ERP System Implementation and Testing

This assignment delves into the complexities of implementing and testing Enterprise Resource Planning (ERP) systems. It outlines a comprehensive approach to ERP system implementation, encompassing project planning, system integration, data migration, user training, and go-live support. The assignment also explores various testing methodologies crucial for ensuring a successful ERP rollout, including functional testing, integration testing, performance testing, and security testing.

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UNIVERSITY OF SOUTH AUSTRALIA
School of Engineering
Minor Thesis 1
Master of Engineering (Advanced Engineering Management)
Development of new business processes for the business
model transforming from a simple equipment supplier to an
Integrated system solution provider.
Student: Sanjesh Cartharn
ID No: 110063047
Supervisor: Dr.

Abstract
Any business must meet the requirements of their customers and it is the ultimate goal of
any organization, irrespective of their size. Similarly, this thesis work projects of the
manufacturing company, which is facing challenges in terms of adaption and sourcing. The
vision and mission of the firm is identified. The present implemented system in the
organization is analyzed along with issues it provides. The possible alternatives for the
problems are discussed, from which the best alternative is selected for implementing in the
company. The selected solution for implementation is studied and its benefits for the
company are analyzed. Various research papers are reviewed before selecting the best
alternative. The clear understanding of project management and operations management is
provided. The idea of cost analysis and its benefit is analyzed. Budget is the factor that is
considered for deciding the best solution, for the manufacturing company. The alternative
solutions for the organization is considered, and the best solution from the considerations is
integrated with CPM. The BPR is studied. The importance of redesign and project
management is analyzed. The Pilot testing is tested and run. Further, the implementation
strategy for the development of the solution is investigated. Next, the testing and evaluation
of the implemented solution is researched, to evaluate the performance of the system.
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Disclaimer
I hereby declare that this thesis is my own work and contains no material which has
been accepted for the award of any degree or diploma from any tertiary institution. To
the best of my knowledge and belief, this thesis contains no material previously written
or published by another person, except where due reference is made in the text.
Signed:
Type your name
Type the date
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Acknowledgements
Enter your acknowledgements here.
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Table of Contents
Abstract...................................................................................................................i
Disclaimer..............................................................................................................ii
Acknowledgements..............................................................................................iii
List of Tables.......................................................................................................vii
List of Figures....................................................................................................viii
List of Abbreviations...........................................................................................ix
Chapter One – Project Background and Significance.......................................1
1.1 Introduction................................................................................................1
1.2 Company Background................................................................................1
1.3 Project Background....................................................................................2
1.4 Project Aim.................................................................................................4
1.5 Project Scope..............................................................................................4
1.6 Expected Outcomes....................................................................................4
1.7 Thesis Structure..........................................................................................5
1.8 Concluding Remarks..................................................................................6
Chapter Two – Literature Review and Project Methodology..........................7
2.1 Introduction................................................................................................7
2.2 Source of Literature....................................................................................7
2.3 Review of Literature...................................................................................7
2.3.1 Overview...................................................................................................12
2.4 Discussion.................................................................................................13
2.5 Project Methodology................................................................................14
2.6 Concluding Remarks................................................................................17
Chapter Three – Current System/Operation Analysis....................................19
3.1 Introduction..............................................................................................19
3.2 Customer Project Management................................................................19
3.2.1 CPM Process Model..........................................................................................................21
3.3 Current System Analysis..........................................................................22
3.4 Problem analysis and its cause.................................................................23
3.5 Concluding Remarks................................................................................24
Chapter Four – Consideration of Alternative Solutions.................................11
4.1 Introduction..............................................................................................11
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4.2 Alternatives...............................................................................................11
4.2.1 Integrated Business Plan (IBP)........................................................................................11
4.2.2 Test Data Management.....................................................................................................12
4.2.3 M1 ERP Software..............................................................................................................12
4.2.4 Modified CPM...................................................................................................................13
4.2.5 Orcanos Document Management Software System.........................................................14
4.3 Best Alternative........................................................................................14
4.4 Concluding Remarks................................................................................16
Chapter Five – Development of Solutions.........................................................17
5.1 Introduction..............................................................................................17
5.2 Industrial key features in Australia..............................................................17
5.2.1 Steps for developing the business solutions.............................................18
5.2.2 Document Management system................................................................19
5.3 Modified Customer Project Management (CPM)....................................20
5.3.2 Solution Development by Project Management.......................................21
5.4 Concluding Remarks................................................................................23
Chapter Six – Solution Implementation............................................................25
6.1 Introduction..............................................................................................25
6.2 Steps to integrate global business.............................................................25
6.3 Implementation of modified CPM............................................................26
6.3.1 Training Program......................................................................................31
6.4 Concluding Remarks................................................................................32
Chapter Seven – Testing and Evaluation..........................................................33
7.1 Introduction..............................................................................................33
7.2 Project Evaluation and Testing.................................................................33
7.3 Pilot Testing..............................................................................................34
7.3.1 Pilot run Checklist.....................................................................................35
7.4 Gap Analysis............................................................................................37
Chapter Eight – Cost/Benefit Analysis..............................................................38
8.1 Introduction..............................................................................................38
8.2 Cost-benefit analysis................................................................................38
8.3 Identify and Measure Benefits and Costs.................................................39
8.3.1 Data Analysis............................................................................................40
8.3.2 Comparing Solutions................................................................................41
8.3.3 Risk and Sensitivity Analysis...................................................................42
8.3.4 Return Investment....................................................................................42
8.3.5 Paying back..............................................................................................42
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8.3.6 NPV..........................................................................................................43
Chapter Nine – Conclusions and Recommended Future Work.....................44
9.1 Introduction..............................................................................................44
9.2 Observation...............................................................................................44
9.3 Issues Encountered...................................................................................45
9.5 Best Solution Implemented from the Considered Alternatives................45
9.6 Recommendation......................................................................................46
9.7 Future Work..............................................................................................46
References............................................................................................................47
Appendix 1: Industry Supervisor Reports........................................................55
Appendix 2: Project Daily Diary.......................................................................56
Appendix 3: Certificate of Practical Experience..............................................57
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List of Tables
Table 1Thesis Structure...................................................................................................................................6
Table 2 Scoring Model Table.........................................................................................................................15
Table 3 Pilot run table....................................................................................................................................37
Table 4 Cost-benefit Analysis........................................................................................................................40
Table 5Ranking..............................................................................................................................................41
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List of Figures
Figure1: SICK Project Management..............................................................................................................20
Figure 2 Fishbone diagram............................................................................................................................22
Figure 3: Overview of Project Management..................................................................................................23
Figure 4: Implementation of modified CPM..................................................................................................27
Figure 5 Work breakdown structure..............................................................................................................29
Figure 6 Project Management implementation plan......................................................................................30
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List of Abbreviations
BPM- Business Process Management
BPR- Business Process Reengineering
CBA-Cost and Benefit Analysis
CPM- Customer Project Management
EAI-Enterprise Application Integration
ERP-Enterprise Resource Plan
IBP-Integrated Business Plan
NPV- Net Present Value
ROI-Return On Investment
SAP-System, Application and Product in Data processing
S&OP-Sales and Operations Plan
TDM-Test Data Management
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Chapter One – Project Background and Significance
1.1 Introduction
The company considered for this thesis is a Germany based manufacturing firm. It is
a, highly experienced firm. The firm is named as SICK AG and it is a leading company,
for manufacturing the sensors and related solutions (Eurofound.europa.eu, 2017). This
firm includes Factory Automation, Logistics Automation and Process Automation. The
company had to rework on its existing business model, as it used traditional working
process. Hence, the company required to advance its working system, with the integrated
system solution. The changes were mainly involved in the sales service support, where the
business adopted the enhanced structure that concentrated on the customer project
management method. Right from the beginning of this new business model, the company
realized certain issues related to coordination. Then it realized that it lacked the
understanding about the primary objectives of the company, interdepartmental interface
and lacked certain skills that are essential for working on the business model. Thus,
adaptation and sourcing are the issues faced by the firm, where sourcing is considered as
the major problem. Because, the business model’s implementation was basically designed
for Germany, but it was also implemented in Australia. Therefore, when compared to
Germany, the Australian local market found it more challenging. The challenges of
adaptation included the local variances like, the standards, its rules and regulations,
different culture, then lead time expectations, customer pricing and so on. Whereas, the
sourcing issues revolved around, distributing the cable for suiting the Germany
manufactured product. Hence, the SICK requires a certain amount of rework, for
customizing the solutions. Perhaps, this solution could help the company to match the
local market of Australia. Therefore, the focus of this thesis is to work on meeting the
satisfactory solution for the Australian local market.
1.2 Company Background
SICK Sensor Intelligence is the name of the manufacturing company. It is in the
business for more than 70 years and is highly experience, in its field. It a German based
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firm. It has various specialized sales offices throughout the world. It accommodates more
than 40 international subsidiaries, it has more than twenty sales offices globally and
various clients have participated with the company (Eurofound.europa.eu, 2017). It
manufactures equipment and products that are marketed globally, and Australia is one
such place. The SICK Sensor Intelligence Company has categorized its products into the
following industry groups, namely:
1) Factory Automation
2) Logistics Automation
3) Process Automation
It successfully manufactures the equipment as follows:
a) Gas analyzers
b) Sensors
c) Gas flow meters
d) Safety scanners
e) Additional electrical analytical instruments
f) Bar code scanners
SICK provides working solutions with its designed equipment, for its end users like power
stations, natural gas suppliers, airports, courier companies and others.
1.3 Project Background
SICK AG Company wanted to rework on its business model, as it followed a simple
business model. Thus, it was necessary for the firm to advance its working system to stay
competitive in the technology oriented world. The working system was advanced with an
integrated system solution, which transformed the sales service support. The sales service
support section of the business adopted this enhanced structure, which focused on the
customer project management (CPM) approach. After the implementation of the newly
developed business model, the company faced problems related to adaptation and
sourcing. The adaptation problems refer to the coordination in the projects, lack of
understanding about the primary objectives of the company, interdepartmental interface
and lack of certain skills that are essential for working on the business model. Whereas,
the sourcing problem is considered as the major problem. It also faces problems related to
following the standard regulations, culture, lead time expectation, customer pricing and
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other local variances.
The reason for considering the sourcing as the key issue is, the difficulties that are
faced related to distributing the cable gland and the cable locally, for suiting the product
that is manufactured in Germany. After facilitating this, it can be easily sold to the end
user as a package, for the complicated regions. It contains installed assembled system that
is, wired and pre-commissioned in the portable building. It supplies complete functioning
system to the customer.
It is observed that Germany is the parent company, where the newly developed
business model was fruitful. The model was categorized into three business elements
namely:
1. Components
2. System Solution
3. After Sales Service Support
At present, SICK is facing all these difficulties, just to implement its effective
business model in the Australian local market. Therefore, SICK Sensor Intelligence
Company needs a rework within a limited cost, to customize the existing business
solution. The modification of the solution should depict a successful match to the
Australian local market. Henceforth, SICK Sensor Intelligence Company concentrates on
an effective customization of business model with a rework, to satisfy its customers in
Australia. Henceforth, SICK worked on its business model with the help of in house
system integration and targeted its end user’s market.
However, the observations show that, the component business element operated in a
normal fashion, to provide system solution. But, the after sales support business was
transformed to a greater extent, where its structure concentrated on CPM approach.
According to the CPM approach, all the customer enquiry received are formulated into
seven steps, as follows:
1) Order Approval
2) Project planning
3) Manufacturing
4) Installation
5) After sales support
6) Reviewing
7) Warranty
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The above mentioned steps commenced from providing the quotation to have
negotiation. On the other hand, milestone was marked for each step’s completion. Thus,
the project’s progress is monitored step-wise, with the help of the milestone. To be
precise, the monitoring continues until the milestone is marked as “Closed”.
This project is expected to provide a suitable integration. Thus, it is essential to
initially identify the local facility, which can be proposed for integrating the function that
can be carried out. The current system lacks filtration method, thus the filtration process
must be determined for identifying the necessary requirements and suitable local
adaptation plan.
1.4 Project Aim
The project aims to achieve customer satisfaction in Australia, by initiating less
rework cost. Because, the SICK Company’s newly developed business model is incapable
to match the local market of Australia. The new business model is providing differences in
coping up with the different culture, its cost pricing, inability to understand the main
objectives, difficulty in coordination, lack of knowledge to work on the business mode and
interdepartmental interface problems. Therefore, the aim is to meet the customer
satisfaction in different parts of the world and, not only in Germany.
Thus, the objective of this project is to stipulate integration facility for Australia, to
identify the requirements and to provide the appropriate local adaptation plan.
1.5 Project Scope
The scope of this project is an exception, where only for the Australian local market
the implementation must be carried out. The CPM (Customer Project Management) is
used for improving the customer satisfaction. The company wants to just focus on
customer satisfaction and integration. The scope also includes that, the company aims to
decline the rework cost with less cost. It just wants to increase the enquiries through
surveys and interviews for filling the quotations. The surveys and interviews are used for
measuring the productivity of the employees. It also want to increase the efficiency of the
processes to a certain extent. The scope of the work will be measured based on the
positive project close out reports.
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1.6 Expected Outcomes
As, the failure of the newly developed business model to provide integration facility,
the solution is expected to be competitive based on the delivery time, quality and price.
The solution is expected to follow the local standards like the electrical rules. A standard
language i.e., English language is expected for documentation, for better understanding.
The company aims to decline the rework cost by 15 percentage. It wants to increase
the inquiries, the quotations and its usage up to 5 percent. The surveys and interviews are
used for measuring the productivity of the employees. The productivity is expected to be
improved only by 15 percent.
The increased productivity and the improved product quality is expected to be
demonstrated with the increased sales revenue and profit margins, where the profit
margins are increased more than 8 percentage. The efficiency of workflow of the
processes is expected to be, at least 15 percent.
1.7 Thesis Structure
Sl. No Chapter Name Description
1 Project Background and
Significance
This chapter provides complete information of the
company, followed by its project background, aim, scope
and the expected outcomes.
2 Literature Review and
Project Methodology
This chapter introduces the readers about the concerns of
Business Process Management (BPM) and creates
awareness about the concept. Further, it also discusses
technological advancements for helping the organizations
to meet the desired results in terms of quality and
efficiency.
3 Cur
rent
This chapter imparts the knowledge about the current
system of the SICK organization i.e., Customer Project
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Syst
em/
Ope
rati
on
Ana
lysis
Management (CPM). Further, in-depth analyzing of the
issues of the system is resumed.
4 Consideration of
Alternative Solutions
This chapter provides a set of alternatives that can be
considered for resolving the identified issues.
5 Development of Solutions This chapter provides supportive development factors, for
the selected solution of this project.
6 Solution Implementation This chapter provides the necessary solution for resolving
the problems.
7 Testing and Evaluation This chapter educates about the testing and evaluation
methods for the provided solutions.
8 Cost/Benefit Analysis This chapter delivers the understanding of cost analysis.
The idea of the estimated cost and its benefit, for
completing the rework of this project is discussed.
9 Conclusions and
Recommended Future
Work
This chapter provides the conclusion for the project. It
comprises of necessary recommendations and expected
future work for the project.
Table 1Thesis Structure
1.8 Concluding Remarks
The project’s scope will be measured based on the positive project close out
reports. The following are the expected outcomes of the integration system that will
be modified in the proposed business model:
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For improving the local adaption plan:
a. Effective system solution that provides the clear process of engineering and
quotation.
b. An effective system for processing order management and procurement.
c. An effective system for processing the integration methods.
d. Effective project management processes.
e. Better sales service support.
The outcome is expected to provide a better interdepartmental interface matrix and the
necessary skill sets.
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Chapter Two – Literature Review and Project
Methodology
2.1 Introduction
This chapter provides understanding about the knowledge of business process
management. The following sections discuss various topics related to business, to take
right decisions for the company.
2.2 Source of Literature
Various research papers are reviewed to provide a clear understanding of the
business solutions and issues that exist in the organization.
2.3 Review of Literature
This paper aims to explore a literature review concerning Business Process
Management, (BPM). This paper incorporates knowledge and outlines the extent of
development achieved on BPM. By analyzing the technological advancements in the
emerging world, it is evident the IT or Information Technology is penetrating in various
institutions rapidly (Reijers, 2003 pp.5). Organizations need to adapt IT to perform the daily
processes since they understand the significance of technology. In addition, organizations
understand the role of IT in the business processes, for instance, enhancing the quality and the
efficiency through the BPM. Through the BPM, the organizational processes are improved
and the advancements in technology are monitored which is integrated into the processes.
From various empirical studies, it is clear that the organizational success correlates to the
BPM.
This paper explores various literatures on the BPM and provides the direction in the
future concerning the development and knowledge which concerns BPM. Clearly, Reijers,
2003 have the same opinion that BPM occurs in two ways as a management philosophy or as
a discipline in management. This is because the BPM was obtained from the disciplines
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concerning management where technology was deployed to handle the standard processes
(Dumas, La Rosa, Mendling and Reijers, 2013 pp.2). The BPM is also viewed as a tool which
helps in defining, optimizing and also managing the processes in businesses. Dumas, La
Rosa, Mendling and Reijers, 2013 also indicates that BPM can be employed in a structured
and formal way to enhance policies, practices, metrics, methods, and governance which
concerns the business processes. Clearly, the BPM differs from the other deployments of
traditional technology since the process management is viewed as the main initiatives and not
the departments of IT. The success of BPM is dictated by factors such as the management
culture as well as the management discipline and commitment. At the same time, people
should be managed, especially those who perform duties within the business processes to set
significant indicators regarding performance hence the companies will greatly benefit from
the BPM.
From the BPM perspective, technology is viewed as a way in which value is
generated to deliver infrastructure for efficiency within the organizations (Kohlbacher, 2009
pp.400). The main objective of the BPM is to ensure that the customer and employee value is
attained via efficient, flexible and innovative business processes which facilitate
transformation. Various standards which include the XML, Web services, and SOA plays a
great role to enhance the technology of BPM. For this reason, flexibility is acquired; hence it
becomes easier to apply processes in the BPMS products. Kohlbacher, 2009 emphasizes the
importance of support within the BPM.
As per (Zigiaris, 2000), the author describes about business process re-engineering
based on the operations management. The business process re-engineering involves
modifications made in the process within the organization’s setting. BPR mainly focuses on
operations of team building about the processes and person mentality to building a company.
The main ideas of the method is to build the customer-oriented effective organizations. The
organization chooses to change all the processes of the company, as consumers wish to
operate. The important action in applying a business process re-engineering in an
organization strategic objective, to provide customer-oriented service. BPR is a method,
which helps to implement it in the company's structure. The business process re-engineering
is well-defined use of scientific models, methods, and tools, for the fundamental
reconstructing of an enterprise that shows result with improved performance. Retooling and
resigning are the main modules of BPR that, are more effective for organization to
concentrate on the required result.
As per (Kumar and N, 2017), Operations Management is recognized as the necessary
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factor in the company's financial growth. The old-style outlook of manufacturing
management is the perception of invention management with the focus on the financial
productivity in manufacturing. An operation management is defined as a service segment that
becomes more projecting. Quick changes in machinery have posed numerous chances and
challenges, it can be examined in an improvement of manufacturing abilities via the new
materials, techniques, procedures, and facilities. An Operations management has been an
important component in the development and efficiency in the business. An operations
management clues the technique for the organizations to reach its goal with least effort.
As per (Abudi, 2011), the improvement of a business includes improving its
processes, where the project managers overcome its challenges. The author has encountered
various challenges such as, the time required to understand the impacts on the business, to
select the right resource for meeting the necessary results, the managers of the project fail to
realize the importance of initiating the operation, and they even fail to ensure that despite of
the change in the processes of the business, the business must move forward. The author also
states that, the initiative of improving the Business Processes requires the following steps
like, to understand the project, analyze the business project, redesign the business process,
implement the redesigned process, roll out the redesigned business process, and finally to
evaluate and measure the implemented design. The papers highlights that this process
requires skilled team members who can accomplish the processes like, for modeling, in
analytical and design techniques; for change management; then for research, interviewing,
and for group facilitation techniques; for communication; to represent all the business units
that are affected by the project and training. The author assures that the skills of the people
are must more important when compared to technical skills. Thus, he says that the necessary
skills include, capacity to build a stronger working relationships, effective communication
and presentation skills, facilitation skills, qualities of a good team leader and influencing
skills. The author states that a meeting before the launch of the project is effective. The pilot
run helps in effective start of the project which ensures to check all the needs of the project.
The redesigning of the business process involves, conducting research, identifying the factors
that demand a new process, prioritizing the company requirements, checking the "could be"
option depending on the identifies factors, and developing the solution based on "to be” and
"could be" option. For redesigning, the project management plan includes Change
management plan, Communications plan, Risk management, plan, Testing plan, Training
plan, Roll out, measurement and evaluation plan.
As per (Prasad, Babbar, and Calis, 2000), operations management is the process,
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which transforms and combines the different resources used in the operations subsystem of
the organization into value-added services, in the controlled manner as per the policies of an
organization. The operations and production management have been recognized as an
important factor in a company economic growth. The operations management was the shift in
the service and manufacturing sectors of the economy. Operations management could be
classified as resource utilizations and customer service.
According to (Prajogo, 2006), operations management converts the provided inputs as
the required output, with the help of the physical resources. This helps to deliver the required
functions to meet the customer demands and the objectives of the organization like efficiency
and adaptability.
It is stated in (Operations Management & strategic manage, 2017) that, operations
management is a part of the business which is more responsible for generating services and
goods. Operations Management includes the customer service and the resource utilization.
The Operations Management should offer requirements which must satisfy the customer in
the form of timing and cost. Operations Management concerns about the utilizations of
properties that could gain maximum outcome from the resources or reduce their loss, waste or
underutilization.
According to (Suchánek, Richter and Králová, 2015), the author describes that
customer satisfaction denotes the business performance and product as a capability to produce
a profit. Then analyses the relationship between performance and customer satisfaction of the
company. Therefore, the satisfaction was investigated by the mean of the survey using
queries, and the performances are measured by the financial data. To reach the higher
customer satisfaction, it is required to determine the mix of not just the product (marketing
tools) and does not respect with competition, but in general with regard to the preferences,
options, and character of the customer.
The author (Al-Tarawneh, 2017) describes that the decision-making errors are costly
and are growing more costly. Many practitioners conclude that the decision-making is
becoming more critical. Decision-making is a sequential process and every decision is the
outcome of the dynamic process. The identification phase, development phase and selection
phase are identified as three main phases in the decision-making.
As per (Maddern et al., 2007), the relationship between the customer satisfaction and
functional aspects of the service quality and technical service recommends that the technical
service quality plays a serious role in defining the customer satisfaction. Furthermore, the
analysis identifies the BPM as an important driver of the technical service quality. Thus, it is
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clear that the business project management is essential to meet the customer needs.
As per (Meredith, 2001), the operations management involves its essence in various
activities of the business like the accounting, finance, marketing, supply chain, mass
customization, ERP and so on. The author states that the operations management is known for
a long time and is followed in the various fields. There are various tools available for
operations management.
As per (Allen, 2017), it is recommended that a business model where businesses
generate low-quality goods and sell them at the greater quality price, acquires the worst
reputation and are omitted from the market. Customers are supposed to perform as if they are
aware of the price functions of businesses and give the costs charged, they should place
themselves in the business's position and calculate whether the benefit of generating high-
quality items and managing a good reputation is more than the price involved. They are
capable to conclude indirectly, the quality of goods as a profit increasing the business, even
though they do not directly observe it. The redesign of the work must consider and meet all
these criteria.
As per (Jain et al., 2013), the author states that, the operations management is a study
of management that can be handled with designing, production and management, overseeing,
and reproduction of services and goods. It is used for maximizing the productivity of the firm,
which is mainly focused on management. It contains the transformation of input into output.
It describes the role of operations management for a company. The organization is divided
into several making units, inventories, production, and controlling, and suppliers. The first
stage is sales and marketing departments can recognize the needs of customer. After the
estimated requirements are completed. The next stage involves designing of the product and
services. Then, the estimation of materials and other resources are completed. The third stage
performs, the input estimation, which are obtained from the company's needs. Then the next
stage takes, raw materials as an input, which is transformed into output as services and goods.
The last stage is used to deliver the goods and services to the client. The author also states
that, operations management help different models, to decrease the waste of resources and
theories, and it helps to improve the efficiency of the substances as services or products.
The author (Bakouros and Kelessidis, 2000) describes that project management is
developed because of the increasing demand for the sophisticated; customized services and
goods; and complex and an exponential growth of human awareness. Project management is a
collection of techniques, methods, and principles for the effective development of object-
oriented effort. Project Management means, fitting the number of difficult pieces of a project,
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by the need of scope, schedules, and budgets, which includes allocation of resources. The
Project management achieves two purposes. The first purpose Technical purpose, where the
documentation techniques are used to communicate. The next purpose is the Human purpose,
where the managerial services could be enhanced. For instance, the manager of the project.
To implement the project management techniques for the companies, the organization have to
accept the project management philosophy and know its profits and thus it helps to obtain the
benefits.
The author (Hekmatpanah, 2017) describes that in manufacturing industries to
maintain quality management a cause-and-effect diagram also known as Ishikawa diagram is
being used. It was created to identify and group the cause of problems that confront the
organization. This diagram ensures a better decision-making and providing the better solution
to the problem. The purpose of the fishbone diagram is to find out the root cause of the
quality problems. This analysis tool provides a systematic way of looking at the cause that
contributes the effect. The design of the diagram looks similar to the skeleton of a fish. The
problem has identified that wastage of canning and filling procedures of Sepahan Oil
Company. Sepahan Oil Company is proficient of fortifying 30% of approximately 600
million liters of engine oil that is used internally. The goal is to attain 0.3% in existing
constraints and production plan and 0.5% for the oil wastage. It is found that the CTQ factors
have the negative impact on the customer. With the assistance of the quantitative tools, the
most important cause and effect are identified and major improvement is emphasized.
According to (Cho and Erkoc, 2009), the developed systems organize equipment,
process, and necessary data to produce the exact products for customers through controlling
and planning. In general, better coordination to maximizing the productivity with reduced
operating cost could be achieved by the effective control and planning of production activity.
It is stated in (KP et al., 2015) that, the discrete event model is a process of creating a
model of an actual system and showing trials with that model, the determination of either
considerate the evaluating strategies for the operation of the system or behavior of the system.
A discrete event model is a tool which is appropriate for manufacturing system and enhances
the overall productivity. The area is a discrete event model and computerization software,
developed by the system modelling.
As per (BRUCE HO, DASH WU and L. OLSON, 2009) the performance of the 27
US companies is been assessed by the risk scoring model. DEA and the comparison of the
financial measures on the return on equity is made with the scoring model. It offers a risk-
adjusted performance evaluation for managers. Scoring model also provides guidance to their
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investors. By scoring model it is analyzed that the company effectiveness is more important
that the operating efficiency.
The author (Muianga et al., 2012) describes that a systematic revise, review or to
adapt the existing exposure control guidance must be used in the developed countries. Around
14% of the country's economy of the developing countries depend on the construction
industries. Demolition is also an important part in the construction companies. For reducing
the silica exposure in the developed countries efforts are built on the disease surveillance and
silica measurement. For this purpose check-list was pre-tested with the professionals. An
interactive training program was developed. A list is made on the components for good work
and guidance is been provided. Step-wise method is used to adapt the checklist for this
demo0lision purpose.
As per (Phillips, 2013), the author states that fishbone diagram for making analysis to
investigate the problems. The author examines the method to use the fishbone diagram to
identify the cause of the problem. The analysis in the fishbone diagram begins with a problem
and the diagram provides the template for each cause. The fishbone diagram gives insight to
the problem. The author analyzed a case study in an outpatient clinic regarding the waiting
times. All possible causes are analyzed by asking 'five whys' to the problem, with the help of
the fishbone diagram they highlighted a number of solutions to their problem in the outpatient
and implemented the patient tracking system to overcome the waiting times. The solutions are
identified and the plans for the actions are drawn up.
2.3.1 Overview
The following are covered:
1. To determine what exactly the business desires to achieve. This can be
accomplished by customer satisfaction, product quality, and employee
satisfaction.
2. Analyzing the relationship between the product quality and customer
satisfaction in order to reach the high growth level of the company.
3. Analyzing the relationship between the service quality and service behavior
have proven its performance and importance in the marketing or management.
14

4. To review the benchmarking process in order to do what are all the steps to be
needed for manufacturing and check prior delivery to the market (Harvey,
Heineke and Lewis, 2016).
5. To analyzing the manufacturing unit for that manufacturing systems organize
equipment, process and necessary information to produce the exact products
for customers via the control and planning.
6. To determine the customer relationship management customer project
management and business project management.
7. To determine the strategic planning in order to know the what are all the
process involved during the product manufacturing
2.4 Discussion
In conclusion, BPM can be viewed as a concept which has a low academic base
from the practical view. This is because technology is required in the operations and
control of the company via the regulations which monitor the business processes (Anand,
Wamba and Gnanzou, 2013 pp.15). The BPM framework which aims to recognize the
conceptual clusters shows that there lack evidence regarding the linkage of BPM in the
academic field. BPM is absolutely a relevant challenge for further research and practice in
the future.
To accomplish redesigning, the project management plan contains the following:
1) Change management plan
2) Communications plan
3) Risk management plan
4) Testing plan
5) Training plan
6) Roll out
7) Measurement plan
8) Evaluation plan
The general concept of project management and operations management are
discussed. In addition for analyzing the quality management and for better decision-
making fishbone diagram must be used. Hence for making a better decision-making and
to determine the cause-and-effect fishbone diagram will be used as the solution to the
15

problem. Further, the review concentrates on the importance of project management and
operations management, for redesigning a business process. The importance of customer
satisfaction, quality, time and feasibility for the company is investigated. Therefore, the
satisfaction were investigated by the means of survey using queries, and the performances
are measured by the financial data (Felix, 2017). It is observed that, the customer project
management (CPM), is used to have better communication. The project manager is
required to know the customer needs, the need for process change, then know the impacts
of the change. On the other hand, the project managers must know the importance of
communication and leadership skills. Moreover, the organization’s important factors that
suit the customer needs must be analyzed. The manager of the manufacturing unit of the
company is responsible for the costs of the manufacturing unit. The manufacturing cost of
the manufacturing unit is evaluated by the average cost per product or the available cost
per unit. The quality and timely delivery could be used in conjunction with the cost
measure, to reward the manager. The further discussion is followed by the Operations
Management System, which provides the solution for consulting the management related
operations that may occur during the implementation process. Operations management
helps different models like to decrease the waste of resources and theories, and it helps to
improve the efficiency of the substances as services or products which is the main theme
of the project.
2.5 Project Methodology
Any company proceeds their development and implementation work based on the
analysis. The analysis includes certain methodologies for assessing the system, like the
quantitative and qualitative methodology. This thesis also follows a methodology, where
the survey and interviews are the methods used to know the different department
employee's satisfaction. The survey and interviews help the company to observe reaching
its saturation level. It also helps to realize the need for expanding SICK Company to a
next level. The pilot run method is utilized in this thesis. The project management is a
skill and it requires an individual to know the strategic alignment, good planning skills,
the techniques for managing the project, for performance recognition, for resource
availability (Laibon Mturi, 2014). The pilot run helps in evaluating the feasibility, cost
estimation, impacts and time required for redesigning (Revell and Stanton, 2017). It also
checks for the techniques used in production and the requirements of quality (Sarkar,
16

2017). On the other hand, the operational strategy is considered as the effective strategy.
Where, the long-term plans are considered for the functions that, provides help for the
strategy of the business. The functions of the operations can have a huge impact on the
product's delivery and its service. Because it can in turn impact on the formulation and the
implementation of the business strategy. The top-down approach is implemented (Porter,
2009).
Problem Statement
SICK Company wanted to rework on its business model, so it followed a simple
business model called CPM. After the implementation of the CPM, the parent company in
Germany has implemented the new model successfully but the global market in Australia
faced adaptation and sourcing problems. The adaptation problems refer to the
coordination in the projects, lack of understanding about the primary objectives of the
company, interdepartmental interface and lack of certain skills that are indispensable for
working on the CPM (Singh and Tayal, 2017)..
Analysis of the current process
The main objective of the project is to provide benefit to SICK's customer, employees
and suppliers and to provide the facility for integration. For analyzing the current status of
the SICK a survey on report and appropriate questionnaires are being investigated. The
following report's survey has also helped the company to know the existing problems:
1) Financial reports of Project.
2) Close out reports of Project.
3) Interview sessions of the interdepartmental employee.
The survey method involves analyzing the following:
1) The present resources and its capabilities.
2) The present documentation system.
The existing reports of the customer satisfaction survey report help in evaluating the
results. The interview questions support to analyze the employee productivity in the
current system.
Questionnaires
As the set of interview questions that help to find the productivity of the employees are
listed below (Themuse.com, 2017):
1) Do you feel proud to work in this company?
2) According to you what role does the company play in recruiting and in
17

reviewing the performances?
3) Is there any professional development and career growth in the company?
4) What will you change, if asked to transform one thing into the company?
5) Can you understand the provided system?
6) Can you work effectively on it?
7) Do you face any issues?
8) How do you tackle the issues?
9) What do you suggest the company to do, to help you resolve the issue?
10) Is it necessary to take risks?
11) What will be the result of failing?
The success of the project is evaluated by using the survey method, which analyses the
project close out reports, to determine the success of the project.
Questioners for Document Management System
1. What type of document management system suits SICK?
2. How many users will need to use the system?
3. Does a scanner be available for present document imaging system?
4. Roughly how many paper documents is necessary to be scanned on a week?
5. Do SICK have multiple locations that will need distant access?
6. When does SICK get ahead making a decision?
Identification of possible solutions and selection process
The existing problems in the SICK are analyzed then it needs an effective solution for
them must be given in an effective approach. A various solution is considered for the project
and the solution that requires lesser cost and the solution that utilize the existing resources in
the SICK will be considered as the best solution. For these reason, the existing business
model CPM is being modified and is considered as the best solution for this project.
Detailed design and analysis of the selected option
The current CPM that is framed only suits the German company but it doesn't suit for
the Australian economy, hence it is essential to analyze the economic and the manufacturing
practice of Australia and modification are done to the existing business model CPM
according to the requirements.
Implementation of selected option
Implementing the solution involves the integration of the business project
management in the Australian company. A certain level of reworking will be necessary to
customize the solutions to suit the local market, which is the main focus of this project The
18

first issue the SICK faces is that the employee coordination and proper knowledge regarding
the solution implementation of the employees, this issue can be overcome by providing
training to the employees. For overcoming the financial issues cost-benefit analysis is made.
Test and outcomes
The pilot run results will be analyzed by evaluating customer satisfaction survey
report, Project close out report, project financial report and the interdepartmental employee
interview session report.
2.6 Concluding Remarks
The reports generated from the survey provides the clear picture of how much the
integrated solution is effective and useful. The survey helps the company to know the
importance of growth for the company. The survey and interviews helped the company to
observe reaching its saturation level. This also made it realize the need for expanding its
firm to a next level. The conclusion is made that the operational strategy is an effective
strategy. The survey and interviews are conducted for the company to observe reaching its
saturation level.
The characteristics like the issues of suitability and performance of the newly
developed system analyzed are listed below:
1) Level of competencies
2) Processes of the project.
3) Strategies included.
4) The infrastructure of the company.
5) Resources for satisfying the demand of the market.
6) Requirements of the company
7) Customer expectations
8) The need for change.
The issues observed from the survey include:
a) Lack of in-house capabilities
b) Lack of strategic processes
c) Lack of suitable facilities and resources
19

d) Struggles of the company that affects its core component business and
e) Reduces their capacity to satisfy the customers.
Analysis Solution
1) The company must ensure integration without any disruption to the core business.
2) The issues must be analyzed with respect to customer satisfaction, with the help of survey
reports, project close out reports, capabilities of the existing resources and documentation
system, project financial report and interdepartmental employee interview sessions.
3) The selected system must be able to provide the integrated solution for the present
business model, without any problem.
4) The solution should provide satisfactory results in terms of stringent quality requirements.
5) It must meet at least few requirements of the customer needs to be based on the quality,
time and cost.
6) The solution must be within the budget.
7) The available resources must be used effectively.
8) It must provide clear interaction between the different departments.
9) The performance must be checked and the pilot run method should be used.
10) The coordination must be improved between a parent company and Australia.
11) Determination of the customer relationship management must be done through
business project management.
12) Strategic planning is determined by operation management in order to know what
process involved during manufacturing.
20

Chapter Three – Current System/Operation Analysis
3.1 Introduction
SICK Sensor Intelligence has global market including Australia. The company’s recent
decision to expand its business model, where (CPM) Customer Project Management is
proposed by executing integration, for its end-user market has led to this chapter's
commencement. This business model is been successfully implemented in Germany, the new
business model holds the sales service support, components and system solution as its
constituents. The system solution and the component solution performed the same working
mechanism and later more structured and focused CPM approach was initiated by the sales
service solution. In this consistent customer, survey is made and the classified is divided into
seven steps. Therefore to modify the solutions to garb the local market certain level of
reworking will be required, which is the main motivation. In the Australian market, the
product that is manufactured in the German factory doesn't meet the customer satisfaction.
The company decided to start SAP ERP system for the effective performance. Inception made
by the company has experienced huge failures that consist of incorrect solution which is
being delivered to the customers, insignificant system designs that results in improper product
choices, delayed deliveries that result in liquidated reimbursements, insignificant
documentation and traceability making corrective exercise difficult etc. These failures have
returned to dissatisfied customers to the company, descent in revenue, failure in customer
loyalty and disorder within the organization. The company desired to expand with a complete
solution offering to its customers, it is suffering from the lack of organized approach and
competences that are required for a unified transition from simple component selling to
complete solution advancing (Operation analysis, 2017).
3.2 Customer Project Management
To attain an effective business process SICK Sensor Intelligence decided to implement the
Customer Project management, a new business plan. Customer Project Management is a
21

combination of tools, methods, and process that used for secure and to support the business
project to attain the customer satisfaction all over the world. Additional functionalities such
as coordination between the departments and other requirements that are necessary to achieve
the business standards in the situation where the products are sold regularly at standard
pricing. The key factor of customer project management in SICK is to attain a new version of
SICK. The aim of the CPM is to provide an international coordination and to bring an
efficient project processing so that the customer requirements can be meet, and it leads to
growth in profit (Operation analysis, 2017)
The Sick Customer Project Management delivers a reliable and a coherent approach and
culture for SICK throughout the global market. The CPM approach is in configuration with
PEP and PRO2 in SICK's Project Management but is personalized and essential for customer
projects. The CPM Process Model is the basis for the Customer Project Management. The
description of Project Classification of CPM satisfies the altered business needs of the varied
range of project business scenarios at SICK and it also provides an accessible project
management approach. The project organization, as well as the roles & responsibilities, are
also the major elements of CPM (Winda, Made and Ketut, 2017).
Figure1: SICK Project Management
Successful results are provided by the standardized process but in SICK standardization is a
challenging because of scenarios in business project. To manage flexibly these scenarios of
the business projects CPM methodology is used. Customer Project Management is classified
as Standard projects, advanced projects and focus projects, a basis assortment among the
project is provided to ensure that all types of CPM projects should manage in a proper
22

method (Otra-Aho, 2017).
Standard CPM Projects
Based on the CPM Process Model, it is managed in a quality proven way but
restructured with reduced effort in every process steps and also for all complex parties.
Advanced CPM Projects
Managing of this projects is in a quality proven way based on the CPM Process Model
with an observation of the CPM Project Manager and all involved parties because of its
higher complexity, the strategic importance of the project and risk and also the requisite
harmonization effort (Wu and Cao, 2016).
Focus CPM Projects
Based on the CPM Process Model under the direction and distinct supervision by the
CPM Project Manager and all involved parties the project is managed in a quality proven
way. This is done due to risk, complexity and strategic importance of the project (Ghosh,
2012). A form of extended qualified project reporting is established for providing special
management attention or oversight that is required (Shebob, Shah, and Mhalas, 2013)
(Santouridis and Veraki, 2017).
3.2.1 CPM Process Model
The CPM Process Model contains one core process which generates the key value stream
and it is distributed into chronological phases. Every phase are completed by a milestone.
Besides, the CPM Process Model is entailed of an uninterrupted core process and also by
many supporting processes. Milestone cannot be related any of the continuous or supporting
process (Shebob, Shah, and Mhalas, 2013).
Project Completion Phase
The CPM Project is transferred into responsible sales and service units and all the task
that are remaining are closed on time and it is completely commercial. Reviews and claim list
are closed by the team final invoice to a customer with the down payments are provided.
Milestone is provided at each completion stage of the product (Nordås and Kim, 2013)
(Haverila and Fehr, 2016).
After the successful completion of the CPM, change request management and claim
management is produced for an integrated process that reduces the cost and the effort that are
caused by the changes that enhance the project volume, net sales and gross volume (Dror,
2017). The following activities are carried out by the change request management they are
23

change planning, change order and change execution (Santouridis and Veraki, 2017).
3.3 Current System Analysis
The existing problem in SICK is been identified with the help of the Fishbone diagram that
describes the problems in system, people, environment, product, people and management. By
analyzing the cause and effect diagram it is been analyzed that SICK have issues related to in-house
capabilities, strategic process, lack of suitable facilities and resources, inability to meet the customer
satisfaction and mainly the integration of the business.
Figure 2 Fishbone diagram
The significance of the problem is given in the following statistical data, the two-tailed P-
value is 4.53% and test significance is 95% confidence with the Z score as 2. The following
chart provides the data.
24

1 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Documentation system Employee cordination
Product design Business collaboration
3.4 Problem analysis and its cause
By tradition the company has been evolving, manufacturing, developing and
marketing definite equipment’s which ultimately needed to be integrated into another system
in order to become useful (Hall and Blais, 2015). This is been effectively processed in the
company. It is been realized that the company has attained its diffusion and for the purpose of
its growth it essential to expand its horizons and blow into the system business (Haverila and
Fehr, 2016) (Nordås and Kim, 2013). The problem in the current system and its cause is
given as follows.
1) The corporate governance directives and an encouragement in an interaction between
the departments with precision and coordinating are lagging. The analysis should be
made on how different department within the company will interrelate and
presentation of data in a matrix format must be done (Othman, 2014).
2) The consideration that is to be done on the integration that occurs without disrupting
the core business is failed.
3) The determination should be made on the existing resources and utilize it for the
effective purpose is lagging (Nordås and Kim, 2013).
4) System business requires an exact level of strategies, processes, competencies
infrastructure and resources that are required to satisfy the demands of the market,
customer requirements and customer expectations and transformation is required for
the company. The advantage is that the company has developed its product and
manufacturing the main parts that are the heart of the system. The remaining parts of
the system are sourced externally since they are common (Lean six sigma, 2017).
25

5) The new business model doesn't provide unified workflow with enhanced processes,
developing the customer project management willpower process, trained employees to
handle the resources and complex opportunities and to transform them into a
successful output, developing procedures that are to accomplish third-party suppliers
to uniform the requirements in complex project and to determine the suitable structure
and transformation (White paper, 2017).
6) It is necessary to attain the local customer satisfaction but the new business model
(CPM) failed to provide. A reliable level of rework that is required for modifying the
solution that adapts the local market must be analyzed and focus is made in this field,
CPM can't attain this strategy (White paper, 2017) (Lean six sigma, 2017).
7) A suitable document management system is not available for accessing of multiple
locations of SICK.
3.5 Concluding Remarks
Facility for integration that is been done in Germany cannot be achieved by the
present structure in the Australian company. In this current system, there is no filtration
method is used to analyses where local requirements are found. The resident adaptation
strategy has a consequence of evolving a suitable processes for order management and
procurement process, integration methodologies and process, engineering solution and
quotation process, transition that support sales and project management process. A
solution will be selected that will integrate into the present business model without any
interruption. The solution is provided to satisfy rigid quality at lower cost and time
(White paper, 2017) (Nordås and Kim, 2013).
26

11
Chapter Four – Consideration of Alternative Solutions
4.1 Introduction
This chapter provides a list of alternate solutions that can be implemented for
proving the solution for the existing system, in SICK Company. These solutions are
expected to provide the required solutions related to integration and coordination that
enforces customer satisfaction. The solution for the problem analyzed enclosed for the
benefit to having a reorganized process significant that it will cause in a regulated
outcome, united responsibilities and besides the personal satisfaction with the
accomplishment of the successful outcome.
4.2 Alternatives
The following are the list of alternatives:
1) Integrated business plan (IBP)
2) Test Data Management
3) M1ERP software
4) Modified CPM
5) EAI techniques
6) Orcanos Document Management Software System
4.2.1 Integrated Business Plan (IBP)
Certain improved Integrated Business Plan increases the customer’s satisfaction and
helps in integrating the cost. It provides the following benefits (Sabri, 2017). They are:
1) Better customer satisfaction as a result of more accurate demand planning, supply
chain management, and business integration.
2) The IBP transformation program helps in delivering more number of advantages and
benefits.
3) Increased income and has grown by enhanced customer service and fill rates which
can be attained with the available resources.
4) Important cost reduction through efficient and effective supply chain management in
business (Suen, 2017).
5) Budget optimization through better inventory organization in the business field.
6) A stability of short-term effectiveness in a positive way is provided by Integrated
Business Plan.

12
7) End-to-end visibility into the economic and operational suggestions in decisions and
in actions related to requirement and supply.
8) Well-organized annual planning and accounting processes will take place in
Integrated Business Plan.
Advantage and disadvantage
By implementing this alternative solution may solve the collaboration
problem that exist in SICK. Significantly Integrated Business Plan involves in spending
more cash on in-house IT departments for keep tracking this solution. Since sick involves
in redesigning process in a cost-effective manner it cannot be developed further for the
business collaboration.
4.2.2 Test Data Management
TDM (Test Data Management) is the method of satisfying the test data essentials of
testing teams via confirming that test data of the correct quality is provisioned in
appropriate quantity, suitable environment, correct format, at the proper time
(Informatica.com, 2017).
Superior Quality
Optimal data analysis is achieved by the team of TDM. Effective test planning is
done. Faults and corruption of data are reduced as superior quality is used.
Minimum Time
Execution phases are achieved by the reduced time (Delphix, 2017). Automation of
process in done, so that no need for working on the project again. Even though it
integrates the global market, while there is a range of financial agendas out there, even
the most basic preferences can be expensive, it depends on the current size of the
business and current financial situation, and these are the reason for disregarding this
solution.
Advantage and disadvantage
With the implementation of the TDM it may result in solving the most of the
problems like integration, documentation problem, customer loyalty but the team
building is hard to attain and it cause more time for the training period along with higher
cost.
4.2.3 M1 ERP Software
M1 is an ERP (Enterprise Resource Planning) software, can benefit the manufactures
to grow by integrating each and every surface of their organization, within the single

13
Robust System. M1fits to an organization and helps to grow the business operation,
increase profitability and also improve the efficiency (Ecim1.com, 2017).
The M1 software has the enormous collection of business analysis and use graphs,
productivity tools, wizards, explorers, calendars and other easy shortcuts to improve the
efficiency formal of art direction methods to permit clients speedily search what clients
are needed.
M1 software by the ERP solutions could help to minimize the operational costs,
increase the productivity and improve the profitability by
a. Make the modest process of development for production jobs.
b. Finding shop flooring capability complications at the glance.
c. Minimizing on indicator inventory, increasing on-time distributions and
increasing cash flow.
d. Provided an effective technique of gathering and monitoring all the labor
records.
e. Capabilities to ERP M1 offer
The M1 software provides many features which can support to succeed the
manufacturing business
a. Order management
b. Contact management
c. Inventory management
d. Labor management
e. Purchasing management
f. Scheduling
g. Quality
h. System security
Advantage and disadvantage
M1 has poor lot number with a weak quality module, implementation will be
extremely difficult routine accounting system is hard to be performed these cause the
exclusion of this software.
4.2.4 Modified CPM
Necessary analyses about the economic and the manufacturing practice of Australia
is made regarding the Australian market. Decision is made for proposing a modified
CPM in the Australian manufacturing economy of SICK, by including strategies of the
Operational Management and implementing the project management measures. Initially,

14
for avoiding higher risk and other hazardous factor and for the unification of the proceeds
strategies of Operational Management is developed. All the activities of the SICK's
parent company are been progressed through CPM it is understood that for enhancing the
redesigning of SICK is possibly done with the existing CPM, for the purpose of
overwhelming the Australian market strategies amendments are provided. Alterations are
made on the role of CPM that depends on allocation a single modified CPM project to
the people with the help of project management and operational management, where new
processes are adapted to the existing procedure so that for achieving safety and security,
to attain the quality of the project to eradicate dominant gaps.
4.2.5 Orcanos Document Management Software System
An integrated module of Orcanos Medical e-QMS cloud solution is Orcanos
Document management Software. Orcanos Document Management Software permits to
quickly generate, document and review all documents that are related to the
development, proposal, manufacturing of a product.
Benefits
The repository can be quickly imported from the datacenter besides routing process
are made in a flexible mode that assembles documents in a hierarchic list and automated
approval process is available for the benefit to diminish the approval process period.
Orcanos Document Management Software System provides better collaboration among
the global market of an industry, meta-data draught is certainly structured with
convention inquiries for the customer insight.
4.3 Best Alternative
For selecting the best alternative for the problem prevailing in SICK a Score Model is
done and the score is given to the alternative solutions that are considered as the solution to
the problems in SICK and the solution with the highest percentage is considered as the best
alternative. The weighted score is been given to the alternatives according to the criteria and
rating is given in percentage. The following table gives the scoring for the alternatives, from
this table it is clearly given that Modified CPM has the highest score of 75.45% while
comparing to other alternatives.

15
Purpose: To select best alternative solution
Criteria weigh
t
Integrated
business plan
Test Data
Management
M1 ERP
software
Modified CPM
rating
weighte
d score rating
weighte
d score rating
weighte
d score rating
weighte
d score
Cost
effective
250 40% 100 36% 90 40% 100 92% 230
Integration 200 80% 160 85% 170 50% 100 70% 140
Utilization
of
available
resources
150 60% 90 60% 90 66% 100 96% 145
Sales
support
100 80% 80 60% 60 50% 50 94% 94
Benefit to
the
interested
parties
80 87.5% 70 37.5% 30 50% 40 75% 60
Workflow
processes
80 62.5% 50 97.5% 78 60% 48 70% 56
System
order
manageme
nt
50 60% 30 84% 42 60% 30 80% 40
Customer
satisfaction
50 92% 46 50% 25 50% 25 90% 45
Increased
morale
within the
employees
40 62.5% 25 50% 20 75% 30 87.5% 35
Totals 1000 62.45
%
651 56.00
%
605 50.10
%
523 75.45
%
845
Table 2 Scoring Model Table

16
Since SICK is presently made use of CPM, steps should make for the modification
of existing CPM. This may return in the reduction of cost and time, which also lead to
the utilization of existing resources. It is noted that CPM is successful in their parent
company, so making this as the best solution may lead to the betterment of the project
and it may avoid the collisions. For these reasons the best option is considered as
modifying the existing Customer Project management, to better fit the existing problem
in SICK. For the management of document Orcanos Document Management Software
System is chosen as it meets all the solution to the problem analyzed.
4.4 Concluding Remarks
From the analyses of the problem that prevails in SICK the following conclusions
are made, the solution that is framed must be within the budget, all available resources
should be used effectively, it must provide clear interaction between the different
departments, the performance must be checked, the coordination must be improved
between parent company and Australia, Determination of the customer relationship
management must be done through business project management, Strategic planning is
determined by operation management in order to know what process involved during
manufacturing for these reasons the best option is considered as modifying the existing
Customer Project management with the integration of considered alternatives. For
managing the Document management system Orcanos Document Management Software
System is used. This is expected to resolve the existing problems in SICK, for the
Australian local market.

17
Chapter Five – Development of Solutions
5.1 Introduction
This chapter highlights the importance of developing new business planning to attain
the integrity, costing and validation in SICK Sensor Intelligence. A business process model
describes the need for the process in the organization. This chapter also includes the
modified Customer Project management (CPM), an alternative solution provided by the
BPM for SICK. The manufacturing process in SICK involves three major elements such as
people, asset, and raw materials. Competitive advantage is provided by the organization
efficient use of the available resources. Sick traditionally has been manufacturing the
products. For the development of the solution, the following tasks will be performed. Anew
method will be identified that may support every employee to interact with the employees of
other departments in order to acquire required information needed in accomplishing specific
intentions. A methodology in the form of rules will be developed in order to assist
employees to classify new opportunities as key products or system solutions. The plan will
be developed for enhancing employees to become experts in trading with complicated
opportunities. A relevant process from the parent company will be implemented instead of
implementing the new business solution that could introduce unwanted difficulties.
Appropriate procedures and processes for attaining particular third party project
procurement, so that the outcome might adopt the existing standard procurement practices,
adapted to suit the specific project scope so that it can confirm reliability along with the
related industrial standards. An identical location will be identified so that it can be the
integration center so that confirmation can be made that the employees are utilizing the
project. New processes will be adapted to the existing procedure that is related to the safety
and security, quality or process that will be disturbed by the accomplishment of the project
to eradicate dominant gaps (Shebob, Shah, and Mhalas, 2013).
5.2 Industrial key features in Australia
The present situation in Australian industrial unit that is found by the Reserve Bank,
Productivity Commission and financial market commentators as unavoidable "structural

18
modification" by which industrious inputs are transferred to the resource section in order to
achieve a higher rate of return. Misunderstandings occur in the manufacturing role in the
economy as the advanced technologies user and producer and possibilities of long-term
consequences may decline. Production is positively becoming more globalized, more
knowledge- exhaustive and more symbiotic with the cost-adding services like engineering,
design, marketing, and computing. For Australia's future long-term economic wealth for
depends on two reasons: first, the manufacturing determinations, innovation and changes in
technology which are the crucial fundamentals of production and the second is, it subsidizes
to exterior trade equilibrium here examining of policy background is taken care. In
Australian manufacturing environment, the variation in the nature of industrial activities,
particularly its enlarged integration with amenities and significance in favor of the
Australian economy (Wei and Clegg, 2017).
5.2.1 Steps for developing the business solutions
Developing a business solution is just about creating new products or the new
business solution. Selecting and executing right methods and providing them into the
markets is essential. The technology of cost had shifted the issues of efficiency and are
focused on the creativity and focus on the growth of the organization (Recardo, 2017).Since
the customer project management that is implemented in SICK parent company in Germany
resulted in an effective manner while it fails in Australia, so strategies must be framed
accordingly and steps for implementing them is made (Nea.gov.sg, 2017).
Five Steps to an Innovative Solution
a. Figure out the problem
The first step is figuring the problem which is crucial, is done by asking questions
and observing the competitors their products and their strategies that is done in the
methodologies (Vakola and Rezgui, 2000).
b. Analyze the problem
At this stage the theme of the problem is analyzed thoroughly from top to bottom, a
strategy in Operational management which essential to focus on the procurement is made
and on how the problems prevail and the base of the problem, potential causes, extracting
every variable and value that causes it (Salonen and Jaakkola, 2015).
c. Classify the Decision Criteria
Obviously defining the desires that may lead to the purchase determined,
identification is made of the deciding factors (Altuzarra, Bustillo and Rodríguez, 2017).

19
Decision is made accordingly to the manufacturing environment of Australia and strategies
are framed so that the CPM can be modified and it suits to the Australian company.
d. Select the best solution
After evaluation of all the alternative best solution that matches the SICK problem is
analyzed and the decision is made for choosing the best alternatives. Pilot testing and run are
made to develop the solution that is selected. It should be prepared for all internal or
external contingencies (Koch and Mitlöhner, 2010).
5.2.2 Document Management system
It is noted that one of the problems in SICK is Document Management for this a
suitable Document Management System is identified. SICK requires Orcanos Document
Management Software System. An integrated module of Orcanos Medical e-QMS cloud
solution is Orcanos Document management Software, 21 CFR Part 11. It enables to create,
archive, search, trace and audit the required documents according to the design, plan, and
development. This software best suits the SICK which in need of collaboration and customer
satisfaction.
Applications
1. Routing Process
An automated routing process is provided in a flexible manner with an electronic
signature that can reduce the approval cycle time. By automating routing process and
approvals, and using Orcanos Part 11 electronic signature
2. Healthier Collaboration
It helps the employees in SICK to save time by discovering the right information exactly
at the required time. Team empowerment is attained with help of this Document
Management System that is the major problem prevailing in SICK. QPack Document
Management Software will manage all of SICK’s documents and appreciated intelligence in
a protected form that spans the whole company.
3. Arrangement of document through Numerous Workplaces
Hierarchical organization of documents is allowed by a folder similar to Windows
Explorer, but by means of Orcanos e-DMS Copy As Link feature that allows arranging each
document under several folders. Managing several DHF structures and document sharing is
done.
4. Customer satisfaction
Document meta-data layout is easily set up along with custom inquiries and permits
Users to access files and their associated metadata from this the data can easily be analyzed

20
and the determination of customer needs is achieved.
5.3 Modified Customer Project Management (CPM)
It is noted that the current CPM that is framed only suits the German company but it doesn't
suit for the Australian economy, hence it is essential to analyze the economic and the
manufacturing practice of Australia (Business expanding, 2017).
Modified CPM Roles
1. A methodology of project management called BPR in the form of rules is being
developed in order to assist employees to classify new opportunities as key products
or system solutions so that the existing system can be modified without any higher
rate of risk and proceeds in a unified way so that it may not affect the people in the
organization (Walker, 2006).
2. Instead of implementing new business solution that could introduce unwanted
difficulties a relevant process from the parent company is implemented with little
modifications so that it may provide greater results, for this reason, role of CPM
depends on allocation a single modified CPM project to the people with the help of
project management and operational management (Integrating TQM and BPR,
2017).
3. All the tasks in where new processes are adapted to the existing procedure so that for
achieving safety and security, to attain a quality of the project to eradicate dominant
gaps. The integrated business plan is being developed for the purpose of managing
master data and documentation that control to deliver traceability (Robertson, 2017).
Modified CPM Responsibilities
Work package leaders, project team members include the project interfaces/support for
implementing the modified CPM and responsibilities of modified CPM are done by the
CPM Project manager depending on the phase and progress of the modified CPM Project.
With the help of modified CPM along business process re-engineering the responsibilities
are framed as (Aarab, Barkany and Khalfi, 2017).
1. Integration
The modified CPM is made for the purpose of integrating the existing business to
match the Australian market. The customer opportunity classification process is

21
being rolled out to the entire company. The process can be implemented starting with
a small one with the lesser dollar value of $100,000.00 and with smaller
complication traced by more composite using the PDCA cycle approach which has
been used for CPM (Integrating TQM and BPR, 2017) (Wei and Clegg, 2017).
2. Costing
The primary consideration of the project is utilizing the existing resources, in order
to attain the minimum cost apart from the training cost, material cost and publication
cost (Dunne and Dunne, 2011). It is difficult to define the total cost because the
extent of the problems are indefinite and the skills amongst the prevailing staffs and
level of training that is required are not strong at this stage. The cost can be
determined when the data is being collected and determined. The cost of data
collection is being set to minimal.
3. Sales
Responsible for gathering information about the opportunity, following the business
opportunity, implementing activities of the Sales Process along with fulfillment of
the modified CPM Pre-Sales requirements and transferring the contract with the
purchaser causing a conjointly -agreed contract (Walker, 2006).
4. Service
For services, it includes the responsibilities for the service after the completion of the
project. It is based on the contractual agreement that is done in the implementation of
the CPM (Wei and Clegg, 2017).
5. Validation
Responsibility is made to validate using the pilot run. Implementation of a pilot run
is taken to integrate the separate stages. The pilot run will consist of a minor project
from one industry like process automation (Wei and Clegg, 2017).
5.3.2 Solution Development by Project Management
It is noted that any modification or redesign that is to be made in an organization
Stakeholders plan a vital role in it, whether they contribute on teams offering input in
redesigning the process or available to rebound ideas off and to test theories. Work is

22
done quite extensively along with the stakeholders (Kumar Jain et al., 2013). Form
methodologies some of the question are raised and the conclusion is made accordingly to
the question raised (Aarab, Barkany and Khalfi, 2017).
• Research was done on the current practices of SICK
1. What are current best practices followed in SICK?
 Service level
 Accuracy of customer orders
 Time to market
2. What are the innovative ideas that are used by competitors of SICK?
 Technology
 Utilization of resources
The redesigned process of SICK includes concluding the "to be" process that has
been designed based on the feedback and final decisions that are obtained by the
Stakeholders. Some typical group from those business units that are affected should be
included on the team. For an implementation of the solution is done according to the
following (Business expanding, 2017.
1. New role and responsibilities are developed by the HR department to provide
training to a new process.
2. Security is given to the software and hardware.
3. For the development of new process and policies in the operational development.
4. Members of the process redesign are assigned in the sub-project teams to attain
the consistency and valuable information.
5. The manager should conduct proper meetings with the sub-projects to ensure
information sharing. It is essential that all the sub-team are working under the
same procedures and documents.
The below diagram shows the procedure for implementing the Project Management

23
Figure 3: Overview of Project Management
5.4 Concluding Remarks
A methodology in the form of rules is developed in order to assist employees to
classify new opportunities as key products or system solutions. The plan is developed
for enhancing employees to become experts in trading with complicated
opportunities. A relevant process from the parent company is implemented instead of
implementing the new business solution that could introduce unwanted difficulties.
Appropriate procedures and processes for attaining particular third party project
procurement, so that the outcome might adopt the existing standard procurement
practices, adapted to suit the specific project scope so that it can confirm reliability
along with the related industrial standards. A new process is adapted to the existing

24
procedure that is related to the safety and security, quality or process that will be
disturbed by the accomplishment of the project to eradicate dominant gaps. A suitable
system is developed for the purpose of managing master data and documentation that
control to deliver traceability. The existing industry standard system is adopted so that
it may certify easiness of adaptability when it is interfacing with the customers Steps
for analyzing the developed solutions and the modified CPM is being done.

25
Chapter Six – Solution Implementation
6.1 Introduction
This chapter describes about the detailed information regarding the implementation
of the solution. The solution is found that the existing CPM is modified with Business
Process Reengineering and Integrated Business Plan. An integrated approach to handle
relationships by meeting on customer retention and their relationship for the global
market integration in Australia is being done and the development will be made.
Managing the relationship between two companies and their existing and potential
customer is the key factor for their success. A process will be led so that it can estimates
and reviews timely forecasts for supply, demand, product strategic projects, portfolio
changes, and the subsequent financial strategies. The solution that is framed for the
integration of the business activities will be implemented. The steps that are required to
implement the solution will be done.
6.2 Steps to integrate global business
1. Performing deep dive
It is essential to understand the full impact on business, so the business trading in
Australia must be done. Analyses can be made with the help of the SWOT analysis
in the global market against the competition and GAP analysis against the local
products of Australia is done (Wei and Clegg, 2017) (Parthasarathy and Sharma,
2016).
2. Improve a Business Plan and Strategy
Australian market has their own cultural, economic and governmental market
condition. A strategy is developed according to Australian market so that it may
include all the requirements like cost, integration, customer satisfaction, and
validation can be met. To achieve this strategy by setting appropriate short and long-
term goals, an objective of the industry, the cost that is required to meet these goals
are to be analyzed with the help of operation management (Tweedie, Nielsen and
Martinov-Bennie, 2017).
3. Established a team
The recruiting process should help in selecting a permanent leader for the

26
team. A local team should build right decisions to proceed the process. The
Australian team should establish good financial infrastructure (Integrated-business-
planning, 2017).
4. Product readiness
The product gap examination takes the needed steps for Australian marketing. It
provides offerings for achieving higher impact (Pride, 2017)
.
5. Organizational readiness
The organizational structure should validate the needed structure and execute it in a
successful manner. The policy and procedures should have the requirements of the
Australian market at the time of maintaining the balance of organizations. The infrastructure
of the local information technology should have the compatible range with the infrastructure
that is domestic (Teece, 2017).
6. Establish market strategy
The optimal model in sales is determined directly and indirectly. The sale methodology has
to be determined. To find the solution, that price and the features. The new brands have to
be created. The comprehensive plan of marketing is developed in Australia market. The
pricing model is evaluated and the developed countries have fewer consumers as they are
very cash conscious (Redding, Roy and Shaw, n.d.) (Riboud, 2015).
7. Legal readiness
The local agreements need to be created in Australia market. The corporate record details
have to maintain and have to be governed so that the function of Australia market works
well (Teece, 2017) (Key and Czaplewski, 2017).
8. Tax and finance readiness
The accounting and outsourcing resources have to be considered in Australia market. The
banking relationship has to be established. The plan has to be developed for risk
management.
9. Budget preparation
The operating reviews have to be performed quarterly in the Australian market. Launch
close relationship with local businesses. The products developing should support in an
ecosystem and generate good scale for the organization (Kim and Ramkaran, 2004).
6.3 Implementation of modified CPM

27
Modified CPM is molded with the Integrated Business Plan and also with Business
Process Reengineering. IBP includes decision-making process that straightens the
strategic plans for all business tasks in order to support the business goals, targets and
strategies of the company (Vaz, Fernandez-Feijoo and Ruiz, 2016).
The main objective of Integrated Business Planning is to attain compromise on a single
operating plan to so that allocation resources of people, apparatus, materials, time, and
money to most efficiently gratify customers in a beneficial method (Taghipour, 2014).
Implementation of BPR becomes a major concern. Implementation of the modified CPM
according to the Australian economy is given in the following diagram.
Figure 4: Implementation of modified CPM
BRB promote the Workflow management (WFM) which is a drastically emerging
technology that can be utilized in a variety of industrial processes. The workflow is
apprehensive with the automation procedure that is required for the integration of the
business in Australia (Wagaw, 2017). With the implementation of BPR the integration
center in Australia can be achieved by the process of transferrin the documents, tasks or
information are forwarded to the companies with a definite set of rules that helps to achieve
an overall business goals.

28
That strategy that is framed with the assistance of Operation management is implemented
with help of the Project management procedures. The project that is to be completed is
modified into six phases that are valid for the redesigning for SICK. It includes
Project Initiation
In this phase, the selection and the identification of the opportunities are done and a
feasibility study is made (Ferri, D'Andrea and Grifoni, 2017).
Project Planning
The main objectives, goals, vision, and mission of the SICK is thoroughly
determined and the Work breakdown structure is framed to simplify the redesigning work
into smaller works.
Project Scheduling
The sequence of work is determined by the work breakdown structure, time chart
and milestone establishment is done.
Project Cost
Cost estimation is evaluated this involves capital operation and all cost related to the
redesigning process.
Project Control
Controlling of the cost and time for the effective completion of the project is done at
this phase, effective utilization of resources that are allocated to the specific task is achieved
(Reinhartz-Berger et al., n.d.).
Project evaluation
Finalization of the project completion is prepared with monitoring progress of
statistics along with the feedback.

29
Figure 5 Work breakdown structure

30
Figure 6 Project Management implementation plan

31
6.3.1 Training Program
A number of considerations must be done while developing a training plan. Training should
be planned and developed in advance.
Steps involved in training
1. Needs for the training must be identified, the program should be developed that suits
their needs.
2. The trainer must be aware of the current situation of SICK and must to prepare
accordingly.
3. The trainee should be interested during the period of training.
4. The logical sequences of the redesigning of the SICK must be done. All necessary
steps must be taken to perform the given job effectively. More skills are achieved by
the repetitive process.
5. Feedback is provided on the performance of the trainee. This may improve the
effectiveness of the training program.
Type of training
Quality Training
For the redesigning of SICK quality training is to be given to the employees for preventing,
sensing, and eradicating no quality items, usually in SICK that produces a product. Quality
training can result in cost savings in production as well as it also provides superiority in
marketing of the quality-controlled produces.
Team Training
Since communication is lacking among the SICK’s employees, team training must
be provided. Cohesiveness among team members by to get to know each other and enable
relationship building is achieved through team training.
Benefits of training
1. Training of employees leads to produce quality and quantity production.
2. Trained employees do not entail tight control and direction as they are well
conscious of how to perform a job.
3. Training makes employees of the organization more committed to an organization as
the employees are provided with growth, advancement and learning opportunities.

32
4. Higher performance is attained by making ideal and best utilization of the available
materials, equipment and other resources that are provided to them.
5. Wastages of resources in the organization can be minimized and work is done on
both efficiently and effectively.
6. Training males the employees to enable the organization to face competition from
competing firms.
7. Trained employees can respond and adapt to the changing technology well.
6.4 Concluding Remarks
An integrated approach to handle relationships by meeting on customer retention and
their relationship for the global market integration in Australia is done and the
development is made for the integration purpose. Managing the relationship between two
companies and their existing and potential customer is the key factor for their success is
achieved through this modified CPM. A process is framed which leads to estimate and
review timely forecasts for supply, demand, product strategic projects, portfolio changes,
and the subsequent financial strategies. A suitable document management system is
identified as part of the solution. The solution that is framed for the integration of the
business activities is implemented. The steps that are required to implement the solution
is done successfully.

33
Chapter Seven – Testing and Evaluation
7.1 Introduction
This chapter increases the understanding of testing and evaluation methods, like the
gap analysis. The real-time implementation of this project involves, multiple departments
and business units like integration, costing and another process. To find an opportunity
for the project for a specified period of time, segregating the change by testing it in the
smaller area can be done as pilot testing.
7.2 Project Evaluation and Testing
Testing and evaluation is the process by which the components or system measured
against the specifications and requirements via Pilot testing. The effects are analyzed to
evaluate the performance, progress of design and supportability. The developmental
evaluation and testing is the tool of engineering that is utilized to lower the threat, to
round the cycle of acquisition. The operational evaluation and testing is the simulated
enrolment. The mechanism to satisfy the standard of the product, ability or system is
called testing. Testing must communicate continuously through all the life cycle (Mir and
Pinnington, 2014).
Project Evaluation
The responsibility of evaluation has gained enhanced significance in the organization
across past two decades for various reasons (Pmi.org, 2017). The main issues in the
evaluation of project and affects usually involves the following
1. For the project,
2. Analysis of mandate and rationale
3. Analysis of resourcing aspects like personnel and dollar cost
4. analyze for the accomplished efficiency degree during the project
5. Effective analysis
Obstacles in Evaluation includes as follows:
Physiological Obstacles
1. Staff negative attitudes towards evolution.
2. Evaluation of project fear due to purpose ignorance and evaluation process.
Impedimenta of organization
1. Analyzer possesses insufficient mandate to task the evaluation activities.

34
2. Analyzer possesses insufficient resources to do the task.
3. Analyzer possesses insufficient power in the organization to obtain the job
done.
Impediments of methodological
1. Absence of reliable information to access the problems on evaluation
2. Absence of objectivity on the analyzer part
3. Absence of consensus over the evaluation measure and design
7.3 Pilot Testing
A preliminary trial or experimental test for integration solution is enforced on a
limited scale. Certain questions are enquired to the employees of SICK, for analyzing the
employee coordination in project methodologies section, also for the resolution of
customer satisfactory level the same methodology is followed. The following steps are
ensured for the pilot testing process (Siegel et al., 2011).
1. Choosing the Pilot Area
It is noted that, Pilot testing is selected. This selection of the pilot area is attained
by analyzing the problem of the SICK Company. It is done in Chapter 3 the
problem is found that due to loss of business integration, employee coordination
and customer satisfaction is not completed the Customer Project Management
that is implemented in the parent company is not successful in the Australian
company. A big picture of the SICK Company is made and the areas that require
adequate testing is narrow downed so the impact won't occur for the whole
organization (Lök and Bademli, 2017).
2. Pilot plan creation
For vital learning and to conduct the pilot run, a roadmap is planned. It includes
several key areas like what, when, where and how the pilot plan must be made
(Gorset and Andersson, 2013).
Purpose or goals – It is identified why the pilot is being conducted and what is
the intention of conducting the Pilot run. The purpose is identified that the outcome of
the project must identify a local facility where the proposed integration function is
carried out. At present system, there is no filtration method where local requirements are
recognized prior to sending complete project scope to Germany for production and to

35
determine filtration process that can identify such specific requirements and will employ
a suitable local adaptation plan should be the outcome of the project.
Pilot Area – It defines which part of the organization is in and which part is not
in the pilot area. SICK needs pilot for the following areas to be done System solution
engineering, integration methodologies, and processes, order management, transition to
after sales support and project management process.
Pilot Resources – It details all the resources that are essential to completely run
the pilot. This includes men. Machine and materials such as new apparatus or layouts for
office, these are taken care by designated pilot team and leader.
Required Training – This determines the required amount and sort of training
that is necessary for pilot participants like, when it will occur, how long it will take.
Following this feedback loop for daily feedback of the pilot run and communication plan
for determining the impact on the customers is done (Funding boosts pilot projects to
redesign acute wards, 2013).
3. Pilot Conducting
After determining all the required sources and methodologies, the pilot run is
conducted depending on the available questions and answers that are framed
while conducting the methodologies.
4. Assessing the Pilot results
During the course of the pilot run, compilation of data that is gathered.
Conducting pilot in advance can give the much successful outcome.
7.3.1 Pilot run Checklist
By analyzing the problem, the solutions for solving the Pilot schedule is constructed for
the implementation of the Project Management.

36
Events Predictable
Completion
Date
In charge Actual
Completio
n date
Information is requested from the
employees and customer as per
the solutions, and is identified at
the pre-feasibility stage.
Business Analyst
Demonstrations of solutions are
identified at the pre-feasibility
study stage.
Business Analyst
Estimate the solutions and select
the area to be piloted.
Business Analyst
Produce the Test Cases Business Analyst
Purchasing of software solution
license for a trial period and
hardware and additional software
that is required for testing.
TBC
Set up an infrastructure &
network, according to the software
architecture.
Pilot Team
Organize and construct a software
solution that to be piloted.
Pilot Team
The data that is to be used is
prepared.
Business Analyst, Requester
Data to be used is loaded into the
software.
Pilot Team, Business Analyst
Permission is granted to the one
who performs the Pilot testing is
done.
Pilot Team
Training for pilot testing. Pilot team
Originate pilot testing. Pilot Participants
The conclusion of pilot testing. Pilot Participants
Back up information of the pilot is
done if required.
Pilot Team

37
Test case execution results are
sent to business analyst.
Pilot Participants
Complete the survey for Pilot
evaluation.
Pilot Participants
Lessons are held for the pilot run. Business Analyst
The pilot evaluation report is put
together.
Business Analyst
Table 3 Pilot run table
7.4 Gap Analysis
The gap analysis is the process of comparing the actual performance with the desired
performance. In other terms, compare the present state with the desired state for future
(Projectmanagement.com, 2017).
What is required to be done is the main factor of gap analysis
(Softwaretestinghelp.com, 2017). It can be used in several fields as follows:
1. Control of Cost
2. Economic Performance
3. Assurance for Quality
4. Satisfaction of Worker
5. Productivity
6. Management of Human Resource
7. Conservation of energy
7.3 Concluding Remarks
It is concluded that, pilot testing and evaluation is completed. Gap analysis can be
one of the methods for evaluating the gaps in the proposed system. A pilot run is done by
the sources obtained.

38
Chapter Eight – Cost/Benefit Analysis
8.1 Introduction
This chapter provides information about the cost and benefits analysis and its
importance for the business management plan. Cost-Benefit Analysis includes the sum of
all the welfare of a sequence of action and then associating these with the costs related to
it.
8.2 Cost-benefit analysis
The cost-benefit analysis for the SICK Company is estimated with the following
procedures:
1. Costs and Benefits Brainstorm
Brainstorming for the cost-benefit analysis of SICK is associated with the cost of
the redesigning of the Australian unit and list is made out of that. For the
attainment of 15% of the reduced cost in rework, brainstorming is made in all
stages. The lifetime of the project is estimated and the cost and benefit analysis of
the SICK is done.
2. Assigning Monetary Value to the Costs
Costs in the rework process in SICK includes all the costs of physical resources that
is desirable, as well as it also includes all the cost of the human effort which involved in
all stages the project. While comparing with revenues costs are comparatively easy for
estimation. Many costs are related to each other for example the training that is provided
to the employees include costs and decrease in productivity are estimated to happen if
the existing people in SICK Company are learning to a new technology or a new system.
The cost that will occur at the final stage of the project is also considered. An increase in
overheads will occur if an additional staff is being recruited for the training (Das et al.,
2010).
.
3. Assigning Monetary Value to Benefits
Prediction of revenue at the initial stage of the project is hard for estimation
particularly for rework, along with the anticipated financial benefits intangible and
tangible values are added up along with the outcome of the project with important
benefits. The impact on the environment, health and safety and employee satisfaction are

39
considered in the benefits analysis. To analyses these impacts a discussion must be made
with the stakeholders (Quintela Varajão et al., 2010).
4. Comparison of Costs and Benefits
The comparison is made between the cost and the benefit and it is used to analyze
the decision for the actions to have proceeded. For the calculation of total costs and total
benefits, comparison is made between the two values to determine whether the benefits
compensate the costs, at this stage, it is essential to compare the payback period for
estimating that how long it will take time to repay the cost (Harmon, 2001). The payback
period is calculated as
Payback period = Total cost / Total revenue
8.3 Identify and Measure Benefits and Costs
Collection and documentation of cost data
The attainment of substitute effects the agency’s operations (Hansal, Weigl and Bull,
2010). The collection of data step is actually the main preparation and it involves the
following:
 The assumption of CBA document (Catarci, 2010).
 Provide 3 alternatives
 Estimation and documentation of project cost (Gil-Lafuente and Merigo, 2010).
Identification and documentation benefits
The cost benefit analysis frequently relies on more assumptions and it is important to
CPM document. It is used to validate the basis of prior involvement and actual data
(Happy, 2010).
Identify benefits
Deliberate the possible impacts of the modified system, in terms of the following:
 Accurateness
 Modularity
 Accessibility
 Compatibility
 Efficiency
 Maintainability

40
8.3.1 Data Analysis
Spread sheet Modeling
The spreadsheet model is used for evaluating the cost information that occurs in the
SICK, to define the best solution and to fix the problem of the customer project
management. In the cost-benefit analysis process, the data is taken in a spreadsheet
model (Johri, 2010) (Wong, 2010). While estimating CBA recurring cost, non-recurring
cost, direct cost, indirect are considered. Cost analysis of SICK is considered from the
rework of the production materials, training cost, and other cost related to travelling,
license etc. The monetary value to the cost and benefit is assumed as
QUANTITATIVE ANALYSIS TOTAL COST
BENEFITS
COST SAVINGS $ 42,000
COST AVOIDANCE $ 38,700
REVENUE $195,00
OTHER $ 10,000
TOTAL BENEFITS $110,200
COSTS
NON-RECURRING $ 26,800
RECURRING $ 70,000
TOTAL COSTS $ 96,800
NET BENEFIT OR COST $13,400
Table 4 Cost-benefit Analysis
With the assistance of the above table the proportion for cost and benefit proportion
is found, by dividing benefit by cost ($110,200/$13,400) the esteem got is 1.13,
subsequently this is a positive return.

41
8.3.2 Comparing Solutions
Comparison is made benefit of the cost and benefit to analyze the standard. The
following table provides the comparison between the cost and the benefit and the value is
graded in ranking matrix format. The analysis of the Cost-benefits is given as
Cost/Benefit Analysis
Possible Action Benefits Value
Low=3
Med=2
High=1
Cost Value
Low=3
Med=2
High=1
Ratio Rank
Build up
motivating
force program
for
use of
accessible
assets
Effectively
includes all
workers in
corporate
objectives
Vitality reserve
funds from
recommendations
2 Administrative
cost
1 2 2
Lesser mistakes
and the ensuing
revamp cost
 better cost
bookkeeping
 a superior
concentration for
vitality
effectiveness
endeavors
3 Administrative
cost
1 3 1
Representative
preparing
program for
group joint
effort
 Better team
building
2 Administrative
cost
2 1 3
Table 5Ranking

42
8.3.3 Risk and Sensitivity Analysis
Investments of the customer project management include some degree of threat and
risk. The decision makers must recognize the probability of achieving the predicted
results of a proposal to make practical decisions (Project Management Guideline, 2006).
The sensitivity analysis is a method for determining the outcomes of a decision in the
customer project management (Taylor, 2008).Moreover, identification of the obvious
risk factors will initiate real countermeasures to ease the risk wherever possible (Reider,
2008).
A spider chart is provider for the clear vision of the risk analysis of the cost and
benefit
Cost incurring in employee training
Materials cost
cost in quality controlRework cost
Business collaboration
0
2
4
Analysis of R isk
Cost
Benefit
8.3.4 Return Investment
Rate of profitability (ROI) is a financial bookkeeping dimensional estimation, which
helps in deciding the value of creating a particular resource. Return on initial capital
investment is an offer of the net advantages to the aggregate charge of speculation for the
same exact period (Swift and Piff, n.d.). The formulae for ascertaining the arrival
speculation is,
8.3.5 Paying back
The payback method helps in determining the time period necessary for a fresh
innovative investment (Cavallaro, 2014). Payback will never measure cost-effectiveness

43
in a profitable way, but it includes cash recoverability (Stokes and Wilson, 2013). The
payback period for the SICK is assumed as
Payback period= 96,800/110,200 =0.88 of a year approximately 10.5 months
8.3.6 NPV
The net present value (NPV) of an investment is the current value of upcoming cash
flow minus the current value of the asset and the associated future money flow (Reddy,
Appannaiah and Sathyaprasad, 2010).
8.3 Concluding Remarks
Information regarding the cost and benefit analysis and its importance for the
business management plan is done. Sum of all sequence of action and cost associated
with the benefits analysis is related with the redesigning process. For retaining the
results regarding innovative alternatives a strong understanding of the present process of
SICK is provided with cost-benefit analysis. The validation basis of prior involvements
and actual data is concluded. For evaluation of the cost that might occur in the SICK is
analyzed along with benefits and the required data is being provided with the help of the
spreadsheet, it defines the best solution to fix the problem.

44
Chapter Nine – Conclusions and Recommended Future
Work
9.1 Introduction
This chapter incorporates the findings and investigations carried out in this thesis. It
helps to know the steps undertaken, things observed and analyzed in the thesis. Further,
the alternative solutions considered and the selected best solution to meet the budget of
the company is also provided in the following sections of this chapter.
9.2 Observation
This thesis successfully analyzes the issues encountered in SICK Sensor
Intelligence Company. Initially, the company’s requirements are gathered. It is
scrutinized that, SICK realized its need for advancing its business model from a simple to
advanced system, to stay competitive. As it is a leading company in manufacturing, it is
very important for it to stay updated and satisfy its customer needs. Thus, considering the
growth, the Company reworked on the CPM’s integrated system, as a new business
model for enhancing the working system. Mainly, the sales service support was
transformed. This model was successful in Germany, which is its parent company. But,

45
in Australia, the same model faced plenty of challenges and issues.
9.3 Issues Encountered
The problems encountered in SICK includes:
1) Lack of in-house capabilities.
2) Lack of strategic processes.
3) Lack of suitable facilities and resources.
4) Struggles of the company that affects its core component business.
5) Reduces their capacity to satisfy the customers.
6) Integration issues.
7) Lack of customer satisfaction.
9.4 Implemented Solution
The important requirements are identified for providing appropriate local
adaptation plan. Hence, CPM is the implemented solution, which worked wonders for
the parent company, but it failed for Australia. It increases the adaptation and sourcing
issues. It increases the integration issues. Thus, the objective of the project is considered
as providing integration facility for Australia, with an appropriate integration solution.
The implementation of CPM in SICK leads to adaptation problems like, coordination in
the projects, lack of understanding about the primary objectives of the company,
interdepartmental interface and lack of certain skills that are essential for working on the
business model. Then, the sourcing problems of local variances, such as standard
regulations, culture, lead time expectation, customer pricing and so on.
Sourcing is known as the key issue which provides issues like distributing the cable
gland and the cable locally, to suit the product for the Australian local market, which is
actually manufactured in Germany. Thus, it can be easily sold to the end user as a
package, for the complicated regions. It contains installed the assembled system that is,
wired and pre-commissioned in the portable building and supplies complete functioning
system to the customer.
However, the budget is the factor that decides the best solution for the firm.
9.5 Best Solution Implemented from the Considered Alternatives
To fit the budget factor, rework on CPM and integrating it with the considered
alternatives is the best solution. In this way, the issues will be resolved and even it will

46
cost less expense for the firm. Therefore, the modification of the solution must be
effectively able to resolve the issues faced in the local market of Australia. Thus, SICK
focuses on an effective customization of business model with a rework to satisfy its
customers in Australia.
9.6 Recommendation
1. Discussing the outcomes among the beneficiaries to provide the feedback
(Betterevaluation.org, 2017).
2. Asking the specific stakeholders for their self-determining feedback.
3. Implementing effective testing and evaluation methods.
4. The pilot run is considered as a good recommendation (Mukesh Kumar. and
Charles, 2014).
5. It is recommended to use the operational strategy (Porter, 2009).
9.7 Future Work
The more effective integrated solution can be the future work of this thesis,
where the cost is not a barrier. Better information support for evaluations can also be
included in the future development work.

47
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Appendix 1: Industry Supervisor Reports

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Appendix 2: Project Daily Diary

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Appendix 3: Certificate of Practical Experience