Discussion of the Research Question
This project aims to know the effect of implementing EWS on the cost of production of manufacturing sector in Hong Kong and in the process investigate the cost-effectiveness of using EWS. Through the said research question the effects of EWS to the manufacturing system in Hong Kong. Through the said research question a better understanding of EWS can be seen and its importance can be realized more.
Brief Overview of the use of EWS
Electronic workflow system is becoming more and more popular in Hong Kong. Electronic workflow systems are software systems that are used as support for coordinating complex business processes. This enables the execution of different processes more coordinated between members of the organization. The execution of processes through automated systems enable the company to cut down several steps in the production and thus enhancing their efficiency and lowering associated cost related to low value activities. The process of implementing workflow systems could be costly for the company. However, the cost-savings through time would definitely outweigh the cost of acquiring the program and the cost of implementation. There is a need to assess the return on investment potential of implementing electronic workflow system for the organization in order to assess the impact of the implementation on the company.
Perceived Benefits of EWS
EWS although can cause the company some financial problems may give the company cost-savings and through time it can outweigh the cost of acquiring the program and the cost of implementation. Through EWS the company’s in Hong Kong can gain advantage against their competitors and increase its profitability and upgrade the market status it has. Through EWS more clients can be attracted to avail of the services and products of companies. Lastly through EWS the company can improve the work status of the employees of the company.
Aims and Objectives of the Study
Aim
The main aim of this project is to assess the impact on cost of EWS on manufacturing companies.
Objectives
A. To provide an evaluation of the cost-savings that could be realized through the implementation of EWS.
B. To assess the cost of investment for manufacturing companies implementing EWS.
C. To assess how productivity and profit would be affected through the EWS.
D. To evaluate software features that manufacturing companies believe to be essential for the success of EWS.
E. To realize some challenges that may occur in implementing EWS and how this would affect realization of cost savings.
Chapter 2 Literature Review
The Emerging Trends in the Use of EWS
One of the trends in the use of EWS is it introduces new solutions on businesses. As mentioned in the article from Business Wire, An electronic workflow system will be introduced to speed mortgage application processing and cut paperwork and costs, while enabling the company to offer a more responsive service to its home finance customers. The productivity of the 200-plus team of underwriters at InterMortgage which is UK’s Barclays Bank’s home mortgage operation will be increased by up to 40 percent, with a significant impact on turnaround times. Electronic imaging technology will play a major role in making InterMortgage a paperless environment, allowing processing teams to monitor the status of each application and staff the capability to redirect files instantly to any processing team’s workstation.
Different Software and Hardware used and the Function
In EWS different software and hardware are used. One of the hardware used is networking materials, this technology makes sure communication takes place in the company. Another material used is the personal computers that are the main materials used in running the software. On the other hand the software used is specialized programs that enable the idea of EWS to transpire. These specialized programs are in the way the heart of EWS while the computers are the hands that can be instrumental in making the system work.
Assessment of the Cost and Benefits of EWS
EWS can create huge costs for the company since it involves the use of too many resources and it may involve other companies that have to be paid. This cost may be replaced by the benefits that the company may get in the future. The cost a company might have is only for a shorter term unlike the benefits it may have that can have long term effect and effects the company might need in the future.
Different Kinds of Assessments Used to Evaluate the Impact of EWS
To evaluate EWS different tools can be used. One tool is the figures the company has. Through analysis of the income and the revenue of the company the impact of EWS can be known. Increase in income and revenue means the impact of EWS is so effective while a decrease in income and revenue means that EWS has not done anything to that can create changes to the company. Another tool to assess the impact of EWS is the influx of customer the company has. More clients mean the EWS is doing good things while lesser clients mean that EWS is not affecting the company.
Software and Hardware Requirement and Investment Costs
As mentioned earlier different Software and hardware are required for the implementation of the EWS. Software programs like specialized programs and hardware programs such as PC and networking tools. The costs that will be used for such can be big thing for the company depending on how advanced the software and the hardware is and depending on how far or near these materials can come from. The investment costs may be a bit too much for the company but the rewards the company will receive from this will last for longer periods of time and it can boost not only the status of the company but the morale of its employees.
Chapter 3 Research Design
Methods of Collecting Data
First step would be to be able to identify the different processes in the organization and assign or segregate them into specific steps. Each step of the activity would have a specific cost to it. For example, in manufacturing, once a machine breaks down, this would mean stopping other processes. The manager’s decision-making time, and the time of no work for employees getting paid has specific cost. Secondly, the company must segregate the associated labor cost of that specific step. If the employee would normally take 15 minutes off their time in inquiring about steps to do after machine breakdown occurs, then the company must use the 15 minute rate of that employee to calculate the cost. Thirdly, calculate the total savings for that specific step and then this should be multiplied with the total number of occurrences that this step happens in the organization. This would be the total savings that could be realized in that specific step if automation would eliminate these costs. The next important step would be the calculation of the investment costs for the company. The cost of investment could of course include investments that could be depreciated and those cost of investments that could not be depreciated. Some of the important depreciable costs include the software and hardware that would be used. These components have a cost that could be spread through its lifetime. If the software and hardware have a life of four years, then the annual cost of the software should be the total cost divided by its lifetime. Non-depreciable aspects of the cost includes the cost of implementing the project, design of the system, additional training for the use of the system and maintenance of the system. These are cost that are not depreciated but could occur at one time process only. Through these steps the needed data can then be processed.
Methods of Processing Data
Monetary assessment of the value of EWS is very important because this could easily measure the financial returns that could be gained through the implementation of the project. The capacity of the proposal to express the value of savings and cost in monetary terms is very important in capturing the real value of the investment. The problem is there are lots of benefits that are not really tangible. Tangible benefits that could be gained from automation could include two categories. The first categories of tangible benefit are those benefits that are actually able to improve the level of productivity of the employees. The second category of tangible benefits is the reduction in the level of cost labor and materials for the company. Intangible benefits are benefits that could not be quantified but are very important in assessing the value of investments in human resource technology. Some examples of intangible benefits include increased in the satisfaction of employees, reduction in the attrition rate, and better compliance of the company with state and federal regulatory rules. Standard accounting of return of investment includes savings minus investments. The resulting value would be multiplied by 100 and this would be divided again to the total cost of investment. There are several ways that the company could robustly calculate the savings that could be realized through the project. The data collected and processed will then be presented. In the next part there will be discussion of how data will be presented.
Presentation of Data
Data will be presented in a short but clear way. Through such presentation clearer understanding of the data can be made, the needed information can be gathered from the data to make an analysis out of it and afterwards make a proper conclusion and recommendation. Such is done so that lesser time will be wasted and more analysis can be done. Inconveniences and other problems that may arise can also be prevented.
Application of the ROI Model to be used
The ROI model be applied to standard accounting of return of investment includes savings minus investments. The resulting value would be multiplied by 100 and this would be divided again to the total cost of investment. Through the said activity the effectiveness of the system can be analyzed.
Chapter 4 Evaluation
Results of Processing of Data
The data showed how EWS changed the two companies. Through the monetary analysis the effects of EWS can be seen visibly and it proved how valuable the system was to companies. The monetary analysis described the things that happened before the company had EWS and after the company had EWS. The data gathered from monetary assessment helps in understanding how vital EWS is to companies. The data also proves what happens to the growth of a company when EWS is used.
Findings Regarding the Cost-Savings of the Two Companies
Both companies during the implementation of EWS had to use huge costs but afterwards cost savings were seen. Labor production increased with lesser people doing labor. Both companies’ don’t have to hire more employees. Both companies’ increased the clients they have thus they don’t have to use promotional materials. Lastly both companies’ don’t have to purchase again and again new materials.
Implications of the Results on Software Features
The software increased efficiency and productivity in both companies. An improved software means better process that gives the company different kinds of benefits. An improved software also means that the employees will not have a hard time in doing the different tasks they have thus they can increase their productivity.
Chapter 5 Conclusions
Generalizations on the Cost-Savings Realized
Cost Savings is good for the company; it maintains the stability of the company and gives it advantage over its rivals. Cost savings gives company a longer life. It also makes the company achieve its goals and desires. Lastly cost savings help the company increase the kind of product it offer and the way it serves its clients. As cost saving happens in the company the way clients are served can be given more focus thus it tends to increase.
Features of Software Vital to the Cost-Savings
The software had lesser errors. Lesser error means that time will not be consumed thus cost savings may arise out of it. The software does not need more than one operator thus the company does not need to hire more employees. The software costs less maintenance it does not have to be maintained regularly and no costs can be released from that. Lastly the software is easily upgraded so that bugs and other problems can be fixed ahead of time.
Differences between Late Adopters of EWS and Old Adopters
The late adopters of EWS will feel its effects in a later time, while the old adopters of the EWS can feel its effects earlier. The late adopters may have an upgraded and high technology EWS while the old adapters might not have such features but they can still upgrade their EWS.
Credit:ivythesis.typepad.com
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