Production & Order Processing System Case Study

Top managers at We Build Stuff (WBS) need three new information systems:

-Financial Information System (FIS)

-Human Resources System (HRS)

-Production & Order Processing System (POPS)

These systems are all integrated in some way. However, the focus of your team is on developing the requirements for the POPS. Aaron Thomas leads the Production department. You will be working with him to design a Production & Order Processing System (POPS) to improve WBS tracking of products created. Aaron has a 10-month timeline for completing all of the desired functionality for the system. During that time, he would like to plan for at least three different software releases so that WBS can begin seeing value from the project quickly.

Background: The As-Is Process

WBS employs just-in-time recordkeeping. In other words, while they keep a supply of raw materials on hand to manufacture new products, they only build new products as an order comes in. Production is driven by three catalysts:

-The Order Database

-Product inventory levels, and

-Employee work schedules

Currently, when a salesperson makes a new sale with a customer, they enter the information into an Excel sheet. A copy of this order sheet is sent to the warehouse and the order is considered Open. When the order has been shipped, the warehouse sends a message to the salesperson and the order should be Closed. However, now that WBS has grown, the information that an order should be Closed does not always get to the right salesperson or the salesperson is too busy with other orders to mark it Closed. Since billing ultimately is tied to whether an order is Open or Closed, it is imperative that orders are correctly marked. Another issue that is not currently handled well relates to what happens when customers cancel their order. The Warehouse is not always notified of cancellations in a timely fashion. In some cases, the product is shipped anyway and the customer is billed. This leads to unhappy customers. In other cases when the Warehouse is notified in time, the finished product is placed in inventory.

Level 1 Feature #1 Track Orders

Aaron envisions the POPS automatically tracking orders. Customer orders are to be tracked through the creation of an Order Database. With the new POPS system, when customers order products offered by WBS, clerks will enter new orders for salespeople. The customers name, address, and phone number and information on what the customer ordered (e.g., product, quantity) as well as the employee responsible for the sale will all be entered. This will insert a new record into an Order Database. This Order database record can be read by those in the warehouse to schedule jobs to create finished products, and ultimately, to mark the order as closed. The new POPS system should also handle when customers cancel an order. The warehouse should be notified of the cancellation, the relevant items should be removed from the production schedule (if applicable), and the Order database record should be updated to a status of Canceled.

Level 1 Feature #2 Manufacture Product Ship from Inventory

Aaron would like a new system that will, after an order has been placed, check inventory to see if the product is already made and in inventory. He sees this inventory information being placed in the Product Database. If a new order is for a product already existing in inventory, the product should be shipped by the warehouse to the customer and the Product Database updated showing the product is no longer in inventory.

Generate Production Schedule

If the ordered item is not already made, a production schedule will be created daily to indicate all items that need to be made. In the past, Aaron could figure out what was needed. But, with the increase in hired salespeople, and the increase in products ordered, a more orderly way of scheduling products to be built is needed. Aaron would like to see a production schedule automatically generated every evening based on items in the Order Database, items already made and in the Product Database, and knowing how many employees will be scheduled to work that day by reading the Employee Schedule Database. On a daily basis, this production schedule should be made available to the Manufacturing Line to create new products.

Finalize Production

Finally, when production is completed, the Product Database should be increased. Again, Aaron would like this to be automated.

Ship Product

Once the Product Database is updated, the warehouse should be able to check the Product Database along with the Order Database to find open orders needing to be created. Those products that fulfill an open order are shipped to the customer and the Accounts Receivable (AR) Database is updated for the Financial Management department. Once the products have shipped, the warehouse marks the order as shipped and the Product Database should be updated to indicate the product is gone.

Level 1 Feature #3 Manage Raw Materials

When production begins, raw materials are used. In the past, there was no way to track what was used, and it was hoped that someone would notice if a raw material was running low. With the new system, the manager of the Manufacturing area should be able to input into the system what raw material has been used so that the Raw Material Database can be decreased accordingly. The FIS system will be responsible for ordering more raw materials when the inventory gets low. When an order of new raw material is delivered to the warehouse, an employee should be able to update the new POPS to indicate the increase in raw material.

Level 1 Feature #4 Generate Reports

Aaron is excited about the prospect of automating reports from the system. He would like to track the raw materials used and the products being manufactured and sold. Also, he would like to monitor how quickly customer orders are fulfilled when there isnt enough stock in inventory and the items must be manufactured. He is excited to hear any ideas your team has for additional reports that may aid him in more efficiently running the Production side of the company.

Create Report Template for 2 proposed reports, including mock ups for each one.