Final groupassignmentpresentation g4_mode1_2012

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This report provides a study into the existing information system and operational structure of MC Design & Contracting. It aims to provide an understanding of the relevance and overall effectiveness of its current information system and the company‟s operational structure in line with its strategic objectives and corporate vision. With that in mind this report will identify shortcomings and expansion possibilities within the existing system so as to suggest possible interventions.

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  • Content Background informationSummaryPersonal resources and goalsThe product or serviceThe marketSale and marketing planManagement & organisationDevelopment of the businessBudgetsFinancial requirementsAppendices
  • Final groupassignmentpresentation g4_mode1_2012

    1. 1. Group 4:Fortuin, E, 11372567Johnson, B, 17432421Naidoo, T, 17425514Schoeman, P, 17389003Steenberg, G, 17355559Steyn, E,17370345Van Der Westhuizen, C, 13380761E-MAIL ADDRESS: bryan.johnson@za.abb.comCONTACT NUMBER: 0826594511SUBJECT: Operations and Information ManagementNUMBER OF PAGES (excluding this page): 16DUE DATE: Lecture 21: GROUP:MBA Modular 2012 E 117/04/2013LECTURER: Martin Butler, Konrad von Leipzig
    2. 2. IS Improvement Project
    3. 3. IS Improvement ProjectContent Introduction Vision and mission Overview Objective Improvement Plan Process Improvements Financial Analysis Controls
    4. 4. IS Improvement ProjectIntroduction – Business history and profile Company Company History Profile A project engineering company 1990 Company founded by specializing in turnkey projects Manie Steyn of: 1993 Mechanical manufacturing • Automotive assembly facilities facility opened • Automotive trim line facilities 1994 Electrical division opened • Automotive water test facilities • Boiler installations 1999 Manufacturing expansion • Chemical process plants • Compressor installations 2005 Merger and management • Manufacturing plants changes • Paint shop facilities • Piping installations 2010 Company’s 20th anniversary / BEE Certification
    5. 5. IS Improvement ProjectIntroduction - Vision and mission Vision MC Design & Contracting’s vision is to be an industry leader and preferred partner to our clients by providing world-class industrial process facilities and components. Missions and Goals OUR MISSION is to focus on four primary principles: - We provide project-specific industrial process facilities that contribute to our growth and success. - We aim to provide an exclusive customer experience, through our actions, our products and our services. - We are people centred, but customer focussed. - We conduct our business in a manner of critical self- assessment and continual improvement
    6. 6. IS Improvement ProjectOverview – Systems Business Software Operations Marketing & Sales Packages Contracting MS Office Support services MS Projects Auotocad MS SQL Server Pastel Central storage File Server ISO 9001 Quality System, Existing Procedures Work instructions Systems Document control, misaligned Syspro records, Project Cost Financial Accounting MRP Scheduling
    7. 7. IS Improvement ProjectOverview – Business operational flow chart
    8. 8. IS Improvement ProjectObjectives What do we want to achieve? Improve current IS system so that we have … • Alignment of systems • Streamlining of systems • Simple and easy processes … which provides an efficient operation that can be maintained with the minimal amount of errors, rework, and wasted effort. When do we want to achive this? Over a 9 week period in accordance with the estimated project plan How will we achive this? Through a dedicated project manager, utilising • In-house work teams • Syspro business solutions • Management support How will we know we have achieve our objective? Measurement monitoring and taking actions. • Project team reporting, Employee and Customer feedback • Implement continous improvement projects
    9. 9. IS Improvement Project Alignment of SystemsObjectives to business needs Business Operations Marketing & Sales Contracting Support services Software Packages MS SQL Server MS Office Central storage MS Projects File Server Auotocad Pastel ISO 9001 Syspro Quality System, Project Cost Procedures Financial Accounting Work instructions MRP Document control, Scheduling records,
    10. 10. IS Improvement Project Improvement Plan Step 1 Step 2 Step 3 Step 4 Step 5 Initiate Identify Identify Project Close Out project issues Improvements ExecutionProject Initiation: Establish issues / Identify Execution of project Monitoring of• Obtain problem areas, improvement including: process: management though detailed Areas / Solutions • Training of staff • Customer approval briefs from: feedback • Marketing • Implement’n• Kick off meetings • Marketing • Employee • Quotation and • Adjustments to with key staff • Quotation and feedback Estimates system• Appoint PM Estimates • Project reports • Projects and• Engage IS partner • Projects and Contracts • Continious• Form project Contracts • “To Be” process Improvement teams • “As Is” process maps Projects maps
    11. 11. IS Improvement ProjectProcess Improvements Process improvements through teams Capture RFQ in Place all documents in projects on the 1) Staff can work efficiently Receive RFQ quotation register / assign QE number server, open quote templates and notify manager by email of pending Manager does feasibility NO Send regret letter 2) Early warning of shortcuts and risks. NO quote YES 3) Staff buy in and commitment. 4) Staff involvement results in quality, YES Manager Estimator Directors review and prepares detailed Manager assigns Approval approves cost estimate on RFQ to estimator estimate quote template YES Negotiate NO efficiency and customer satisfaction. Submit offer (quotation) and Accept quote, Decline Change or quote support negotiate or status to “decline” documents to decline on quote register customer END Change quote Accept status to “accepted”, open job in Syspro Place all documents in projects folders on the server & hyperlink in Syspro From: Current “As Is” Process Capture RFQ in Syspro (quotation Syspro sends NO Syspro e-mails Manager does Receive RFQ module), system receipt customer regret feasibility assigns QE confirmation letter number Before improvements YES YES NO Assign estimator Manager & Estimator in Syspro, directors prepares detailed estimator is approval in cost estimate in notified of pending Syspro Syspro quote Negotiate Syspro generates Decline Change or quote & submits detailed Accept quote, status to costing and negotiate or “declined” in supporting decline Syspro documents END Enter sales order in Syspro, send Accept out acknowledgment letter and convert quote to project To: Future “To Be” Process After improvements
    12. 12. IS Improvement ProjectProcess Improvement Implement a culture of continuous improvement You don’t fatten the pig with hope and by weighing it alone! In other words wishing for improvements and simply measuring performance is fine, but it is what we do with the results that makes the difference!
    13. 13. IS Improvement ProjectProcess Improvements / continuous improvement 1- Measure 2 - Analyze (Root Cause)  What is happening?  All Possible causes  Why / when / where does the problem  Most likely root cause(s) happen?  Who is involved with the problem?  Verified root cause(s)  How do we know we have a problem? 4 - Sustain (Maintain) 3 - Improve (Develop/Pilot/Implement)  Permanent fix  All Possible solutions  Preventative measures  Best solution  Monitor effects of  Implemented solution implementation
    14. 14. IS Improvement ProjectProcess Improvements Maintain the gains  Ensure the ISO 9001 quality system does not inhibit change.  Positive changes made are to be captured in the quality system.
    15. 15. IS Improvement ProjectFinancial Analysis Costs Costs = R 900 000 vs Benefits Benefits = R 1 774 500 Software and people costs Licencing , Consulting & Project Cost of Quality Managemet costs R 279 500 R 485 300 +Sales volume increase R 780 000 Training + Other / Contingencies Quotes and Estimates +Reduction in COS Projects and Contracts R715 000 R 275 195 Additional Harware Server capability and memory Payback period < 6 upgrade. Months if all benefits R 157 505 are realised.
    16. 16. IS Improvement ProjectProject Controls Project controls achieved through  Project time schedule.  Project Feedback reports, from PM team. o What is good? o What has the potential to be bad? o What is bad?  Feedback from other stakeholders. o Employee feedback? o Supplier feedback? o Customer feedback?
    17. 17. IS Improvement Project

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