What was the flowchart of operation before the new system? How was the improved flowchart created?
In the global market, companies are being pressured to reduce costs to remain competitive. A significant portion of the cost incurred by companies producing their products is for the purchased goods portion of them. There are two major elements to this cost. First, the cost of funding the source for the purchasing services is incurred, such as the cost of the budget for an internal purchasing department, or the cost to contract an external supplier for purchasing services. The second element of the cost is the actual cost of the purchased goods, the prices paid to the third-party suppliers to produce the goods by the purchasing source (Maromonte 1998). For the company’s internal purchasing department, the cost performance measurement would be the company’s cost of goods purchased for a given product, adjusted for warranty expense to determine the effective cost. This effective cost is the direct expense in purchasing the goods from suppliers, adjusted upward for additional warranty expense incurred due to customers’ receiving poor-quality purchased goods. Specifically, the warranty expense incurred by the company to settle complaints made by their customers because of poor-quality purchased goods needs to be determined (Maromonte 1998).
If a Strategic Business Source’s delivery, cost, or customer service performance falls below expected levels, steps have to be taken by the company and its source to improve performance. The problems need to be further analyzed to pinpoint processes that require strengthening; for example, by preparing pie charts for delivery or cost performance, or evaluating assessment worksheets for customer service performance. After the weaknesses are highlighted, process improvement teams comprised of the appropriate employees have to be formed to establish and implement actions to prevent the problems from recurring. By making these adjustments to internal costs and external prices for the purchased goods provided by sources of purchasing services, the effective costs become directly comparable and are used as the performance measurements for present costs (McLaughlin & Rao 1991). In addition to the present cost competitiveness of available purchasing sources, the long-term trend toward reducing these effective costs also needs to be quantified. Delivery performance of the purchasing sources under consideration can also be determined by requesting the source to provide the information. Again, the accuracy of the reported information would then need to be verified by the company during the assessment of each of the sources under consideration (McLaughlin & Rao 1991). The flowchart before the new system focused only on the IT expert and the driver. It did not take a look on the relationships outside of the driver and the IT expert. The flowchart before the new system only gave emphasis on how the issuance of tickets would be done on the side of the IT expert and the driver. The new system was developed so that a wider scope of transaction can be seen. The new system was created so that the company can make sure that all those who are involved in ticket issuance would be known. It was created so that the company would have clues on the probable cost and probable source of problems.
Why won't the new system go down, as the old one did?
Relentless customer service , especially in globally interconnected digital communications, transportation, and logistics systems, has spawned the rapid growth of service and manufacturing industries linked through virtual networks and supply chains, and is increasing the demand for rapid delivery of high quality goods, services, and information in North America, Europe, Asia, and Latin America. Globalization, the mobility of factors of production, and advances in information and transportation technology are fundamentally and pervasively changing the economic bases of metropolitan areas and the requirements for attracting and retaining competitive economic activities. The forces shaping the economies of metropolitan areas in the twenty-first century are well known (Hanley 2003). Economic globalization-resulting from increasing international trade and investment and unprecedented mobility of all factors of production across national borders-is being driven by relentless technological innovation. Globalization, technological innovation, and declining costs of communications and transportation all contribute to the rapid growth of services, the emergence of knowledge industries linked through virtual networks and supply chains, and new methods of production and distribution (Hanley 2003).
The worldwide demand for rapid delivery of goods, services, and information requires firms everywhere to adopt agile business practices and integrated logistics systems. In the global economy, those metropolitan areas that quickly embrace technological advances in communications, transportation, and logistics will thrive; those that do not will stagnate and decline. The shift to a technology-driven, knowledge-based system of production and distribution will provide higher incomes to those workers and managers in metropolitan areas who have the skills and knowledge to participate effectively, and will leave behind those that do not Hall & Miles 2003). In this new era, companies will prosper depending on their ability to provide the logistical and information infrastructure needed by enterprises to compete in today's dynamic business environment. New approaches to business strategy demand integrated infrastructures enabled by new intelligent software technologies that can manage the increasing complexity of the logistics task. Today, the basis of commerce is no longer the individual company but, rather, networks of firms that collectively design, manufacture, and assemble products for customers with growing expectations of speed and service (Hall & Miles 2003). The new system will have lower levels of failure because it meets the current demand for a globalized structure of ticket issuance. The new system covered all important areas of ticket issuance. The new system makes sure that the network involved in ticket issuance will be visible and errors can be easily traced through the visible network. The new system gives a company options to determine the fastest way to issue ticket and then deliver the goods to its destination. Moreover the system created an opening for future possibilities and future innovations in the technologies used in ticket issuance and other systems that involves the delivery of goods. Lastly the new system made sure that there is enough information on the logistical structure of any endeavor to deliver goods.
References
Hall, T & Miles, M 2003, Urban futures: Critical
commentaries on shaping the city, Routledge, New York.
Hanley, RE (ed.) 2003, Moving people, goods, and
information: The cutting-edge infrastructures of networked
cities, Routledge, London.
Maromonte, KR 1998, Corporate strategic business sourcing,
Quorum Books, Westport, CT.
McLaughlin, EW & Rao, VR 1991, Decision criteria for new
product acceptance and success: The role of trade buyers,
Quorum Books, New York.
Credit:ivythesis.typepad.com
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