Case Paper 4

1 Case Paper 4: Steelcase Soherwardy Sheezan Dr . Brian Daenzer Trine College BAN 5003: Operations Analytics 09/22/2022

2 Case Paper 4: Steelcase Question 1 A demand forecast is an extremely important and complex business process . It can help you decide on hiring new staff or developing new products with expansion in mind . It can also help you plan your operations . As a business owner, demand forecasting is an important tool to make sure your business is on track . So, be sure to read up on the process . It's an essential part of running a business . When creating a demand forecast, it is important to consider all factors that may affect sales . For instance, you must consider the market and competition . You should not overestimate your sales forecast, as this can lead to disastrous results . Make sure to use all available sources of information for accurate estimates . A demand forecast is an important tool for a business, and there are a few different methods you can use to build one . One method is known as the econometric method, which combines existing sales data with external factors, like the population growth of a city . This method can help you understand the relationship between sales and other factors, such as population growth, which can affect the amount of retail space you need . Another method is the Delphi method, which relies on a panel of experts to provide an opinion on future trends . Another method is the Delphi method, which involves gathering different groups of experts, such as managers and executives . This method leverages expert opinions and involves the use of a skilled facilitator . The process begins by sending a questionnaire to all the experts,

4 Steelcase has implemented several circular economy initiatives to minimize its waste output . As a result, the company has already exceeded its goal of reducing waste by 25 percent by 2020 . The company plans to further reduce waste by pursuing other sustainability initiatives . To date, Steelcase has diverted millions of pounds of usable furniture from landfills . A process map helps to visualize the overall process . This map can be used to make changes as needed . It can also be used for training . The process map should include best practices and quantify the changes that will be made . It should also include metrics and goals that indicate whether the changes were successful . A process improvement model should be a collaborative effort . All participants must support the changes to avoid conflict in the future . It should also involve customers and stakeholders . Any external-facing process change should involve the stakeholders early on, as it may impact the end-user experience (Alsubaie Yang, 2018) . In some cases, the project will require project integration management . An effective process improvement model will require periodic review and revision as business goals and market forces change . It may also be necessary to introduce new technologies to improve process efficiency . For example, Amazon recently accelerated product delivery times by strategically locating warehouses near airplanes . Process improvement can be a difficult thing to identify until you know the process well . A TQM model uses data-driven decision-making to improve a process . It focuses on improving the process based on the results of success metrics . The goal is to achieve high efficiency and productivity . It also emphasizes the importance of teamwork . It requires the participation of all employees in the business .

5 Six Sigma is a methodology that helps companies improve their operations by eliminating inconsistencies and defects in existing processes . A Six Sigma approach helps companies create better products and services while reducing costs . Six Sigma has become one of the company's core strategies . A process improvement model can improve business processes in different ways, but it must be properly planned . It should include a detailed project plan incorporating five project management process groups and identifying budgets and resources (Syed Ibrahim et al . , 2019) . A good process improvement model will help companies achieve their goals and increase customer satisfaction . Question 3 Steelcase has made several commitments to promote sustainability, and it has been recognized for its commitment to the environment by several groups and agencies . For example, it has received several awards for its commitment to reducing greenhouse gas emissions and minimizing climate change . It has also recently pledged to reduce its carbon footprint by 25% by the end of fiscal year 2022 . In addition, it has been ranked on the 2021 Supplier Engagement Leaderboard by CDP, a nonprofit organization that operates a global environmental disclosure system . It was recognized as one of the top eight reporting companies in the contract furniture industry, and it was awarded the highest score for its environmental transparency in calendar year 2021 . This video provides an excellent example of how a company can change its culture and improve its performance . It illustrates the effectiveness of training staff in ethical behavior and

7 Steelcase Aviation flies about 300 customer groups to Grand Rapids every year, with another 200 arriving via car or airplane . Customers are picked up by pilots in a suit and given a tour of the company's working offices . This allows them to see how Steelcase's latest concepts are used in practice . The planes are usually full with customers, sales reps, and partners . Question 4 Inbound logistics plays a vital role in Steelcase's business . The company relies on suppliers to supply its products, store them, and distribute them . Without a comprehensive analysis of inbound logistics, the company could face product development challenges . Analysis of inbound logistics involves analyzing every step of the transformation, from retrieving raw materials to storing and internal distributing them . The company relies on common carriers and private fleets to bring materials to manufacturing sites . Until recently, it could take 19 hours for a shipment to be unloaded and delivered at Steelcase's production plants . This was a significant problem because plant operators had no visibility into the exact time it would take for a driver to arrive . In response, SCS began assigning trucks and trailers to specific lanes, which reduced shipment times to two and a half hours . The new process also helped eliminate the visibility issue that was hampering Steelcase's operations . Previously, Steelcase had placed orders with vendors on a weekly basis, but its plants did not know when the vendors had sent orders to them . To solve this problem, SCS developed a

8 middleware module that pulled SAP data and routed them to Steelcase's plants . This module was able to integrate with different ERP systems in different continents and provided infrastructure that helped Steelcase reduce its transportation costs . Value chain analysis has been an essential component in the strategic decision-making process for companies like Steelcase . It is the basis for determining the appropriate competitive strategy . This analysis requires thorough knowledge of both their own and rivals' cost structures . Without the knowledge and expertise to conduct an effective value chain analysis, Steelcase may lose its overall strategy .