Unit 8 Assignment: Establishing Baselines and Assessing
Success
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 approachesperhaps 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 somePart 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.
Unit 8 Assignment: Establishing Baselines and Assessing
Success 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 2013Part 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 overhaulAdvantages: Fast to
implement Minimal overheadDisadvantages : Risk
of disruption to the business is high Any errors may not be picked up and could
have a high impact on the businessParallel : 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 finishedAdvantages: 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 usedDisadvantage: 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 approachesperhaps a small pilot and then building up
to larger implementationAdvantage: Provides
the organization with the benefits of tailoring the roll-out to the specific
situation Flexible yet manageableDisadvantage: Pitfall
could be lack of communicating the rationale of this approach, as it might seem
chaotic to somePart 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 ordersa.
How
the metric will be assessedData 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 beThe 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 objectivesThis 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 managementa.
How
the metric will be assessedInventory 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 beThe target should be above 90%. Less efficiency will show a lack of improvement.c.
How
the metrics fit the process objectivesThis 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 metricsa.
How
the metric will be assessedWarehouse 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 beThe 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 objectivesThis 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.
