Analyzing Business Processes for an Enterprise System
A Paper Presented in Partial Fulfillment Of the Requirements of MBA 520 Managing with Technology June 2012
Presented to: Professor Marwan Stambuli
This manufacturer of chemicals will soon find, if it hasn’t already, that the processes and technology it uses to enter and schedule orders is out of date and will certainly impact their ability to compete effectively if they do not consider modernization soon. We will review the current process and what changes and improvements could be made to increase efficiency and then consider what technology would best serve the improved processes. There are always choices to be made when upgrading information systems and the costs and benefits of the solutions most commonly found in the manufacturing industry will be considered. In addition to determining which solution best fits this organization there are several other issues which should be considered before moving forward, including developing communication and sales over the World Wide Web, how to best manage change with the organization’s current employee group, and analyzing the costs and benefits of various choices. The key stakeholders should carefully consider which option would best fit this organization before proceeding with implementation plans. Analysis of Current Sales Order Process:
The current process involves customer representatives manually writing down specific order information on an order pad, which includes asking existing customers to confirm information including shipping and billing addresses, product numbers and descriptions, as well as shipping instructions. Customers may call, fax, or mail in orders, but in any case, it involves handwritten instructions which are generally susceptible to errors and misplacement. The company is essentially recording all orders twice, once written and once when the order is later entered in the computer. The company sales representatives then search for inventory at the manufacturing site nearest the customer by accessing the data base at each location, they will search the next closest locations until they find the products they are looking for, searching all five locations if necessary. If the product is not in inventory at any of the plants, then the order is placed on backorder. After the desired products are located the sales representative suggests a delivery date to the customer of four to five days away. If the customer requires a faster delivery date then special shipping instructions are written and entered on the order. If the customer requests a delivery date that is eight to ten days away, the sales representative manually hold the order from entry into the system until delivery is four to five days away, but they have not entered the order in the system and will need to verify inventory once again. If the customer requests delivery greater than ten days, the product is placed on backorder. The sales representatives then must review a report daily that lists all the backorders to ensure the order is fulfilled and released per the customer’s delivery request. It is important to note that there is not a standard naming or numbering convention for various products between the manufacturing sites. This leaves much room for error and confusion for both customers and employees and needs to be corrected immediately, whether a new process is adopted or not. Once the product has been located and the delivery date set, the order is entered into the system by the sales representative and the system performs a credit check on the customer. If the customer is not considered credit worthy for any reason, the order is placed on hold until payment in full has been received and the...