Imp
The first two parts are a part of the continuing improvement of the Boat Part Order process with WEST MARINE. Part 3 is a Case Study that does not use the WEST MARINE BPM improvement process. Thanks!
For this Assignment, write a paper that answers the following questions (use the subheadings/numbered questions below to organize your paper): Need 3 References no older than 2013
Part 1 and Part 2 need to tie into my last assignment which I have attached. The process used for these two parts are from Boat Parts Shipped by WEST MARINE and how BPM was used to improve the process. I have copied the metrics from my last assignment for the purpose of use in PART 2. PART # 3 is a case study that is not related to WEST MARINE. I have completed the TABLE in Excel hand have attached the Excel file. and a recap of the calculations for the table for this section already.
PART 1: Implementation Strategies Evaluate the suitability of the four implementation strategies discussed in step 2 for your project. Below are the Implementation Strategies: Need to discuss all 4.
Table 20.1 Implementation scenarios
Big Bang: The proposed change is introduced in one major overhaul
Advantages: Fast to implement • Minimal overhead
Disadvantages : Risk of disruption to the business is high Any errors may not be picked up and could have a high impact on the business
Parallel : The proposed change is introduced step-by- step (e.g., by location or business unit), with the next roll-out starting before the previous one is finished
Advantages: A relatively faster implementation • Ability to make use of lessons learned from preceding
Disadvantages: Additional resources will be required to assist with overlapping implementations Coordination of simultaneous roll-outs will be high and potentially compleximplementations
Relay The proposed change is introduced step-by-step with each roll-out only starting once the previous one has been completed
Advantage: Opportunity for a higher quality implementation as the lessons learned from the preceding roll-out(s) can be fully taken into account and the Time same implementation team can be used
Disadvantage: Lack of speed, as the implementation could, depending on the circumstances, take some time to complete High costs related to the duration of the project
Combination :A combination of the above mentioned implementation approaches—perhaps a small pilot and then building up to larger implementation
Advantage: Provides the organization with the benefits of tailoring the roll-out to the specific situation Flexible yet manageable
Disadvantage: Pitfall could be lack of communicating the rationale of this approach, as it might seem chaotic to some
Part 1 Questions that need to be answered:
.1 ? For each strategy, explain the specific pros and cons of using it for your project. The analysis should be based on how each strategy applies to the process you selected and the nature of your selected organization. Do not simply repeat the generic pros/cons from the book.
2? Select the one you think will work best in your situation. The best one for my process will be the Relay. Explain how you would execute this strategy for your selected process. What would be required for the success of this strategy when rolling out your revised process?
PART 2: Establishing Baselines
To begin, list three metrics that you think can help you quantify the performance of the current process. List and define the metrics clearly, explain why each metric is important in the assessment of the process, and then give an example of the statistic units. For example, if your metric is “speed of processing,” it may be defined by how quickly each employee audits a tax form, and the example would be that “on average, you would expect eight tax forms audited per hour.”
If you have already done this in a previous Assignment, you may copy and paste a summary from that Assignment. Then, revisit the metrics you selected for your baseline. For each metric, clearly discuss the following:
Part 2 Questions that need to be answered:
1) Describe what the metric is: how is it calculated and used currently?
2) As far as being used as a justifiable project goal, what kind of a change in this metric would constitute success? How did you arrive at this figure? If this target change figure is not possible to estimate now, then describe how you would compute it if you were actually carrying out this project: who would be involved and where would the data come from?
This is the performance metrics from my last Assignment which may work for this part but will need to answer the questions and update. Define how it is important to the process and then give examples of the statistic units. The two questions above will need to be answered based on these metrics:
PART 2 – Performance Management Metrics from last Assignment using West Marine boat part order process:
1.Processes orders
a.How the metric will be assessed
Data will be collected and calculated for successful order filling from stock in warehouse, amount of time for filling orders in stock and order accuracy. The metric will analyze the efficiency of order clerks, inventory clerks, warehouse manager and shipping clerk.
b.What the expected targets would be
The targets should be 95-100%, as these goals are achievable. A score of 95% or below would show a need for improvement in these areas.
c.How the metrics fit the process objectives
This metrics focuses on the implementation of the process and the improvement in warehouse availability that in turn saves steps and time. The scoring of parameters reflects one of our most important objectives improving our customers’ satisfaction. The successful shipping of accurate parts within the orders specified time frame is the goal.
2.Inventory management
a.How the metric will be assessed
Inventory management will calculate inventory accuracy, damaged product percentage, and successful storage utilization that will analyze the efficiency of warehouse management.
b.What the expected targets would be
The target should be above 90%. Less efficiency will show a lack of improvement.
c.How the metrics fit the process objectives
This metrics will focus on the internal process flow and staff communication with management. If the process works at an optimal level, the process will utilize the warehouse to the full potential.
3.Warehouse performance metrics
a.How the metric will be assessed
Warehouse performance metrics will calculate orders per hour processed from in-stock items. The calculation of the total number of ordered parts, the total number of parts filled from the warehouse and the total number filled directly from suppliers.
b.What the expected targets would be
The target for the warehouse metrics should be better than the previous month. Exponential growth in part orders filled from the warehouse, not special ordered from suppliers will represent the improvement.
c.How the metrics fit the process objectives
This metrics is entirely focused one improving the amount of parts filled in a more efficient way by having them available within the warehouse. The parameters will help in analyzing the performance of the warehouse manager, category manager and category assistant.
PART 3: Case Analysis Read the following case study and answer the questions at the end. In 2009 it was decided that ABC Tire Company would implement a BPM project with the following goals:
? Decrease the labor cost per tire, and
? Increase profit from each tire sold by 5%.
To track the success (or failure) of the project, they determined the following baseline data for 2009: Total # of Tires Sold - Material s Cost Per Tire - Labor Cost Per Tire - Average Retail Price Per Tire - Average Profit Per Tire - 22,594 $21.23 $12.67 $119.00 $85.10 After implementing the BPM project, ABC Tire Company reviewed the value of the project after a year and identified the following information: Total # of Tires Sold - Total Materials Cost -Total Labor Cost - Average Retail Price Per Tire 27,669 $533,450.00 $397,555.00 $122.13 Using the data provided above, calculate and fill in the following table (show all your work; completing the table without the calculations will result in no credit): Material s Cost Per Tire Labor Cost Per Average Profit Per Tire % Increase or Decrease in Materials Cost Per Tire % Increase or Decrease in Labor Cost Per Tire % Increase or Decrease in Average Profit Per Tire :
Table I made from the above using Excel is in the attached Excel file:
After the table is complete, address the following questions:
1. Why is it important to ensure that the baseline data is accurate?
2. Was the project successful? Why or why not?
I have completed the table in Excel and done a recap of calculations: Please check to see if these are accurate:
The following is recap of calculations: Please check to see if this is accurate:
The baseline numbers that are in chart one and two will be used to determine the numbers for chart three. The calculations are attached in an Excel spreadsheet. Material cost per tire equals total material cost from chart two divided by total number of tires sold from chart two ($533,450.00/27,669 = $19.28). Labor cost per tire equals total labor cost from chart two divided by total number of tires sold from chart two ($397,555.00/27,669 = $14.37). The average profit per tire is calculated by the total number of tires from chart two multiplied by average retail price per tire from chart two, subtracted by total materials cost from chart two minus total labor cost from chart 2, then divided by total number of tires sold from chart two (27,669*$122.13-$533,450.00-$397,555.00/27,669 = $88.48).
In order to determine the percentage of increase or decrease in material costs per tire, the material cost per tire in chart three is subtracted by the materials cost per tire in chart one, then divide by the material cost per tire in chart one ($19.28-$21.23)/$21.23= -9.19% decrease. To determine the percentage increase or decrease in labor costs per tire, the labor cost per tire from chart three is subtracted by the labor cost per tire in chart one, then divided by the labor cost per tire in chart one ($14.37-$12.67)/$12.67= 13.40% increase. To determine the percentage increase or decrease in average profit per tire, the average profit per tire in chart three subtracted by the average profit per tire in chart one, then it is divided by the average per tire in chart one ($88.48-$85.10)/$85.10= 3.97% increase. The comparison will show which goals have been met and which ones have not been met by ABC Tires.