prepare a PDCA CYCLE! 6 step and give an example of tools can be used

U abe X2 XP A Styles Styles Pane up-to-date with security updates, fixes, and improvements, choose Check for Updates. Case study: Flour Power Organics I Flourfouer Dy Banda 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 **Financial assessment noted in attachment Flour Power - Jan-Dec 2019 Annual sales $ 312,725.78 Annual product cost $ 215,672.95 Profit $ 97,052.83 Expenses Salaries (x2) $ 85,258.00 Product written off $ 13,240,25 Equipment $ 6,823.00 Supplies $ 2.925.11 Total expenses $ 108,246.36 Net profit (EBIT) $ (11,193.53) English (United States) D Focus words OF ty Details OPMT 2298 - Business Process Improvement Case Study Flour Power Organics FlourPower by the end Notes: O o 0 O Layout o Flour power warehouse has standard racking with six shelves on each rack to store product There 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 away Flour power receives delivery from the manufacturers 5 times a week (deliveries are dropped off all day long) o Product is placed on shelves as it is received i.e. same packaging Some 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 units Nina & 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 parallel Other 87% of the products have a shelf life of 3 months In order to maximize on the volume discounts, certain products from manufacturers are purchased in large quantities which are stored in the small storage room o They are often repackaging products prior to shipment (.e. not able to resell as is) o Inventory & orders are tracked manually on a spreadsheet Provide deliveries to customers on a daily basis. All orders must be shipped by 3 pm. o o 0 Flour Power -Receiving to delivery tasks Most tasks noted are performed on a daily basis. Nina took some time out of her busy schedule one day to identify the high level tasks and time taken on a given 8 hour working day for both of them (they take a half an hour break each). Time (minutes) Responsible Process Step Minimum Maximum Normal Nina Receive deliveries 30 100 45 Nina 28 160 102 Nina 68 240 202 Pisha 25 120 78 Pisha & Nina Sort deliveries upon receipt Put away supplies in respective locations Review and organize customer orders (printed coples) Fill customer orders Pack customer orders Finish up on paperwork, biling, etc. Clean up. prep for next day 60 132 90 Pisha & Nina 120 265 242 Pisha 60 120 86 Pisha & Nina 36 108 55 Total 900 Prepare business case and provide recommendations for improvement Demonstrate use of 1 tool learnt in each of 6 steps within PDCA cycle (exclude step 7) Pronave