Chapter 13, Problem 9HMP

Explanation of Solution

Diagram of the existing process:

Explanation of Solution

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...

Explanation of Solution

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...