Diagram of the existing process:

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Chapter 13, Problem 9HMP

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Diagram of the existing process:

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Impact of the existing process on Sear’s business:

The existing process is quite long and complicated. For example, if the part is not available, the customer must wait for a long time, making his purchased appliance idle.

Customer relationship is affected adversely when they must call multiple times for a product repair even after receiving a service contract...

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Improvements and changes made and information system supporting these changes:

Utilising information system to manage its parts inventory can be helpful. A platform to manage the inventory level is helpful to understand the parts with frequent replacements, the threshold level of stock before re-order, and many such.

Also, the procurement lead time of different parts needs to be managed and sourcing needs to be done effectively.

The process of sending the repair part directly to customer needs to be avoided. Instead part flow to be placed by the warehouse of the company.

Standardizing the work process and aligning the operation strategy is important. The below diagram indicates a representation of an improved new process.

Stocking parts with higher flow rate needs to be done...

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