- Briefly describe the problem that Geon gaced after Geon divested its VCM and resins operation to OxyVinyls. How did Geon addressed the problem?
Geon Company implemented an ERP system in the 1990’s, focused on simplification of the business processes of the company. This system proved to be of great benefit to them as their operations realized positive advantages like minimizing their inventories and increasing percentage of orders that are shipped online. However, they implemented change of business strategy by delegating the VCM making to their supplier and tried concentrating on compounding side. The usual verticalized company where operations have been improved by their previous ERP systems, realized a complete turn-around. The previous problems they have addressed resurfaced. The company work was not coordinated resulting from delay of production, deliveries and others and information was not shared. This result in increased amount of time in production, deliveries of orders, increase in inventories and increasing errors on data entry as data is entered twice. They were also unable to predict the needs thus supplies bought lasted were good only for three weeks instead of the usual seven.
Recognizing these problems, Geon talked with OxyVynils and integrated the processes which both companies are involved. The two companies’ processes were integrated. This improved their operations since the forecasting processes, ordering process, production and even the performance management systems. There was a close coordination between the companies and fast exchange of data through the systems implemented. Further, the integrated processes were further integrated with the customers to let the customers enter the data. This way, errors were completely wiped-out. Besides, the labor cost is completely reduced because they do not need additional data entry operators because data is directly from the customer. (Hammer, 2001)
- Brifly describe the problem (s) at General Mills. How did General Mills address the problem?
General Mill’s problems were on the distribution of their products to supermarkets they supply. They consume people, gas and truck for one shipping with only a half-truck load thus the resources are wasted. General’Mills tried to address this distribution problem by looking for a company that has the same distribution scheme. This time with a company named Land O’ Lakes. The two companies had the same distribution networks thus realizing a big decrease in their distributions costs. Trucks carrying General Mill’s yogurt are also loaded with Land O’ Lakes butters when delivering in a market. (Hammer, 2001)
- Analyze Walmart (or a company your familiar with). Write the name of the company and the industry that it belongs. Assume that you are a director of the company. The first out of the four steps to superefficiency is Scoping. If you apply the first step to the company, what business process as the business process you would redesign? Why? Who would be a partner company in your opinion? Why?
Octagon Computer Superstore is a local chain of office and supplies store in the country who imports or gets supplies from numerous suppliers but they do not manufacture products. They usually get these supplies in specific warehouses in the mainland. Usually, a customer orders supplies to Octagon. Octagon in-turn call their suppliers and ask if stocks are available and the respective prices. This usually needs at least three hours as their contacts in the mainland are not available all the time. Sometimes, the descriptions or items provided by the suppliers does not conform with the needs of the customers thus, the need to start all over again. This has been very tedious for the part of Octagon because they are the moderator between the customer and their suppliers. The burden of resending or returning wrong orders is theirs.
Octagon’s partner in this business redesign would be their suppliers for them to have a direct link with them and integrate data between them.
Hammer, Michael (2001). The Superefficient Company. Hadvard Business Review.