SADM 5/ed - CASE STUDY 2 TCS - Introduction

Page: I-1

Tool Crib System (TCS)



n this section you will learn the necessary background information to be able to complete the 12 milestones of this case study. This information includes a history of the business, a description of the business’s current facilities, and the descriptions of the problems that triggered the project.

Case Background Eudrup University is a large public multicampus institution that was founded in 1850. The main campus is located in Indianapolis, Indiana. Currently, that location has over 40,000 enrolled students. Eight additional smaller campuses are located throughout the state, each ranging from 2,000 to 9,000 students. The main campus has over 10,000 full-time employees. Approximately 2,000 employees are employed with the university’s Physical Plant, which is responsible for the maintenance of building and grounds. The main campus of Eudrup consists of over 153 buildings that are spread out over the 15,000-acre campus. The Physical Plant has grouped the buildings into zones and assigned a group of employees to provide maintenance for the buildings within that zone. Each zone is assigned a group of employees that collectively possess the skills needed to provide proper upkeep. Such employees include carpenters, electricians, painters, welders, plumbers, and the like. The Physical Plant also has a group of employees with special skills that are assigned to zones for special projects that may arise.

Prepared by {Lonnie D. Bentley} for Systems Analysis & Design Methods 5ed by J. L. Whitten, L. D. Bentley, & K. C. Dittman

Copyright Irwin/McGraw-Hill 2001

Timothy Allen has decided that something must be done to get the losses under control. and other materials. Each of the managers has a group of foremen and supervisors that report directly to him or her. plywood.CASE STUDY 2 TCS .Introduction Page: I-2 Organization Structure The following individuals report directly to Timothy Allen. he is giving top priority to the development of a new Tool Crib system that that will track the check-in and check out of tools and monitor employees and their tool accountability. Other tools that are needed to complete a job must be checked out through the Tool Crib. Thus. and so on. Director of Eudrup Physical Plant. tape measures. the employee must return the checked-out tool. The Warehouse operates in two locations. the Warehouse makes sure to maintain a supply of screws. Several initiatives resulted from this retreat. Oftentimes tools become lost. It has been estimated that over $125. Bentley} for Systems Analysis & Design Methods 5ed by J.SADM 5/ed . The main warehouse is a Prepared by {Lonnie D. C. When the job is completed. The Warehouse is responsible for obtaining and storing supplies that are needed to complete jobs. D. Employees are provided with a toolbox containing commonly used. For example.000 worth of tools are lost or stolen each year. The Tool Crib’s function is to provide the tools needed by Physical Plant employees to perform their job duties. drywall. screwdrivers. Whitten. stolen. The dollar amount of lost and stolen tools has reached an alarming total. nails. E u d r u p T P h y s i c a l l l e n P l a n t i m o t h y A D i r e c t o r H A A e i d i H e lm s d m i n i s t r a t i v e s s is t a n t A T o l v i n o l C B r i b o B e M r l a n d J o h n D e e r e B i l l Q u i c k e n M a n G a r g o e u r n d s M a n a g u e s r i n e s s O f f i cW e B M t a ar a h t e r e n G o o d s r i a l s N e d T w h o u s e Z o n e s M a g e r i l i g h a n a g The Problem In August of 1999 Timothy Allen and his management staff completed a one-week retreat aimed at assessing the Physical Plant operations. Dittman Copyright Irwin/McGraw-Hill 2001 . & K. L. It was determined that the most important initiatives were those that primarily dealt with the Tool Crib and Warehouse operations. Bentley. or damaged and are therefore never checked back in and made available for others. L. and relatively inexpensive tools such as hammers.

even though the materials may be available at the larger warehouse. L. The net result is excessive inventory and inventory carrying costs! While management is not sure of the total dollar amount that can be attributed to carrying excessive inventory. Bentley. oftentimes the employees are impatient and will simply check the availability of materials at the smaller. employees prefer not to have wait for their delivery. a smaller warehouse is located on the campus and stores a small amount of the most commonly used materials.SADM 5/ed .Introduction Page: I-3 large building located approximately three miles away from the main campus. Therefore. Whitten. more conveniently located warehouse. employees frequently request that the smaller warehouse order needed materials that are not in stock there. Dittman Copyright Irwin/McGraw-Hill 2001 . When workers need materials for a job assignment they are supposed to check both warehouses to see if the goods are available. Bentley} for Systems Analysis & Design Methods 5ed by J. a new and improved warehousing system is another top priority for the Physical Plant. C. & K. Unfortunately. Prepared by {Lonnie D. For convenience. they are in agreement that it is likely very substantial. D.CASE STUDY 2 TCS . While the main warehouse will provide for the delivery of materials. they routinely choose to simply move on to the next job assignment — rather than checking with the main warehouse. If the goods are not available. To complicate things further. L.

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