Running head: Improving Efficiency in the Organization 1
Improving Efficiency in the Organization 7
Justification Report – Final Version
Date: 11/06/2016
Student’s Name: Amir Mousavi
Institute: Strayer University
Course name: Professional Communications
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
Executive Summary
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 EnterpriseIntroduction
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 ...
Running head Improving Efficiency in the Organization1Improvin.docx
1. Running head: Improving Efficiency in the Organization 1
Improving Efficiency in the Organization 7
Justification Report – Final Version
Date: 11/06/2016
Student’s Name: Amir Mousavi
Institute: Strayer University
Course name: Professional Communications
Instructor: Sarawathi Lakshmanan
Transmittal letter
P.O Box 6452,
State.
2. 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.
3. 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
Executive Summary
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.
4. Improving Efficiency in XYZ EnterpriseIntroduction
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
5. 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. Problem
Statement
Customer orders at XYZ take about three days more than
required by the clients to process and deliver due to inefficiency
in production and information flow. There exists excess
inventory leading to delayed production and inadequate
response to the existing and unexpected market demand. As a
result, there is need to improve the operations and effectiveness
of operations at the firm. Solving this problem will make the
business efficient in delivering its products and also managing
the costs of production. This report evaluates two alternatives
that can be implemented by the firm to improve efficiency. In
evaluating these alternatives, the report uses the
recommendations made by (Covill, 2015) from EBSCOHost
Website.Terminology
· Enterprise resource planning is an integrated technological
6. 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.Major Parts of the reportOverview of
Alternatives
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.
Criteria
Cost: Both lean and ERP are costly to apply in the organization
from the purchasing, training, Installation and maintenance
cost.
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.
Research Methods
The study used qualitative research with most emphasis on case
studies involving firms that employ the various systems
described above. Evaluation of Alternatives
7. Efficiency
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).
Desirability
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).Findings and Analysis
From the evaluation, the lean process is recommended for XYZ
because it improves the efficiency in production while ERP
makes the firm automated.
Figure 1: Alternatives Analyzed by Criteria
Criteria
ERP
Lean
10. 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.
Running head: Improving Efficiency in the Organization 1
Improving Efficiency in the Organization 2
Justification Report-Part 2
Date: 11/06/2016
Student’s Name: Amir Mousavi
Institute: Strayer University
Course name: Professional Communications
Instructor: Sarawathi Lakshmanan
11. 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.
12. Contents
Problem
Statement……………………………………………………………
…………………...5
Terminology 5
Major Parts of the report 5
Overview of Alternatives 5
Criteria 5
Research Methods 6
Evaluation of Alternatives 6
Efficiency 6
Findings and Analysis 6
Recommendation 7
References 7
Executive Summary
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.
13. From the findings, the research recommends implementation of
the lean process in improving overall efficiency.
14. Improving Efficiency in XYZ EnterpriseProblem Statement
Customer orders at XYZ take about three days more than
required by the clients to process and deliver due to inefficiency
in production and information flow. There exists excess
inventory leading to delayed production inadequate respond to
the existing and unexpected. Market demand. As a result, there
is need to improve the operations and effectiveness of
operations at the firm. Solving this problem will make the
business efficient in delivering its products and also managing
the costs of production. This report evaluates two alternatives
that can be implemented by the firm to improve efficiency. In
evaluating these alternatives, the report uses the
recommendations made by (Covill, 2015) from EBSCOHost
WebsiteTerminology
· Enterprise resource planning is an integrated technological
system which 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.Major Parts of the reportOverview of
Alternatives
Though 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.
Criteria
Cost: Both lean and ERP are costly to apply in the organization
from the purchasing, training, Installation and maintenance
cost.
15. Desirability: ERP system is exclusively computerized in
streaming and monitoring all workflows in the organization. On
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.
Research Methods
The study used qualitative research with most emphasis on case
studies involving firms that employ the various systems
described above. Evaluation of Alternatives
Efficiency
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).
Desirability
Lean
The lean process improves monitoring of processes through
16. 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).Findings and Analysis
From the evaluation, the lean process is recommended for XYZ
because it improves the efficiency in production section while
ERP makes the firm automated.
Figure 1: Alternatives Analyzed by Criteria
Criteria
ERP
Lean
Cost
Expensive
Relatively Cheap
Efficiency
High
High
Installation
Long
Moderate
Air Pollution
Low
Low
Et Cetera
Moderate
High
17. Figure 2: Alternatives in Figure 1 Broken Down Further by
Feasibility
Criteria
ERP
Lean
Cost
High
Moderately expensive
Efficiency
HIGH
HIGH
Installation
High
Moderate
Air Pollution
Low
Moderate
Et Cetera
Moderate
Low
TOTAL FEASIBILITY
Low-Moderate
Moderate-HIGH
Recommendation
Lean is highly feasible for XYZ because it is costs less about
ERP. Also, Lean leads to more efficiency through elimination of
waste accumulation.
18. 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.
19. Running head: JUSTIFICATION REPORT-PART 1 1
JUSTIFICATION REPORT PART 1 2
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
20. 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
21. 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.
22. 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.