Ultimate Office Products

Ultimate Office Products

Ultimate Office Products was an old, established manufacturing company in the turbulent office

products industry. Discount merchandisers and office product superstores were spread

ing

rapidly and altering the traditional distribution channels once dominat

ed by wholesalers and

smaller

retail

stores.

The

growing

power

of

the

superstores

was

forcing

manufacturers

to

improve

customer service.

The traditional manufacturers were being challenged by new

compa

nies

more

willing

to

cut

prices

and

use

technologies

favored

by

the

superstores,

such

as

electronic

orders

and

billing.

Ultimate

Office

Products

was

losing

market

share

and

profits

were

declining.

Richard

Kelly

was

the

director

of

information

systems,

a

newly

created

position

in

the

company.

When

the

CEO

met

with

Richard

to

discuss

his

new

responsibilities

and

objectives,

she

explained

that

it

was

essential

to

speed

up

order

processing

and

improve

customer

ser

vice.

Richard

knew

that

the

order

processing

system

used

by

the

company

was

obsolete.

He

prepared

a

plan

to

automate

the

system

and

got

approval

from

the

CEO

for

it.

Then,

he

pur

chased

new

computer

workstations

and

a

software

package

to

support

them.

The

software

would

enable customers to

make electronic orders, and it would

improve

order processing,

billing,

and

inventory

control.

However,

months

after

the

equipment

and

software

arrived,

it

was

still

waiting

to

be

used.

The

managers

from

sales,

production,

accounting,

shipping,

and

customer

service

could

not

agree

about

the

requirements

of

the

new

system,

which

was

necessary

to

get

it

oper

ating.

These

managers

were

Richard’s

peers,

and

he

had

no

direct

authority

over

them.

Even

though

he

encouraged

cooperation,

meetings

among

the

managers

usually

ended

with

heated

accusations about who was responsible for the

company’s

problems. Most of the

managers

disa

greed

about

the

reason

for

the

delays

in

filling

orders,

and

some

questioned

the

need

for

an

expen

sive new system. Meanwhile, the CEO was becoming impatient about the lack of

progress.

She

made

it

clear

that,

after

spending

a

small

fortune

on

new

technology,

she

expected

Richard

to

find

a way to resolve the problem. Richard decided it was time to take

a different approach.

His

first

step

was

to

gather

more

information

about

the

reasons

for

delays

in

processing

and filling

orders.

He

began

by

having

his

staff

map

the

workflow

from

the

time

orders

were

received until

the

filled

orders

were

shipped.

As

he

suspected,

many

unnecessary

activities

created

roadblock

s

that

could

be

eliminated

to

speed

up

the

process.

The

problems

extended

across

functional

boundaries and required changes in all departments. The preliminary results were presented to

the CEO, wh

o agreed on the need for dramatic improvements and authorized Richard to begin

Ultimate Office Products

Ultimate Office Products was an old, established manufacturing company in the turbulent office

products industry. Discount merchandisers and office product superstores were spreading

rapidly and altering the traditional distribution channels once dominated by wholesalers and

smaller retail stores. The growing power of the superstores was forcing manufacturers to

improve customer service. The traditional manufacturers were being challenged by new

companies more willing to cut prices and use technologies favored by the superstores, such as

electronic orders and billing.

Ultimate Office Products was losing market share and profits were declining. Richard Kelly was

the director of information systems, a newly created position in the company. When the CEO

met with Richard to discuss his new responsibilities and objectives, she explained that it was

essential to speed up order processing and improve customer service. Richard knew that the

order processing system used by the company was obsolete. He prepared a plan to automate

the system and got approval from the CEO for it. Then, he purchased new computer

workstations and a software package to support them. The software would enable customers to

make electronic orders, and it would improve order processing, billing, and inventory control.

However, months after the equipment and software arrived, it was still waiting to be used. The

managers from sales, production, accounting, shipping, and customer service could not agree

about the requirements of the new system, which was necessary to get it operating. These

managers were Richard’s peers, and he had no direct authority over them. Even though he

encouraged cooperation, meetings among the managers usually ended with heated

accusations about who was responsible for the company’s problems. Most of the managers

disagreed about the reason for the delays in filling orders, and some questioned the need for an

expensive new system. Meanwhile, the CEO was becoming impatient about the lack of progress.

She made it clear that, after spending a small fortune on new technology, she expected Richard to

find a way to resolve the problem. Richard decided it was time to take a different approach.

His first step was to gather more information about the reasons for delays in processing and filling

orders. He began by having his staff map the workflow from the time orders were received until

the filled orders were shipped. As he suspected, many unnecessary activities created roadblocks

that could be eliminated to speed up the process. The problems extended across functional

boundaries and required changes in all departments. The preliminary results were presented to

the CEO, who agreed on the need for dramatic improvements and authorized Richard to begin