Problem Analysis: After consideration of the current business process of the company, the various problems with Frank

Megatronics Pty Ltd. are as follows: 1) Majority of the work is labor intensive. 2) There has been no technological advancement taken by the company such as computer based software like ERP and all. 3) There is no dedicated marketing team and strategy wing. 4) Most processes are carried out on paper which consumes a lot of time and leaves a wide scope for errors. 5) Records of the raw material in the warehouse is not maintained properly. 6) No guidelines have been set towards the time frame for purchase of materials. 7) Limited consideration of customer requirements/preferences as orders are sent to any address mentioned on order forms. 8) There is no system to process orders in the sequence as per they arrive, orders are processed as per availability on work desk. 9) There is a major communication gap between the departments of the company. 10) There is also a lack of team spirit among the working staff. 11) Improper storage of information on non-reliable materials like post it notes etc. 12) Huge time loss due to the utilization of surface mail instead of electronic mail. Followed is a diagram depicting the repercussions of the manual, labor intensive working system of the company. The manual process not only encourages costs and time, it is also an invitation to human errors and loss of customer database. The lack of communication also plays a vital role in the delay in the processes of the company.

Gap Scale Model: Capabilities and performance gap indication before and after ERP Installation:
Production Time for 1 Megatron is 6 Hours

BEFORE ERP

Results in lesser orders

Lack of Communic ation among departmen ts

As Is Process (Paper Work) takes more time

Further time loss with transfer of documents

Paper based preparatio n of ALL commercia l details.

Stock Verificatio n is physical

AFTER ERP

Automate d process reduces time consumpti on

More orders can be accessed from Customers

Integratio n of Departme nts

'To Be Process

Related document s can be accessed via common database

Online Tracking of Inventory Online Generatio n of ALL Invoices

As Is Process:

Custom ers

Order

Receive Invoice

Receive Product

Make Payment

Sales

Manual Sales Form

Product ion

Sales

Order Form

Check for Stock

Availability?

Pack and send for Shipment

Organize Purchase Request

Purcha sing

Manual PO

Send PO

Receive Surface Invoice

Accoun ting

Duplicate Invoice

Sales Order Form

Generate Invoice

Send/Receive Payment

Logisti cs

Sign Form and Dispatchwith Fedex

Suppli er

Receive PO

Receive Payment

Project Scoping for Frank Megatronics:

Removal of surface mail Removal of paper work

Responsible workers Following strategies

S U P P L I E R S

Inputs

Controls

C U S T

FRANK MEGATRONICS

Outputs

Enablers

O M

Reduction in delayed orders Balancing customer vital stats

Improve customer Database R Timely processing of PO S