Business Process Recommendations - Essay Example

Management Business Process Recommendations To improve upon business processes, GTNT will first need to identify there is a need for change. Since the market has shrunk due to international competition, parts are not being delivered on time, and morale is low, there is an apparent need for change. Analyzing the current state of operations at GTNT will serve as a roadmap for strategy development. As GTNT identifies certain areas for improvement, they will want to look for indicators such as where are possible roadblocks, what steps are too time-consuming, and perhaps most important, which steps are cost and labor intensive? Once these tangibles are identified, steps can be taken to correct and improve upon, which ultimately will create an improvement strategy for GTNT. Implementation Recommendations After reviewing your current business practices and processes at, we have identified several areas of concern. We recommend revising the following areas of the enterprise, to help return GTNT to profitability. Accurate forecasting of future customer demands will allow for effective strategic planning. GTNT must understand what products their customers will want, the quantity, and any new features of interested. The forecasting will help determine aspects such as materials, technology, facilities, inventory and transportation. We recommend establishing a forecasting team to determine the direction and focus GTNT should take. Process planning is another area that requires improvement. Improved process planning will allow for the implementation of more efficient production processes. Since the products contain many similar parts and sub-assemblies, we recommend designing a revised assembly process that includes elements of both mass production and batch production. A production line for standard subassemblies will feed the other lines that will produce the four different models. An improved inventory management system is required to allow for adequately meeting customer demands, efficient assembly operations, and cost control. We recommend implementing a continuous inventory system at GTNT. With proper implementation, it is a valuable tool that will control inventory levels, eliminate stock outs, and also minimize risk and total cost. For increased production efficiency, we also recommend installing a point of use parts system. The various parts for the four models should be located directly adjacent to the production line, so they are easily accessible. Effect of Change Once all the necessary improvements are implemented there will be neither more finger neither pointing nor bickering amongst team members, in contrary, the communication and workflow will improve. After having an accurate forecast, a better inventory system process and making parts accessible to the team next to the production lines will allow the team members to work cohesively with each other. For example, the new forecast will allow for better planning and management that will communicate to the team member’s daily, weekly and monthly expectations. The new inventory system process will allow GTNT to supply the team with the necessary materials to work continuously and efficiently. As a result, there is no lost time and production is increased to the fullest. Finally having the parts accessible, the new inventory process and the new planning process has created a harmonious environment amongst departments and team members. The teams morale is at an all-time high due to the new process implemented and being praised that they have been getting from the management team. Production and quality and customer satisfaction is approved. After all the necessary improvements, GTNT was gaining back all the losses, and it is back on track on being profitable and gaining momentum on being a reputable company. Project Managing the Change John Zillon and the team have much work ahead of them in getting GTNT to remain profitable. The first thing is to integrate a team of professionals (procurement team) to handle the business processes so the company can remain at a competitive advantage and accomplish various goals. The team will help in the planning process to manage cost, quality, risk, and time to certify that the project will be on time and well with the budget. GTNT needs to reduce they are work-in-progress (WIP). “Reducing manufacturing work in process (WIP) leads to higher liquidity, better cash flow, enhanced customer service, and diminishing business risks” (Breyfogle, 2014). Raw materials are comparable of WIP and even though they are too high and needs to be reduced, WIP should always remain the focal point even when the goal is to minimize raw materials. The team needs to monitor and control the manufacturing process on the assembly line. The parts are in stock but are not in the right places at the right time and not stored in the proper racks. The manufacturing processes are complicated and subject to disruption and sometimes severe disturbance can become out of control. This problem can be rectified, and it starts with Vendor Managed Inventory (VMI) someone who can come in (supplier or vendor) and physically manage inventory and make sure that the stock is refilled properly. It is crucial to ensure that the minimum and maximum measure of inventory is held in the correct quantities at the right locations at the right times. Conclusion Through each of the three recommendations to improve GTNT business process outlined in the paper we can understand how it is necessary for GTNT to apply principles of operations management for a more competitive edge in their industry. Review of current operations management and process provides a clear vision of hiccups within the current system and allows for a starting point to change the process for improved business practices and processes. As we have seen through this paper, simple changes to current processes have a big impact on the overall outcome of the operation process. Each component of recommendations is imperative for GTNT to remain competitive within their industry and improve profitability as a whole. References Breyfogle, F.W. III, (2014). Five techniques for reducing manufacturing wip lean six sigma project opportunities. 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