Power point presentation

Instructor: Sarawathi Lakshmanan

Transmittal letter

P.O Box 6452,

State.

11/6/2016

XYZ Company,

P.O Box,

45278,

City

Dear Sir/ Madam,

Re: Improving Efficiency in Operations

Due to increased delay in order delivery from the company, the following research was conducted to evaluate possible alternatives for handling the challenge. Of the two alternatives, Lean process is highly recommended to eliminate waste and increase efficiency of the operations. Find all details on evaluation criteria in the report.

Thanks.

Table of Contents Executive Summary 4 Introduction 5 Problem Statement 5 Terminology 5 Major Parts of the report 5 Overview of Alternatives 5 Criteria 6 Research Methods 6 Evaluation of Alternatives 6 Efficiency 6 Desirability 6 Findings and Analysis 6 Recommendation 7 References 8

Inefficiency in operations leads to delayed in processing clients' orders and in entire production as seen from XYZ firm. There are many practices in the market to solve this challenge. However, this study evaluates the ERP and Lean approaches. From the findings, the research recommends implementation of the lean process in improving overall efficiency.

Improving Efficiency in XYZ Enterprise

Every organization is established for a shared purpose and objective. An organization can either develop a service-based or product-based business. In addition to that, it is the aim of organization to maximize its profits through provision of quality service or produdct to clients or consumers without delays. In this regard, improving efficiency and delivering the product or service without hassle is key priority to any organization. That being said, the purpose of this report is to help improve the operational efficiency of XYZ Enterprise through provision of various alternatives. The report will present a brief background of the problem and will highlight why there have been inefficiencies in production and information flow. The important terminologies regard improvement of efficiency of XYZ Enterprise will also be explained, i.e. enterprise resource planning (ERP) and lean process. Similarly, the major part of this report will be about overview of the alternatives, in which research methods and criteria will be explained. This section will also present an evaluation of the proposed alternatives in which efficiency and desirability of the ERP and lean process will be explained. The next section will explain main findings and develop an analysis based on those findings. In this regard, for the case of XYZ Enterprise, lean process will be recommended. Overall recommendations will be proposed in the end.

· Enterprise resource planning is an integrated technological system employed in value mapping and streaming the operations of an enterprise to improve efficiency.

· A lean process is an approach which removes waste or slack variables in the production process to reduce cost and accumulation of inventory.

Through efficiency, ERP is not selected because of high cost and less practicability when compared to lean. Lean is more practical in removing excess resources and improving efficiency compared to ERP.

Desirability: ERP system is exclusively computerized in streaming and monitoring all workflows in the organization. Lean is a combination of other processes such as just-in-time and total quality management.

Durability: implementation of ERP converts the firm into a digital work station where every process is monitored virtually on the desktops. Lean process centralizes the process together with the workforce to easily identify and eliminate waste or accumulated resources.

Efficiency: Both systems are efficient in reducing waste, lowering costs, and improving the flow of information.

Practicability: ERP is more practical through the use of software integrated into all computers in the firm's departments. Lean has the planning and leveling platforms such as continuous flow and pull systems.

The study used qualitative research with most emphasis on case studies involving firms that employ the various systems described above.

Lean process

LeCovill (2015) shows that lean processes are effective in eliminating unnecessary steps in Lab practices to improve efficiency. Begam, Swamynathan, and Sekkizhar (2013) found out that lean process avoids defect material to flow to next production stages.

ERP

According to Covill (2015) automation of lab, practices decreases use of labor intensive and improves metrics such as turnaround times TAT. ERP improves inventory control through value streaming leading to quality workflow ( Zaglago, Apulu, Chapman, & Shah, 2013).

Lean

The lean process improves monitoring of processes through standardizing the lab proceedings (Covill, 2015).

Begam, Swamynathan, and Sekkizhar (2013) illustrates that lean process aligns customers requirements to the internal process of the business while enhancing quality, and productivity.

ERP

Covill (2015) illustrate that automating processes in the Lab reduce eliminates manual work during lab practices. ERP links all departments within the organization and gives updated information for accounting to the finace department ( Zaglago, Apulu, Chapman, & Shah, 2013).

Figure 1: Alternatives Analyzed by Criteria

Figure 2: Alternatives in Figure 1 Broken Down Further by Feasibility

Lean is highly feasible for XYZ because it costs less ERP. Also, Lean leads to more efficiency through elimination of waste accumulation.

References Zaglago, L., Apulu, I., Chapman, C., & Shah, H. (2013). The Impact of Culture in Enterprise Resource Planning System Implementation. Proceedings of the World Congress on Engineering, 1, 1-6. Begam, M., Swamynathan, R., & Sekkizhar, J. (2013). Current Trends in Lean Management – A review. International Journal of Lean Thinking, 4(2), 1-7. Covill, L. (2015). The LEAN lab: automation, workflow, and efficiency. Medical Laboratory Observer, 47(2), 8-12.