MIS40090
BPR Group 6 Project
Blackrock Hamper Company
Helen Cardiff / David Heaney
Dermot Kelly / Matthew Maloney / Gavin Ross
November 23rd 2009
Introduction
1. Project Overview
(a) Client Profile
(b) Drivers of BPR Project. Why Now?
(c) Project Aims
(d) Specific Targets
2. Project Scope & Stakeholders
3. Methodology
4. Process - Order Taking – As-Is & To-Be
5. Process - Order Fulfilment – As-Is & To-Be
6. Technology Requirements
7. Impact on People
8. BPR Project Risks
9. Implementation Plan
10. Business Case Saving
11. Questions & Answers
1. Project Overview(a) Client Profile
Blackrock Hamper Company
1. Founded in 1997
2. Has built reputation as one of Ireland's leading
Hamper providers
3. Sources a range of traditional Irish produce,
gourmet foods, delicacies and fine wines from
around the world
4. Market is 90% Ireland, 10% Other
5. 35 Employees (30 full time, 5 seasonal)
6. 2008 turnover of €3.6m
1. Project Overview (b) Drivers of BPR project. Why now?
1. Founded as a small “mom and pop” operation
2. Rapid growth has left it with a lot of legacy systems and
manual processes which evolved on an ad hoc basis over
the years.
3. As sales and staff numbers have grown, the inefficiencies
produced by the current processes become ever more
apparent
4. Management finally convinced that a radical redesign of the
firms processes was required in order to support its future
expansion strategy which allows customers to create their
own personalised hampers by choosing from a range of
quality wines, spirits, chocolates and food
1. Project Overview (c) Project Aims
• Harness benefits of technology to deliver better processes and stay competitive.
• Eliminate non value add activities and allow more efficient utilisation of resources
• Deliver cost savings and faster turnaround times
• Faster and more user friendly ordering system will increase sales conversion and repeat business
2. Project Scope & Stakeholders
Senior Management
HR Finance
Facilities
Sales
Order Fulfilment
Purchasing
Admin
Order Taking
Customer Service
Core
Legal
Quality Control Marketing
Partner Inform No Role Key:
Three-stage process: Preparation, Transformation, Consolidation
3. Methodology
1 2 3 4
Checkpoints
1. Strong focus on preparation – get it right from the start2. Detailed checkpoints – everything covered before moving on3. Focus on proper management of change throughout the project4. Emphasis on sustaining the change after the project has ended
3. Methodology
Checkpoint 11. Rationale for change2. Management buy-in3. Selection of processes4. How much/long/fast5. Organisational readiness6. Assign the best people
Checkpoint 21. Assess existing processes2. Customer input and competitive
assessment3. Magnitude of opportunities4. New process vision5. Identify changes needed6. Roadmap for change
Checkpoint 31. New process docs & validation2. Key concerns addressed3. Systems meet new requirements4. Necessary funding available5. Major barriers removed6. Road-map for action
Checkpoint 41. Positive customer reaction2. Customer-orientated focus3. Improved decision making4. Business plan aligned with new
capabilities5. Better responsiveness to market
3. Methodology – BCG 12 Principles
Senior Management must lead reengineering
Strategy must drive reengineering
Add value for the customer Focus on process, not function
Play to win Take a system view Pre-plan and learn as you go No “one size fits all”
Metrics Matter Care for the human dimensionReengineering is not a one time
thingCommunicate, communicate,
communicate
4. Order Taking – As Is
Techniques Used
– Observed & recorded staff‟s daily routines & procedures
– Interviewed supervisors, managers, selected staff
– Benchmarking
– Staff focus groups
– Resulted in the development of the „As-Is‟ Process Map
4. Order Taking – As Is
Results Found
− Processes
• No specific order taking process, very messy. OMS only being used
for online payment
• Orders not validated and checked in office
• Non value adding procedures
• Too much time spent on manual tasks
• Current OMS not being used to full potential
• Inefficient process overall
− People
• Lack of communication and coordination
• Not customer focused
• Staff stuck in old established routines
− Technology
• Limited use of technology
• Current OMS not being used to full potential
4. Order Taking – To Be
Results Found
− Processes
• Office staff no longer involved in the process
• Process staff validate, process payment and create orders in new Orderwise
OMS software, which has been integrated with old OMS
• Online validation ensures orders are correct and they are created in OMS
instantly
• Order taking process time reduced by up to 1 hour and 20 minutes
• Automated system has reduced manual tasks
– People• Office staff return to focus on core tasks and also deployed in value adding
activities elsewhere
• New clearer job roles
• Customer focused
• Very coordinated
– Technology• Orderwise Order Management System implemented
• Only manual task is inputting data into OMS to create orders from postal &
phone orders
• New system has eliminated many of the old manual tasks
5. Order Fulfilment – As Is
Techniques Used
– Observed & Recorded Staff‟s Daily Routines & Procedures
– Interview‟s
- Warehouse Manager
- Selected Staff
– Group Workshops
- Initial
- Development of the „As-Is‟ Process Map
- 2nd Round
- Signed Off
5. Order Fulfilment – As Is
Blackrock Hamper Company AS – IS Order Fulfilment Process
Wa
re
ho
use
Ma
na
ge
rF
oo
d S
ectio
nB
eve
ra
ge
Se
ctio
n
Pa
cka
gin
g
Se
ctio
nD
istrib
utio
n
Re
wo
rk
NO
20%
YES
80%
YES
90%
NO
10%
Φ Order Stock
Stock
Available?
END
OMS Checked
every 30 minutes
for new orders
Orders
placed in
section tray
ready for staff
- approx.
every 30
minutes
Section Staff
collect order
- every 10 minutes
Section Staff check
is stock is available
(approx. 2 minutes)
Select Stock
Order Form
returned to
Warehouse
Manager
Order Form
Manually Updated
Orders
placed in
section tray
ready for staff
- approx.
every 30
minutes
Section Staff
collect order
- every 10 minutes
Stock
Available?Select Stock
Update Order
Form as
Complete
Stock Received
Cross Check
Hampers against
Order Forms
Pack HampersAssign Customer
Details to Hamper
Hamper Received Φ
Order Form
Updated as
Completed
Completed
Order Form
Received
Data
Manually
inputted into
OMS
12 Minutes
Order Form
Soft Copy Filed
(3 minutes)
Section Staff check
is stock is available
(approx. 2 minutes)
3 Copies each
of Order Form
Printed from
OMS
Update Order
Form as
Complete
Order Form
Soft Copy Filed
(3 minutes)
Order Form
Soft Copy Filed
(3 minutes)
Orders
placed in
section tray
ready for staff
- approx.
every 30
minutes
5. Order Fulfilment – As Is
Results Found
- Process
• Identified Potential Bottlenecks
• Identified Excessive Handoffs
• Identified Process Delays by using Process Metrics
• Identified Lack of Single Control & Audit Point
• Identified Non-Value and Value Adding Steps
- People
• No Staff Empowerment
• Not Customer Focused
• Each Section Worked in Isolation
- Technology
• Insufficient use of Technology
Blackrock Hamper Company AS – IS Order Fulfilment Process
Wa
re
ho
use
Ma
na
ge
rF
oo
d S
ectio
nB
eve
ra
ge
Se
ctio
n
Pa
cka
gin
g
Se
ctio
nD
istrib
utio
n
Re
wo
rk
NO
20%
YES
80%
YES
90%
NO
10%
Φ Order Stock
Stock
Available?
END
OMS Checked
every 30 minutes
for new orders
Orders
placed in
section tray
ready for staff
- approx.
every 30
minutes
Section Staff
collect order
- every 10 minutes
Section Staff check
is stock is available
(approx. 2 minutes)
Select Stock
Order Form
returned to
Warehouse
Manager
Order Form
Manually Updated
Orders
placed in
section tray
ready for staff
- approx.
every 30
minutes
Section Staff
collect order
- every 10 minutes
Stock
Available?Select Stock
Update Order
Form as
Complete
Stock Received
Cross Check
Hampers against
Order Forms
Pack HampersAssign Customer
Details to Hamper
Hamper Received Φ
Order Form
Updated as
Completed
Completed
Order Form
Received
Data
Manually
inputted into
OMS
12 Minutes
Order Form
Soft Copy Filed
(3 minutes)
Section Staff check
is stock is available
(approx. 2 minutes)
3 Copies each
of Order Form
Printed from
OMS
Update Order
Form as
Complete
Order Form
Soft Copy Filed
(3 minutes)
Order Form
Soft Copy Filed
(3 minutes)
Orders
placed in
section tray
ready for staff
- approx.
every 30
minutes
5. Order Fulfilment – To Be
Blackrock Hamper Company TO - BE Order Fulfilment
Dis
trib
uto
rC
on
ten
t
Se
ctio
n
Wa
reh
ou
se
Ma
na
ge
r
ΦCheck Stock
Availability
(10 seconds)
NO
2%
YES
98%
Order Stock
Re
wo
rk
Select Stock
(3 minutes)
Hamper Received ΦDelivery
Inventory
Data
Electronically
Updated into
OMS
Via PDA (1
min)
Stock
Available?
Access PDA every
2 minutes
Access PDA to
Check New
Orders from
Warehouse
Manage
(10-15 seconds)
Pack Hampers
(2 Minutes)
5. Order Fulfilment – To Be
Results Found
- Process
- Amalgamated 3 Sections into 1.
- Automated System has Eliminated Bottlenecks and Manual Tasks.
- Reduced Process Delays.
- More Efficient Process with a 30 minute saving.
- People
- More Responsibility.
- More Involved in Value Adding Procedures.
- Technology
- Enabled Better Communication & Inventory Replenishment.
Blackrock Hamper Company TO - BE Order Fulfilment
Dis
trib
uto
rC
on
ten
t
Se
ctio
n
Wa
re
ho
use
Ma
na
ge
r
ΦCheck Stock
Availability
(10 seconds)
NO
2%
YES
98%
Order Stock
Re
wo
rk
Select Stock
(3 minutes)
Hamper Received ΦDelivery
Inventory
Data
Electronically
Updated into
OMS
Via PDA (1
min)
Stock
Available?
Access PDA every
2 minutes
Access PDA to
Check New
Orders from
Warehouse
Manage
(10-15 seconds)
Pack Hampers
(2 Minutes)
6. Technology Requirements
1. Create a more efficient customer focused ordering, payment
and product fulfilment process.
2. Improve warehouse performance.
3. Provide an efficient end to end automated and accountable
stock management system.
4. Provide internal company visibility by integrating the new
system with existing technology where possible. Capture of
customer details for future marketing campaigns.
5. Provide a supplier compatible system.
Item Quantity Required Cost
Orderwise Software Package 1 € 7,500
Orderwise Licence’s 6 € 6,000
Website Upgrade 1 € 4,000
Desktop computers 4 € 3,500
PDA’s 8 € 3,200
Stock bar-coding printer 1 € 1,200
Updated server 1 € 4,000
Total € 29,700 + Vat
6. Technology Requirements
7. Impact on People
1. Ease of use of new ordering system will benefit both staff &
customers resulting in fewer manual tasks to be carried out
improving on current rework and error rate.
2. Staff training will be provided on the new system. Clearer
more defined job roles will emerge promoting staff
empowerment and motivation.
3. Less part time staff will be required during peak periods.
Office staff will no longer have to deal with order processing
and so can concentrate on core activities.
4. 6 staff will be redeployed in other value adding activities
such as sales and marketing.
8. BPR Project Risks
− People
− Staff Scepticism / Fear of Change / Cultural Resistance
− Failure to communicate the need for BPR project
− Failure to recognise End User needs/concerns
− Training not absorbed
− Processes
− BPR project misaligned with company strategies & goals
− Wrong Roll-Out Strategy selected
− Staffing issues
− Benefits not realised
− Technology
− Poor design and functionality / Not user friendly
− Poorly tested before implementation
− Software doesn‟t meet end users needs
10. Business Case Savings
Total order processing time pre-BPR: 64 mins
Total order processing time post-BPR: 16 mins
2010 2011 2012 2013 2014
Annual FTE
savings6.03 7.83 8.66 9.10 9.37
Fully Loaded
cost savings€243,503 €316,554 €350,006 €367,506 €378,531
Revenue from
10% sales
uplift
€64,800 €84,240 €93,506 €98,182 €101,127