Sushil S Mundada

Quick RevisionHRMS - Recruitment, Employee appraisal, Employee

TrainingSDMS – Channels, Sales Flow (Enquiry, Quotation, Order,

Delivery & Invoice, Sales Analysis)MPPC – Capacity Planning, Manpower Planning, Material

Resource and Manufacturing Resource Planning, Work Order Management & EOQ, Material Procurement

Banking - Saving Bank Account, Cheques, ATM, E-Banking, Biometric Devices

ABS - Enterprises Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM), Call Centre, BPO, KPO, TQM – Total Quality Management, Six Sigma

2

Case Study1A Cosmetics company would like to expand its sales

across the remote villages & areas. But it doesn’t have enough capital to start any new sales offices in these areas. Instead it plans to tie up with a reputed Telemarketing organization & make use of their services, for customer order processing. Suggest suitable business processes that can be applied, so that the above concept of telemarketing is possible. Specify the different input documents (detailed documents) that are necessary for your specified business process & also suggest any supporting reports that can be obtained from your specified business process.

3

Complete approach to solve case studyRead the case study twiceFirst collect the direct stated factsNext collect the unstated factsGenerally 3 questions -> Suggest suitable business

processes, specify input documents, Suggest any supporting reports

Specify clearly all business process affectedList down input documents – draw formats wherever

possibleList down output reports – draw formats wherever possibleDon’t assume against what has been stated (explicitly or

implicitly)Write as much as possible

4

Approach – First collect the direct stated factsThere is a Cosmetics company which would

like to expand its sales across the remote villages & areas

It doesn’t have enough capital to start any new sales offices in these areas

Instead it plans to tie up with a reputed Telemarketing organization & make use of their services, for customer order processing

5

Approach – Next collect the unstated factsThe company wants a good order processing

system. The order needs to be taken over phone by a third party system and needs to be transferred to the company. So way of communication/order confirmation/order dispatching needs to be established (SDMS area)

Company is already established in the urban areas. But the new rural market is different. So a different CRM way of functioning must be in place (CRM area)

To handle the new orders the production of the company needs to increase at a similar pace (MPPC area)

6

Check the questionsSuggest suitable business processes that can

be applied, so that the above concept of telemarketing is possible

Specify the different input documents (detailed documents) that are necessary for your specified business process

Suggest any supporting reports that can be obtained from your specified business process

7

Solution to case Study-Step1 – CRM processFor the above case, the first process that needs

incorporated is related to the CRM area of management It is process used to learn more about customers' needs

and behaviors (in our case the new set of rural customers) in order to develop stronger relationships with them.

CRM includes information about customers, sales, marketing effectiveness, responsiveness and market trends. The overall goals are to find, attract, and win new clients, nurture and retain existing

8

CRM processAs a part of first CRM business process call centre executives

make outbound calls to the prospect customers. They would need to know and impart the following:

The client demographics, buying habits, spending capabilities, requirements, etc. (like for example the products bought by rural customers will be very different than that of urban customers)

Exact description of the product Pricing procedure of product Distribution channel and handling of the product Advantages of this product over its existing competitors if any Group discounts and any other applicable schemes if exists After support policies etc Mode of payment

9

Solution to case Study-Step2 – SDMS process The second process that needs incorporated is related to the

SDMS area of management Once the telemarketing/call center executive tries to convince and

win an order, it goes for further order processing The customer thereby places an order through the phone. The executive tracks down the following information:

Name of customer Address of the customer Contact details Date of placing the order Product code Product description Price Discounts (if any) Mode of payment

10

Order processingThe order processing business process has following

features:Transforms purchase order (received over phone)

information to actual orderGenerates customer invoicesYou can enter credit to generate a credit memo and

update your receivablesTrack shipment information in order and invoice history

inquiryEmail order acknowledgement and shipment

notificationDisplay inventory at order entry time

Problems in order processing Customers are virtual, telephonic, not actual. Customer may back out orders as they cant exactly

see the products Customers cannot be well targeted as compared to

segmentation Availability of customer while the time of delivery Customer support would be CRM based Telephonic conversation sometimes may be unclear

resulting products mismatch Return policies should be flexible People do not like to get interrupted by

telemarketers at home

Sample Order form

Managing the distributionOnce an order is created like the one above. A

company representative will look forward in the delivery of this product to the prospective customer

The mode of transport to reach the customer, the packaging of product and the line of distribution will be chosen as optimized as possible

There should be minimal cases of pending orders. Also a process to handle pending orders must be defined

Solution to case Study-Step3 – MPPC processThe dispatch of the product completely depends on

the availability of the product from the warehouseThe lead time is defined as the time required between

the raised order and the availability of this product to the customer in case of this study

So the process needs to be optimized in such a way that the product is available for delivery in the stipulated time frame

The capacity planning needs to be done so as to have sufficient resources for production

The EOQ for purchase of raw material for products must be calculated

Different input documentsCRM

Target customers informationProduct catalogueCompany policy document

SDMSOrder processing form

MPPCTotal amount of orders for each product on

periodic basis

Supporting reportsCRM

List of calls made with the outcomes Performance report of each sales executiveSummarized report of performance of telemarketing

company SDMS

List of orders received with detailsTotal quantity of different products required on periodic basisStatus of delivery and payment

MPPCEOQ for raw materialAmount of direct and indirect material required Input for capacity planning

Case Study 2 In the Distillation Plant, distilled water is

prepared, which is basically used in preparation of Medicines, salines and Batteries. The order is placed for test tube, vessels, flasks, coiled glass tube etc. The suppliers processes the sales order and generates bill. The distillation plant pays bill and get the receipts.

Questions Suggest a suitable business process, to

model the above situation & ensure a smooth flow, within the production process

Specify the different input documents (detailed documents) that are necessary for your specified business process

Suggest any supporting reports that can be obtained from your specified business process

Approach – First collect the direct stated facts There is Distillation Plant where distilled water

is prepared, which is in turn used in preparation of Medicines, Salines and Batteries. These are the customers for the Plant

Raw material for the Plant is test tube, vessels, flasks, coiled glass tube etc., which is procured from Vendors

A purchase order is raised by the plant to the suppliers. They convert the PO to SO and processes the sales order and generates bill

The distillation plant pays bill and get the receipts

Approach – Then collect the unstated factsThere needs improvement in order

processing systemThere has to be a link between PO, SO and

InvoiceThe system should also help to maintain the

optimum quantity of inventory

Solution to Case Study2The case relates to improvement in SDMS – Order

processing, Delivery and Invoice steps of Sales flow and MPPC (Capacity planning, MP, MRP and EOQ – Inventory management) business process

Input documents and dataPurchase OrderSales OrderDelivery NoteInvoiceVendor Analysis data

StepsFirst step of process is Vendor Analysis which

is done on various factors to save the firm time and money, and to do a better job of purchasing overall

Formal process of evaluating potential suppliers based on selected criteria that might include not just price, but product quality and selection, delivery, ordering, inventory and product availability, service reliability, as well as the value of the potential long-term relationship

Purchase Order

Output reportsMRP-I with data like What items are

required? How many? When ?Inventory reports with optimum inventory

and EOQBills payableCapacity and Manpower planning report

Case Study3The purpose of the Open Access Insurance System is to

provide automotive insurance to car owners. Initially, prospective customers fill out an insurance application, which provides information about the customer and his or her vehicles. This information is sent to an agent, who sends it to various insurance companies to get quotes for insurance. When the responses return, the agent then determines the best policy for the type and level of coverage desired and gives the customer a copy of the insurance policy proposal and quote.

Suggest a suitable business process, to model the above situation . Specify the different input documents (detailed documents) that are necessary for your specified business process & also suggest any supporting reports that can be obtained from your specified business process.

27

Approach – First collect the direct stated factsOpen Access Insurance System provides automotive

insurance to car owners. Initially, prospective customers fill out an insurance

application, which provides information about the customer and his or her vehicles.

This information is sent to an agent, who sends it to various insurance companies to get quotes for insurance (Enquiry).

When the responses return (Quotation), the agent then determines the best policy for the type and level of coverage desired and gives the customer a copy of the insurance policy proposal and quote.

28

Approach – Then collect the unstated factsNeed improvement in SDMS Vendor analysis is to be done – need to define

parametersCustomers are expecting customised

suggestions based on their requirement

29

Solution to Case Study3

30

InputsEnquiry formsQuotation formatPurchase Order formatInput for guidelines to suggest policies based

on the requirement of customers

31

Output ReportsVendor analysis reportList of Quotations sent and orders received

32