Week 4 Analysis Report
DeVry University, BUSN460
After reviewing the material one can see that CanGo is ready to move forward with upgrades technology. CanGo is looking to expand, but is still unsure of which way to go. Jack met with Warren and Debbie in which, he shared with them the ideas of an Automated Retrieval/Storage System (AS/RS). Jake explains to them that process flow charts give them the data to review. He states that they need to simplify, eliminate, automate, and integrate. Jack shares with Debbie and Warren the information about bar-coding and how it would benefit the company. He explains the vertical material movement and how it benefits a distribution facility as quick setups benefited the flexible manufacturing facilities. Jack also explains how beneficial one AS/RS would be, but elaborates that if there was two AS/RS’s they would be top notch. Having two separate AS/RS would help increase the volume shipped or to ship double the number of titles at the same cost. The group discussed how Liz would not be happy with the numbers, but you need to look at the net present value and the internal rate of return. Jack assured them that he calculated everything including the startup and installation costs. He explains that they should look at the long term strategic impact the AS/RS and change will have on the future of the company. Take this data to Liz and the other members of the team. Jack and Warren both are unhappy with the current system at CanGo and know that the company needs to change. They are sure that by implementing new system that some of the ongoing issues will be resolved and things will ultimately get better. They have talked with Debbie, and are now taking it to Liz and others for their input. The group meets and Warren shares with the group that they have put the current setup through a test. The way this was done is that they had a team member work through the system wearing a pedometer. The pedometer allowed them to see the amount of walking was being done during the normal day of picking orders. Jack explained that it was not time conducive since the time searching for titles and picking the order was time consuming since backtracking was done often. With this data out there is showed them that the AS/RS would eliminate some work and that was a question one member of the group had. The member was assured that the workers could be moved to another area and still picks orders. Liz the CEO was worried that the warehouse would become an Island of automation, but was assured things would be better. Liz also worried about the numbers she was viewing and wanted to know if they were negotiable. Jack assured her even though the numbers were not able to be negotiated that the AS/RS would prove to pay for itself quickly. Jack also explained that the current system is backwards and should everything should be direct ordered in real time. The front end of the website should be tied in with the back orders so everything is ordered in real time through integration. Liz was also assured that this was not a venture that was going to add financial burden, but only use clean cut costs. Liz listened attentively and stated that they should present it to the board for final input and she hoped they found it beneficial and was ready to move forward with the changes to the system. We once again see that Nick is not focused on the matter at hand and is ready to pass the buck as are others when Warren came by asking for the process flow chart from the improvement team. Nick wanted to view or play a demo that Whitney has instead of focusing on the assignment at hand. He explained they had some ideas in regards to the return, but could not produce the document. He stated Whitney had it and this went down the line until it was known that Debbie ended up with the project. Debbie assured Warren that the report is together but there were some questions that...