OPMT 2298 – Business Process Improvement Case study: Flour Power Organics Background Our fictional case study company, Flour Power Organics, sells organic, artisan flour and baking supplies online. Delivering quality baking foods & supplies at a good value is the mission of the small warehouse owned by Nina & Pisha. They started the online venture in Jan 2013. Despite increase in sales over the last 12 months, the expenses incurred over the year have resulted in negative EBIT (earnings before income taxes) for the first year. Critical to the quality and variety of the products they supply it is essential they manage their operations at the lowest cost possible. Fortunately, as part of their business plan they developed few key performance measures and have been collecting data from day one of their business. The Problem To ensure the right product is delivered at the right time to the right customer is the primary focus of a distribution business. May sound simple but there are several underlying processes that occur to meet the above mentioned objective. During the annual budget assessment Nina & Pisha identified a few areas where the cost exceeded than expected. They believe in data driven decisions, however since they are occupied performing several roles to keep the business running they have not been able to dive into the data to analyze trends that will help them improve their business. Opportunity Your team has been selected to perform a ‘Business Process Improvement’ exercise using the data spreadsheet (provided separately). **Financial assessment noted in attachment OPMT 2298 – Business Process Improvement Case Study: Flour Power Organics Notes: LayoutFlour power warehouse has standard racking with six shelves on each rack to store productThere are 4 racks in total, one racking each placed against the wall and 2 in the middle with their backs against each other.Receiving & Put awayFlour power receives delivery from the manufacturers 5 times a week (deliveries are dropped off all day long)Product is placed on shelves as it is received i.e. same packagingSome products are received in bulk quantities (packages of 6 or 12), however at the time of delivery the bulk packages are cut open to ship single unitsNina & Pisha do not have formal training and procedures in place on receiving and put away of products. The tasks listed in process steps are often performed in parallelOther87% of the products have a shelf life of 3 monthsIn order to maximize on the volume discounts, certain products from manufacturers are purchased in large quantities which are stored in the small storage room.They are often repackaging products prior to shipment (i.e. not able to resell as is)Inventory & orders are tracked manually on a spreadsheetProvide deliveries to customers on a daily basis. All orders must be shipped by 3 pm.
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