Master of Engineering Thesis: SICK AG Business Process Development

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Thesis and Dissertation
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This minor thesis, submitted by a student at the University of South Australia, addresses the development of new business processes for SICK AG, a manufacturing company transitioning from a simple equipment supplier to an integrated system solution provider. The thesis analyzes the company's current system, identifies challenges in adapting to the Australian market, and explores alternative solutions, including Business Process Reengineering (BPR) and modified Customer Project Management (CPM). It focuses on improving customer satisfaction and reducing rework costs. The research includes a literature review, problem analysis, development of solutions, solution implementation, testing, evaluation, and cost-benefit analysis, culminating in recommendations for future work. The study emphasizes the importance of local adaptation, integration, and effective project management to enhance the company's business model in the Australian context. The thesis provides a comprehensive overview of the issues faced and the proposed solutions for SICK AG's business transformation.
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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.
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.
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.
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.
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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 analysed 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 analysed. 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 analysed. 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
Chapter One – Project Background and Significance.....................................10
1.1 Introduction..............................................................................................10
1.2 Company Background..............................................................................10
1.3 Project Background..................................................................................11
1.4 Project Aim...............................................................................................13
1.5 Project Scope............................................................................................13
1.6 Expected Outcomes..................................................................................13
1.7 Thesis Structure........................................................................................14
1.8 Concluding Remarks................................................................................15
Chapter Two – Literature Review and Project Methodology........................16
2.1 Introduction..............................................................................................16
2.2 Source of Literature..................................................................................16
2.3 Review of Literature.................................................................................16
2.3.1 Overview...................................................................................................22
2.4 Discussion.................................................................................................23
2.5 Project Methodology................................................................................24
2.6 Concluding Remarks................................................................................25
Chapter Three – Current System/Operation Analysis....................................27
3.1 Introduction..............................................................................................27
3.2 Customer Project Management................................................................27
3.2.1 CPM Process Model..........................................................................................................29
3.3 Problem analysis.......................................................................................30
Characteristics of the Problem...........................................................................30
3.4 Concluding Remarks................................................................................31
Chapter Four – Consideration of Alternative Solutions.................................32
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4.1 Introduction..............................................................................................32
4.2 Alternatives...............................................................................................32
4.2.1 Integrated Business Plan (IBP)........................................................................................32
4.2.2 Test Data Management.....................................................................................................33
4.2.3 M1 ERP Software..............................................................................................................33
4.2.4 Business Process Reengineering (BPR)...........................................................................33
4.2.5 Modified CPM...................................................................................................................34
4.3 Best Alternative........................................................................................34
4.4 Concluding Remarks................................................................................34
Chapter Five – Development of Solutions.........................................................35
5.1 Introduction..............................................................................................35
5.2 Steps for developing the business solutions.............................................35
5.2.1 Industrial key features in Australia...........................................................36
5.3 Modified Customer Project Management (CPM)....................................36
5.4 Concluding Remarks................................................................................38
Chapter Six – Solution Implementation............................................................40
6.1 Introduction..............................................................................................40
6.2 Steps to integrate global business.............................................................40
6.3 Implementation of modified CPM............................................................41
6.4 Concluding Remarks................................................................................42
Chapter Seven – Testing and Evaluation..........................................................43
7.1 Introduction..............................................................................................44
7.2 Project Evaluation and Testing.................................................................44
7.3 Testing Strategy........................................................................................45
7.4 Gap Analysis............................................................................................46
Chapter Eight – Cost/Benefit Analysis..............................................................46
8.1 Introduction..............................................................................................47
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8.2 Cost benefit analysis background.............................................................47
8.2.1 Current state of the Document..................................................................48
8.3 Identify and Measure Benefits and Costs.................................................49
8.3.1 Collection and documentation of cost data..............................................49
8.3.2 Identification and documentation benefits...............................................49
8.4 Analyze Data............................................................................................50
8.3.1 Spreadsheet Modeling..............................................................................50
8.3.2 Comparing Solutions................................................................................50
8.3.3 Sensitive Analysis....................................................................................50
8.3.4 Risk Analysis............................................................................................50
8.3.5 Return Investment....................................................................................50
8.3.6 Paying back..............................................................................................51
8.3.7 NPV..........................................................................................................51
Chapter Nine – Conclusions and Recommended Future Work.....................11
9.1 Introduction..............................................................................................11
9.2 Observation...............................................................................................11
9.3 Issues Encountered...................................................................................11
9.5 Considered Alternative Solutions.............................................................12
9.6 Best Solution Implemented from the Considered Alternatives................12
9.7 Recommendation......................................................................................13
9.8 Future Work..............................................................................................13
References............................................................................................................14
Appendix 1: Industry Supervisor Reports........................................................26
Appendix 2: Project Daily Diary.......................................................................27
Appendix 3: Certificate of Practical Experience..............................................28
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List of Tables
Table 1.1 Insert table title...........................................................................................................2
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List of Figures
Figure 1: SICK Project Management........................................................................................................28
Figure 2: Implementation of modified CPM.............................................................................................42
Figure 3: Cost analysis process.................................................................................................................47
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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 manufacturing firm in Germany, which is
highly experienced in its field. It is named as SICK AG, which is a major company that is
one of the leaders in manufacturing the sensors and related solutions
(Eurofound.europa.eu, 2017). This firm includes Factory Automation, Logistics
Automation and Process Automation. The company expanded its business model.
Because, the business model they used was simple and 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 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 in all
the projects involved, harmonization process, it lacked the understanding about the
primary objectives of the company, interdepartmental interface and lack of 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 in Australia when compared to Germany was
challenging. The challenges revolving around adaptation includes, the local variances like
the standards, its rules and regulations, adapting different culture, then lead time
expectations, customer pricing and so on.
Whereas, the sourcing issues revolve around, to distributing the cable for suiting the
Germany manufactured product. Hence, the company requires a certain amount of rework,
for customizing the solutions. So that, the company can match the local market of
Australia. Therefore, the focus of this thesis is to work on meeting the satisfactory solution
in Australia.
1.2 Company Background
The name of the manufacturing company is known as SICK Sensor Intelligence. It is
in the business for more than 70 years and has more experience in the field. This company
is basically a German based firm.
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It has various specialized sales offices throughout the world. Then, 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 to all the parts of the world,
where Australia is also 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 expand 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 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. So that, 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 and supplies complete functioning system to the
customer.
At present it is facing all these difficulties, for implementing the model in the
Australian 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 be in a way that it can successfully match the local market of Australia.
Henceforth, SICK Sensor Intelligence Company concentrates on an effective
customization of business model with a rework to satisfy its customers in Australia.
Henceforth, SICK expanded its business model with the help of in house system
integration and targeted its end users market. It is observed that Germany is the parent
company, where the newly developed business model worked successfully. The model
was categorized into three business elements namely:
1. Components
2. System Solution
3. After Sales Service Support
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 is 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 having
negotiation. On the other hand, milestone was marked for each step’s completion. The
project’s progress is monitored step wise with the help of the milestone. That is, the
monitoring continues until the milestone is marked as closed.
This project is expected to provide a suitable integration, so it is necessary to first
identify the local facility that can be proposed for integrating the function 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 aim of this project is to achieve customer satisfaction in Australia with less
rework cost. Because, the SICK Company’s newly developed business model is not able
to match the locals of Australia. The new business model is providing differences in
coping up with the different culture, cost pricing, lacking to understand the main
objectives, difficulty in coordination, less knowledge in working on the business mode and
interdepartmental interface problems. Therefore, the aim is to meet customer satisfaction
in different parts of the world and not only in Germany.
Thus, the objective of this project is to provide 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 that, it is implemented only for the Australian local
market. 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.
1.6 Expected Outcomes
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As the present solution of the newly developed business model fails 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. Then, 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 enquiries, 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 the complete details of the
company, 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 provides
understanding about it. Further, it also discusses
technological advancements for helping the organizations
to meet the desired results in terms of quality and the
efficiency.
3 Current
System/Operation
Analysis
This chapter provides the knowledge about the current
system that is used in the SICK organization i.e.,
Customer Project Management (CPM). Next, the issues
in the system are analyzed in detail.
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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 the development factors for the
selected solution for this project.
6 Solution Implementation This chapter provides the necessary solution for resolving
the problems.
7 Testing and Evaluation This chapter provides the knowledge of testing and
evaluation of the provided solutions.
8 Cost/Benefit Analysis This chapter provides the understanding of cost analysis.
Then the estimated cost and its benefit for completing the
rework of this project.
9 Conclusions and
Recommended Future
Work
This chapter provides the conclusions for the project,
where the necessary recommendations and future work
are discussed.
Table 1.1 Thesis 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:
For improving the local adaption plan:
a. Effective system solution that provides clear process of engineering and
quotation.
b. Effective system for processing order management and procurement.
c. Effective system for processing the integration methods.
d. Effective project management processes.
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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 discusses 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 necessary
factor in the company's financial growth. The old-style outlook of manufacturing
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management is the perception of invention management with 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 improvement of manufacturing abilities via the new
materials, techniques, procedures and facilities. An Operations management has be 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 for 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,
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
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organization. The operations and production management have been recognized as an
important factor in a company economic growth. The operations management was 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
profit. Then analyses the relationship between performance and customer satisfaction of the
company. Therefore, the satisfaction were investigated by the mean of 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.
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
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.
According to (Judi, Jenal and Genasan, 2017), quality can be determined to fulfill the
customer requirements or specification, without having any defect. The product is said to be
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very high in quality, if it is functioning as reliable and as expected. The quality control refers
to the functions for ensuring that, the produced items have completed the highest possible
quality. However, meeting the quality is also one of the part of operation management.
As per (Allen, 2017), it is recommended that a business model where businesses
generates low quality goods and sells them at greater quality price, acquires a 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 for 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 project,
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 Human purpose,
where the managerial services could be enhanced. For instance, the manager of the project.
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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.
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 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.
The discrete event model is a tool which is appropriate for manufacturing system and
enhances the overall productivity. Area is a discrete event model and computerization
software, developed by the system modelling.
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 company.
3. Analyzing the relationship between the service quality and service behavior
have proven its performance and importance in the marketing or management.
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
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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. 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. The concept of BPR is reviewed, which shows
important relationship between the customer satisfaction and service quality. BPR is
suggested as a strategy to improve the customer satisfaction and to increase the quality
(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
analysed. 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
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timely delivery could be used in conjunction with the cost measure, to reward the
manager. The further discussion is followed on the Operations Management System,
which provides the solution for consulting the management related operations. Operations
management helps different models, to decrease the waste of resources and theories, and
it helps to improve the efficiency of the substances as services or products.
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 helps 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, 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
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).
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.
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2) The present documentation system.
The existing reports of the customer satisfaction survey report helps in evaluating the
results. The interview questions support to analyze the employee productivity in the
current system.
Questioners
As 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
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 in 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 for 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 is 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 do SICK get ahead making a decision?
2.6 Concluding Remarks
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The reports generated from the survey provides clear picture of how much the
integrated solution is effective and useful. The survey help 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 to 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 analysed are listed below:
1) Level of competencies
2) Processes of the project.
3) Strategies included.
4) Infrastructure of the company.
5) Resources for satisfying the demand of market.
6) Requirements of the company
7) Customer expectations
8) The need for change.
The issues observed from the survey includes:
a) Lack of in house capabilities
b) Lack of strategic processes
c) Lack of suitable facilities and resources
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 analysed 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 provide integrated solution for the present business
model, without any problem.
4) The solution should provide satisfactory results in terms of stringent quality requirements.
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5) It must meet at least few requirements of the customer needs 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 parent company and Australia.
11) Determination of the customer relationship management must be done through
business project management.
12) Strategic planning is determined with operation management in order to know
what process involved during manufacturing.
Chapter Three – Current System/Operation Analysis
3.1 Introduction
SICK Sensor Intelligence has global market in Australia, it divided its product cluster in
three parts Factory Automation, Logistics Automation and Process Automation. Recently the
company made decision to expand its business model named (CPM) Customer Project
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Management by executing integration in the target end user market. 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 after that more structured
and focused customer project management approach was implemented 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 are
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 to improper product
choices, delayed deliveries that results 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
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 is 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
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with PEP and PRO2 in SICK’s Project Management but is personalized and essential for
customer projects. The CPM Process Model is 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 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 managed in a proper
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 observation of the CPM Project Manager and all involved parties because of its higher
complexity, 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
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CPM Project Manager and all involved parties the project is managed in 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 of one core process which generates the key value
stream and it is distributed into chronological phases. Every phases is 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 in to 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 customer with the down payments are
provided. Milestone is provide 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 reduce the cost and the effort that are
caused by the changes that enhances the project volume, net sales and gross volume (Dror,
2017). The following activities are carried out by the change request management they are
change planning, change order and change execution (Santouridis and Veraki, 2017).
3.3 Problem analysis
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).
Characteristics of the Problem
1) The corporate governance directives and an encouragement in interaction between the
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departments with precision and coordinating is lagging. 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) In house capabilities, suitable facilities, strategic processes and resources are lagging
in the company. So the company is struggling and has begun to see the factors that it
affecting its core component in business and weakening in customer loyalty (Singh
and Tayal, 2017).
3) Consideration that is to be done on the integration that occurs without disrupting the
core business is failed.
4) Determination should be made on the existing resources and utilizing it for the
effective purpose is lagging (Nordås and Kim, 2013).
5) System business requires an exact level of strategies, processes, competencies
infrastructure and resources that is required to satisfy the demands in the market,
customer requirements and customer expectations and transformation is required for
the company. The advantage is that the company has developed it product and
manufacturing the main parts that is the heart of the system. The remaining parts of
the system are sourced externally since they are common (Lean six sigma, 2017).
6) 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 is to accomplish third party suppliers to
uniform the requirements in complex project and to determine the suitable structure
and transformation (White paper, 2017).
7) 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 adapt 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).
8) A suitable document management system is not available for accessing of multiple
locations of SICK.
3.4 Concluding Remarks
Facility for integration that is been done in Germany cannot be achieved at the
present structure in Australian company. In this current system there is no filtration
method is used to analyses where local requirements are found. The resident adaptation
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strategy have an 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 provide to satisfy rigid quality at lower cost and time (White
paper, 2017) (Nordås and Kim, 2013).
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Chapter Four – Consideration of Alternative Solutions
4.1 Introduction
This chapter provides a list of alternate solutions that can be implemented for
proving 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.
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) BPR
7) 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 growth 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 business field.
6) A stability of short term effectiveness in a positive way is provided by Integrated
Business Plan.
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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 takes place in
Integrated Business Plan.
9) The outcome: chances for step modification developments to how the manufactures
plan, govern and manage their business. Which integrates operations planning
(S&OP) and sales, and sensing demand planning, response and supply inventory and
planning optimization. IBP software supports fundamentals of IBP, but not
Enterprise-Wide planning. Such views have led some to accomplish that IBP is a
hoax (IndustryWeek, 2017).
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 team of TDM. Effective test planning is done.
Faults and corruption of data is 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.
Reduced cost
The test data space of storage reduces the entire infrastructure cost.
Less resources
As database is used for file storage, the TDM team helps in facilitating the privacy of
data and reuse of data.
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 Robust
System. M1fits to organization and helps to grow the business operation, increase
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profitability and also improve the efficiency (Ecim1.com, 2017).
4.2.4 Business Process Reengineering (BPR)
It is the important essential redesign and reconsidering of business process for an
organization to reach dramatic development, in this critical modern world that calculates the
performance such as quality, speed, service and cost. It determines the existing process and
in redesigning these processes. It improves efficiency and effectiveness of an organization.
It provides quick and essential redesigning strategies, value added for the business process
and systems, organizational and policies assembly that can support to improve the workflow
and productivity in an organization (Eresourceerp.com, 2017).
4.2.5 Modified CPM
Modifying CPM with the effective techniques that are already available can be more
benefiting.
4.3 Best Alternative
The best option is considered as modifying the existing Customer Project
management, to better fit the existing problem in SICK.
4.4 Concluding Remarks
From the analyzes 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 with 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.
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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 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. Manufacturing process in SICK involves in 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 be manufacturing the products. For the
development of the solution the following tasks will be performed. Anew method will be
identified that may support every employees 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. 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 new business solution that could introduce unwanted difficulties. An
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. A 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,
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Productivity Commission and financial market commentators as unavoidable “structural
modification” by which industrious inputs are transferred to the resource section in order to
achieve a higher rate of return. Misunderstandings occurs 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 essentials. 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.
Five Steps to an Innovative Solution
a. Figure out the problem
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 prevails 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,
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identification is made on the deciding factors (Altuzarra, Bustillo and Rodríguez, 2017).
Decision are 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 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 is
made to develop the solution that is selected. It should be prepare for all internal or external
contingencies (Koch and Mitlöhner, 2010).
5.2.2 Document Management system
It is noted that one of the problem 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 are 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 are
done.
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4. Customer satisfaction
Document meta-data layout is easily set up along with custom enquiries and permits
Users to access files and their associated metadata from this the data can easily be analyzed
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 suits for the Australian economy, hence it is essential to analyze the economic and
the manufacturing practice of Australia. Form analyzing the problem it is found that the
integration of business planning is lagging in Customer Project Management (CPM) and
also manufacturing of products is not successful in global market. For achieving project
management BPR (Business Process Reengineering) (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 an 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 is adapted to the existing procedure so that for
achieving safety and security, to attain quality of the project to eradicate dominant
gaps. 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 includes the project interfaces/support for
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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 reengineering 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. Customer opportunity classification process is being
rolled out to the entire company. The process can be implemented starting with a
small one with 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 extent of
the problems are indefinite and the skills amongst the prevailing staffs and level of
training that is required is not strong in 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 pilot run is
take to integrate the separate stages. The pilot run will consist of a minor project
from one industry like process automation (Wei and Clegg, 2017).
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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
done quite extensively along with the stakeholders. Form methodologies some of the
question are raised and the conclusion are made accordingly to the question raised
(Aarab, Barkany and Khalfi, 2017).
• Research 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 is 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 is obtained by the
Stakeholders. Some typical group from those business units that are affected should be
included on the team. For implementation of 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 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 is assigned in the sub-project teams to attain the
consistency and valuable information.
5. 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
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Figure 2: 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. 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
new business solution that could introduce unwanted difficulties. An appropriate
procedures and processes for attaining particular third party project procurement, so
that the outcome might adopt the existing standard procurement practices, adapted to
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suit the specific project scope so that it can confirm reliability along with the related
industrial standards. A new processes is 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. 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.
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Chapter Six – Solution Implementation
6.1 Introduction
This chapter describes about the detailed information regarding the implementation
of 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 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 is required to
implement the solution will be done.
6.2 Steps to integrate global business
1. Performing deep dive
It is essential to understand 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 have 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 costing, integration, customer satisfaction and
validation can be met. To achieve these strategy by setting appropriate short and long
term goals, objective of the industry, cost that is required to meet these goals are to be
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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
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 executing 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 compatible range with the infrastructure
that is domestic (Teece, 2017).
6. Establish market strategy
The optimal model in sales is determines directly and indirectly. The sale
methodology has to be determined. To find the solution, that price and the features. The new
brands has to be created. The comprehensive plan of marketing is developed in Australia
market. The pricing model is evaluated and the developed countries has less 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 has to maintain and has 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 has to be considered in Australia market.
The banking relationship has to be established. The plan has to be developed for rick
management.
9. Budget preparation
The operating reviews has to be performed quarterly in Australian market. Launch
close relationship with local businesses. The products developing should support in
ecosystem and generate good scale for the organization (Kim and Ramkaran, 2004).
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6.3 Implementation of modified CPM
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).
A 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 3: 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
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center in Australia can be achieved by the process of transferrin the documents, tasks or
information are forwarded between the companies with a definite set of rules that helps to
achieve an overall business goals.
That strategy that is framed with 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 is 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
Sequence of work is determined with 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.
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Figure 4 Work breakdown structure
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Figure 5 Project Management implementation plan
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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 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 is required to implement the solution is
done successfully.
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Chapter Seven – Testing and Evaluation
7.1 Introduction
This chapter provides information about testing and evaluation methods, like the gap
analysis. Since the project involves in organizational change in a large scale for the
purpose of preventing the disaster pilot testing is conducted. In case of real time
implementation of the project that involves in multiple departments and business units in
situations like integration, costing and other process it may lead the business at risk. 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 on 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
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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 possess insufficient mandate to task the evaluation activities.
2. Analyzer possess insufficient resources to do the task.
3. analyzer possess insufficient power in the organization to obtain 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 the solution for integration is done on the
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 selecting the appropriate area for which the Pilot testing is to be
done is selected. This selection of the pilot area is attained by analyzing the
problem in the SICK Company. It is done in the Chapter 3 the problem is found
that dude 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 impact won’t occur for the whole organization (Lök
and Bademli, 2017).
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2. Pilot plan creation
For vital learning and conducting the pilot run a road map is made. It includes
several key areas like what, when, where and how the pilot plan must be made
(Gorset and Andersson, 2013).
Purpose or goals – In here it is identified why 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
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 is essential to fully running the
pilot. This includes men. Machine and materials such as new apparatus or layouts for
office, these are taken care by designate the pilot team and leadership.
Required Training – This determines the required amount and sort of training
that is necessary for pilot participants, 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 require sources and the methodologies the pilot run is
conducted depending on the available questions and answers available that is
conducted during the methodologies.
4. Assessing the Pilot results
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During the course of pilot run compilation of data that is gathered is done.
Conducting pilot in advance can give much successful outcome.
7.3.1 Pilot run Checklist
By analyzing the problem and the solutions for solving the Pilot schedule is
constructed for the implementation of the Project Management for the business resign
of SICK in Australia.
Events Predictable
Completion
Date
In charge Actual
Completion
date
Information are requested from
the employees and customer as per
the solutions and 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 in the
software
Pilot Team, Business Analyst
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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
Conclusion of pilot testing Pilot Participants
Back up information of the pilot is
done if required
Pilot Team
Test case execution results is send
to business analyst
Pilot Participants
Complete the survey for Pilot
Evaluation
Pilot Participants
Lessons are hold for the pilot run Business Analyst
Pilot evaluation report is put
together
Business Analyst
7.4 Gap Analysis
The gap analysis is the process of comparing actual performance with the desired
performance. In other terms, compare the present state with the desired state for future
(Projectmanagement.com, 2017).
What requires to be done is the main factors 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
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It is concluded that, pilot testing and evaluation is done and from the gap analysis
can be one of the method for evaluating the gaps in the proposed system. Pilot run is
done by the sources obtained.
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Chapter Eight – Cost/Benefit Analysis
8.1 Introduction
This chapter provides information about the cost and benefit analysis and its
importance for business management plan. Cost-Benefit Analysis includes sum of all the
welfares of a sequence of action, and then associating these with the costs related with 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
reduced cost in rework brainstorming is made in all stages. The life time of the project is
estimates 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 cost are related to each other for example the training that is provided to
the employees include costs and decrease in productivity is estimated to happen if the
existing people in SICK Company are learning to a new technology or a new system. 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.
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 considered in
the benefit analysis. To analyses these impacts a discussion must be made with the
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stakeholders.
4. Comparison of Costs and Benefits
Comparison is made between the cost and the benefit and it is used to analyze the
decision for the actions to be 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
Current state of the Document
The standard model for any Customer Benefit Analysis is referred as “as it” state
(Ryland, 2010). The Cost Benefit Analysis (CBA) must systematically document the
present process for ensuring that, everybody who are involved in the Cost Benefit
Analysis (CBA) research, along with the review clearly recognizes the entire process of
the SICK (Harvard Business Review, 2017). A strong understanding of the present
process of business is provided which helps in the foundation, for retaining the results
regarding innovative alternatives (Oryszak, 2012).
8.3 Identify and Measure Benefits and Costs
8.3.1 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).
Three alternatives of CBA
The customer benefit analysis in customer project management must present three
alternatives. The first alternative is included in the CBA, and it is continued with no
modification. The number of alternatives are considered during the customer project
management. The other alternatives of the CBM are included in the operations,
development and maintenance, with in-house contractor or by the personnel (Das et al.,
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2010).
Some alternatives can be rejected in the customer project management. Because,
these options are not feasible for the cost and benefits. The project management has
possibly decided that, no change alternative is unacceptable and would not be viewing at
other alternatives. It is essential to express the cost of a baseline technology against
every substitute solution is estimated in CPM. Then, choose the best alternative as the
baseline and validate this decision in the cost analysis (Quintela Varajão et al., 2010).
8.3.2 Identification and documentation benefits
The customer benefit analysis frequently relies on more assumptions and it is
important to CPM document. It is used to validate the basis of prior involvements 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
Determination of benefits
The determination of benefits help in supporting the revenue (Lewis, 2016).
Identification and Documentation of Insubstantial Welfares
Certain benefits are listed below, they are:
Improved decision making process.
New exact information
Reporting
Administrative response (Making effective business decisions using
Microsoft Project, n.d.)
8.4 Analyze Data
8.3.1 Spreadsheet 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
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model (Johri, 2010). The spreadsheet model tool guides with the help of the CBA
analysis process with simple links, color coding and navigation button (Wong, 2010).
The cost estimation 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
8.3.2 Comparing Solutions
Comparing the standards are used in the cost analysis of the solutions. The
comparison techniques are either minus or plus. The comparison are graded in
numerical, and ranking cost analysis in the matrix format.
8.3.3 Sensitive Analysis
The sensitivity analysis is a method for determining the outcomes of a decision in the
customer project management (Taylor, 2008).
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8.3.4 Risk Analysis
Investments of the customer project management includes 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).
Moreover, identification of the obvious risk factors will initiate real counter measures to
ease the risk wherever possible (Reider, 2008).
8.3.5 Return Investment
Return on Investment (ROI) is an economic accounting dimensional measurement,
which helps in determining the worth of producing a specific asset. ROI is a share of the
net benefits to the total charge of investment for the same precise period (Swift and Piff,
n.d.).
The formulae for calculating the return investment is,
8.3.6 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
in 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
8.3.7 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
The considerations of the cost, for the company which plans to purchase a new system,
are as follows ("Cost-benefit analysis", 2017):
1. Hiring people cost for the installation of the system.
2. Training staff cost to utilize the system.
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3. The cost of the system.
The considerations of benefit includes the following:
1. Higher efficiency in organizing information.
2. Higher speed in company's function accomplishment (Dennies, 2005)
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Chapter Nine – Conclusions and Recommended Future
Work
9.1 Introduction
This chapter provides the conclusion of the findings and investigations carried out in
the thesis. It helps to know the steps undertaken, things observed, analysed in the thesis.
Further, the alternatives 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
The thesis successfully helps to analyze the issues faced by SICK Sensor
Intelligence Company. Initially the company information are gathered to have idea about
the company requirements. It is observed 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 implemented integrated
system called CPM, as a new business model for enhancing the working system in SICK.
Mainly the sales service support was transformed. This model was successful in
Germany, which is its parent company. But, in Australia the same model faced plenty of
challenges and issues.
9.3 Issues Encountered
The problems are 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.
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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 increase the adaptation and sourcing
issues. It increase 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 lead 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 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 Considered Alternative Solutions
The following are the list of alternatives that are considered as solution for the issues
faced by SICK:
1) Integrated business plan
2) test data management
3) M1ERP software
4) Modified CPM
5) EAI techniques
6) BPR and
7) IBP
9.6 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
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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
focusses on an effective customization of business model with a rework to satisfy its
customers in Australia.
9.7 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. Pilot run is considered as a good recommendation (Mukesh Kumar. and Charles,
2014).
5. It is recommended to use the operational strategy (Porter, 2009).
9.8 Future Work
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.
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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
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