Justification Report – Part 3

JUSTIFICATION REPORT 5

Justification Report

YASIN CAKMAK

ENG 315

1/23/2017

Introduction

Companies thrive through innovative processes. There are various strategies that can be included in companies, and they are usually specific in terms of finding the solution of different problems. This study focuses on a specific process in the business set up and how it can be utilized to ensure that the existing challenges are solved. In other words, the study is taking into consideration the various aspects of a project that would ensure that the current problem – that hinders growth and success – is eliminated. The divisions of the study include the problem statement, evaluation of alternatives, criteria and methodology. The company being discussed is a business company that is involved in the production of goods.

Problem Statement

The case study is a company that does the production of various home goods. The company has the opportunity of improving its sales, although there are various challenges that hinder it from achieving its goals. The main challenge of the company concerns how it manages the production process in the company and other issues such as distribution and customer satisfaction. The primary focus is on these two aspects, since the company produces and packages products that are less in number as compared to the demand of the customers. Still on the same note, customer satisfaction has not been highly taken into consideration, with the customer care services being outdated and lacks innovative ideas to ensure a complete success.

In other words, the company’s success processes are derailed by various factors both in the production process and in the distribution as well as customer satisfaction. In the first part, there is a challenge regarding the production process, as there is high cost of production which can be associated to the production process – the amount of money being wasted in the process relative to the raw materials is not yet known. In addition, there is slow production as compared to the products being distributed to the customers. With the demand being so high, the company is not able to keep a progress of satisfying its customers. In addition, there is poor customer care which majorly is associated to the huge amount of work being done relative to the number of workers in that department. Therefore, these challenges need to be addressed to attain the highest profits while improving on the customer satisfaction.

Overview of Alternatives

There are several alternatives that can be utilized in finding the solution of reducing the wastages and the high production process. The two alternatives that can be used include the Enterprise Resource Planning and the Inventory management system.

The Enterprise Resource System is an integrated management system that deals with the management of the major business processes including product planning, marketing and sales, manufacturing and delivery of service and the management of inventory and customer service delivery (Sumner, 2005). The ERP system is an overall system that can be highly influential in the management of various processes in a company. For instance, in this case, the company has challenges in the production process and waste management and in the customer care services. This system is highly advantageous because it allows for the provision of data and networking processes that helps in finding the major issues that are required to reach the success of these business processes such as production. The company therefore has the opportunity of using this product in building a strong system not only for the production but also for the understanding of customer relationships.

The other alternative is the incorporation of the inventory management system. An inventory management system focuses on the management of various aspects such as manufacturing processes, deliveries and stock management (Muller, 2011). The major advantage of this system is that it enables the management of stocks and checks on how the movement of products occurs from the production process up to the consumption level. The system is helpful in monitoring how the customers are consuming the goods and whether to increase the production process or not. This ensures that there is strict tracking of products to minimize losses through time and waste management.

Criteria

There are various criteria that can be used in evaluating the viability of the two alternatives discussed above.

The first criterion is on the cost; cost can be determined through the amount of money used to purchase, implement and provide training on the usage of the system. Another important aspect to consider is the number of processes being managed relative to the cost of management. Cost is relative to the kind of processes being managed by the system and not the amount of money spent on the system. A system that is expensive in management but handles many processes can be relatively cost effective than the one that is cheaper but handles less needs and vice versa.

The second measure is on efficiency; efficiency can be measured in terms of the coordination of different types of processes and the performance of these processes. The number of processes once again is crucial for this process. Specificity is also considered a point in efficiency, especially in finding the solutions to the specific challenges that have been described in this study.

The third aspect is on the time for implementation. Implementation time is usually crucial for the development of software and how they are put into place in the company. This criterion checks on the important element of implementation process including development, allowing interaction with the machinery, testing on whether it works, orientation of workers and provision for a back up system.

The fourth criterion is based on the practicality. Practicality can be considered as an issue of how the system finds the solution for the challenges discussed in the study. Practicality helps in understanding the performance of the system in providing detailed information about the current situation, improvement and future considerations when handling such challenges.

The fifth criterion is on the durability of the systems. The durability of the system is determined by how effective it is to prevent being compromised by other challenges. For instance, with the two systems, the main issue is on the hacking; the durability of the security systems of the software will determine whether the system software should be used or not.

Methods

In the methodology, to confirm the better suited system to solve the problem, there is need to evaluate the characteristics of the systems and taking keen interest in the challenges being felt in the company. There will be evaluation of the challenges and how these systems can specifically find the solution to these problems. Through this cross-examination, the best system will then be selected, which will then be given to the employer for verification.

References

Muller, M. (2011). Essentials of inventory management. AMACOM Div American Mgmt Assn

Sumner, M. (2005). Enterprise resource planning. Pearson College Division