Business Issues
Basket Case uses paper-based processes to manage its manufacturing system. Basket Case management has asked an information technology consultant to study the Basket Case operation. The consultant recorded a number of comments made by Basket Case staff.
Who said it
What was said
Tom (sales clerk)
We keep all new orders in these filing cabinets. Each customer has a separate folder for his or her orders. When the number of orders gets too large, we start another folder.
When an order has been delivered, we move the order into another set of filing cabinets in another room. Again, the orders are kept in folders according the customer.
When orders are three months old, they are moved into archive boxes and taken to the archive warehouse.
This processing takes a great deal of work and means that we often have to look for files in several places before we find them. This is a particular problem if the order has gone to the archive and the customer still has questions about them. It takes a long time to find the orders then.
Mary (sales clerk)
Every day I get the orders that have come in during the day and create an Order Summary. With each order, I count up the number of each product that has been ordered and write the number on the order summary in this space here. When I have put in all the orders, I add up the total number of each product that has been ordered during the day.
The manager gets really annoyed if I make a mistake, but it’s really hard to get it right – particularly if I have to answer the phone in the middle of what I am doing.
Jacqueline (sales manager)
You would think that it was an easy enough job to keep track of a few simple orders but it’s surprising how often they just can’t get it right. It’s really hard to find good staff.
Carol (manufacturing dept. clerk)
It’s one of my jobs to put the Production Schedule together. I get the order summaries from the sale department. I also get some idea of the current stock levels in the warehouse. From this information I work out what products we have to manufacture each day.
We try to make several batches of the one product so we don’t have to clean down and set up the machines too often.
I make up a list of all the materials we need for each product. I have to make sure we have enough raw materials on hand so that we can finish each batch without running out. If necessary, I have to order in new stuff ready for the day that the product is going to be made. It is really embarrassing if I make a mistake and we can’t go ahead and make the batch.
Jane (sales dept telephonist)
I take phone calls from customers. Most of the time it’s customers placing new orders. I write their orders down on a purchase order form.
Sometimes it’s a customer asking about how their orders are going. When that happens, I have to put them on hold while I ring the warehouse. They can get pretty stroppy when I do that while they are busy because they have to stop work while they find the customer’s picking slip. What can I do? I’m just the telephonist.
Sometimes the problem is with their invoices. I just put them through to the accounting people when that happens. It’s too complicated for me.
Marcia (accounts receivable clerk)
Tracking customer complaints about incorrect billing can be quite a nightmare. The paperwork is handled by a large number of people who can all make mistakes – the person who takes the order, the man in the warehouse, the picking slip and the invoice. It can take quite a long time to find where the mistake has been made.
Another problem is that when picking slips come back to us from the warehouse, it takes us quite a long time to find the original order in the filing cabinet. This is particularly true if the order has been partly completed earlier. If an order is partly filled, sometimes it is put in the filing cabinet with completed orders. It’s not supposed to be put there until the order is completely filled, but sometimes a mistake is made. Then you have to look in several places before the original order can be found.
Bob (manager)
We all know that our systems are out of date. We put this system in when the company was really small. Now it has grown, our systems have not changed. It’s particularly silly with orders taken from the Web site. The orders were made electronically, but we turn them into paper orders again.
We need an electronic system but, frankly, we do not know where to start.
The consultant recommended that Basket Case install a computerised information system to address the business problems revealed by the consultation process. The consultant recommended developing and installing the system in three phases.
§ The first phase is to build and install a system to record and report on orders received by Basket Case.
§ The second phase is to build and install a system to help manage the manufacturing process.
§ The third phase is to assist the warehouse pack, deliver and invoice good that have been ordered.
TASK 1
The “Basket Case” case study and the section “Business Issues” in this assignment document have described the Basket Case information systems and some of the problems that were found by the consultant that studied the Basket Case operation.
Your task is to describe these problems for Business Case management. This description will make up the first part of your report to Basket Case management.
§ This section of your report should begin with a heading that will clearly indicate to Basket Case management what the section is about.
§ You should list the problems (no more than one line for each item in the list). The use of bulleted lists is encouraged.
§ You should then write one paragraph about each of the problems. The paragraph should describe the nature of the problem and how the problem is stopping Basket Case from being efficient and effective.
§ You should finish the section with a paragraph briefly summarising the problems you have described.
Credit:ivythesis.typepad.com
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