Problem Analysis:

After consideration of the current business process of the company, the various problems with Frank Megatronics Pty Ltd. are as follows:

1) Majority of the work is labor intensive.2) There has been no technological advancement taken by the company

such as computer based software like ERP and all.3) There is no dedicated marketing team and strategy wing. 4) Most processes are carried out on paper which consumes a lot of time

and leaves a wide scope for errors.5) Records of the raw material in the warehouse is not maintained

properly.6) No guidelines have been set towards the time frame for purchase of

materials. 7) Limited consideration of customer requirements/preferences as orders

are sent to any address mentioned on order forms.8) There is no system to process orders in the sequence as per they arrive,

orders are processed as per availability on work desk.9) There is a major communication gap between the departments of the

company.10)There is also a lack of team spirit among the working staff.11)Improper storage of information on non-reliable materials like post it

notes etc. 12)Huge time loss due to the utilization of surface mail instead of

electronic mail.

Followed is a diagram depicting the repercussions of the manual, labor intensive working system of the company. The manual process not only encourages costs and time, it is also an invitation to human errors and loss of customer database. The lack of communication also plays a vital role in the delay in the processes of the company.

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Gap Scale Model:

Capabilities and performance gap indication before and after ERP Installation:Production Time for 1 Megatron is 6 HoursResults in lesser orders ‘As Is’ Process (Paper Work) takes more timeStock Verification is physicalPaper based preparation of ALL commercial details.Further time loss with transfer of documents Lack of Communication among departmentsAutomated process reduces time consumptionMore orders can be accessed from Customers'To Be’ ProcessOnline Tracking of InventoryOnline Generation of ALL InvoicesRelated documents can be accessed via common databaseIntegration of Departments2

‘As Is Process’:

Project Scoping for Frank Megatronics:

Customers

Sales

Production

Purchasing

Accounting

Logistics

Supplier

Order

Manual Sales Form

Sales

Order Form

Availability?

Pack and send for Shipment

Organize Purchase Request

Send PO Manual PO Receive Surface

Duplicate Invoice Sales Order Form Generate Invoice

Sign Form and Dispatchwith Fedex

Receive PO Receive Payment

Receive Invoice

Receive Product

Make Payment

Check for Stock

Send/Receive Payment

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Removal of surface mail Responsible workers

Removal of paper work Following strategies

Reduction in delayed orders Improve customer Database

Balancing customer vital stats Timely processing of PO

InputsControlsOutputsEnablers4

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