company description project management process design inventory management supply-chain...
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Agenda Company Description Project Management Process Design Inventory Management Supply-Chain Management Forecasting Product Design Conclusion QUESTIONS?
Company Description Founded in 1996 by Minh Ngo Retail & Online Sales of Consumer Electronics 7 Locations Own brand of accessories – Velocity 100 million in Annual Revenue 219 Employees Strategy revolves around “Best Customer Service
Possible” & “Price Match”
“If a customer doesn’t return after purchasing from us, we don’t deserve their business” – Minh Ngo
Richmond Location
Opened in October 2010 As of July – Total Revenue is approx $7
mil 29 Employees 3 Store Managers 26 employees – Sales Rep, Technicians,
CSR & RMAs
Project Management Computer Gaming Tournament
› 60 Participants w/ capacity of 100› 4 major sponsors
Informally Planned› Project Manager- Mr. Damian Cheytanov,
Richmond Store Manger› No PM tools used
PM- (Cont.) Project Scope
› Acquire a minimum of 3 sponsors› Assign 3-4 additional employees › Find an adequate location› Ensure sponsorship equipment arrives on
time› Setup equipment & ensure computers and
software is running perfectly
PM Recommendations Utilize project management software
› MatchWare MindView 4.0 Provides a WBS Brainstorm and visualize ideas Accelerates project planning
› Microsoft Project 2011 Creates Gantt Charts Comprehensive definition of critical tasks
and subtasks Generate a timeline
• Lost sale due to e-commerce
• Urgent purchase (Gift)
• Transit times of parts
• Delays in transport
• Delays in manufacturing
Recommendations
Increase minimum carrying quantity for common components › Minimum carrying quantity for items less
sensitive to obsolesces› Implement safety stock
Inventory Management Current Inventory Models
› Count two product groups per day› Min / Max Replenish System
Obsolescence › Laptops, motherboards and video cards
Shrinkage› 1.5% shrinkage, approximately $80,000› Laptop memory, Flash Memory and Hard
Drives
Lapt
op m
emor
y
Flas
h Mem
ory
Hard
Drives
Compu
ter A
cces
sorie
s
Games
/Dvd
sGPS
Camer
as
Headp
hone
s$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
0%
20%
40%
60%
80%
100%
120%
MEMORY EXPRESS - Shrinkage Pareto Chart
Annual Dollar ValueCummulative
items that contribute to Shrinkage
Tota
l d
ollar
am
ou
nt
per
year
Inventory Management Issues
› Counting model does not take accurate screenshot of all inventory
› High holding costs compared to JIT
Recommendation› Centralized warehouse needed for
expansion in BC› Continue with Min/Max inventory system
Supply-Chain Management
Make or Buy Decision Issues Recommendation - Transportation - Storage - Labour - E-commerce Sales
Forecasting Current Technique
› Only Qualitative method
“Jury of Executive Opinion” Issues
› Need additional methods
Recommendation› Quantitative forecasting
(Exponential Smoothing Model etc.)› Sales Force Composite
Monitors
Month Actual QForecastin
gForecastin
gForecastin
g Forecasting
α = 0.1 α = 0.2 α = 0.5α = 0.0
(Opt)Oct 163Nov 178 166.22 166.22 166.22 166.22Dec 190 170.74 172.27 178.28 169.44Jan 182 176.20 180.22 193.24 172.67Feb 175 180.37 185.05 193.91 175.89Mar 175 183.37 187.11 186.01 179.11Apr 185 185.99 188.28 179.32 182.33
May 153 189.33 191.08 182.39 185.56June 192 188.78 185.39 160.58 188.78July 192.21 188.91 177.03 192.00Aug 195.32 191.11 177.76 195.22Sep 198.44 193.31 178.50 198.44Oct 201.55 195.51 179.24 201.67Nov 204.66 197.70 179.98 204.89
MAD 11.39 12.68 16.39 10.64MSE 15.71 16.61 18.59 14.76
MAPE 6.7% 7.5% 9.3% 6.2%
Exp
onenti
al S
mooth
ing
Product Design
In-house brand “ Velocity” LCD TV Mounts, External HDD, PC
Tower Development is initiated when an
opportunity is discovered Product Design & Production is
Outsourced to China Design sample is reviewed by
Executives & Experts within the Company
Recommendations
Use House of Quality Do Primary Research on Technological
Capabilities.› After a survey, we discovered some
characteristics of HDD that consumers sought after. i.e USB 3.0 & Low Operating Noise
› Velocity branded External HDDs are lagging behind competition in these 2 areas.
Conclusions Reevaluate three of the company’s
weaker operational aspects.› Project Management› Forecasting› Product Design
Improvement means › Greater Cost Savings› Efficiency› High Quality Products