Question
Background As PU-Gaming Chairs Pte Ltd started their manufacturing operations in Indonesia and Vietnam, the management realize that the company needed better supply and warehouse
Background As PU-Gaming Chairs Pte Ltd started their manufacturing operations in Indonesia and Vietnam, the management realize that the company needed better supply and warehouse processes to be more agile and resilient. The Chief Executive Officer (CEO) and Operations Director convened an internal team of analysts and operations executive to review their processes and to provide a set of recommendations. Below is the description of PU-Gaming Chairs supply and warehouse process issues compiled by the internal team.
(1) The company operates three factories: the largest factory is in Singapore, where all the gaming chairs are produced; one in Indonesia, which produces all the office tables, and one in Vietnam, which produces all the office chairs. Currently most of the parts are stored in the respective factories. The inventory is centrally managed by Singapore's Production team.
(2) The Purchasing Manager is located in Singapore and he works closely with the Production team to ensure that their inventory is sufficient to meet the current demand. In order to achieve this goal, the Purchasing Manager relies on data from the Netsuite Inventory module. The inventory module data is currently maintained by the Production team located in Singapore. Each morning, one of the Production team (they are rotated weekly) will retrieve the last inventory report generated by the in-house warehouse system and enter the latest figures into the inventory module. However, this report is only available for Singapore and Indonesia inventory. The Production team will have to retrieve the inventory report for Vietnam's through an e-fax (sent to the Production manager's email at the end of each day).
(3) However, the Purchasing Manager has sometimes been asked to expedite purchasing orders for parts by the different Production teams even though the inventory module data shows that there are sufficient parts. Upon discussion with the teams, they realized that there were situation where a) the in-house warehouse system was not updated in a timely fashion by the factory staff, b) there were errors in data entry by the Production team, or c) the rostered Production team member forgot to update the inventory module.
(4) Another issue that the company faced was recently it had experienced a lack of sufficient stock for customer demand. This happened when the marketing and sales team decided to run an ad hoc marketing campaign after PU-Gaming Chairs launched their Lazada webstore. The marketing campaign was a success as sales of their popular chairs increased by 50%. However, there was not enough stock in their Singapore factory and the production line was not able to produce enough given a shortage in certain key parts. Ultimately, PU-Gaming Chairs had to give additional discounts to customers who had their orders delayed.
(5) Finally, the internal team surfaced a trend in the custom contract production process. In the past year, the team studied the custom production and sales pattern and found that the Indonesian factory persistently delayed the production of custom built tables. Because these custom contracts tables required parts that had to be specially manufactured by one local supplier. The team also found out that particular supplier has a two week lead time for any large orders. The positive news is that the supplier is willing to work with the Indonesian Production team to improve their supply relationship but informed the Indonesian Production team that they need more information from them. Apply business process reengineering (BPR) principles and any applicable information technologies by which the CEO and Operations Director could improve the agility and effectiveness of PU-Gaming Chairs Pte Ltd.'s current supply and warehousing process. (Marks will not be awarded if you only state BPR principles. You need to provide specific technology and process changes using the information provided from above description.)
Present your answers in a table format as shown below: Business problem Solution (with any applicable information technologies) BPR principle(s)
Business problem | Solution (with any applicable information technologies) | BPR principle(s) |
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