to forecast, as well as get more accurate forecasts. Likewise, continues Peterson, better market analysis is needed to gain a better idea of what customers actually want. "if the dealer has only yellow pickups and that's what people buy, that doesn't necessarily mean that's what people want."
Outsource inventory
Another approach to inventory management is to apply service-parts technology to the inbound supply side, namely, 11 vendor managed inventory" (VMI). For proof of concept, look at Dell Computer. Dell has virtually no inventory other than the finished product shipped to customers. All the inbound supply-side inventory is maintained by Dell's vendors. Granted, this approach makes Dell's no-inventory claim somewhat disingenuous-the suppliers are carrying the inventory in plants and warehouses camped around Dell's assembly plant in Austin. However, somewhere a happy medium exists between Dell's VMI and Japanese-style Keiretsus for North American automotive industry to further investigate.
Tighten partner relationships
"I'd love to say it's all technology and technology is going to win over everything else, but it's not," says Peterson. This is not necessarily an inventory or technology issue, she continues, but OEMs and suppliers must create win-win, or partnership, relationships in sharing information. Doing that requires another "implementation": Trust. "A vast difference exists between collaboration and dictation," explains Kowalski of Manugistics. Most automotive manufacturers, particularly the OEMs, tend to view their relationship with their supply chain as adversarial, command and control: "Here's our forecast, here's our production schedule, now meet it." Too often, meeting those demands is done at great expense, such as through premium freight.
How can automotive companies establish trust? "Not easily," says Peterson. One way is through better contracts that are less abrasive, better at quantifying the value for suppliers to implement changes, and more apt to actually share the benefits. Kowalski has these suggestions. Initiate programs that embrace suppliers and wherein you work cooperatively with your suppliers. "The last time I checked, that business model is much more popular than the Lopez model," adds Kowalski. Next, let people act on the information they're collecting and supposedly collaborating on. Such "empowerment" goes beyond typical procurement versus supplier relationships. Last, realize that trust is built upon sharing information. In the past, suppliers tended not to say too much because they were afraid that what they said would be held against them "in the court of purchasing," says Kowalski. Conversely, OEMs didn't say too much because they wanted something to hold over their suppliers.
In the final analysis, three things become obvious. First, sharing data is a competitive advantage. Second, actions speak louder than words. Third, OEMs tend to drive the supply chain, so the onus is on them to initiate, facilitate, and then stand by this collaboration with their supply chain partners.
Get back to basics
North American companies too often try shortcuts. "They'll take a technology, say it looks like a `best practice process,' put it in place, and make their people work around it with little regard to the legacy and human resource issue around it," says AMR's Prouty. "Usually some piece progresses the company, but the entire implementation never lives up to the expectation."
So, start small, have a vision, get your own house in order. Look internally. Determine what's the variability that's driving you to maintain inventory. Is it because of internal business processes or external? Too many companies collaborate with their supply chains before figuring out how to collaborate internally. Last, don't spend a ton of money on a product development system. Instead, focus on getting the tools to make you faster and better.
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MASLOW'S HIERARCHY OF NEEDS & THE SUPPLY CHAIN
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Nobody is going to self-actualize until they have their lower levels satisfied first, explains Karen Peterson, vice president and research director for Gartner Inc. "To me, supply chain planning is self-actualization."
Human psychologist Abraham Maslow wrote in the mid-'6os that some people reach higher levels of creativity, consciousness, and wisdom-called "self-actual ization"-after satisfying a hierarchy of basic needs. Biological/physiological needs are at the lowest, most-basic level. These needs include oxygen, food, water, and a relatively constant body temperature.
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Now look at automotive suppliers. They have undergone a huge number of mergers and acquisitions, explains Peterson. They're still trying to bring that all together with their own data. They are also still trying to get basic systems processes all together, Till then, they're not ready to work on external initiatives. This is where Maslow's Hierarchy comes in-and a Catch-22. The suppliers "need to get through the technology that's going to enable them technologically to be more flexible in the future," says Peterson.
In particular, automotive OEMs and Suppliers need to implement a broad set of technologies called, for a lack of a better term says Peterson, "extended enterprise management tools." These will, as with Maslow's Hierarchy, provide the stability at the lowest levels of enterprise management and add the analysis tools at the top for intelligent decisionmaking.
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Steele, A. L. (2001). Cost drivers and other management issues in the JIT supply chain environment. Production and Inventory Management Journal. Alexandria, 42(2), 61-68
Abstract
Since Just-In-Time was introduced to the business world, companies have been scrambling to replicate the system. As simple as this system of production appears, 30 years later many companies are still struggling with the concept. The implementation issue is a very real problem in JIT, and ongoing problems can be one of the largest cost drivers for a corporation
Copyright American Production & Inventory Control Society, Inc. Second Quarter 2001
Since the early 1970s when Toyota introduced Justin-Time (JIT) to the business world, companies have been scrambling to replicate the system. As simple as this system of production appears, 30 years later many companies are still struggling with the concept. Some have had success implementing a hybrid of JIT, but as the experts will tell you, if the complete system is not implemented it does not qualify as JIT. Other organizations have tried to implement the system but had to scrap it because of internal problems or problems with their vendors or customers. Still others have stayed on the sidelines, waiting for the perfect set of implementation plans to come along.
The implementation issue is a very real problem in JIT, and ongoing problems can be one of the largest cost drivers for a corporation. A company must start internally and redesign the manufacturing setting for JIT. The system cannot simply be plugged into the existing setting and be expected to flourish. Even after successful internal implementation, companies can reach a point at which it is difficult to squeeze additional efficiencies from their internal operations. It is at that point the company must go beyond its own setting and look up and down the supply chain to identify areas in which its customers or suppliers can help improve its efficiencies [8].
For managers, that can be a daunting task, but it may be where the true cost drivers in JIT reside. Managers must tackle issues such as product delivery logistics, purchasing communications, and any other unforeseen problems that might arise, but not even the most thorough managers can plan for catastrophic failures in the system, such as destruction of a supplier's manufacturing facility by fire or unexpected strikes by union workers.
This article will attempt to identify cost drivers, or problems, in the JIT production system and describe ways companies have successfully conquered them. The first part of this discussion will include issues of implementation, product delivery logistics, and purchasing. The section will conclude by addressing two concepts, total quality management and continuous improvement, which companies must master to make JIT work. Finally, common questions managers may have in regard to JIT production will be considered.
THEORY OF JIT PRODUCTION
A discussion of JIT would not be complete without considering Toyota Motor Corporation. Toyota is commonly cited as the originator of JIT, a production process that attempts to get the right quantity of quality parts to the assembly line at the exact time they are needed for production. This method in its most basic sense is a continuous process aimed at eliminating waste and solving problems throughout the supply chain [8]. It is synonymous with Japanese management techniques, which intimately integrate suppliers and customers along a supply chain, requiring total quality management (TQM) at every link in the chain.
Toyota will be the first to admit that the system is far from perfect. The company believes problems are an inherent aspect of the system and require the user to continually look for ways to improve the processes and efficiencies in the system. When the company feels it has reached a tangible level of JIT, it adjusts the goals to a higher level [7].
JIT production consists of three separate divisions. The first is the materials system within JIT. The flow of materials through a JIT production system is the most visible activity within JIT; often the materials flow is seen as the only activity to be managed in the system. However, it is the least important aspect. It is selfadjusting in accordance with customer demand and includes a buffer to absorb the natural variability within the system. The goal is to eventually eliminate the buffers. Frequently, failures with JIT have been attributed to poor demand forecasts. It is questionable whether or not the people making those kinds of claims truly understand JIT production; according to the theory of JIT, a demand forecast is not needed.
The second branch of JIT production is production planning prerequisites. The most important part is TQM.
TQM ensures that quality products will be made and a limited amount of inspection time will be required.
The final branch is continuous improvement of the system. Most organizations using JIT production fail to effectively execute continuous improvement. As a system becomes more efficient, many companies will be satisfied with the improvements they have achieved and will not seek to further improve the system. Even if a company sees an area in which it can make improvements, it may be difficult to justify doing so because the return on investment is very low.
COST DRIVERS OF JIT
The following section covers a variety of cost drivers related to JIT manufacturing. The first to be discussed is implementation of the system. It is important to know some of the costs and pitfalls associated with the internal reorganization of the firm that intends to use JIT production. A few of the issues relate to product and plant layout, computerizing supporting systems, improving the systems employed, and educating vendors and customers up and down the supply chain.
Other cost driver factors related to external implementation will be considered, including product delivery logistics, purchasing, and communication with customers. Unexpected events can occur in a JIT arrangement, causing cost overruns or lost sales. These issues will also be covered.
JIT Implementation
Successful implementation is critical to the success of JIT production. A study done in 1996 suggests that the production system must be willing to make strategic adjustments consistent with the demands of its environment [17]. Yasin and Wafa, the authors of the study, believe that these long-term strategic adjustments are not feasible without short-term costs. They say that in most cases a systemwide strategic adjustment will not yield desired results unless the subsystems, mainly the input, process, output, and managerial subsystems, are modified to make feasible systemwide changes. The researchers reason that all subsystems must actively contribute to and facilitate the incoming changes to ensure that the changes are successful. Plant layouts are also important according to the study They must be adjusted, relationships with vendors and customers must be reviewed, and quality circles implemented. Yasin and Wafa identified six potentially beneficial attributes of JIT that can increase organizational efficiency and effectiveness:
1. Tends to eliminate waste in production and material.
2. Improves communication internally (in the organization) and externally (between the organization and its customers and vendors).
3. Has the potential to reduce purchasing costs, which are a major factor for most organizations.
4. Is instrumental in reducing lead time, decreasing throughput time, improving production quality, increasing productivity, and enhancing customer responsiveness.
5. Tends to foster organizational discipline and managerial involvement.
6. Tends to integrate the different functional areas of the organization, especially to bridge the gap between production and accounting.
Yasin and Wafa concluded that successful JIT firms were more oriented toward computer-integrated manufacturing and were more likely to invest in process layout modifications. They reported that successful and unsuccessful JIT firms had invested equally in quality assurance, but the successful JIT firms used it more extensively.
Administrative costs to implement these changes can be high. One article reported that all suppliers in its study said the administrative burden had increased. However, some firms managed to use existing resources to meet the challenge so that no extra charges were incurred; others reported having extra costs [15].
One fundamental thought underlying JIT is that when suppliers implement JIT, they actually are becoming a part of their customer's operations. Toyota feels the key to using JIT successfully is educating its vendors. The company believes that when it creates the partnership with its vendors, the vendors take ownership of the responsibility to Toyota's customers [8]. David Hannah, president and CEO of the Reliance Steel and Aluminum metal service center, feels it is vital to the success of a JIT supply chain that all participants learn more about the entire industry supply chain. He says that distributors in all industries need to learn more about the customer's customer, how they need to change their operations to meet those needs, and how suppliers are going to help them do that. JIT cannot be viewed as an isolated supplier-customer relationship. The relationship must extend up and down the industry supply chain [13].
Product Delivery Logistics
Product delivery logistics is another factor critical to the success of JIT manufacturing. Tuning of shipments and supplies can make or break a company using JIT. A manager must pay close attention to this issue to ensure that production delays do not turn into obsolete products and lost sales, both costly to the firm. There appear to be two separate schools of thought regarding the locality of suppliers to customers, each carrying its own costs and benefits.
Toyota believes it is key for a company using JIT to pull as much material, parts, and subassemblies from suppliers as close to its assembly plants as possible. For example, North American suppliers provide 80% of the parts, materials, and assemblies used by Toyota's Georgetown, Kentucky, plant [7]. Most suppliers are located within 200 miles of the plant. This localized supply base makes it possible for Toyota to develop a closedloop distribution network known as a milk run. The milk runs allow Toyota to receive parts on a JIT basis. Often, suppliers are required to load shipments so that the containers come off the truck in the order they will be used. Kanban cards are used to signal to suppliers when the next lot of parts is needed. A Toyota assembly line person pulls the kanban cards when the first part out of a new lot is used. The cards are then gathered and returned to the supplier with a summary of the next order.
Johnson Controls Inc. (JCI) is a producer of seat assemblies, headliners, and instrument panels for the automobile industry. It is a supplier to New United Motor Manufacturing Inc. (NUMMI), a joint venture between Toyota and General Motors. JCI subscribes to the proximity theory of suppliers to customers. JCI maintains that its costs and, more important, its response times, can be trimmed because it is located only 35 miles from NUMMI. Its lead times could be even shorter if it did not build in buffers for unseen delays, specifically California traffic [8].
Although some customers prefer to have their suppliers near them, that does not appear to be highly correlated with low costs or success with JIT. Wafa, Yasin, and Swinehart [14] examined 130 companies and found that supplier certification programs and the existence of communication/information links are much more reliable predictors of success with JIT than the geographical location of suppliers. The study actually found that longer distances between supplier and customer were positively correlated with increased success with JIT. They concluded that an increased level of communication was required to compensate for the long distances between supplier and customer. The recommendation was made that companies interested in implementing or improving JIT systems performance should invest in communication and information technologies rather than pull suppliers closer to them.
For those companies engaged in an international supplier-customer relationship, border crossings and customs clearance can be an added challenge. They can create delays in transportation and increase uncertainty in the JIT supply chain. Distribution has been cited as one of the foremost challenges of the increasing trade between Mexico and the United States and one of two primary reasons U.S. firms close Mexican operations [12]. The authors found that managers of firms demonstrating high levels of JIT success perceived that they attained better transportation service performance than managers of non-JIT firms. This study also reinforces the idea that proximity of supplier to customer is not a prerequisite to JIT success.
Purchasing and Communication
Purchasing and communication between the supplier and customer in a JIT environment require a large investment. The supplier must not only make the investment in information technology but must take the time to truly learn about the client's business.
A new technique called JIT II has evolved in JIT purchasing. Lance Dixon, former Bose Coropration director of purchasing and logistics, is credited with creating this new concept. According to Dixon, JIT II empowers the supplier within the customer's organization [3]. JIT II is an intimate arrangement that allows a supplier, at its own expense, to place supplier representatives in the customer's organization. Generally, the representative is placed at the customer's site full time and has the responsibility of monitoring the buyer's inventory and keeping it replenished. Dixon feels the subsequent efficiency results in bottom line improvement for both supplier and customer.
It is now being suggested that electronic data interchange (EDI) systems, which most manufacturers currently use, can help suppliers eliminate the need for an employee at the customer's site. A system of information exchange for orders can be created and monitored by the customer's own employees or by a supplier's representative.
Radovilsky, Gotcher, Mistry, and Yip [11] surveyed plant managers of automotive, electronic, and machinery firms. Each plant used JIT purchasing to support its manufacturing plant. Fifty-one percent of the managers said that relationships with suppliers were the single most critical element to success in JIT purchasing. Twenty-three percent reported that the biggest difficulty in using JIT purchasing was the lack of support from suppliers. The authors concluded that the JIT philosophy in purchasing resulted in a number of positive outcomes. Some of those were inventory reduction, increased quality, and a reduction in overall production and inventory costs.
One of the benefits of JIT is that customers can reduce inventory and therefore eliminate capital outlays for inventory warehouses. However, many firms are now warehousing inventory or requiring suppliers to warehouse inventory. This buffer allows for fluctuations in demand and allowances for temporary supply interruptions. This type of JIT hybrid is becoming more popular and is sometimes costly to the supplier.
One example of the system is now being used in the automotive industry. General Motors, Ford, and Chrysler have set up steel warehouses that support regional stamping plants. The cost of storing the steel is covered by someone else, usually the steel supplier, because the automakers do not want to carry the inventory on their books [9]. Chrysler requires that 15 days of steel be inventoried at each warehouse. The steel is then delivered to the plant in JIT fashion. This type of JIT arrangement is used because the stamping schedules at the plants are erratic, which causes bloated lead times. Pete Peterson, director of automotive marketing for U. S. Steel, says that much of what they are dealing with is simply communication and information processing. His goal is to have a smooth flow of steel from the steel mill shipping dock to the stamping floor; he believes that will be accomplished in the next 10 years.
Unexpected Events
Some of the purchasing strategies explored in the previous section were less than ideal for a supplier in the JIT supply chain. Suppliers warehousing steel for an automotive customer at its own expense leads many to say that inventory is not eliminated or reduced but simply pushed up the supply chain. Many of the supply chain customers want these buffers to protect against unforeseen problems. Two situations in recent memory have reinforced the behavior.
The JIT method that includes larger than normal inventory buffers is sometimes called JIC, or just in case production. JIC is identical to JIT, but subscribes to the belief that bad things sometimes happen to good companies. It is thought that at some point lean inventory levels will be erased because of an unforeseen catastrophe. One such incident occurred in February 1997 when Aisin Seiki Company, a supplier for Toyota in Japan, had an entire brake parts factory burn to the ground. Aisin had just three days supply in its warehouse. Because of this problem, Toyota missed selling an estimated 50,000 passenger cars. Contributing to the problem was the fact that all of Toyota's parts plants were at full capacity so the company could not pass production off to one of its own plants [5].
The International Brotherhood of Teamsters' strike in 1997 disrupted UPS shipping services throughout the United States. That type of situation is exactly what risk managers at Johnson and Johnson try to avert. Johnson and Johnson had put contingency plans into effect well before the strike and saw only minimal disruptions in deliveries to its customers. Insurance is available for these types of business interruptions; however, although insurance can give a company its money back it will not bring back its customers [18].
General Motors experienced problems in 1996 when a labor strike halted operations at 22 of its 29 car and truck plants in North America. The strike cost the company $600 million to $800 million in lost profits. Executives at GM say that though the lack of finished goods inventory in the supply chain affected shortterm performance, the long-term advantages of JIT far outweigh the risks [6].
One final case for the JIC approach to manufacturing is the incidence of missed sales due to unexpected demand. Some companies regard inventory as opportunity inventory. In general, they say this particular inventory does not sell quickly but when it does, margins on the inventory are higher than for typical products [16]. Demand Forecasting-A JIT Problem?
In the purest form of JIT production, a demand forecast is not required. However, many hybrid production systems exist, and some suppliers feel it is wise to use forecasts from customers to pace their system. In this situation suppliers depend on the customer to provide them with accurate and timely demand forecasts. That is the case for suppliers who use a build-toorder system. Miller SQA, Inc., a company based in Holland, Michigan, makes a wide variety of office furniture. According to Bill Bundy, vice president of operations, schedule stability is often considered key to JIT production in the world of mass customization. He says that with hundreds of thousands of product variations and the demands of a build-to-order system, the company's schedule might be stable for only three or four hours. Its need for chair arms is one example. In one recent week the company needed 478 chair arms to meet demand; the next week it needed only 7. Without accurate information from the customer, suppliers cannot efficiently use JIT within their own manufacturing operation.
Much has been written about the growing disenchantment with suppliers who lack the ability to deliver product to customers on time. The underperforming supply base is only one of the problems that exist with JIT. A 1997 survey suggests that although information availability and communication are important, most companies rely on the sales and marketing departments to create forecasts. Only a few companies are providing suppliers with consistent real-time access to their fluctuating production schedules. Most participants in the JIT supply chain believe that an inventory system is only as good as the data put into it [10].
Others involved with JIT feel that each customer molds JIT according to its own needs. In a previously mentioned case within the automobile industry, suppliers were forced to stock steel in warehouses located near the stamping plants. They had to incur the expense to warehouse a minimum of 15 days of inventory just so the automobile manufacturers could withdraw the inventory in what they claimed was a JIT manner. Only the customer in this case realized the JIT cost savings; the supplier had to continue to produce and warehouse finished goods inventory. Arrangements such as those do nothing but reinforce the fact that the customer does not have to provide accurate demand schedules to the supplier. Such cases might support a JIT II situation in which the supplier can rely on its representative to provide accurate and timely orders.
In some situations customers who use JIT methods may want delivery within three months, whereas others need JIT delivery in three hours. Uneven and unpredictable demand means that suppliers must resort to holding more inventories of raw materials and finished goods [16].
Total Quality Management
No discussion of JIT production would be complete without considering TQM. It is the only component of JIT that can stand alone as its own concept. The Rover Group, a subsidiary of BMW, considers TQM an important part of delivering its customers the products they desire. The group is constantly challenged to deliver distinctive products with varying levels of style, quality, capability, and power. The Rover Tomorrow program was created to replace the traditional, functional, hierarchical structures with a flexible processoriented organization built on the principles of multifunctional teamwork, empowerment, and continuous improvement [4]. The program focuses on delivering extraordinary customer satisfaction. As a result of this program, significant benefits have been realized, most notably product development times have decreased from seven years at the end of the 1970s to three nears in 1996.
One of the main underlying concepts of TQM is empowerment of the employee. Many people point out that this can be a major problem. It is emphasized that TQM will work only if employees truly care about their jobs. Keith Grint [21 explains that this is one management "wave" that tends to crash over and can drown an organization. He states that involvement and commitment of the workforce is required on all levels. And because quality control must be delegated to the lowest possible position, shop floor workers and office workers are responsible for their own quality control. Quality can be guaranteed only if everyone is fully committed and trusted. In a TQM environment managers cannot closely monitor their employees without undermining the trust and self-direction required. Grint asserts that employees must take ownership of their jobs and this ownership cannot be imposed from above. If it is, then what you have is employees being "forced to be free." Lack of employee commitment, therefore, sets a system up to fail.
Overall, TQM is a vital part of a JIT production system. It ensures that quality parts will be produced in the JIT supply chain. As stated before, this system relies on the employees closest to the production processes to control the quality of the products. In theory, final inspections are not needed nor are inspectors. If a problem occurs or a trend is identified that may lead to quality problems, employees have the right to stop the process and correct the problem. One study reports that managers using JIT production methods attribute the improved quality of incoming materials to the implementation of TQM and statistical quality control on the supplier's side [11].
Continuous Improvement of the JIT System
Continuous improvement is a concept closely tied to TQM. For the JIT production system to improve, employees must be the ones driving the change. Usually the most obvious and easiest to correct problems give organizations the largest return on their investment. Often, these problems center on costs related to setup times, plant layout, and material acquisition processes. According to Rod Rodin, president and CEO of Marshall Industries, to continuously improve means to eliminate costs; cut out duplication; eliminate transactions; and increase quality, market share, and customer satisfaction [1].
Once these problems are solved more problems may be identified but not acted on. This is where the breakdown of continuous improvement begins. Companies can identify factors they should change; however because of the influence of traditional performance measurement systems, financial justification for the change becomes important. Improving the process or the product is no longer the issue; the issue becomes whether or not it makes sense from a return on investment standpoint to improve the system. That mind-set may keep organizations from truly improving the JIT production system.
QUESTIONS FOR MANAGERS
The discussion above has focused on cost drivers and other problems associated with JIT production systems. It appears that any discussion about JIT production will be condensed to three main questions managers in these environments must answer. First, does JIT production really work? Second, does the system work better in some industries than in others? And finally, are the costs associated with JIT really worth the effort required to convert the svstem?
In response to the first question, we can conclude that, yes, JIT production does work. It appears that the main obstacle in making it work is the commitment of the company implementing the system. The company must be dedicated to implementing all three parts of JIT. The most easily implemented process is the materials movement system. Organizations must go beyond that to changing the production processes such as machine setups and production layout. TQM should be used to eliminate quality problems and the waste of rework. Continuous improvement is the vital third leg of JIT, but often this is where companies come up short. To implement continuous improvement in an organization, traditional performance measurements must be scrutinized and not allowed to get in the way of the overall goal of improvement of the products and processes of the company.
That leads us to the next question. Does JIT production work better in some industries? Again, the answer is yes. Managers must look at the type of production environment they operate in. If the system requires a great deal of customization or operates in an engineer-- to-order environment, JIT production may not be compatible. It will allow for some customization; however, it is best suited for a production environment with a high level of standardization and even lot sizes. Trying to use the wrong production technique in the wrong environment is a sure way to fail. Looking deeper, we see that even within the same industry some companies are more successful with JIT production than are others. The critical factor seems to be the discipline of the company while implementing JIT production and its commitment to continually improve the system.
Now to address the final question. Are the costs associated with JIT production worth the benefits? The answer to that question can be seen as a function of the answers to the first two. To derive the greatest benefits from JIT production, an organization must be sure the system fits its production environment. Furthermore, the organization must be dedicated to appropriately implementing the system and empowering the workforce to make JIT work. As mentioned before, simply plugging JIT into an existing production system will not guarantee success. Change within the system must be managed to successfully achieve desired resuits. And according to the literature, when it is implemented correctly, JIT production benefits can far outdistance the costs.
CONCLUSION
JIT production systems can afford organizations many benefits. It is important, however, that companies know what the associated costs are. More important, the managers implementing the systems must be aware of the pitfalls and sometimes subtle costs related to JIT production. Some of the costs are due to implementation issues, which may require a company to redesign its production processes to better fit JIT. Other costs are linked to material or inventory flow through the system. Still more costs are related to material acquisition and communication to vendors. And, we should not forget, unexpected events can occur that can be catastrophic in a system that runs on lean inventories. These types of disruptions in the supply chain can be costly.
In addition to being aware of the cost-driving issues, managers in a JIT environment must use TQM and continuous improvement to keep the system functioning optimally. TQM ensures that the quality of the product will remain high. Continuous improvement forces managers and employees to search for ways to make the system more efficient. The continuous improvement requirement of JIT is usually where organizations fall short. For continuous improvement to occur in a JIT organization, traditional performance methods must be used only when deemed appropriate. Costs related to continuous improvement usually increase as return on investment decreases. It is because of this paradox that continuous improvement efforts usually cease.
JIT production continually strives to eliminate waste in the production system. When a supply chain in which JIT production is used, is looked at holistically, it is often noted that the lines between supplier and customer are almost invisible. Although organizations' internal managers manage JIT production, suppliers and customers themselves must look outside their companies and help each other make JIT production work. My definition of supplier-customer relationship extends beyond defining the customer as the ultimate end consumer of a product. It is my belief that the supplier-- customer relationship is a cycle that is repeated within the industry in route to the final consumer. To appropriately evaluate the relationship, you must look up and down the supply chain. Simply looking at one relationship in isolation is not enough. Oftentimes, relationships throughout the industry supply chain decide the success of JIT. Suppliers have a responsibility to learn about their customers and take ownership and responsibility to the end user of the product.
[Sidebar]
*This is an edited version of the prize-winning part-time graduate submission in the 2000 Donald W. Fogarty International Student Paper Competition sponsored by the APICS Educational and Research Foundation.
[Reference]
REFERENCES
1. Carbone, J. "Wanted: More VA from Distributors." Purchasing 121, no. 4 (1996): 47-51.
2. Grint, K. "TQM, BPR, JIT, BSC's, and TLA!s: Managerial Waves or Drownings?" Management Decision 35, no. 9-10 (1997): 731-738.
3. Henricks, M. "On the Spot.- Entrepreneur (May 1997): 80-82.
4. jina, J. "Automated JIT Based Materials Management for Lot Manufacture." International Journal of Operations and Production Management 16, no. 3 (1996): 62-75.
5. Koepfer, G. "A 7ust-in-Case' Case?" Modern Machine Shop (April 1997):10.
6. Minahan, I "Did the GM Strike Prove That JIT Doesn't Work?" Purchasing 120, no. 7 (1996): 28-29.
7. Minahan, T. "JIT.- A Process with Many Faces." Purchasing 123, no. 3 (1997): 42-46.
8. Minahan, T. JIT Moves Up the Supply Chain. Purchasing (Sept. 1, 1998): 46-47, 51-52, 54.
9. Ninneman, P "Just-in-Time Warehouses." (Steel Forum) New Steel 13, no. 7 (1997): 100.
10. Porter, A. "The Problem with JIT." Purchasing 123, no. 4 (1997): 18-19.
11. Radovilsky, Z., W. Gotcher, R. Mistry, and R. Yip. "JIT Purchasing: Analyzing Survey Results." Industrial Management (Nov./ Dec. 1996): 17-20.
12. Stank, T., and M. Crum. "Just-in-Time Management and Transportation Service Performance in a Cross-Border Setting." Transportation Journal (spring 1997): 31-41
[Reference]
13. Stundza, T. "Buyers Ask Service Centers: What Happened to JIT?....and a Few Other Things." Purchasing 126, no. 7 (1999): 1-4.
14. Wafa, M., M. Yasin, and K. Swinehart. "The Impact of Supplier Proximity on JIT Success: An Informational Perspective." International Journal of Physical Distribution 26, no. 4 (1996): 23-34.
15. Waters-Fuller, N. "The Benefits and Costs of JIT Sourcing: A Study of Scottish Suppliers." International Journal of Physical Distribution 26, no. 4 (1996): 35-50.
16. Yafie, R. "Profitability Becomes the New JIT Issue." American Metal Market 105, no. 160 (1997): 28A-29A.
17. Yasin, M., and M. Wafa. "An Empirical Examination of Factors Influencing JIT Success." International Journal of Operations and Production Management 16, no. 1 (1996): 19-26.
18. Zolkos, R. "Property Loss: Just-in-Time Approach Exacerbates Risk of Contingent Business Interruption." Business Insurance 31, no. 33 (1997): 3-5.
[Author Affiliation]
ANDREW L. STEELE
Orthothics and Prosthetics One, Inc., 527 Park Lane, Suite 200, Waterloo, IA 50702
[Author Affiliation]
About the Author
ANDREW L. STEELE, MBA, CPO, is vice president of Orthotics and Prosthetics One, Inc., a prosthetics (artificial limbs) and orthotics (orthopedic braces) outsourcing firm in Waterloo, Iowa. He earned a BS at the University of Iowa in 1991, completed his postgraduate prosthetics and orthotics education at Northwestern University, and earned an MBA at the University of Northern Iowa.
////////////////////////////////////////////////////////////
Drickhammer, D. (2001, May 21). Peak performance. Industry Week. Cleveland, 250(8) 36-40.
Abstract (Document Summary)
Industry leaders predict that tomorrow's top companies will succeed based on the strength of the relationships they establish, from their raw-material suppliers, through manufacturing and distribution, and ultimately to their customers. In this value chain of the future, information will replace inventory, and built-to-order, defect-free products with cutting-edge features will be delivered 100% on time at a very competitive cost. Among leading manufacturers during the last 20-plus years, people on the plant floor have finely honed their ability to recognize waste, in the form of excess handling, queue time, rework, and inventory, and to eliminate what does not add value. It is time, say industry observers, to direct a similar amount of attention beyond the factory walls.
If you're not managing your value,chain, you're not managing your business. That is the warning of industry leaders who predict that tomorrow's top companies will succeed based on the strength of the relationships they establish, from their raw-material suppliers, through manufacturing and distribution, and ultimately to their customers.
TEXT:
In this value chain of the future, all participants will know and focus on the value they add for the customer, information will replace inventory. and built-toorder, defect-free products with cutting-edge features will be delivered 100% on time at a very competitive cost. Information, products, and cash will flow in a synchronized fashion that optimizes the productivity and profitability of the entire value chain.
Most manufacturing companies fall far short of this ideal. They remain focused on one-to-one relationships, with little integration of internal processes let alone cross-organizational ones, at a time when a convergence of Webenabled information technology offers unprecedented opportunities for collaboration and sharing of information. Yet for the anticipated cost savings to be realized-analysts throw out figures in the billions of dollars manufacturers must successfully implement these software applications, and business partners must be able and willing to trust one another.
Twenty years ago purchased materials and components accounted for only a quarter of the cost of finished products. Today purchased materials represent three-quarters of that cost, so it's only logical that companies would be trying to collaborate more, with their suppliers certainly, but also with their customers. For these relationships to be effective, corporate managers first must do some hard work internally, clearing away legacy management practices and barriers between business functions. Product development, procurement, marketing, sales, manufacturing, human resources, and accounting all need to talk to one another. People have to change how they work and, equally important, how they measure success.
In effect, this is what has been happening within leading manufacturers over the last 20-plus years with the ongoing adoption of lean manufacturing. People on the plant floor have finely honed their ability to recognize waste, in the form of excess handling, queue time, rework, and inventory, and to eliminate what doesn't add value. It's time, say industry observers, to direct a similar amount of attention beyond the factory walls.
Lean at its purest is about increasing speed, removing waste, and serving the customer better," says Jeffrey C. Sinclair, a director in the Cleveland office of McKinsey & Co. and coleader of McKinsey's North American Manufacturing Practice. "In a value chain this translates into reducing leadtimes by 50% or more, slashing expensive LTL [less-than-truckload] and emergency air freight, and maximizing distribution-center productivity. This enables retailers, distributors, and manufacturers collectively to drive up customer service with much lower levels of inventory and cost throughout the chain."
Lean techniques have been so effective at transforming Deere & Co.'s internal operations that over the last three years the company has hired 94 supplier-development engineers whose full-time jobs are to work with the supply base to help them implement lean techniques. In the spirit of mutual cooperation, most cost benefits generated through the program are shared equally between Deere and its suppliers.
"Last year we spent $7 million on the program; the return in hard dollars was $22 million to Deere. That means it was roughly $22 million to the supply base as well," reports Dave Nelson, vice president, worldwide supply management, for the Moline, Ill. equipment maker and coauthor of The Purchasing Machine (2001, Free Press). "There's probably as much or more in soft dollars that we don't measure, in reduced inventory, reduced floor space, improved safety."
Toyota Motor Corp. and Honda Motor Co. Ltd. have similar histories of helping their suppliers improve their operations. Such win-win programs go a long way toward changing what is most often an adversarial relationship.
Nevertheless, today buyers in most procurement departments remain focused on squeezing their suppliers. "The problem with [such tactics] is, all you're looking at is the price of a particular component. I'm convinced that if you could really look at the systems cost of that decision you would probably realize that it is not going to get you savings. It may even end up costing you money," observes P. Jeffrey Trimmer, chairman of the National Initiative for Supply Chain Integration Ltd., who recently retired as director, operations and strategy for procurement and supply, for DaimlerChrysler AG's Chrysler Group.
"Supply chains are not about buying something a nickel or so cheaper," Trimmer continues. "These are strategic decisions. We need to be able to communicate to the CEOs, CFOs, and COOs that this is a strategic thing you need to think about."
The trendsetter of the manufacturing-outsourcing movement, the electronics industry, leads the way in taking a high-level, strategic view of value-chain management. Yet in recent months that didn't prevent overly optimistic forecasts from bloating inventory levels and straining relationships when the market turned sour.
"Leadtimes were being pushed out because of the amount of supply. Companies had to make long, threemonth commitments. Ordering product three months out tended to let a lot of inventory build up," recalls Jim Sacherman, senior vice president, Flextronics International Ltd., San Jose. At this time a year ago, everyone in the sector was doing their best to manage component shortages.
"In general our push is to not have product sitting on the water. That's a dangerous part of the supply chainthree or four weeks of stuff that there's nothing you can do about," Sacherman adds. Where possible, Flextronics has bulky items such as enclosures made near its manufacturing operations. The company invites suppliers to sit with them in the same industrial park, giving them space so material and components can be delivered on demand.
"Excess inventory is a direct result of poor communication, so you have to focus on improving communication. That means speed and accuracy," adds Dave Otterness, Flextronics' vice president, supplier management. Otterness says his job requires a lot more interface with customers than it did before. The primary reason is the amount of coordination and engineering support all of the electronics-manufacturing-service firms are providing their customers today.
"We're as much a facilitator as a product builder," he observes. "We have to facilitate our customer's forecasts, sales orders, and requirements. We have to facilitate our supplier's processes and leadtimes and cycle times back up into that."
The Tools
Aiding in the quest for the ideal value chain is a growing cadre of software and service providers. But no matter what mixture of software applications a manufacturer attempts to implement, it still comes down to the ability to get the right product to customers when they want it. The faster value-chain partners know what the customer wants, and the faster they are able to respond to that demand, the less waste in the system and the more competitive and profitable the chain.
"We talk a lot about collaboration and how important it is and everybody is talking about doing it, but in fact companies are run very inefficiently with sometimes grossly inaccurate data," says Karen Peterson, a research director with Gartner Inc., Stamford, Conn. "Start spreading that around and you're just spreading around bad stuff a lot faster."
Peterson says vendors have a long way to go toward providing scalable so
Hi,
Please download the zip file from:
http://home.exetel.com.au/ecoon/essay_business_analysis.zip
Length: 1200-1400 words
Assessment Task 3 - Business Analysis
Read MSC120_2008_Sum_A2_Solution_V2_0(1)(1) Excel and Analyse
Requirement:
Background
You are already familiar with the Blue Cut Fashion chain from your Assessment Task 2(MSC120_2008_Sum_A2_Solution_V2_0(1)(1) Excel and Analyse)!
The management accepted your evaluation of the chain performance and is currently reviewing various options to further improve the chains business processes!
Apart from various aspects of products, suppliers and sales, Mr James Frost (the chains CEO) is now looking into opportunities of some drastic shift in the chains distribution channels. One of the options is to sell Blue Cut garments over an e-commerce web site. Mr Frost has decided to use your services to undertake some research of existing professional literature on electronic commerce, to inspect some of the operational e-commerce web sites, make SWOT analysis of the proposed e-commerce option for the Blue Cut Fashions, and finally to provide recommendations as to what should be done next.
Aims
To write a MS Word report (around 4-5pages) which would present your SWOT analysis of the collected insights and which would give very clear recommendations as to the necessary changes to the operation of the Blue Cut chain if so required.
The report structure should be as follows:
Executive Summary (1 page) - a brief summary of this report.
Recommendations (1-2 pages) - one or two recommendations with justification given in up to 10 bullet points (with references to SWOT table).
SWOT Table (1-2 pages) - where each of the SWOT analysis items is clearly numbered for referencing in your recommendations, and with a Harvard style reference to your professional bibliography.
Learning Objectives
In the process of this assessment task you will:
understand the issues related to the operation of a small business;
undertake independent research;
become familiar with the commonly used methods of strategic situation analysis, such as SWOT analysis;
learn to recognise strengths and weaknesses of various business options;
learn to recognise the opportunities and threats as associated with the adoption of the specific business recommendation;
gain experience in evidence-based reasoning;
write a brief executive summary of your business recommendations.
Method
Conduct research of e-commerce literature (at least 5 professional magazine articles, reports and book chapters) and review a number of popular e-commerce web sites (identify at least 3 web sites comparable in product line and range to Blue Cur Fashion and note their important features). Format your information sources into an annotated professional bibliography.
Undertake SWOT analysis based on solid evidence (in your collected bibliography). Ensure that all aspects of the SWOT report are clearly referenced and all sources of information are collected in a bibliographic form.
Present and argue your recommendations in terms of the SWOT analysis.
Use Microsoft Word to prepare your report (5-10 pages).
BUS499 - BSBA Integrative Project
Module 3 - SLP
BSC Implementation & the Internal Business Process Perspective
Introduction Background Information Case assignment Session Long Project Objectives
For Module 3, consider the organization's mission and strategy from the perspective of its internal business processes (from your work on the case, your previous course work, and your background reading, you should be reasonably clear what such business processes are). In this section of the assignment you?ll begin to identify objectives and measures relevant to that perspective. Refer back to this presentation on objectives if you need to.
Assignment Expectations:
Once you?re reasonably clear on what?s involved, think about your organization and its business processes, and then:
Identify at least three objectives for improving the organization's internal business processes, and show how they relate to the mission, vision and strategy of the organization.
For each objective, develop at least one meaningful performance measure (metric).
For each objective, identify at least one expected level of performance (target).
For each objective, identify at least one new action or program that needs to be developed to ensure successful implementation of the organization's strategy (initiative).
Comment briefly on the relationships of the process objectives that you've identified here to the finance objectives that you identified in the Module 1 SLP assignment and/or the customer service objectives that you identified in the Module 2 SLP assignment. How do they help to fulfill those objectives? If they don't (and they don't have to), what makes them more important than objectives that would relate to finance or customer service?
Finally, do you wish to make any changes to your Module 1 or Module 2 objective write-ups in light of your Module 3 experience?
Here?s a table that you may wish to copy and fill in (the boxes are expandable - take all the space you need to be complete in your descriptions. No more than 2-3 pages should be necessary.)
Objective
Measure
Target
Action
Relationships to other objectives
Revisions (if any) to Module 1 and/or Module 2 Objectives
Objective/Module
Measure
Target
Action
There will be four(4) separate essays.
Each will be evaluated on content, format/style, grammar, punctuation, and spelling. Each must be double-spaced, include footnotes and be typewritten.
All four essays must be based on book written by James Harrington title "Business Process Improvement"
ESSAYS REQUIRED ARE AS FOLLOWS:
1) Setting the stage for business process improvement
2) Organizing for process improvement
3) Understanding the process characteristics
4) Streamlining the process
For Module 3, consider the organization's mission and strategy from the perspective of its internal business processes (from your work on the case, your previous course work, and your background reading, you should be reasonably clear what such business processes are). In this section of the assignment you?ll begin to identify objectives and measures relevant to that perspective. Refer back to this presentation on objectives if you need to.
Assignment Expectations:
Once you?re reasonably clear on what?s involved, think about your organization and its business processes, and then:
Identify at least three objectives for improving Cattaraugus Rehabilitation Center internal business processes, and show how they relate to the mission, vision and strategy of the organization.
?For each objective, develop at least one meaningful performance measure (metric).
?For each objective, identify at least one expected level of performance (target).
?For each objective, identify at least one new action or program that needs to be developed to ensure successful implementation of the organization's strategy (initiative).
?Comment briefly on the relationships of the process objectives that you've identified here to the finance objectives that you identified in the Module 1 SLP assignment and/or the customer service objectives that you identified in the Module 2 SLP assignment. How do they help to fulfill those objectives? If they don't (and they don't have to), what makes them more important than objectives that would relate to finance or customer service?
?Finally, do you wish to make any changes to your Module 1 or Module 2 objective write-ups in light of your Module 3 experience?
Here?s a table that you may wish to copy and fill in (the boxes are expandable - take all the space you need to be complete in your descriptions. No more than 2-3 pages should be necessary.)
OBJECTIVE Measure Target Action
Relationships to other objectives
Revisions (if any) to Module 1 and/or Module 2 Objectives
Objective/Module Measure Target Action
Module 1:
Delivering high-quality healthcare services to families with children suffering from a broad range of developmental disabilities is a challenging enterprise in any setting, but the constraints to productivity faced by Cattaraugus County ReHabilitation Center were daunting indeed. The Center had grown to include a number of organizations that provide specialized care to disabled children, but it had outgrown its old business model when a Balanced Scorecard initiative was implemented. This paper examines the Center?s efforts to determine if the job they did in implementing a balanced scorecard approach was effective in reflecting its organizational mission and vision. A summary of the research and an overall evaluation of the Center?s efforts are provided in the conclusion.
Review and Analysis
The balanced scorecard approach developed by Kaplan and Norton (1992) is intended to provide managers with quantifiable performance metrics that link outcome measures with measures reflecting future outcome drivers (Martello, Watson & Fischer, 2008). According to Martello et al., the balanced scorecard approach provides a framework for organizing strategic objectives into four perspectives: (a) financial (the strategy for growth, comparability, and risk viewed from the perspective of the shareholder); (b) customer (the strategy for creating value and differentiation from the perspective of the customer); (c) internal business processes (the strategic priorities for various business processes that create customer and shareholder satisfaction); and (d) learning and growth (the priorities to create a climate that supports organizational change, innovation, and growth) (p. 75).
There are some special considerations involved in applying the balanced scorecard approach to non-profit organizations such as Cattaraugus County ReHabilitation Center. For instance, Martello et al. suggest that, ?In the not-for-profit sector, the financial perspective provides a constraint rather than an objective. Not-for-profits [should] consider placing a mission objective at the top of their scorecard as the mission represents the accountability between the not-for-profit and society? (p. 70). In addition, Kaplan and Norton (1992) recommend not-for-profit organizations should ?expand the definition of who their customer is? (cited in Martello et al., p. 70). An application of the four Balanced Scorecard perspectives to Cattaraugus County ReHabilitation Center efforts to evaluate their effectiveness is provided in Table 2 below.
Table 2
Application of the four Balanced Scorecard perspectives to Cattaraugus County ReHabilitation Center
Perspective Summary Application to Cattaraugus County ReHabilitation Center (CCRC)
Financial This is the strategy for growth, comparability, and risk viewed from the perspective of the shareholder. The Center attempts to increase revenues as well as improve productivity within the Center. In expanding revenues the Center has attempted to obtain new revenue sources; obtain new non-MA revenues; maximize prior funding; and, increase discretionary funds. The Center also has attempted to operate at a breakeven level with all available funding and provide for efficient utilization of all resources.
Customer This is the strategy for creating value and differentiation from the perspective of the customer. The consumers of the ReHabilitation Center are individuals with developmental disabilities. With 75% of its operating budget dedicated to employee wages and benefits, CCRC, also has numerous internal customers. In implementing the Balanced Scorecard approach, the ReHabilitation Center has placed equal emphasis on the consumer perspective and the financial perspective.
Internal Business Processes These are the strategic priorities for various business processes that create customer and shareholder satisfaction ?[CCRC] utilized the concept of the Balanced Scorecard as a tool to cascade strategic planning throughout the entire organization. The ultimate goal was to have each area within the Center aligning itself with the overall strategic plan? (p. 72).
Learning and Growth
These are the priorities needed to create a climate that supports organizational change, innovation, and growth. ?The director was able to obtain support from the top level managers as they accepted the concept and were willing to give it a try. The real challenge was to obtain the ?buy in from all managers in the Center so they would ?own the Balanced Scorecard concept? (p. 73).
Source: Adapted from Martello et al. (2008)
Conclusion
Taken together, it was remarkable that Cattaraugus County ReHabilitation Center?s Balanced Scorecard Program was conceptualized and implemented from the outset. Given the organization?s far-flung operations, diverse specialties and the importance of its mission, the successful application of Kaplan and Norton?s (1992) balanced scorecard approach by the Center makes it clear that nonprofit organizations can benefit from this management tool if the modifications recommended by its authors are made concerning redefining financial accountability and customers.
References
Kaplan, R. & Norton, D. (1992). The balanced scorecard ? measures that drive performance. Harvard Business Review, 70(1): 71-79.
Martello, M., Watson, J., Fischer, M., (2008). Implementing a balanced scorecard in a not-for- profit organization. Journal of Business & Economics Research. 6(9), 67-80. Retrieved from: http://journals.cluteonline.com/index.php/JBER/article/view/2471/2517.
Module 2:
One of the aspects of the balanced scorecard framework is the customer service perspective. This perspective is based on the idea that there is "an increasing realization of the importance of customer focus and customer satisfaction in any business" (BSI, 2013). The general idea is that there is a strong link between pleasing the customer and achieving the desired financial results in particular. If nothing else, it is critical that the customer is able to be happy, because that encourages return customers, and these are essential to the success of any business. When a business pursues other objectives at the expense of the customer, then the business is unlikely to thrive.
At the Cattaraugus Rehabilitation Center, there are several elements to the customer perspective. First, the patient outcome is the most important thing. That is the reason why we are in existence, to provide the best service and outcomes to the patients. We also want for the families to be happy as well, and feel that the families are the important because they are a critical decision influencer and a support system for the patient. It is also worth considering that the objectives within the customer perspective needs to be measurable. This is actually a bit tricky, because many customer outcomes are not easy to measure directly. If a proxy is used, that proxy could be imperfect, leading to a relatively useless measures.
The first objective is patient outcomes, which is a medical objective in terms of the patients who have successfully completed a program at Cattaraugus. The measure here is the percentage of completions. We can set a target of 100%. If that is not a realistic number, then we should have a realistic number. So the target can be set at 90%. The second objective can be the customer satisfaction level of the family. This can be measured with surveys, and these surveys can use a Likert scale to put a number value of their level of satisfaction. As such, the survey can represent an opportunity to quantify the success level of the company.
A third objective can be to measure the number of customer complaints. This again relates to customer satisfaction, but is a fairly direct measure. The only read downside of this measure is that not everybody complains. Thus, we might not be getting the full story with this measure.
For each of these, Cattaraugus would do well to implement strategies that focus the people within the company on the importance of the customer. This is critical because the customer needs to be the focus. For most people within Cattaraugus, the best way to orient them towards customer outcomes is to draw a clear line between their own performance evaluation or the evaluation of the unit and the customer service scores. Doing this will make the issue front and center.
There is a direct connection between customer service and the financial perspective. Happy customers are repeat customers, and they refer others to the business as well. Moreover, treating customers right the first time is usually cheaper than making mistakes that have to be fixed later. Following best practices is more likely to be the key to success. Thus, it is important to pursue the customer service dimension to the balance scorecard because it feeds the financial dimension in particular, strengthening it considerably.
It is a little bit different for a not-for-profit organization because the objective is not to make money, but Cattaraugus still needs to balance its budget, and that requires that the company successfully implements the customer and financial perspective objectives of the balance scorecard.
References
BSI. (2013). Balanced scorecard basics. Balanced Scorecard Institute. Retrieved December 8, 2013 from https://balancedscorecard.org/Resources/AbouttheBalancedScorecard/tabid/55/Default.aspx
WRITER: Assco5522
Assignment Expectations:
Once you?re reasonably clear on what?s involved, think about your organization and its business processes, and then:
Identify at least three objectives for improving the organization's internal business processes, and show how they relate to the mission, vision and strategy of the organization. Ideally you would discuss the relation to mission, vision and strategy in a paragraph or two followed by the table below. In the table you would reiterate your objectives in the left hand column.
For each objective, develop at least one meaningful performance measure (metric).
For each objective, identify at least one expected level of performance (target).
For each objective, identify at least one new action or program that needs to be developed to ensure successful implementation of the organization's strategy (initiative).
Comment briefly on the relationships of the process objectives that you've identified here to the finance objectives that you identified in the Module 1 SLP assignment and/or the customer service objectives that you identified in the Module 2 SLP assignment. How do they help to fulfill those objectives? If they don't (and they don't have to), what makes them more important than objectives that would relate to finance or customer service?
Finally, do you wish to make any changes to your Module 1 or Module 2 objective write-ups in light of your Module 3 experience?
Here?s a table to copy and fill in (the boxes are expandable - take all the space you need to be complete in your descriptions. No more than 2-3 pages should be necessary.)
Objective
Measure
Target
Action
Relationships to other objectives
Revisions (if any) to Module 1 and/or Module 2 Objectives
Objective/Module
Measure
Target
Action
When your assignment is ready, send it in to CourseNet
The purpose of the Course Project is to describe the solution to a business problem where technology can be of value. The initial paper is an introduction to the topic which you are choosing. You have enough knowledge to describe the major concept of the paper and then prepare the first milestone. It then evolves in incremental fashion throughout the course.
As an example, you could write their papers on some aspect of ecommerce. They might pick the topic of 4G mobile devices and tie it in to targeted advertising.
You could then tie the back-end databases that are necessary to support the ideas for his or her growing project (for example, how databases contain information that allows vendors to target their audience, and what those databases are).
The paper could then describe the infrastructure and networking (at a non-technical level) that would be required to support the idea (for example, the Web server farm behind the 4G devices etc.).
The functionality of enterprise systems moves to the cloud, and so the course project can tie the kind of systems enterprises that are required, as well as how the function is delivered. The paper could describe how ERP or CRM or supply chain functionality would be used. In the example, this could be how a business person would access this type of information.
When it comes to security, it can be tied nicely into what you have already written and you can describe the types of security, etc., required for their paper. Again, by way of example, the issues of security with mobile devices and in social networks would be a topic that would be interesting.
The Proposal and the three milestones are a single document. Submit the entire, growing document for each milestone and be sure to include a table of contents.
Proposal:
1. Describe the overall proposal in terms of the business problem being solved. Some ideas are:
a. Lack of competiveness and or profitability
b. Inefficient processes
c. Slow product development
d. Obsolete IT organization and technologies
e. Poor corporate communications
f. Ongoing personnel issues
2. Indicate the benefits it will provide the organization. This can be things like:
a. Financial ??" profitability, revenue, product costs
b. Improved competitiveness
c. Better marketing positioning
d. Efficiency in key processes, e.g., sales, manufacturing, development
e. Improved product and/or service quality
f. Improved product development
g. Better and more accurate support turn-around
h. Preparation for the future ??" how is the organization positioning itself for future growth
3 After identifying the business problem and the benefits describe:
a. Business approaches that can solve the problem, e.g., business-process reengineering
b. Technological approaches that can be used, e.g., cloud computing, outsourcing, mobile devices and a very long list of possible paths.
4. Who is the completed project directed toward, e.g., management, peers, customers, specific departments?
The proposal does not explain what each of the milestone will discuss or technologies used. As you learn about the relationship of business and technology, you will see areas that can be changed to bring about the desired change.
Milestone 1:
Based on the proposal, the paper starts describing the business problem, the benefits and the first part of the proposed solution. You will most likely not know the entire solution or all of its parts until you have a chance to learn about them. Dont be concerned if you cannot visualize the entire solution or all of its parts until you have a chance to learn about them. You know the goal, but not the detail of the pieces.
1. Briefly restate the business problem (the subject)
2. Company background
3. Discussion of business issues
4. Briefly restate the benefits of solving the problem
5. Describe the initial business/technical approach to solving the problem.
6. Describe at a high level the solution.
7. Example:
a. The business problem is high cost of IT and product development and
b. The benefits are profitability, etc., faster development time, increased sales and
c. The solution is cloud computing, this paper describes how the solution solves the problem and the cloud computing approach taken, e.g., SaaS or cloud virtualization.
d. The paper does not talk about the specifics of how this is done.
Milestone 2:
Given the information from the first milestone, the second milestone proposes some specifics of the solution. It chooses some area and highlights it. We cannot say what this will be, because for each topic you choose for the first milestone, it will yield a different second milestone. The structure of this milestone is the same as the first one, except that it is written like chapter 2 in a book. You dont restate the business problem, benefits, etc. You just pick the technologies or business practices or some of each that add detail to the first milestone.
1. Technology or business practices used to augment the solution in milestone 1.
2. Example:
a. Pick a cloud virtualization vendor, e.g., Amazon EC2
b. Describe the value of this approach:
i. Reduced IT staffing costs
ii. Reduced equipment costs
iii. Reduced real estate costs
iv. Improved application accessibility
c. Describe how this would be accomplished:
i. Type of EC2 services and costs
ii. Type of employees to retain
iii. Changes in infrastructure
iv. Application migration path
v. Business process changes
Milestone 3:
Do exactly what who did in milestone 2, except now you are writing chapter 3.
1. Technology or business practices in addition to those described in milestone 2.
2. Conclusions and overall recommendations
3. Summary of milestones
4. Example:
a. Improve employee access via mobile devices giving employees access to applications from any location
b. Choose appropriate devices:
i. Devices that work with IT infrastructure
ii. Cost/benefit of devices
c. Roll-out plan
Course Project Overall Table of Contents
Cover Page
Table of Contents
Proposal (2-3 pages):
1. Subject of Course Project
2. Business problem statement
3. General benefits it will provide the organization
4. High level approach(es)
5. Audience
Milestone 1 (minimum of 3 pages):
1. Brief Company background
2. Discussion of business issues
3. Benefits of solving the problem
4. Business/technical approach
5. High level solution.
Milestone 2 (minimum of 3 additional pages):
1. Technology or business practices used to augment the solution in milestone 1.
2. Value of the approach
3. Business process changes
Milestone 3 (minimum of 3 additional pages):
1. Technology or business practices in addition to those described in milestone 2.
2. Conclusions and overall recommendations
3. High-level implementation plan
4. Summary of project
The Course Projects focus is on the use of technology to solve specific business problems. While the list of technologies that you can choose for your Course Project is vast, the following are some current technical topics that you could consider in solving your business problem.
1. Cloud computing, either cloud storage, and/or cloud applications
2. User involvement in IT projects
3. Mobile devices including phones and tablets
4. Targeted advertising
5. B2Cand/or B2B and other types of e-commerce
6. Back-end databases required for your project
7. Infrastructure and networking (at a non-technical level) that would be required to support your idea (for example, the Web server farm behind the mobile device)
8. Business and process reengineering to streamline a business, followed by several new business technologies to support the new business model
9. The implementation of a secure business (website, software development, administration)
10. Development of an e-commerce website for a brick and mortar business
You will deliver the Proposal and its 5 subsections. This includes information before the Proposal i.e. Cover Page and Table of Content, and also contains a References section. Note that this additional material does not count towards the 3 page requirement for the proposal. In subsequent weeks, you will add a new section (Milestone 1, 2, etc..), expand the table of content, and add some more references..
1. This is a formal proposal and it should be about 3 pages long (stated in the Course Project of Week 1). For example, turning in a one a page proposal will get you 1/3 of the total grade.
2. The proposal should have a cover page with an appropriate project title. Make it a descriptive title and NOT something like: Course Project
3. The proposal should have a table of content with two heading levels i.e. Level 1 heading is:
a. Proposal , and level 2 headings are:
i. Subject of The Project,
ii. Business Problem Statement,
iii. Etc (you can find these level 2 headings at the bottom of the Course Project from Week 1).
4. Break down the body of the proposal into the subheadings described in the previous item (i.e. level 2 headings) and make sure to include these subheadings in the proposal.
5. Make sure that information within each subheading relates to the title of the subheading: often, people write a subheading, and the body of the text deals with completely different matter than that of the subheading. For example, within the Business Problem Statement, you should only discuss the business problems and not some other stuff. So, if the text within a section is not relevant to the heading, then the whole section does not earn many points.
6. Organize each subsection into a series of paragraphs, with each paragraph containing ONE idea i.e. do not write long and convoluted paragraphs with so many ideas that you and the reader get lost. Best strategy is, before you start writing out a section, to start by writing out the list of ideas (one or two words) for each subsection in bullet form. Then convert each bullet into a paragraph by expanding it with explanations, examples, etc. I highly urge you to put the main idea (one or two words) of each paragraph in BOLD. This way, you remain focused on that idea and the paragraph stays focused. In general, you should not have a paragraph that is shorter than 4 or 5 sentences. (So again, start by creating the skeleton of your deliverable, before you start writing it all out. Once you have a good skeleton, writing it out becomes very mechanical. The other way around is not true i.e. piles of sentences/paragraphs do not necessarily yield a good skeleton, therefore, yields a bad paper).
7. Be careful with sentence structure. Its much easier to write in short sentences, than ones with over 3 or more lines. Properly punctuate your sentences.
8. Be careful with grammar and typos. Best strategy is to complete writing the proposal couple days before its dues, put it away, and then re-read it and edit it before you submit. If your writing skills are weak, either work on improving them, or have someone read and edit your work for you. I did NOT say have someone write it: I just said have someone edit it and suggest mechanical writing corrections.
9. The proposal should have at least one good reference that is used in the proposal. Two references are even better. Remember, this is not an essay where your personal opinion/point of view is the most relevant. Its rather research based work. So, build your argument on the shoulders of giants in the field. Find who these are, and use them as your allies. Note: With each deliverable, you should have one or two more references added to the paper.
Prepare an executive summary document outlining the entire outsourcing / contracting process for those business processes you decide to outsource.
I will submit the background information and the details for this assignment.
It has to be 10 pt. times new roman and formatted in an executive summary format. I will also post these details
There are faxes for this order.
Introduction
The purpose of the paper is to describe the solution to a business problem where technology can be of value. The initial paper is an introduction to the topic which is chosen.
As an example, a paper could be written on some aspect of ecommerce. They might pick the topic of 4G mobile devices and tie it in to targeted advertising.
You could then tie the back-end databases that are necessary to support the ideas for the growing project (for example, how databases contain information that allows vendors to target their audience, and what those databases are).
The paper could then describe the infrastructure and networking (at a non-technical level) that would be required to support the idea (for example, the Web server farm behind the 4G devices etc.).
The functionality of enterprise systems moves to the cloud, and so the course project can tie the kind of systems enterprises that are required, as well as how the function is delivered. The paper could describe how ERP or CRM or supply chain functionality would be used. In the example, this could be how a business person would access this type of information.
When it comes to security, it can be tied nicely into what you have already written and you can describe the types of security, etc., required for their paper.
Proposal:
1. Describe the overall proposal in terms of the business problem being solved. Some ideas are:
a. Lack of competiveness and or profitability
b. Inefficient processes
c. Slow product development
d. Obsolete IT organization and technologies
e. Poor corporate communications
f. Ongoing personnel issues
2. Indicate the benefits it will provide the organization. This can be things like:
a. Financial ? profitability, revenue, product costs?
b. Improved competitiveness
c. Better marketing positioning
d. Efficiency in key processes, e.g., sales, manufacturing, development
e. Improved product and/or service quality
f. Improved product development
g. Better and more accurate support turn-around
h. Preparation for the future ? how is the organization positioning itself for future growth
3 After identifying the business problem and the benefits describe:
a. Business approaches that can solve the problem, e.g., business-process reengineering
b. Technological approaches that can be used, e.g., cloud computing, outsourcing, mobile devices and a very long list of possible paths.
4. Who is the completed project directed toward, e.g., management, peers, customers, specific departments?
Part 1:
Based on the proposal, the paper starts describing the business problem, the benefits and the first part of the proposed solution. You will most likely not know the entire solution or all of its parts until you have a chance to learn about them. Don?t be concerned if you cannot visualize the entire solution or all of its parts until you have a chance to learn about them. You know the goal, but not the detail of the pieces.
1. Briefly restate the business problem (the subject)
2. Company background
3. Discussion of business issues
4. Briefly restate the benefits of solving the problem
5. Describe the initial business/technical approach to solving the problem.
6. Describe at a high level the solution.
7. Example:
a. The business problem is high cost of IT and product development and?
b. The benefits are profitability, etc., faster development time, increased sales and?
c. The solution is cloud computing, this paper describes how the solution solves the problem and the cloud computing approach taken, e.g., SaaS or cloud virtualization.
d. The paper does not talk about the specifics of how this is done.
Part 2:
Given the information from the first part, the second part proposes some specifics of the solution. It chooses some area and highlights it. We cannot say what this will be, because for each topic you choose for the first part, it will yield a different second part. The structure of this part is the same as the first one, except that it is written like chapter 2 in a book. Just pick the technologies or business practices or some of each that add detail to the first milestone.
1. Technology or business practices used to augment the solution in part 1.
2. Example:
a. Pick a cloud virtualization vendor, e.g., Amazon EC2
b. Describe the value of this approach:
i. Reduced IT staffing costs
ii. Reduced equipment costs
iii. Reduced real estate costs
iv. Improved application accessibility
c. Describe how this would be accomplished:
i. Type of EC2 services and costs
ii. Type of employees to retain
iii. Changes in infrastructure
iv. Application migration path
v. Business process changes
Part 3:
1. Technology or business practices in addition to those described in part 2.
2. Conclusions and overall recommendations
3. Summary of milestones
4. Example:
a. Improve employee access via mobile devices giving employees access to applications from any location
b. Choose appropriate devices: i. Devices that work with IT infrastructure
ii. Cost/benefit of devices
c. Roll-out plan
Overall Outline of Paper
Proposal
1. Subject of Course Project
2. Business problem statement
3. General benefits it will provide the organization
4. High level approach(es)
5. Audience
Part 1:
1. Brief Company background
2. Discussion of business issues
3. Benefits of solving the problem
4. Business/technical approach
5. High level solution.
Part 2:
1. Technology or business practices used to augment the solution in milestone 1.
2. Value of the approach
3. Business process changes
Part 3:
1. Technology or business practices in addition to those described in milestone 2.
2. Conclusions and overall recommendations
3. High-level implementation plan
4. Summary of project
Journal 4 to be submitted as single document (750 words - maximum)
This task follows on from the previous tasks (previous tasks attached). Your journal task is to identify how the Face Book Page can be aligned with various Business Processes. This should also include your plan for integration of the Face Book Page with various key areas in the organisation.
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Customer is requesting that (thbrown) completes this order.
Module 3 - Case
The Internal Business Process Perspective
The internal business process perspective of the balanced scorecard turns attention to the aspects of the organization?s operations that are within the possibility of direct control by its managers and employees. Here is a useful brief summary of the approach:
Niven, P. (N.D.) Internal Process perspective. EPM Review. Retrieved May 17, 2010, from http://www.epmreview.com/Resources/Articles/InternalProcess-Perspective.html
Analysis of business processes is closely bound up with the assessment of quality; in fact, most of the literature in this area is dominated by the vocabulary of the quality analysts. The Chartered Quality Institute offers a good overview of product and service quality concerns, and how they affect customer loyalty and satisfaction (note the intersection of the Business Process and Customer Perspectives!). Here is a useful summary of this approach that meshes nicely with the internal business process perspective; although it does not explicitly mention the balanced scorecard, you should have no trouble applying its recommendations to your case analysis here:
CQI (2008) Introduction to Quality. The Chartered Quality Institute. Retrieved May 17, 2010, from http://www.thecqi.org/resources/d2-1.shtml
Our example in this case is Duke Childrens? Hospital in Raleigh-Durham NC. Here?s how this process has been described:
The authors describe their experience in developing a strategy-focused organization using the balanced scorecard methodology. They achieved this at Duke Children's Hospital by aligning the clinicians and administrators around a single integrated platform that linked improving business processes with achieving quality clinical outcomes. By organizing in this manner, they reduced cost by $30 million and increased net margin by $15 million while improving outcomes and staff satisfaction. This article describes a methodology to achieve strategic control of the organization, increase the knowledge of key stakeholders, and transform the organization to optimize the organization's performance.
The article from which this summary is taken can be found here:
Meliones, Jon N.; Ballard, Richard; Liekweg, Richard; & Burton, William (2001, April). No mission () no margin: It's that simple. Journal of Health Care. 27(3): 21-30. Retrieved May 17, 2010, from the library: https://coursenet.trident.edu
As your case assignment for this module, you are to carefully review this article, and then (in 3-4 pages) prepare your analysis of how Duke Children?s Hospital implemented the balanced scorecard and its apparent effects.
Assignment Expectations:
Your analysis should be structured along the lines you?ve been using this far in these cases:
Introduction: What process did Duke Children's Hospital follow in creating a balanced scorecard? Why did the hospital decide to use the balanced scorecard to evaluate its stakeholder relationships and its business processes? What was the reaction of the staff?
Analysis: In the balanced scorecard Duke University Children's Hospital developed, on what internal business process did the hospital focus? What measures were used? What changes were made in that business process?
Conclusion: Describe how the changes in its business processes affected both employees and customers (patients); this involves considering multiple perspectives, both those of participants and those of stakeholders.
Evaluation: Did Duke Children's Hospital do a good job in designing and using its balanced scorecard? Agree or disagree with the issue, then defend your position. Use your readings to help you decide whether the implementation was done well or poorly.
I would like a paper done on ?Coca-Cola Supply Chain Management with an implementation of (SAP) System Application Process?.
This paper need to be as detailed orientated as possible in a groups tone (i.e. we and our). The paper should have the following:
? Executive Summary
? Brief Company?s Background with mission statement
? Discussion of Business Problem(s)
? Financial were Coke stand uses SMC with the implementation of SAP
? High Level solution (with mid & low-levels as well)
? Business/technical approach
? Business process changes
? Technology or Business practices used to augment the solution (strong)
? Conclusions and overall recommendations
? High-Level Implementation plan
? Summary of project
? References Appendices
? APA format, Time Roman front size 12, 1 inch margins
Hence,
Course Project Suggestions
The purpose of the Course Project is to describe the solution to a business problem where technology can be of value.
Some ideas to identify a business problem:
? Lack of competiveness and/or profitability
? Inefficient processes
? Slow product development
? Obsolete IT organization and technologies
? Poor corporate communications
? Ongoing personnel issues
Some benefits it will provide the organization could be things like:
? Financial ? profitability, revenue, product costs
? Improved competitiveness
? Better marketing positioning
? Efficiency in key processes, e.g., sales, manufacturing, development
? Improved product and/or service quality
? Improved product development
? Better and more accurate support turn-around
? Preparation for the future ? how is the organization positioning itself for future growth
Some ideas on how the project could tie together:
? As an example, you could write your paper on some aspect of ecommerce. You might tie it in to targeted advertising. You could then tie the back-end databases that are necessary to support ecommerce. For example, how databases contain information that allows vendors to target their audience and what those databases are.
? Another example might be the functionality of enterprise systems. You might choose a specific enterprise system like ERP, CRM or SCM and detail how the functionality is delivered. This could be how a business person would access this type of information.
? The business problem is high cost of IT and product development and the benefits are profitability, faster development time, or increased sales. The solution might be cloud computing describing the cloud computing approach taken, e.g., SaaS or cloud virtualization.
Possible audiences might be:
? Senior management
? Customers
? Suppliers
? Specific departments
Thanks in advance
3 page APA format paper (utilize headers to separate sections in the paper) that addresses the following areas relevant to the assessment of enterprise-level business systems (APA citation should be in every paragraph, please include a company example if applicable)Also, please use concise writtening, no extra fluff (to the point):
Title Enterprise-level Business Systems: Assessment
I. Intro
Introduction Example Template
In most organizations, periodic performance appraisals are an established method of evaluating work results and determining employee merit increases. Dessler (2000) suggests that there are three key aspects of the performance appraisal process: (1) establishing mutual goals and objectives, (2) using a valid and objective measurement method, and (3) linking employee performance to compensation. This case study will define these three aspects of performance appraisals, discuss their importance, and illustrate their general impact upon the organization. Finally, specific company examples will be offered to demonstrate how these appraisal steps are practiced at Hewlett-Packard, the New York Life Insurance Company, and IBM.
II. Information-Gathering Methods
A. Discuss which information-gathering methods can be used in analyzing requirements
III. Business Process Mapping Methods
A. Identify which business process mapping methods should be used in analysis activities.
IV. Business Process Mapping Tools
A. Discuss process mapping should be used in analysis activities
V. Assessment
A. Indicated how the analyst whould know if thes methods and tools were effective in understanding requirements.
B. Explain how prototyping tools could be used to confirm these requirements.
VI. Summary and Conclusion
Summary and Conclusion Example Template
As this case study has shown, three key elements of performance appraisal were described by Dessler (2000): (1) establishing mutual goals and objectives, (2) using a valid objective measurement method, and (3) linking performance to employee compensation. In the examples discussed, Hewlett-Packard illustrated the various steps by which performance targets can be established. This company particularly stressed the importance of mutuality in the goal setting process. Next, the New York Life Insurance Company offered a very clear instance of how objective measurement methods can be standardized?in this case, as an integral part of routine business. The IBM Corporation served as an example of a pay-for-performance program that focused on rewarding right results (customer satisfaction). Activity, effort and risk taking were indeed recognized, but employee performance that achieved the desired outcomes was consistently and substantially compensated.
In conclusion, it is this author?s view that many organizations could begin improving the performance appraisal process by first establishing clearly communicated goals that employees perceive as worthwhile and achievable. Both the employee and the supervisor should mutually agree upon these objectives. In addition, these targets should provide sufficient ?stretch? in the required job performance so as to afford a genuine challenge for employees. Finally, the performance appraisal and compensation policy must offer substantial incentives for employees who indeed achieve the desired results. These rewards should be in direct proportion to the value of the employee?s contribution to the organization.
Referances (Use aleast 2-4 of the following references or other online USA references)(Paraphrase or quotes cite in APA format)
http://www.cio.com
http://www.sei.cmu.edu
http://www.mrp3.com
http://www.sap.com
http://www.oracle.com
http://www.sieble.com
http://www.peoplesoft.com
http://www.microsoft.com
Linthicum, David. Enterprise Integration Appication.
Leffingwell D., Widrig D. Managing Software Requirements.
For this assignment you will use the process identified for improvement in your Stage 1 Project. There are 2 parts to this assignment.
Part 1: Business Process Analysis - Models of the AS IS Process and the TO BE Process. The various course resources provided for Week 2 illustrate several different methods of modeling business processes. You may use any of the models shown (or follow the example provided in the Walmart Example), to analyze the process you identified for improvement, breaking it down into sequential steps and modeling it. You may use Microsoft Word, Excel or Power Point (or compatible software) or clearly and professionally hand-draw your model and scan it into an electronic file format. Which model format you choose to use is not as important as making sure you have included all the major steps in the process and appropriately sequenced them. The process that you model must be the one you identified in your Stage 1 Project (or the one suggested by the instructor) and it needs to be appropriate to UMUC Haircuts. First, you will model the process as it is currently performed at the shop; this is the AS IS Process. Then you will model the way that you expect the new process to function after your proposed technology solution is implemented; this is the TO BE Process. Note: See Stage 1 for the definition of a process and examples of processes at UMUC Haircuts.
Part 2: Technology Solution Proposal.
Using at least one external resource (a source other than those provided in this class), write a short paper 1 page in length, not including References page and cover sheet, responding to the bulleted items below. Remember to correctly cite and reference your sources using APA format. Use the Grading Rubric to be sure you have covered everything.
Create a document that includes the following:
1. At the end of your Stage 1 assignment, you listed the strategy, business area and process selected. These should be provided at the beginning of this paper to set the stage. Be sure to incorporate any recommended changes, and show:
GENERIC STRATEGY:
STRATEGIC BUSINESS AREA:
PROCESS TO BE IMPROVED:
2. Briefly explain the business process identified in Stage 1 and why it could benefit from a technology solution.
3. Propose a specific information technology solution, describing it in a few sentences. Note: Its tempting to propose integrating lots of new technology but focus on a single solution that would improve the process you identified and modeled.
4. Next, briefly describe (in one to three sentences each) the components of the IT infrastructure required for your proposed IT solution, as they would be implemented at UMUC Haircuts. The components of the IT infrastructure are described and explained in the Course Module 2, Solution Building.
They are:
? services - the people or organizations that run, support, and manage the other infrastructure components; can be internal staff or external contractors or service providers. You should include who will run, support and manage the infrastructure components for your proposed solution.
? hardware - devices that perform the input, storage, processing, and output functions. Include the major, important hardware components needed to implement your proposed solution.
? software ??" identify the type of application software to be used; if you are proposing to use a software package, provide the name of it.
? telecommunications ??" identify what kind of telecommunications will be needed for the solution, including local connectivity and internet access, if appropriate, and whether it will be used for data, voice and/or video.
? facilities - what facilities will be needed to house the equipment and support staff; state whether the hardware be housed at UMUC Haircuts or at another facility.
5. Explain how the proposed technology solution will improve the process.
6. Explain how the proposed technology solution will support the selected Generic Strategy and the selected Strategic Business Area.
There are faxes for this order.
Customer is requesting that (heatherk13)
There are faxes for this order.
Customer is requesting that (heatherk13) completes this order.
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