Wintergear Distributors Case Study

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Nicole Wells
MISM

The Case Study Question Set:

The following questions accompany the case and are both useful in helping the student think about WGD case study content and as a homework assignment due prior to an actual in-class discussion of the case.

1. Draw a system diagram showing the product and information flows between WGD and FastFit, starting with FastFit placement of an order through when it makes payment for goods received. This diagram will represent each company as a circle for a total of two circles. Line 1

Line 1
Line 3
Line 3
Line 2
Line 2

WGD

WGD

FastFit

FastFit

Line 5
Line 5
Line 4
Line 4

Line 1| FastFit to WGD which is an information flow that is order placement| Line 2| Reconfirmation of information and order by Sales team of WGD| Line 3| Filling in the order- product flow|

Line 4| Sending information of invoice payment|
Line 5| Payment for product|

2. Next, complete a more detailed diagram that has five distinct processes (hence five circles), two for FastFit (Headquarters and the Warehouse)) and three for WGD’s three departments. This diagram should also include the database associated with each WGD department using the cylinder symbol, there are three of these. Now fill in the flows from Q1 above. Then diagram all the flows of information that occur within FastFit and within WGD to support the processing of the order. Do not diagram any computer network details; just illustrate the three databases using the cylinder symbol. FastFit

HQ
FastFit
Warehouse
Sales
Operations
Accounting
PC
IBM ASA systems
4 PC’S, printers, file servers
FastFit
HQ
FastFit
Warehouse
Sales
Operations
Accounting
PC
IBM ASA systems
4 PC’S, printers, file servers

Line 1| Customer to sales department|
Line 2| Sales department rechecks order with customer|
Line 3| Operations fills order to IBM ASA system|
Line 4| Orders additional inventory after checking|
Line 5| Product is shipped to FastFit|
Line 6| Accounting reviews once information sends invoice to FastFit HQ| Line 7| FastFit reviews order returns if needed to WGD|
Line8| Payment is made by FastFit HQ to Accounting team of WGD| Line 9| Accounting team updates status of order, uploads to main computers and closes order|

3. What happens when a customer calls and asks for the status of their order? Is this a business problem and why?

i. Sales department has to go through paper documentation ii. No centralized system updating status of the order
iii. Approximate guesses on the status of the order will be provided to customer iv. Customers want on time and updated information
v. Lack of visibility in companies processes
vi. Hard to commit time

4. Are errors in filling orders likely, why is that and what is their business impact?

i. Yes they are likely
ii. Orders are filled in manually by people in sales department iii. Possible inaccuracies and inefficiency in taking order down iv. Although sales department does make sure to recheck order with customer v. Businesses may excess or shortage of product to supply vi. Wrong product may be shipped

vii. Customers dissatisfied and payment problems

5. Estimate how long it takes from when a customer gives WGD an order until it is shipped? Do this by estimating the elapsed time for the order to spend in each step. Is this a business problem?

i. order processing= 1-2 days
ii. Order rechecking = 1-2 days
iii. Operations department fills order = 2 day
iv. Checks inventory for product = 2 days
v. Orders equipment from suppliers = 1 week
vi. Equipment assembled = 3 days
vii. Order shipped= 5days to 1 week
viii. Total time = 2+2+2+7+3+7= 23 days

Yes this is a problem –
i. Very individually working departments
ii. Need for integrated information systems
iii. No communication between...
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