UMUC Haircuts Stage 2: Business Process Analysis & Functional Requirements

Background for Stage 2

For purposes of this example, the current and to-be processes are modeled so you can see how they change when technology is added as a part of the solution.

Below is a portion of the current (As-Is) Return Process for Customers to follow:

As you can see, this high level process diagram does not provide enough detailed information to fully understand the steps in the Return Process. Additional detail is required, so lower level, more detailed, diagrams need to be developed.

Below is a more detailed diagram of a portion of the As-Is process:

Once this analysis is complete, it is reviewed to determine where and how the Return Process can be improved. The team analyzing the Return Process would likely come up with several ways to improve the process for customers. At this point technology can be added as an enabler to the business process that has been reengineered. Below, you will find a description of the improved process that includes the use of technology.

To-Be Process and Technology Solution - Walmart Expedited Return Process (WERP)

When a purchase is made at the Walmart Point of Sale (POS) station (cash register), the printed receipt will include the Sales Receipt Number and the Product Bar Code. In order for this to occur, the POS system will have to be modified to include those two elements of information on the receipt.

Then, upon entering the store, the customer is met by the Greeter, who determines if the customer has an item to return. If there is no return, he assists the customer with a cart. If the customer wishes to return an item, the Greeter asks if the customer has a receipt. If the customer says “no,” the Greeter attaches a “To be returned” tag to the item and assists the customer with a cart. If the customer has a receipt, the Greeter scans the Sales Receipt Number using a hand held wireless POS device and if the item is Bar Coded, the Greeter will scan the Bar Codes of all items to be returned using the hand held device and indicate that these are returned items. If there is no Bar Code on the item the Greeter will select the appropriate item from the Sales Receipt image on the hand held device and indicate the item being returned. The Greeter will then indicate the quantity of each item being returned. The Greeter’s hand held device will print a Credit Slip that can be redeemed for credit (if it was a credit or debit card purchase) or cash at any cashier. The handheld device will also print two copies of the return receipt. One will be attached to the returned item and one will be given to the customer along with the original receipt with the returned items crossed out. The Greeter will assist the customer with a cart. The greeter will attach the appropriate documents to the returned items and place them in a cart for later processing.

This new process will minimize the customer wait time at the Checkout Counter and require extra time only to process the more difficult returns. Since the Checkout Counter staff is relieved of some return processing they can check the Customers out more quickly. During peak periods, additional staff may be required to assist the Greeter.

No new technology will be needed as the hand held POS that is used for inventory has the necessary capabilities, but three additional units will be required for the Greeters. Programming changes will be required to print the Sales Receipt Number and the Bar Code on the receipt, and to enable the hand held device to access the programs needed for returned items and the algorithm for how the credit is processed. The system is operated at the Walmart Headquarters, and the WiFi needed for this process is currently available in all stores, which are connected by the Internet to Headquarters.

This process change will not provide any manpower savings but will decrease customer wait time at the Customer Service Counter, thus it will support our Strategy for Competitive Advantage of improving the customer experience. There is potential for this process to help expedite the restocking of returned items or determining their final disposition. The costs are minimal and the equipment purchased could provide back up for handhelds used for taking inventories. The cost of the programming changes would be minor as they would be done by existing programming staff, that currently operate and maintain the system. Planning and management of the project will be done by the IT staff at Walmart Headquarters, which has the requisite resources for this project. (Note: The IT Components (the hardware, software, telecom, and facilities); the IT skills/services; and the Business/Managerial Resources are covered in the paragraphs above.)

The To-Be Process Diagram for the Walmart Expedited Return Process (WERP) is shown below:

Walmart To-Be

Return Process

Functional (Business) Requirements (Stage 2)

The Stage 2 assignment calls for a table like the following one to be completed. Using the above process model, for the step labeled "Greeter indicates returned quantity next to item on handheld" the following input, process and output entries would be appropriate:

These inputs, processing requirements and outputs will become the functional (or business) requirements for the system.