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Group 4:

Fortuin, E, 11372567
Johnson, B, 17432421
Naidoo, T, 17425514
Schoeman, P, 17389003
Steenberg, G, 17355559
Steyn, E,17370345
Van Der Westhuizen, C, 13380761
E-MAIL ADDRESS: bryan.johnson@za.abb.com
CONTACT NUMBER: 0826594511


SUBJECT: Operations and Information Management
NUMBER OF PAGES (excluding this page): 16
DUE        DATE:    Lecture   21:
                                    GROUP:MBA Modular 2012 E 1
17/04/2013
LECTURER: Martin Butler, Konrad von Leipzig
IS Improvement Project
IS Improvement Project
Content



                         Introduction

                         Vision and mission

                         Overview

                         Objective

                         Improvement Plan

                         Process Improvements

                         Financial Analysis

                         Controls
IS Improvement Project
Introduction – Business history and profile


     Company                                   Company
      History                                   Profile

                                              A project engineering company
   1990 Company founded by                    specializing in turnkey projects
        Manie Steyn                           of:
   1993 Mechanical manufacturing              • Automotive assembly facilities
        facility opened                       • Automotive trim line facilities
   1994 Electrical division opened            • Automotive water test facilities
                                              • Boiler installations
   1999 Manufacturing expansion               • Chemical process plants
                                              • Compressor installations
   2005 Merger and management                 • Manufacturing plants
        changes                               • Paint shop facilities
                                              • Piping installations
   2010 Company’s 20th anniversary
        / BEE Certification
IS Improvement Project
Introduction - Vision and mission


                                          Vision

           MC Design & Contracting’s vision is to be an industry leader
           and preferred partner to our clients by providing world-class
           industrial process facilities and components.


                                    Missions and Goals

           OUR MISSION is to focus on four primary principles:
           - We provide project-specific industrial process facilities that
             contribute to our growth and success.
           - We aim to provide an exclusive customer experience,
             through our actions, our products and our services.
           - We are people centred, but customer focussed.
           - We conduct our business in a manner of critical self-
             assessment and continual improvement
IS Improvement Project
Overview – Systems


                                                  Business
                      Software                   Operations
                                             Marketing & Sales
                      Packages                 Contracting
                       MS Office             Support services
                      MS Projects
                       Auotocad                                              MS SQL Server
                        Pastel                                                 Central storage
                                                                                 File Server

     ISO 9001
   Quality System,                   Existing
     Procedures
  Work instructions
                                     Systems
  Document control,                 misaligned                        Syspro
      records,
                                                                     Project Cost
                                                                 Financial Accounting
                                                                         MRP
                                                                     Scheduling
IS Improvement Project
Overview – Business operational flow chart
IS Improvement Project
Objectives

           What do we want to achieve?
                Improve current IS system so that we have …
                      • Alignment of systems
                      • Streamlining of systems
                      • Simple and easy processes
                … which provides an efficient operation that can be maintained with the
                minimal amount of errors, rework, and wasted effort.

           When do we want to achive this?
               Over a 9 week period in accordance with the estimated project plan


           How will we achive this?
                Through a dedicated project manager, utilising
                      • In-house work teams
                      • Syspro business solutions
                      • Management support

           How will we know we have achieve our objective?
                Measurement monitoring and taking actions.
                      • Project team reporting, Employee and Customer feedback
                      • Implement continous improvement projects
IS Improvement Project
                                                                         Alignment of Systems
Objectives
                                                                           to business needs
                                         Business
                                        Operations
                                       Marketing & Sales
                                         Contracting
                                       Support services


                Software
                Packages                                           MS SQL Server
                 MS Office                                           Central storage
                MS Projects                                            File Server
                 Auotocad
                  Pastel




                      ISO 9001                                  Syspro
                    Quality System,
                                                               Project Cost
                      Procedures
                                                           Financial Accounting
                   Work instructions
                                                                   MRP
                   Document control,
                                                               Scheduling
                       records,
IS Improvement Project
   Improvement Plan



       Step 1                    Step 2                Step 3                Step 4                 Step 5
        Initiate                  Identify             Identify               Project
                                                                                                   Close Out
        project                    issues           Improvements             Execution

Project Initiation:   Establish issues /     Identify              Execution of project   Monitoring of
• Obtain              problem areas,         improvement           including:             process:
  management          though detailed        Areas / Solutions     • Training of staff    • Customer
  approval            briefs from:                                                          feedback
                                             • Marketing           • Implement’n
• Kick off meetings   • Marketing                                                         • Employee
                                             • Quotation and       • Adjustments to
  with key staff      • Quotation and                                                       feedback
                                                Estimates             system
• Appoint PM             Estimates                                                        • Project reports
                                             • Projects and
• Engage IS partner   • Projects and            Contracts                                 • Continious
• Form project           Contracts           • “To Be” process                              Improvement
  teams               • “As Is” process         maps                                        Projects
                         maps
IS Improvement Project
Process Improvements


                                                                                                                                     Process improvements through teams
                                  Capture RFQ in
                                                                       Place all
                                                                     documents in
                                                                    projects on the
                                                                                                                                     1) Staff can work efficiently
        Receive RFQ
                                 quotation register /
                                 assign QE number
                                                                  server, open quote
                                                                    templates and
                                                                  notify manager by
                                                                   email of pending
                                                                                         Manager does
                                                                                           feasibility
                                                                                                           NO
                                                                                                                Send regret letter
                                                                                                                                     2) Early warning of shortcuts and risks.
                                         NO
                                                                         quote
                                                                                                   YES
                                                                                                                                     3) Staff buy in and commitment.
                                                                                                                                     4) Staff involvement results in quality,
                         YES           Manager                        Estimator
          Directors                   review and                  prepares detailed     Manager assigns
          Approval                     approves                   cost estimate on      RFQ to estimator
                                       estimate                    quote template

       YES
                         Negotiate
                                                            NO
                                                                                                                                         efficiency and customer satisfaction.
         Submit offer
       (quotation) and               Accept quote,      Decline   Change or quote
           support                    negotiate or                status to “decline”
        documents to                    decline                   on quote register
          customer
                                                                                                   END
                                                                   Change quote
                                                        Accept
                                                                      status to
                                                                  “accepted”, open
                                                                    job in Syspro                                                                                        Place all
                                                                                                                                                                      documents in
                                                                                                                                                                         projects
                                                                                                                                                                      folders on the
                                                                                                                                                                         server &
                                                                                                                                                                       hyperlink in
                                                                                                                                                                          Syspro




     From: Current “As Is” Process
                                                                                                                                                                      Capture RFQ in
                                                                                                                                                                     Syspro (quotation              Syspro sends                              NO   Syspro e-mails
                                                                                                                                                                                                                          Manager does
                                                                                                                                            Receive RFQ              module), system                   receipt                                     customer regret
                                                                                                                                                                                                                            feasibility
                                                                                                                                                                       assigns QE                   confirmation                                        letter
                                                                                                                                                                         number




        Before improvements
                                                                                                                                                                                                                                    YES



                                                                                                                                                               YES                          NO                           Assign estimator
                                                                                                                                                                        Manager &                      Estimator
                                                                                                                                                                                                                             in Syspro,
                                                                                                                                                                         directors                 prepares detailed
                                                                                                                                                                                                                            estimator is
                                                                                                                                                                        approval in                 cost estimate in
                                                                                                                                                                                                                        notified of pending
                                                                                                                                                                          Syspro                        Syspro
                                                                                                                                                                                                                                quote

                                                                                                                                                                                Negotiate

                                                                                                                                          Syspro generates
                                                                                                                                                                                         Decline   Change or quote
                                                                                                                                          & submits detailed          Accept quote,
                                                                                                                                                                                                       status to
                                                                                                                                             costing and               negotiate or
                                                                                                                                                                                                     “declined” in
                                                                                                                                              supporting                 decline
                                                                                                                                                                                                        Syspro
                                                                                                                                             documents
                                                                                                                                                                                                                                       END
                                                                                                                                                                                                   Enter sales order
                                                                                                                                                                                                     in Syspro, send
                                                                                                                                                                                         Accept
                                                                                                                                                                                                           out
                                                                                                                                                                                                    acknowledgment
                                                                                                                                                                                                   letter and convert
                                                                                                                                                                                                     quote to project




                                                                                                                                         To: Future “To Be” Process
                                                                                                                                             After improvements
IS Improvement Project
Process Improvement Implement a culture of continuous improvement

        You don’t fatten the pig with hope and by
                    weighing it alone!




     In other words wishing for improvements and simply measuring
       performance is fine, but it is what we do with the results that
                          makes the difference!
IS Improvement Project
Process Improvements / continuous improvement

  1- Measure                              2 - Analyze (Root Cause)

   What is happening?                       All Possible causes
   Why / when / where does the problem      Most likely root cause(s)
    happen?
   Who is involved with the problem?
                                             Verified root cause(s)
   How do we know we have a problem?




  4 - Sustain (Maintain)                  3 - Improve (Develop/Pilot/Implement)

        Permanent fix                             All Possible solutions
        Preventative measures                     Best solution
        Monitor effects of                        Implemented solution
         implementation
IS Improvement Project
Process Improvements




 Maintain the gains
  Ensure the ISO 9001 quality system does not inhibit change.
  Positive changes made are to be captured in the quality system.
IS Improvement Project
Financial Analysis
    Costs     Costs = R 900 000             vs                        Benefits
                                                   Benefits = R 1 774 500


      Software and people costs
      Licencing , Consulting & Project           Cost of Quality
      Managemet costs                                                     R 279 500
                                R 485 300
                                                 +Sales volume increase
                                                                          R 780 000
      Training + Other / Contingencies
      Quotes and Estimates                       +Reduction in COS
      Projects and Contracts                                              R715 000
                               R 275 195



      Additional Harware
      Server capability and memory               Payback period < 6
      upgrade.                                   Months if all benefits
                              R 157 505          are realised.
IS Improvement Project
Project Controls




                         Project controls achieved through

                          Project time schedule.

                          Project Feedback reports, from PM team.
                             o What is good?
                             o What has the potential to be bad?
                             o What is bad?
                          Feedback from other stakeholders.
                             o Employee feedback?
                             o Supplier feedback?
                             o Customer feedback?
IS Improvement Project

More Related Content

Final groupassignmentpresentation g4_mode1_2012

  • 1. Group 4: Fortuin, E, 11372567 Johnson, B, 17432421 Naidoo, T, 17425514 Schoeman, P, 17389003 Steenberg, G, 17355559 Steyn, E,17370345 Van Der Westhuizen, C, 13380761 E-MAIL ADDRESS: bryan.johnson@za.abb.com CONTACT NUMBER: 0826594511 SUBJECT: Operations and Information Management NUMBER OF PAGES (excluding this page): 16 DUE DATE: Lecture 21: GROUP:MBA Modular 2012 E 1 17/04/2013 LECTURER: Martin Butler, Konrad von Leipzig
  • 3. IS Improvement Project Content Introduction Vision and mission Overview Objective Improvement Plan Process Improvements Financial Analysis Controls
  • 4. IS Improvement Project Introduction – Business history and profile Company Company History Profile A project engineering company 1990 Company founded by specializing in turnkey projects Manie Steyn of: 1993 Mechanical manufacturing • Automotive assembly facilities facility opened • Automotive trim line facilities 1994 Electrical division opened • Automotive water test facilities • Boiler installations 1999 Manufacturing expansion • Chemical process plants • Compressor installations 2005 Merger and management • Manufacturing plants changes • Paint shop facilities • Piping installations 2010 Company’s 20th anniversary / BEE Certification
  • 5. IS Improvement Project Introduction - Vision and mission Vision MC Design & Contracting’s vision is to be an industry leader and preferred partner to our clients by providing world-class industrial process facilities and components. Missions and Goals OUR MISSION is to focus on four primary principles: - We provide project-specific industrial process facilities that contribute to our growth and success. - We aim to provide an exclusive customer experience, through our actions, our products and our services. - We are people centred, but customer focussed. - We conduct our business in a manner of critical self- assessment and continual improvement
  • 6. IS Improvement Project Overview – Systems Business Software Operations Marketing & Sales Packages Contracting MS Office Support services MS Projects Auotocad MS SQL Server Pastel Central storage File Server ISO 9001 Quality System, Existing Procedures Work instructions Systems Document control, misaligned Syspro records, Project Cost Financial Accounting MRP Scheduling
  • 7. IS Improvement Project Overview – Business operational flow chart
  • 8. IS Improvement Project Objectives What do we want to achieve? Improve current IS system so that we have … • Alignment of systems • Streamlining of systems • Simple and easy processes … which provides an efficient operation that can be maintained with the minimal amount of errors, rework, and wasted effort. When do we want to achive this? Over a 9 week period in accordance with the estimated project plan How will we achive this? Through a dedicated project manager, utilising • In-house work teams • Syspro business solutions • Management support How will we know we have achieve our objective? Measurement monitoring and taking actions. • Project team reporting, Employee and Customer feedback • Implement continous improvement projects
  • 9. IS Improvement Project Alignment of Systems Objectives to business needs Business Operations Marketing & Sales Contracting Support services Software Packages MS SQL Server MS Office Central storage MS Projects File Server Auotocad Pastel ISO 9001 Syspro Quality System, Project Cost Procedures Financial Accounting Work instructions MRP Document control, Scheduling records,
  • 10. IS Improvement Project Improvement Plan Step 1 Step 2 Step 3 Step 4 Step 5 Initiate Identify Identify Project Close Out project issues Improvements Execution Project Initiation: Establish issues / Identify Execution of project Monitoring of • Obtain problem areas, improvement including: process: management though detailed Areas / Solutions • Training of staff • Customer approval briefs from: feedback • Marketing • Implement’n • Kick off meetings • Marketing • Employee • Quotation and • Adjustments to with key staff • Quotation and feedback Estimates system • Appoint PM Estimates • Project reports • Projects and • Engage IS partner • Projects and Contracts • Continious • Form project Contracts • “To Be” process Improvement teams • “As Is” process maps Projects maps
  • 11. IS Improvement Project Process Improvements Process improvements through teams Capture RFQ in Place all documents in projects on the 1) Staff can work efficiently Receive RFQ quotation register / assign QE number server, open quote templates and notify manager by email of pending Manager does feasibility NO Send regret letter 2) Early warning of shortcuts and risks. NO quote YES 3) Staff buy in and commitment. 4) Staff involvement results in quality, YES Manager Estimator Directors review and prepares detailed Manager assigns Approval approves cost estimate on RFQ to estimator estimate quote template YES Negotiate NO efficiency and customer satisfaction. Submit offer (quotation) and Accept quote, Decline Change or quote support negotiate or status to “decline” documents to decline on quote register customer END Change quote Accept status to “accepted”, open job in Syspro Place all documents in projects folders on the server & hyperlink in Syspro From: Current “As Is” Process Capture RFQ in Syspro (quotation Syspro sends NO Syspro e-mails Manager does Receive RFQ module), system receipt customer regret feasibility assigns QE confirmation letter number Before improvements YES YES NO Assign estimator Manager & Estimator in Syspro, directors prepares detailed estimator is approval in cost estimate in notified of pending Syspro Syspro quote Negotiate Syspro generates Decline Change or quote & submits detailed Accept quote, status to costing and negotiate or “declined” in supporting decline Syspro documents END Enter sales order in Syspro, send Accept out acknowledgment letter and convert quote to project To: Future “To Be” Process After improvements
  • 12. IS Improvement Project Process Improvement Implement a culture of continuous improvement You don’t fatten the pig with hope and by weighing it alone! In other words wishing for improvements and simply measuring performance is fine, but it is what we do with the results that makes the difference!
  • 13. IS Improvement Project Process Improvements / continuous improvement 1- Measure 2 - Analyze (Root Cause)  What is happening?  All Possible causes  Why / when / where does the problem  Most likely root cause(s) happen?  Who is involved with the problem?  Verified root cause(s)  How do we know we have a problem? 4 - Sustain (Maintain) 3 - Improve (Develop/Pilot/Implement)  Permanent fix  All Possible solutions  Preventative measures  Best solution  Monitor effects of  Implemented solution implementation
  • 14. IS Improvement Project Process Improvements Maintain the gains  Ensure the ISO 9001 quality system does not inhibit change.  Positive changes made are to be captured in the quality system.
  • 15. IS Improvement Project Financial Analysis Costs Costs = R 900 000 vs Benefits Benefits = R 1 774 500 Software and people costs Licencing , Consulting & Project Cost of Quality Managemet costs R 279 500 R 485 300 +Sales volume increase R 780 000 Training + Other / Contingencies Quotes and Estimates +Reduction in COS Projects and Contracts R715 000 R 275 195 Additional Harware Server capability and memory Payback period < 6 upgrade. Months if all benefits R 157 505 are realised.
  • 16. IS Improvement Project Project Controls Project controls achieved through  Project time schedule.  Project Feedback reports, from PM team. o What is good? o What has the potential to be bad? o What is bad?  Feedback from other stakeholders. o Employee feedback? o Supplier feedback? o Customer feedback?

Editor's Notes

  1. Content Background informationSummaryPersonal resources and goalsThe product or serviceThe marketSale and marketing planManagement &amp; organisationDevelopment of the businessBudgetsFinancial requirementsAppendices