Power point presentation

Justification Report-Part 1

Date: 10/21/2016

Student’s Name: Amir Mousavi

Institute: Strayer University

Course name: Professional Communications

Instructor: Sarawathi Lakshmanan

Justification Report Part 1

Problem Statement

There is a big challenge in XYZ Company especially on the efficiency of operations and workflow. The firm has inadequate information system leading to the lack of coordination and information flow between various departments. This leads to delay in decision making and offering products to the final consumers. In fact, operation costs are high due to the large accumulation of inventory both at the warehouse and the production pipeline. As a result, there is no prompt respond to the unexpected needs of consumers. There is an accumulation of excesses because the production capacity handles less input than the ones ordered from the suppliers. Employs take a lot of time using manual approaches in entering data. Consequently, the effectiveness of the organization is highly comprised of increasing cases of unsatisfied customers. On the hand, the financial statements are indicating increased operating costs with a lower profit margin. Indeed, the competitive advantage of the company is at a critical edge which needs a quick measure to improve efficiency.

Overview of Alternative

Two strategies can be employed at XYZ business to improve the effectiveness and retain the competitive advantages. The strategies include Enterprise Resource Planning and Lean Production. Enterprise resource planning systems comprise various technological applications which link all units of an organization such as accounting, human resource, manufacturing, and supply chain ( Zaglago, Apulu, Chapman, & Shah, 2013). It is a pillar of improving efficiency in business operation by offering quality workflow, updated information within all departments, and standardized practices in the entity. Due to these advantages, the system saves costs, improves business efficiency and competitive advantage (Amid, Bagheri, & Ghasrodashti, 2010).

On the other hand, lean production approach aims at eliminating waste in the organization through aligning the employees with best practices (Nenni, Giustiniano, & Pirolo, 2014). Therefore, it is a value creation process which focusses on limiting slacks or wastes. As a result, the firm is made more flexible, leaner, and will respond effectively to changes in the market demand. The system identifies and removes or eliminates to continuously improve product flow in the production systems (Puvanasvaran et. al. 2010).

Criteria

Cost

Application of both ERP and lean processes in the organization is costly concerning installation and purchasing of software the software, training of staffs, and regular maintenance.

Desirability

ERP system is purely computer based and gives a virtual track of all information and data across the organization, customers, and suppliers. Lean systems are multi-dimensions integrating just in time and quality systems. This makes it more desirability in lowering costs and improving efficiency.

Durability

The ERP system converts the organization into electronic business, and thus any updates cause challenges to the firm. The lean process is durable because it places employees at the central points to quickly identify and remove wastes.

Efficiency

ERP is more efficient in that it reduces waste, lowers cost, and formulates an effective coordination of operations. Lean production approaches aims at lower costs, best quality, highest safety, the highest morale, and shortest lead period in production (Puvanasvaran et. al. 2010).

Practicability

ERP is more practically because all operations are done electronically that is from receipt of inputs to order delivery and employee management. The lean system consists of leveling and planning tools such as pull systems, continuous flow, integrated logistics, and quick changeover to improve efficiency and eliminate waste (Begam, Swamynathan, & Sekkizhar, 2013).

Methods

To determine the best alternative foe XYZ, a qualitative research will be conducted using case studies of different companies operating the two systems. Analysis of the effectiveness of the two systems will be done on the basis of initial cost outlay, the level of training needed, effectiveness in lowering costs and improving responses, and possible challenges encountered with the systems.

References Amid, A., Bagheri, M., & Ghasrodashti, S. (2010). Analysis the Impact of Enterprise Resource Planning Systems on Organizational Effectiveness. INTERNATIONAL JOURNAL OF SYSTEMS APPLICATIONS, ENGINEERING & DEVELOPMENT, 3(4), 76-84. Begam, M., Swamynathan, R., & Sekkizhar, J. (2013). Current Trends on Lean Management – A review. International Journal of Lean Thinking, 4(2), 1-7. Nenni, M. E., Giustiniano, L., & Pirolo, L. (2014). Improvement of Manufacturing Operations through a Lean Management Approach: A Case Study in the Pharmaceutical Industry. International Journal of Engineering Business Management, 3(2), 1-6. Puvanasvaran, P., Megat, H., Hong, T. S., Razali, M. M., & Magid, H. A. (2010). Lean process management implementation through enhanced problem solving capabilities. Journal of Industrial Engineering and Managent, 3(3), 447-493. 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.