Analysis of problems and bpr implementation in evergreen landscaping and maintenance company
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Transcript of Analysis of problems and bpr implementation in evergreen landscaping and maintenance company
LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
Table of ContentsINTRODUCTION...........................................................................................................................................3
Core Business segment............................................................................................................................3
Retail.......................................................................................................................................................4
Landscaping.............................................................................................................................................4
Lawn care................................................................................................................................................4
Key players..............................................................................................................................................5
Business operations and analyses of problems in Evergreen Maintenance Company............................6
Business operations.................................................................................................................................6
Business operations work flow................................................................................................................7
Analysis of the problems in evergreen....................................................................................................8
Sales department....................................................................................................................................8
Operations department...........................................................................................................................8
Administration department.....................................................................................................................8
Finance department................................................................................................................................9
Management executive council (MEC)....................................................................................................9
The fish bone diagram.............................................................................................................................9
Root causes identification.....................................................................................................................11
Pareto Analysis......................................................................................................................................12
Improper inventory management.........................................................................................................12
Improper logistic management.............................................................................................................13
Improper warehouse management.......................................................................................................13
No effective data storage......................................................................................................................13
No teamwork.........................................................................................................................................14
Unskilled employees..............................................................................................................................14
Poor plant layout...................................................................................................................................14
Poor security..........................................................................................................................................14
Business recommendation and potential solutions for problems identified in evergreen landscaping and Maintenance Company.............................................................................................................................15
Implementing business process re-engineering in evergreen landscaping and Maintenance Company...............................................................................................................................................................16
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Define project........................................................................................................................................17
Learn from others (customers, associates, benchmarking, and technology).........................................17
Create vision and design new business process model.........................................................................17
Supply chain management....................................................................................................................19
Operational performance improvement...............................................................................................19
Process management............................................................................................................................19
Business process integration.................................................................................................................19
Develop enabling technology architecture and organizational model..................................................19
Perform a gap analysis and prepare a business case for change (benefits and costs)...........................20
Define process, systems and training requirements, and plan implementation...................................20
Develop and pilot solutions...................................................................................................................20
Implement solution and measure performance....................................................................................20
Conclusion.................................................................................................................................................20
References.............................................................................................................................................21
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ANALYSIS OF PROBLEMS AND BPR IMPLEMENTATION IN EVERGREEN
LANDSCAPING AND MAINTENANCE COMPANY
INTRODUCTION Evergreen landscaping and Maintenance Company is a company with historical backgrounds
which lead to the present services provided by this company, as any organization it had the need
for growth and expansion of its products and services. The company provides services such as
retail, lawn care and landscaping services to its customers. Every organization faces different
types of operational, managerial problems of different categories and it’s the duty of the
organization to rectify the problem in order to improve the quality of its product or services.
Evergreen landscaping and maintenance Co. is a company that have prospect for the future and
this cannot be achieve if a positive action is not taken. This report will analyze and identify the
root causes of this company’s problems and proffer solutions to these problems, it will also
propose a strategy that will prevent these problems from occurring in the future.
Core Business segment Every organization or company in the world is known for a certain or various activities
depending on the nature of the company, therefore the core business segments identifies or
answer questions that roams in the minds of the customers or the public, the major question is
what product or services do this company offers? So it’s very essential for a company to clearly
identify its core business segments. Westerbeek and Smith (2005) 1defined core business as the
main business of an enterprise as opposed to any ancillary business and it is the activity in which
a business generates its greatest income. Evergreen landscaping and Maintenance Company is
characterize by three major core business segments which includes the following
Retail
Landscaping
1 http://books.google.com.my/books?id=N43SwFG2p7MC&pg=PA30&dq=Zook+and+Allen+core+business&hl=en&ei=HWDJTdmbGMXnrAe8uqiYBQ&sa=X&oi=book_result&ct=book-thumbnail&resnum=2&sqi=2&ved=0CD8Q6wEwAQ#v=onepage&q=Zook%20and%20Allen%20core%20business&f=false
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Lawn care
Retail This is usually at the end of supply chain; retail refers to the sales of goods to end users for use
or consumption not to be resold. It is quite obvious Evergreen major source of revenue is in
retailing(see diagram 1) of products such as seeds, tools, fertilizer, basic landscaping materials,
and pesticides from the company projections, current and completed fiscal year budget.
Landscaping This is also a major source of revenue for Evergreen; it involves certain activities that modifies
or improve the natural beauty of an environment. This company offers these activities as services
to their consumers. These activities include creating different topology (land positioning and
elevation) it also involves planting flowers and trees to your own taste.
Lawn care
The grassy lawns of homes and businesses need regular maintenance. Lawn care contractors are
the professionals who perform these services. Lawn care contractors use mowers and tractors to
trim grasses. Some lawn care contractors also apply manure treatments or chemicals to
exterminate grubs or other pests. This is also a core business segment in Evergreen, and it is
quite obvious that the services rendered by this company are interrelated. Below is the graphical
representation of the of the fiscal year budget of Evergreen.
Diagram 1
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LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
RetailLandscaping
Lawn careOther
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Sales
Expenses
Profit
SalesExpensesProfit
Source: data from Evergreen complete fiscal year budget
The above graph clearly reveals that retail business in Evergreen is the major source of revenue.
This report has successfully analyzed the core business segment in Evergreen Maintenance
Company, now it’s time to identify the key players in this company.
Key playersIt is impossible for an organization to exist without individuals who are linked with the activities
of the organization, these individuals could be within or outside the organization, and the most
important people involved in organization activities are the key players.
NO KEY PLAYER FUNCTIONS
1.
Lily Doucette, President Does medium and long term
planning with the management
executive council(policy
matters)
2. Connie Somerset, Sales manager Makes projection of what will
sell, set prices and also make
promotions (MEC)
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3. Tulley Fix, Purchasing manager Handles paper works and
does some buying
4. Heather Cariad, Vice president finance In charge of financial
functions
5. Frances Harmone, Vice president Administration In charge of employees
6. Thomas Davidoff, Vice president operations Deals with operation and
physical plant.
.
Table 1
Business operations and analyses of problems in Evergreen Maintenance Company
It is certain that every organization most experience some sort of problems and organizations all
over the world experience different and similar types of problems, this section of the report will
give detail analysis of the business operations and problems in Evergreen Company and identify
the root causes of the problems associated with the company.
Business operationsBusiness operations varies in organizations due to the nature or type of business carried out in
the organization, for instance the business operations of a manufacturing company will be quite
different from a service company and even though a service rendering organization may have
similarities with each other they still tend to have different ways or method of operations,
because the type of operations is determined by the type of services rendered. Evergreen is a
service oriented company rendering retail, landscaping and lawn care services to its customers.
The day to day activities which leads to accomplishing the main purpose of the organizations is
referred to as business operations. Below is a work flow of the business operations of Evergreen
Maintenance Company.
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Makes project ion of products to be bought
PURCHASING MANAGER
ASST MANAGER RETAIL
Fills in the retail space
Looks for products
ASST MANAGER CONTRACT SERVICES
Finds customer through advertisements in local news papers and magazines
Negotiates contract
Orders product from wholesale dealers and contract growers
Prepare the necessary order form
Alert operational manager to prepare for stocking items
ASST OPERATIONAL MANAGER
Moves all the stock using trucks
TRANSPORT SUPERVISORt
LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
Business operations work flow A workflow consist of sequential step, task, events, or interaction that comprise a work process,
it simply shows the procedures involved in accomplishing the main purpose of an organization.
Diagram 3 WORKFLOW OF EVERGREEN
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SALES MANAGER
Runs promotion and set prices
Costumers
LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
Analysis of the problems in evergreenIt was early stated in this report that every organization is faced with different or similar
problems such problems may be managerial or operational, and it’s the duty of the organization
to try and rectify these problems. The problems of evergreen will be analyzed using some basic
problem solving tools such as the fishbone diagram, Pareto analysis chart.. The problems will be
identified first before the fishbone diagram can be used to identify the root causes, therefore the
problems will be identified base on the operations of the departments of evergreen.
Sales departmentThis is the department that carries out activities which involves sales in Evergreen and it has two
main branches retail and contract services. The problems faced by this department includes the
following
Customer makes request that are usually out of stock
The updates of inventories are out of date
Operations departmentThis department is responsible for all operational activities and physical plants in Evergreen, the
activities of this department is very vital to the company because it deals with delivering results
and maintenance of physical plants of the company, the department is faced with problems
which includes
Lack of adequate storage facilities
Poor security
Transportation difficulty
Administration departmentThis department is in charge of employee’s welfare and development and also handling internal
communication is the company. This department is experiencing problems such as
High staff turnovers
Lack of skilled employees
No integration between employees the work and products
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Finance departmentEvery organization or business deals with finance and financial functions such as investment
management, cash flow, account receivable and various financial responsibilities. Evergreen
finance department is face with one major financial problem which is
Money is tied up in inventory
Management executive council (MEC) This is the council that’s responsible for top management decisions such as policy making, it’s a
council made up of the vice presidents of each department, and this is very vital to the company
because policies determine how the company will operate and functions. That means this council
serves as the top management of the company, and just like any management team stumble on
problems, evergreen top management problems includes
Scare data in meetings
Problems are being ignored
Pet projects being revisited over and over
New ideas are being ignored
The fish bone diagramThis problem solving tool was invented by Dr Kaoru Ishikawa, a Japanese quality control
statistician, it is also referred to as cause and effect diagram, because it is used to arrive at the
potential causes of problems and identifying their root causes.
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PEOPLE
High staffs turn over
Seasonal staffs
Unskilled
No integration between employees
Some employees consider themselves above others
ENVIRONMENT
Children getting lost
Poor layout
Customers being scratch by cactus
Poor layout
THE PROCESS NOT SYSTEMATIC OR RELIABLE
PROCESS/METHODS
Money tied up in inventory
Improper inventory management
Problems are being ignored in MEC meetings
Scare data
No effective data storage
Cart being stolen
Poor security
Green house target for vandalism
MACHINES/EQUIPMENTS
Most Products requested are out of stocks
Inventory is outdated
Improper inventory management
Stocks disposal problem
Transportation difficulties
Storage shortage
Trucks shortageNo space in warehouse
LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
Diagram 4
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No team work
Poor security
Improper warehouse management Improper logistic management
LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
Root causes identificationThe root causes of problems simply means the origin of the problems, from the fishbone diagram some root causes of the problems of Evergreen have been identified the problems are listed below
Table 2
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No Problems Root causes Score 1. Stock disposal, and
Transportation difficulty
Improper logistic management
65
2. Stock disposal, difficulty and storage shortage
Improper warehouse management
50
3. Most product request out of stock, money tied up in inventory
Improper inventory management
80
4. Problems being ignored in MEC meetings
No effective data storage
45
5. Cart being stolen, Green house target for vandalism
Poor security
10
6. No integration between employees No teamwork
40
7. High staff turnover among seasonal staff
Unskilled employees
35
8. Children getting lost, customers being scratch by cactus
Poor plant layout 12
LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
Pareto Analysis
impro
per inven
tory man
agemen
t
impro
per logis
tic man
agemen
t
Impro
per ware
house man
agem
ent
No effecti
ve data
storag
e
no team
work
unskilled
employee
s
poor plan
t layo
ut
poor secu
rity0
20
40
60
80
100
120
140
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
23.7%
43.0%
57.9%
71.2%
83.1%
93.5% 97.0%
Pareto chart
Root problems
scor
e
Diagram 5
Improper inventory managementInventory management refers to the processes which oversees the constant flow of goods in and
out of the inventory, according to Wrice M (2004)2 inventory management is the planning and
control involved in marketing, the right merchandise at the right time, in the right place, in the
right quantities, and the right place. Evergreen is stumbling on problems with regard to its 2 http://books.google.com.my/books?id=ddyEjQ9syvcC&pg=PA170&dq=inventory+management+is+the+planning+and+control+involved+in+marketing,+the+right+merchandise+at+the+right+time,+in+the+right+place,+in+the+right+quantities,+and+the+right+place.&hl=en&ei=zo3nTf-bBoq6vQOD2YnkDQ&sa=X&oi=book_result&ct=book-thumbnail&resnum=1&ved=0CC8Q6wEwAA#v=onepage&q=inventory%20management%20is%20the%20planning%20and%20control%20involved%20in%20marketing%2C%20the%20right%20merchandise%20at%20the%20right%20time%2C%20in%20the%20right%20place%2C%20in%20the%20right%20quantities%2C%20and%20the%20right%20place.&f=false
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LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
inventory, money is being tied down in the inventory and the inventory is outdated and these
problems occurred due to improper inventory management.
Improper logistic managementLogistic management have been defined by different authors, according to Sople V (2007)
logistic management is basically an integrative process that optimizes the flow of materials and
supply to customers. While Schary P (2007)3 see it as “the corporate traffic cop” directing the
flow of materials from source, through production and distribution, to the final customers,
despite the differences in definitions logistic management as a common objective, which is to aid
organizations to be able to deliver products or services to customers when and where they want
them. Evergreen landscaping and Maintenance Company is faced with this problem of stock
disposal and transportation and this problem was cause due to improper logistic management.
This root cause can also increase cost and delay responsiveness to customers.
Improper warehouse management Warehouse management is a complete guide on how to manage warehouse operations and also
how to improve warehouse productivity and reduce cost associated with its operations.
Evergreen warehouse has no space to store large items; this really hinders the operations of the
company in terms of delivery large items requested by customers.
No effective data storage Data is very importance and vital to any organization, because most policies decisions are made
base on the data available with regards to the subject matter. Evergreen is ignoring vital
problems which need attention due to scare data, and any organization that is starved with data
which is relevant to its decision making is bound to face obstacles in running the affairs of the
organization.
3 http://books.google.com.my/books?id=UswE24CnC3wC&pg=PA2&lpg=PA2&dq=%E2%80%9Cthe+corporate+traffic+cop%E2%80%9D+directing+the+flow+of+materials+from+source,+through+production+and+distribution,+to+the+final+customers,&source=bl&ots=bAuN82vxhL&sig=X1Sc5VgxCtAMG7U_GsC_CFSBhBY&hl=en&ei=nI7nTZn5L4uCsQPp94nmDQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBcQ6AEwAA#v=onepage&q=%E2%80%9Cthe%20corporate%20traffic%20cop%E2%80%9D%20directing%20the%20flow%20of%20materials%20from%20source%2C%20through%20production%20and%20distribution%2C%20to%20the%20final%20customers%2C&f=false
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No teamworkEmployee’s involvement in any organization is very vital to any organizational business process,
but the involvement differs from organization to organization based on the methods of
operations, some are involved with teamwork while others are not. Teamwork according Brill
(20054) as the work which is done by a group of people who posses individual expertise, who are
responsible for making individual decisions, who hold a common purpose and who meet together
to communicate, share and consolidate knowledge from plans are made, future decisions are
influenced, and action determined. Teamwork is absent in evergreen, due to this some problems
were stumbled upon.
Unskilled employeesThese are the employees who do not have any training or skill with regards to the job they are
engage in. Evergreen is experiencing high turnovers among the seasonal staff and the root cause
of this problem is because most seasonal workers are unskilled.
Poor plant layout
Plant layout is very vital to an organization, because it is the physical distribution of machines, tools, furniture, equipments; it simply means the physical distribution of the company or organization. Evergreen layout is hindering the operations of the company, because some problems such as children getting lost are problems associated with the plant layout.
Poor securityEvergreen landscaping and Maintenance Company is battling with security related problems
which include cart being stolen, green house being targets for vandalism, all these problems are
security related. So there is definitely a flaw in the security network of the company.
4 http://books.google.com.my/books?id=7rkYu8Q5xxsC&pg=PA6&dq=as+the+work+which+is+done+by+a+group+of+people+who+posses+individual+expertise,+who+are+responsible+for+making+individual+decisions,+who+hold+a+common+purpose+and+who+meet+together+to+communicate,+share+and+consolidate+knowledge+from+plans+are+made,+future+decisions+are+influenced,+and+action+determined.&hl=en&ei=6Y_nTeSNNoLMuAOQkdiaDg&sa=X&oi=book_result&ct=book-preview-link&resnum=2&ved=0CDQQuwUwAQ#v=onepage&q&f=false
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LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
Business recommendation and potential solutions for problems identified in evergreen landscaping and Maintenance Company
Business process re-engineering (BPR) is the business recommendation which is suitable of
evergreen company, because the processes of operations of this company needs re-engineering.
The concept of BPR originated from the management theory of Fredrick Taylor in the 19th
century, in order to make businesses best in class re-engineering of business processes was
adopted by managers. Fredrick Taylor first introduces BPR when he published his article “the
principle of scientific management” in the 1900s. Business process reengineering according to
Stanleigh M (20105) is the fundamental re-thinking and re-designing of a business process in
order to exceed customer and quality requirements. It is also a management approach used for
improvements by means of elevating efficiency, effectiveness of the processes that exist within
and across organization. The basic methodologies used in business process re-engineering (BPR)
are stated below.
BPR Methodology 1 BPR Methodology 2 BPR Methodology 3 BPR Methodology 4
1. Describe the project (establish boundaries)
2. Create vision, values and objectives
3. Redesign business processes and tools (model)
4. Evaluate concept (benefits statement)
5. Plan for implementing the solution
6. Implement the redesign
7. Transition to continuous process improvement
1. Define the project2. Document as-is
processes (diagnose)
3. Redesign business processes and technology
4. Develop a cost / benefit analysis
5. Plan and Implement new processes and systems
6. Evaluate process performance
1. Create project prospectus (define project)
2. Learn from others (customers, associates, benchmarking, technology)
3. Create vision and design new business process model
4. Develop enabling technology architecture and organizational model
5. Perform a gap analysis and prepare a business case for change (benefits
1. Define project and identify team
2. Brainstorm new processes and technologies
3. Analyze and prioritize opportunities (benefit analysis)
4. Select "best" opportunity and design solution
5. Develop and trial new processes, information systems and enabling tools
6. Plan transition and implement solution
5 http://www.bia.ca/articles/pj--pm-vs-pjm.htm
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LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
(measure results) and costs)6. Define process,
systems and training requirements, and plan implementation
7. Develop and pilot solutions
8. Implement solution and measure performance
7. Measure results
Table 3 Source BPR online learning center
Implementing business process re-engineering in evergreen landscaping and Maintenance Company
Diagram 6
Methodology 3 will be used to re-engineer the processes of Evergreen Company.
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Create project
prospectus (define project)
Learn from others
(customers, associates,
benchmarking,
technology)
Create vision and
design new business process model
Develop enabling
technology architecture
and organizationa
l model
Perform a gap analysis
and prepare a business case
for change (benefits and
costs)
Define process,
systems and training
requirements, and plan
implementation
Develop and pilot solutions
Implement solution
and measure
performance
Improper logistic managementImproper warehousing managementImproper inventory management
Supply chain management
LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)
Define project
This is the first process in this methodology, the need to define the problems in evergreen
company and what the company is trying to achieve. The problems of this company have already
been identified and the root causes have been sorted out through the fishbone, see (diagram 4).
The company is trying to achieve a reliable and systematic process of operations and elimination
of the identified problems already existing in the company.
Learn from others (customers, associates, benchmarking, and technology)
This is the second process in this methodology; the process involves learning from others such as
customers, associates, benchmarking and technology. Learning from customers is very vital
because satisfying them is one of the major goals. It is quite obvious that the problems in
evergreen company is related to factors mention above the customer’s needs are not satisfied,
some associates not happy with the process and the technology is not suitable for achieving the
goals in the company.
Create vision and design new business process model
This process is concern with designing a business process which will implement business change
in relation to the organization development and growth.
Below is the recommended business process model for evergreen company
Problems
Solutions
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Diagram 7
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Supply chain managementSupply chain management according to Hugos. M (20066) is the coordination of production, inventory, location, transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served.
This is where the logistic problem warehousing and inventory problems will be rectified in evergreen in order to attain the best mix of responsiveness to the customers.
Operational performance improvement Adopting a new system which will improve the operational performance of the company and problems which hinder the operations of the company will be eradicated; such problems are poor security, unskilled employees, lack of teamwork and the ineffectiveness of the data storage system.
Process management This is a holistic approach which involves aligning the business process towards satisfying the customer’s needs.
Business process integrationBusiness process integration, also known as BPI, is the strategy of finding ways to connect
individual technology systems within the internal and external operation framework of the
company; it simply means the integration of the business processes.
Develop enabling technology architecture and organizational model
Evergreen should also develop and enabling technology such as GUI (graphical user interface) to
provide the means to manage the business processes and data within the company and with
external related process.
Perform a gap analysis and prepare a business case for change (benefits and costs)Evergreen company should perform a gap analysis for benefit and cost in order to analyze if the
benefits outruns the cost of changing the business process.
6 http://books.google.com.my/books?id=RJSNUE7AR54C&printsec=frontcover&dq=essential+of+supply+chain+management&hl=en&ei=EeTlTZ-ML5DqrQfFv7StCA&sa=X&oi=book_result&ct=book-thumbnail&resnum=1&ved=0CDEQ6wEwAA#v=onepage&q=essential%20of%20supply%20chain%20management&f=false
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Define process, systems and training requirements, and plan implementation• Evergreen company in this stage needs to define the process involved in the new business
process and the system the process requires and should also lay down the training
required to adopt the new business process.
Develop and pilot solutionsEvergreen company also needs to develop and pilot the solutions developed by the new business
process.
Implement solution and measure performanceThis is the final stage of the methodology. Evergreen will implement the solutions recommend
by the new process and also measure the performance to see if the new system eliminated the
major roots cause of the former system. This simply means measuring the performance of as it is
and how it was.
Conclusion The major problem of evergreen landscaping and Maintenance Company was the process was
not systematic or reliable; many companies around the world have similar problems in their
business process, this report identified the problems in the process and also proffered solution by
adopting a new system through implementing BPR (business process re-engineering)
methodology.
References Bacal B., 2005, 101 customer’s service training scripts for handling any situation [online], U.S.A, McGraw-Hill Company, Available fromhttp://books.google.com.my/books?
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id=Sxzu3pgQY9gC&pg=PA6&dq=definition+of+customer&hl=en&ei=fNbKTYGYOofsvQP7uvztBQ&sa=X&oi=book_result&ct=result&resnum=3&sqi=2&ved=0CFAQ6AEwAg#v=onepage&q=definition%20of%20customer&f=false [Accessed on 24th may 2011]
BPR online learning, 2010, reviewing reengineering methodology, [online], Prosci, Available from http://www.prosci.com/bpr_method.htm [Accessed on 22nd may 2011]
Cousins J, and Stewart T, 2002, what is business process design and why should I care, [online] Rivcom ltd, Available fromhttp://www.rivcom.com/resources/RivCom-WhatIsBPD-WhyShouldICare.pdf [Accessed on 22nd may 2011]
Hugos M. 2006, Essentials of supply chain management,[online], 2nd edition, Canada, John Wiley and sons Inc, Available from http://books.google.com.my/books?id=RJSNUE7AR54C&printsec=frontcover&dq=essential+of+supply+chain+management&hl=en&ei=EeTlTZ-ML5DqrQfFv7StCA&sa=X&oi=book_result&ct=book-thumbnail&resnum=1&ved=0CDEQ6wEwAA#v=onepage&q=essential%20of%20supply%20chain%20management&f=false [Accessed on 19th may 2011]
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