BUSINESS PROCESS CHANGE PLAN
GB560 Designing, Improving and Implementing Processes
Session # 5
November 13, 2012
UNIT 1 ASSIGNMENT
Midwest Distributing Corporation opened its doors for the first time in 1973 by Frosty and Virginia Leiderbrand. Frosty’s overall goal for the company was to sell quality ice machines, freezers, and ice cream dispensing units at affordable wholesale prices throughout the Midwestern area. For many years Frosty worked hard at maintaining this goal, and was able to drive his company to be one of the top distributors in the nation. In the mid-1980’s Frosty passed away and the company was left to his wife, Virginia, and son, Ken and his wife Deb. (I should also mention that Deb is my sister-in-law). The two of them worked together to maintain the top distributor spot with their ice machine vendor, Scotsman Ice Systems (formerly owned by Enodis, Inc.). The two of them did not always see eye to eye on everyday functions and procedures, but it did not affect either one’s ability to sell their products. In 1995, Virginia passed away, leaving the company to her son, Ken whom still runs the company today. Today, Midwest Distributing Corporation functions with four employees on a daily basis. The company does a high volume in sales on any given day. However, we only need a minimum amount of individuals to get the every day work completed. The primary mission at Midwest Distributing is to sell quality ice machines at a price that the end user can afford. In addition, we strive to maintain a long standing relationship with our customers by building a reliable and trust-worthy partnership with each and every customer. Q#2
My project is on our inventory processes at Midwest Distributing. The process is not a new process, but a traditional one. Midwest Distributing has used this inventory process/procedure since the company opened in 1973. The system that we use to track our inventory is a file card system.
At Midwest Distributing Corporation, we have a high volume of inventory turnover. We sell some parts at a slower rate than others do. This varies depending on the type of machine that the part fits. However, there are some parts that we just cannot keep enough of in stock. We use a card catalog filing system to keep track of our inventory. When we place a purchase order the date, purchase order number, and the quantity that is ordered is put onto the card. We have a minimum number and a maximum number that we go by for each part. This amount is the number of parts that should be in our stockroom at all times. Each part has its own quantity amount. This quantity amount depends on how fast these parts move in and out of the stockroom. Once a part is sold it is taken off the inventory cards.
The file card system is a process that was commonly used back in the 70’s and 80’s because there were no computers. Today, we have computers that can track inventory much faster and more accurately than back then. The problem that we have with implementing a procedure for our inventory is the owner is what you would call “old school.” He feels that by using file cards it is a more reliable way of doing things, and this is the way that they have always done it. Presently, we are trying to convince him that our inventory can be track in a more efficient and effective way by going to a computer system that will keep track of everything for the company.
The first level of change that...