Value Chain Engineering: Enhancing Electronic Company Performance

This report provides a comprehensive value chain analysis of an electronic company facing challenges related to customer complaints and declining market share. The analysis identifies issues such as incorrect product quantities, problems with specific product families, and poor customer service responses. Recommendations include implementing RFID technology to improve inventory accuracy and efficiency, optimizing warehouse layout using designs like the Fishbone Warehouse to reduce travel distance and loading times, and employing data mining techniques like the Disco Fuzzy Mining Algorithm to enhance customer service performance. The report concludes that by implementing these solutions, the company can address its current challenges and improve profitability.

Running head: VALUE CHAIN
Value Chain
Name of the Student
Name of the University
Author note

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Executive summary
The objective of this report is to highlight the issues and to provide a proper way to solve the
issue for an electric company. The business organization is recently facing some challenges
related to the complaints of the customers. It is seen that post analyzing the issues and the
relevant information, the management of the organization could not waive off some of the issues
that are bothering the customers of the company. The management of the electric company is
known to maintain good relationship with the domestic and the international customers; but in
recent times some challenges are being faced by the managerial body of the organization
regarding issues related sustaining good relationship with the existing customer base. Those
issues are analyzed and evaluated in this report.
In addition to that, it can be said that the analysis o the problems that are being faced by the
management of the electric company shows that there are some issues that requires to increase
the market share of the business organization. the necessary solutions of the issues that are being
faced by the management of the organization are incorporated in the report.
It is seen that the report clearly reveals the current situation of the company and the current
stakes of the organization that tends to be somewhat negative. Many other issues of the
organization are discussed and recommendations for solving the issues are included in this
report. Those recommendations are mentioned below:
 Implementation of RFID to eradicate the problems related to the incorrect quantity of
the products
 Implementation of data Mining gives betterment of the responses to the customers of the
company

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 Making necessary changes in the layout of the warehouses in order to overcome the
issues of wrong products
It can be said that the analysis of this report has been carried out under some specific
boundaries that involves information related to the current process or method used to pack
and store the products and the present lay out of the warehouse which has not been
revealed.

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Introduction
After getting recruited in an electronic company in the post of Supply Chain Analyst, it is
necessary to investigate all the spread data that are collected from ERP system of the
business organization. The present warehouse of the organization is a 20000 square meter
large area of distribution that retains the international and local customers of the company.
The main products of the business organization gets shipped in overseas market as well as
in the regional market and that enables the organization to have a wide range of customers
and that has effectively enhanced the customer base of the company. The warehouse of the
company has the capability of keeping more than 30000 products in stock that is known as
SKY with all the lifts and equipments.
3 Task 2 Problem Definition
After analyzing the collected data graphs are generated,
Wrong Quantity
Wrong Product
Other
Poor Response
Delivery
Packaging
Damaged
Lost In Transit
Invoice Error
Quality of workmanship
0
50
100
150
200
250
300 Major Complains Types
Total

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PF12
PF10
PF2
PF8
PF7
PF14
PF3PF4
PF1
PF15
PF11
PF5
PF9
PF13
PF6
Total Complaints In Terms Of Product Family PF12
PF10
PF2
PF8
PF7
PF14
PF3
PF4
PF1
PF15
PF11
PF5
PF9
PF13
PF6
P4
P2
P6
P5
P8
P3
P1
P7
P10
P9
0 20 40 60 80 100 120
Total Complaints By CSR Staff
Total

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C4 C9 C95 C90 C72 C135 C89 C53 C68 C82 C97 C179C186C249C251C206C213
0
2
4
6
8
10
12
14
16
18
20
Total Complaints By Customer
Total
More investigation of these above mentioned graphs are mentioned below;
 Some of the products of the company are facing severe issues
 Wrong quantity of the goods shipped to the clients
 Poor responses
4 task-3 Recommendations and solutions
4.1 Wrong quantity of products

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Wrong Quantity
Wrong Product
Other
Poor Response
Delivery
Packaging
Damaged
Lost In Transit
Invoice Error
Quality of workmanship
0
50
100
150
200
250
300 Major Complains Types
Total
One of the major issues that have been faced by the management of the organization is that the
amounts of products that are being sent to the customers of the organization from the warehouses
are wrong. One of the major reasons behind it is that, the goods are not getting processed
accurately and with advent of latest technologies like radio Frequency Identification might be
used to surmount the current issues faced by the management of the organization. RFID involves
three main elements and one of them is an antenna that emits signal, reader and Middleware
Bridge or the enterprise application. RFID gives advanced features like communication and
identification with the applications in order to verify the traceability of the goods and the current
stock of products. RFID can effectively increase the accuracy, speed of the process and the
efficiency with reduction in the manual work done by the employees of the organization and the
out of stock situation.
There are substantial amount of improvements in some of the warehouses aftr implementing
RFID. In this regard, companies like Wal-Mart and Procter and Gamble stated that they are

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trying to reduce the inventory of them by almost 70% and also wants to exhibit some
developments in the service level from 96% to 99% along with a reduction in the administration
costs by driving the supply chain from RFID implementation in the research conducted by
Thonemann (2002).
RFID can be utilized in all the phases of the supply chain management of the business
organization which includes inventory management, transportation, order management and
warehouse management. Not only these, RFID can effectively increase the traceability of the
goods that can significantly promote a specific product processes like shipping, tracking and
check out (Chow et al.,2006; Tajima,2007). In an experiment conducted by Wang et al. (2007), n
order to study the effects of RFID, it can be said that the impact of RFID on the supply chain
management in Taiwan that was held on the inventory replenishment of TFT-LCD supply supply
stated that approximately 6.19% reduction in the inventory cost was seen while enhancing the
rate of turn over by 7.6%. Thus it can be said that after installation of RFID system in the
warehouses, the current situation will be resolved effectively along with getting numerous other
benefits like reducing the inventory cost and increasing the rate of turnover.
4.2 Some of the product family are facing more complaints

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PF12
PF10
PF2
PF8
PF7
PF14
PF3PF4
PF1
PF15
PF11
PF5
PF9
PF13
PF6
Total Complaints In Terms Of Product Family
PF12
PF10
PF2
PF8
PF7
PF14
PF3
PF4
PF1
PF15
PF11
PF5
PF9
PF13
PF6
From the above mentioned graph, it can be said that PF12 product family faces many charges
followed by PF12 and so on. Thus it can be said that it is evident that all the goods are organized
in a proper way in the warehouses and when the management receives orders, the specific
products are located, taken from the warehouse and the gets shipped. Thus, it can be said that
there might be some issues with the unit loading operation of the company.
It is seen that one of the solution to eradicate the issues in the present scenario can be optimizing
the unit loading operations of the company and by making some necessary amendments Iin the
present lay out of the warehousing. It is seen that an unique method of unit loading and store lay
out can be implemented which is proposed by Meller and Gue (2009), that claimed that 20%
reduction in the travel distance and that design is accepted as ‘Fishbone Warehouse’. In the
layout of Fishbone Warehouse there are two chief diagonal lines that forms v shaped design. It
can be said that one of the advantages of V plan is that it makes it easier to travel in between
deposit point and pick up point in a quick manner.

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When the previous layout that is presently used in the warehouse, the rectilinear layout makes it
mandatory to go full distance. There are three sorts of layout that has been proposed by
Oztürkoglu et al. (2012), known as Leaf, Chevron and Butterfly. All of these layouts were
evaluated and the result showed that chevron layout is appropriate for the situation.
The benchmark of Chevron was contrasted with Fishbone layout which revealed that both are
equally effective. Thus by updating the design of the warehouses to Fishbone layout can
eradicate the present issue, as there might be a significant reduction in loading speed and travel
cost.
4.3 Poor performance
Wrong Quantity
Wrong Product
Other
Poor Response
Delivery
Packaging
Damaged
Lost In Transit
Invoice Error
Quality of workmanship
0
50
100
150
200
250
300 Major Complains Types
Total
One of the major troubles in this regard which was seen is the clientele complaint related to poor
response of the employees in the customer service. For solving this issue, the management can
imply Disco Fuzzy Mining Algorithm by Arpasat et al. (2015). It is seen that the primary part of

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the process is widely accepted as discovery and that is build on after the collection of data and
more disco fuzzing mining algorithm can be carried out on the data. When the log gets filtered,
actual picture might be seen in the success rate in the customer service.
In a simulation that was carried out in Thai bank, the system was somehow able to collect a
report which showed 98% success rate and positive feedback from the customers of the
company. It can be said that 1.36% of the failure can be because iof call drop and other issues
related to telecommunication. It can also be said that the management of the organization can
evaluate the success by evaluating the call logs.
5 Conclusions
In this report it is seen that three issues were present that affected the profitability of the
company, and by appropriate recommendations the management can overcome those issues.