IDP Hardware Sales and Staging Services

Scenario-

As the most qualified project manager and internal systems analyst at IDP (owing to your master's degree in MSIS earned from UMHB) you have been asked to improve the hardware sales and staging efficiency.  You begin by conducting a series of interviews to understand the process. You document the following:

Value Proposition-

IDP software has a hardware sales department that provides personal computers to retail chains.  Chains buy from IDP, rather than a major computer manufacturer like Dell or HP, because IDP will configure a ready-to-go computer for the chain.  For example, a chain operation (like Valero C-Stores or 7-Eleven) wants a computer to arrive at the retail location completely configured and ready to go; the store manager should simply plug it in and begin operations without any configuration or updates whatsoever.  IDP buys the components, configures everything, and ships directly to the retail location plug-and-play.

Process Description-

A common transaction unfolds as follows: A customer calls to buy 15 systems consisting of 15 computers, 15 monitors, and 15 printers.

Priyanka is the direct sales representative working in customer service and she answers the phone, writing the order on a paper pad. Priyanka calls the warehouse to see if any of the ordered items are in stock. 

Joe is the warehouse manager. Joe writes down the information on a paper pad and physically checks for items on hand.  If in stock, those items are placed on a "hold" by physically sticking a yellow post-it note on the item until the order is ready to move to staging to ensure they are not sold to another customer.  If the items are not in stock, Joe calls Priyanka with that information.

Priyanka next keys the order into her spreadsheet noting which items are in stock and which will have to be ordered.  For items not in stock, Priyanka calls each of her three major suppliers - Cru Computer, Ravens Mart, and Huskie Technologies - and gets bids on the computers, monitors, and printers.  If the vendor has the item in stock a bid is recorded on a paper pad; if not in stock the vendor is excluded from that item.  Each item - computer, monitor, printer - is considered separately.  In other words, Priyanka might buy printers from Vendor A and monitors from Vendor B. 

Once all bids are in, the items are purchased from the vendor with the lowest price that day. Paper purchase orders are drafted and sent to the vendor with a hard copy to "staging" (see below) and to the accounting department.

The orders are noted in the spreadsheet Priyanka keeps.

Once all items are on order, Priyanka calls the customer, confirms all the shipping addresses, and provides an estimate of the delivery date to the customer.  All this information is keyed into Priyanka's spreadsheet.

Priyanka sends the order details to the "staging" crew, headed up by Philip.  Staging is the department where the computers are configured. Philip now knows the following:

(a) What is the size of the order;

(b) where the computers, monitors, and printers are coming from;

(c) how to configure the computers. He notes all of this in a spreadsheet he keeps.  For example, he knows exactly how a Valero computer should be configured.

A few days pass.

Finally, all ordered items are received by staging. No computer assembly or configuration happens until all components are in hand.

Phil (a) unboxes all components; (b) configures the operating system and all application software from original installation media; (c) runs a QA checklist; (d) any failed part is referred to Priyanka for a replacement in which case the order is held until ready to go; (e) once all parts are ready to go Phil calls the customer and gets the shipping addresses and confirms delivery details. Phil sends confirmation information to Priyanka who notes the staging completion in her spreadsheet.

The order is handed over to shipping.

The shipping department takes all boxes and calls the customer to verify all the addresses and provide tracking numbers.  Once the boxes are shipped they notify Priyanka in customer service with a shipping confirmation document.

Priyanka takes all information and builds a small folder with copies of all supporting documents and a "master sheet" with all billing information which she hand-delivers to accounting for billing the customer. These are called "order folders" - one for each customer order.

While all the above is going on, each vendor that sold items to IDP sends an invoice to IDP accounting. Accounting holds all vendor invoices, waiting for the "order folder" from Priyanka. When the order folder arrives, all vendor invoices are matched to the customer order (i.e. did we sell what we bought?)

Accounting keys all the vendor invoice information and customer billing information into the accounting system.

Accounting invoices the customer and pays the vendor.

End of process.

Instructions-

1. In an MS Word document using the template provided, list the following:

a. Role Identification: List the roles required to document the above process.

b. Value-add Analysis: Break down the above dialogue into steps. Columns explanation:

i. Role - what role from your list of roles is involved?

ii. Step - briefly describe the step.

iii. VA - categorize each step with value-add, non-value-add, non-value-add-unnecessary. (VA, NVA, NVAU)

iv. If a step is NVAU please comment on how IDP should address the issue in a better, optimized system.

c. Name the document IDP-VA-lastname.  For example, my document would be IDP-VA-Fischer.docx.

2. Build an as-is Swimlane diagram in Visio or MS Excel.  (Note: You do NOT have to build a "to-be" diagram.)

3. Write a short memo to the president recommending changes using either ERP or Best-of-Breed and describe the process you will use for evaluation. Use memo format.  Two pages max. Put this memo in a separate MS Word document and upload.

This is a 100 point exercise graded on the following criteria:

• Proper identification of roles
• Consistent use of roles across the deliverable items above
• Logical identification of process steps in the VA analysis. Note: There will be some discrepancy across students - it is unlikely any two analyses will be exactly the same. Grading will focus more on the common sense and logic used.
• Logical transfer of the VA steps to your Swimlane diagram. It will not be one-for-one, but it should be close. What I'm looking for is missing steps. For example, do you have a four-step process on your Swimlane that you completely ignored in your VA analysis? That would be a deduction.
• Proper use of Swimlane diagram shapes and representations including:

• Timeline representation
• Choice of shapes
• Use of connectors between shapes

• Overall professionalism (spelling, logical layout)
• Memo content. There is no "right" answer. You need only defend your answer with logic.

Summary - You will provide me with three documents:

1 . VA analysis (use template)

2. Swim lane diagram (Visio, Excel, PDF)

3. Memo to President