Posted: September 12th, 2022
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As internal consultants that guide and support the top management on effective organizational design and operational changes for corporate transformation write a Memo with the following requests:
In an international valve manufacturing company that has global customer located across Nuclear Power, Oil & Gas, Petrochemical, Marine, Process, Metal industries etc they still use manual tracking of documents flowing within supply chain (supplier, internal departments and end customers) resulting consumption of more man hours and risk of delaying deliverables to customers. Also, there is risk of human error in tracking large volume of the project status (more than 80 ongoing projects in one region) manually.
The internal software system used in the company is based on ERP (Enterprise resource planning). This system is used starting from winning sales order, project scheduling and planning, allocation and completion of engineering and quality tasks, status update during manufacturing phase (procurement, supplier activities, testing schedule etc.) and tracking invoices.
Suppliers and customers cannot access this ERP system. So, the documents flow to and from suppliers, customers (and sometimes within departments) are generally through e-mails and tracked by project managers manually through excel sheets.
There are no penalties in the contracts, so delays with proper justification are acceptable within the company and by customers with prior information. Therefore recurring weekly meeting with customer is essential to review progress.
Write in the MEMO:
1.what hat are the 3 main risks in using those outdated systems
2. what are 5 concrete recommendation to improve the process
3. What 5 KPIs should be installed to measure the performance
4. How the organizational and cultural architecture should look like?
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