Network design and process improvement for Pacific Auto Rebuilding

Network Design Proposal for Pacific Auto Rebuilding

For Pacific Auto Rebuilding (PAR) to provide responsive service to its customers while at the same time increasing internal accounting, order capture, order management and project management systems and processes, a network-based system is proposed. It is the intent of this proposal to provide PAR with insights into how they can significantly improve the performance of their company by concentrating on process improvements enabled by information technologies investments. From an analysis of the automated parts and inventory control system, order management, and project management processes within the company, it is clear that selectively automating key aspects of thee processes will provide PAR with significant cost and time efficiency savings or time. This proposal illustrates for PAR how the long lead-times of engine repair for example can be made both more efficient and profitable by creating a strategic-level process to manage this profit center. Analysis of workflows within PAR highlights how critical it is for these longer duration projects to be managed exceptionally well, with suitable financial controls to ensure they attain the highest levels of profitability. Inherent in gaining these advantages, the process workflows between the office building and shop require first greater clarification, and second, selectively automation. The role of information technologies in the context of this proposal is to augment process-based recommendations that will be made as part of the implementation process. By concentrating on how to make the automated parts and inventory control. Order management, and project management workflows more efficient, PAR will attain higher levels of profitability and earnings growth which can provide funds to invest in expansion.

Enabling Greater Efficiency at PAR with the Proposed System

For PAR to attain the efficiencies they need in order to ensure their long-term engine repair and rebuilding projects are profitable, the company must concentrate on streamlining these core process areas. Beginning with automated parts and inventory control, there is no formalized process for managing this between the two buildings, and as a result there are latent inefficiencies in how these parts are order and inventory accounted for. The use of a company-wide accounting and inventory management system that could provide real-time reporting of inventory positions and control points, including re-ordering points, would provide significant opportunities for cost reduction. A comparable situation exists for the order capture process, which today is not integrated to the project management tasks and processes. Order capture, to be effective, must be integrated tightly to project management in order to have an accurate quote and plan for completing an engine rebuilding process. Third, and most significant, there is a lack of order traceability and project management reporting and financial traceability throughout the company today. This is the most severe problem as today PAR does not have enough visibility into their costs per project. The need for tracking costs to the project level, in addition to exception handling for customers' specific requested parts or overhauls, is crucial to be taken into account in managing the workflow within the company. In addition to all these factors the need for streamlining how accounting, financial, spare parts, and incremental costs are managed all need greater levels of reporting accuracy and control. The proposed system will be able to deliver exception and cost, hours and project variance reports, all aimed at more efficiency and profitability in the managing of long-term projects.

Potential Benefits from the Proposed System

There are many potential benefits of the proposed system. First and most critical is the benefit of creating more collaboration across all departments of the company, integrating the process of automated parts and inventory control. The ability to have real-time updates on the profitability of each project will also significantly increase the ability to manage projects to financially-defined benchmarks and goals. Third, the entire costing approach and models inherent in the project-based business model of PAR will also be more clearly defined and therefore more measurable over time. Fourth, having all accounting and finance records within the same database with Microsoft Accounting Professional will make weekly reports on costs, pro forma revenue, and income statement analysis possible for the first time in the company's history Fifth, by having a heavy reliance on WiFi-enabled laptops that technicians can use throughout the company, more accurate project status will be known. In addition to all of these factors, PAR will learn over time which projects will be highly profitable vs. those that are inherently unprofitable. In order words, PAR will learn over time which types of engine rebuilding projects to take on and which to avoid based on insights gained from these systems. In addition to all these benefits, the ability to responsive to customers and provide real-time updates of their engines will be available electronically.

Proposal Costing

PROPOSED HARDWARE COMPONENTS

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Pricing

Per Unit Pricing touchscreen laptop PCs