ITM309-Spring2011-Assignment2-WBI - ITM 309 Spring 2011...

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ITM 309 – Spring 2011 Assignment # 2: Business Process Reengineering Due: Due 8 AM on Feb 21, 2011 (new due date), after Exam I Points: 60 (15 point penalty if less than 8 hours late, 30 point penalty if less than 24 hours late, 60 point penalty if more than 24 hours late.) Submit: An “email” (in the form of a two-page word document ) describing the context of your review, the results of your business process simulations, your evaluation of the results, and your corresponding conclusions based on your evaluation. Submit the document (email) to your TA’s dropbox in ANGEL. Use the required format on the last page of this document. “Email” should use Times New Roman Font, 12 pt, 1 inch margins, double spacing. You should use the template shown in the appendix. Points will be deducted for poor writing, so write well! Purpose: To evaluate your ability to analyze business process simulations using IBM WBI and reengineer processes based on your evaluation of the simulations. Scenario: Retail sales of packaged coffee beans at the Broadway Café have exceeded expectations and several months ago the company decided to sell coffee beans, under the Broadway Café label, in grocery supermarkets. This new revenue opportunity for quantity bulk sales of coffee beans offered the corresponding challenge of packaging the coffee beans in crates to bulk ship at wholesale. Sales of Broadway Café coffee beans at supermarkets have been very good for the first few months but profits have been lower than expected. Management is now looking for ways to maximize profits on this revenue. They have decided that they will maximize profits by cutting costs in the packaging and inspection process, thereby freeing resources to participate in higher value-added activities. Page 1 of 6
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You are the warehouse director for The Broadway Café, and you have been asked to modify the process so that it costs the company less than it does currently. The costs in the packaging and inspection process are reduced by cutting the number of staff required to complete the packaging of the beans. These employees can then be redeployed to higher valued activities and thus future hiring can be curtailed. Management wants a detailed plan for the modification of the process, and wants hard numbers to back up any proposal. Remembering your time in ITM 309, you recall that IBM WBI allowed you to simulate processes and to quantify differences in results between alternative business processes. You decide to investigate the current process, and model the potential financial impacts of several
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ITM309-Spring2011-Assignment2-WBI - ITM 309 Spring 2011...

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