BA Case Study For Exercise

Giảng viên: ThS.
Phạm Thị Thanh Tâm
CASE STUDY FOR EXERCISE

Background
The Company Acme Fashion Supplies provides fashion goods, aimed at European and
traditional UK tastes, on a sale or return basis to shops and other retail outlets. It has an
annual turnover in the region of £15.5M with plans to expand this.
The current business processes for operations have limited and ad-hoc IT systems to support
them. The processes are mainly manual, and the inter-departmental communication of
information is largely paper-based. There are several issues with operations, recognized by
the staff running the processes that interfere with smooth running of their departments.
Board Strategy
The board has declared a strategy to expand the business's operations to embrace the internet
and the opportunities it presents. This is likely to include a website beyond the purely
brochure-style one already in place.
The strategy requires that the sales and stock operations are given automated, integrated
support to achieve efficiency gains and the ability to inter-operate with any internet
opportunities to be taken up.
The Board wants a phased implementation to realize benefits quickly and to minimize the
risk of interruption to its core operations.
Special Terminology
Customer: Acme Fashion Supplies' customers are retail outlets such as traditional high street
shops and shops within shops (aka concessions). More recently some new customers have
been gained that operate purely as on-line shops. Acme Fashion Supplies does not sell
directly to individuals.
Sale or Return: A retailer is supplied goods that, if they don’t sell, they can return and have
their account credited with the full value.
Returns Note: When a customer returns goods, the goods have to be accompanied by a
multi-copy piece of pa-perwork that says how many of what are being returned. The various
copies are used by different departments. This is the 'Returns Note'.
Advertising Campaign: Every month or six weeks and for seasonal pushes (see below),
Acme Fashion Supplies focuses on certain product lines and takes out advertisements on
radio, television, magazines, and street post-ers. Most target the high street shopper but some
are targeted at gaining new retail outlets / shops
Case Study – Business Analysis Page 1/15

Giảng viên: ThS. Phạm Thị Thanh Tâm
Mailshot / email shot: As part of Seasonal Pushes and Advertising Campaigns, Acme
Fashion Supplies send postal mail-shots of brochures / offers to their customer base. More
recently they have been collecting email addresses of their customers and have been sending
emails to them.
Specials: When the decision has been taken to withdraw a product or product line, the
remaining stock is moved by creating special offers and discounts. These are known as
'Specials'.
Seasonal Push: In preparation for, and during the spring, summer, autumn and winter
seasons, certain fashion lines are advertised very strongly. This can also apply to the holiday
festivals such as Easter and Christmas / New Year.
Stakeholders
The following have a direct or related interest in the successful progress of this piece of work:
 Juno Howmutsch, Financial Director

 Seenya Cumming, Sales and Marketing Director
 Seenya obviously is keen to see improvement in the efficiency of the sales operation but
is also interested in how the work might inform aspects of what the new website (out of
scope) may and must cater for.
 Seenya is also the Project Sponsor
 Martha Henn, Personnel Manager
 Celia Parsell, Operations Staff Representative
 Pylem Hye, Stock Manager, will be Ambassador User Representative (primary
representa-tive for helping with the analysis or arranging access to operational staff)

Project Objective
To provide a feasibility report that documents:
 a high-level view of the required system processes

 a high-level view of the required system data
 the phasing of delivery of IT system functionality and changed business processes
… that will incrementally improve the efficiency of operational processes and provide them
with the IT systems support needed. It will do so in a manner that minimises the impact on
the ability of operations to meet their present sales targets.
At the end of this feasibility study, it is expected that a full study will be carried out for the
selected Business System Option, as approved by the Board. Approval will mark the start of
the next stage, to take the project through to implementation via a few sub-projects, sequence
to be deter-mined, controlling each incremental business change.
In scope
 Purchasing
 Stock Control
 Sales
 Dispatch
 Goods In
 Customer sales data for marketing campaigns
Out of scope
 Accounts processes
 Marketing department, except as above
 Personnel department
 Website
 Travelling salesforce
Overview
Sales orders are taken from retail outlets (customers). The ordered goods are dispatched by
courier. A customer can return unsold goods and have their account credited with the value.
Sales notify Accounts of all sales and returns so that each customer’s account can be kept up
to date.
As stock is depleted, the Stock Control department raise and send purchase orders to
suppliers. The orders are received by Goods Inward, who pass them into stock.

Accounts vet all retail outlets who want to sell Acme Fashion Supplies products for
creditworthi-ness and set a credit limit accordingly. The details of customers passing the
checks are given to Sales Operations.
Sales Operations pass monthly sales reports to Marketing, used in helping to plan marketing
and advertising campaigns. Sales Operations sometimes send out mailshots to customers but
it is Mar-keting who carry out the major campaigns including special offers and seasonal
pushes.
As a result of (out of scope) activity by Marketing, a decision is made to carry new stock or
dis-continue others. For new products, the details are passed to Sales Operations; Stock
Control are given supplier and negotiated volume discount details, too. For discontinued
items a simple list is given to both.
Name Description
Accounts The accounts department. They do all the invoicing, debt chasing, credit
checking and financial reporting.
Courier Items are usually delivered to customers via a courier service. The present
service is provided by Alacrity Courier Services
Customer Customers are retail outlets, concessions, and mail order firms. Acme
Fashion Supplies doesn't sell to individuals.
Marketing Department The marketing department introduce new products and decide on those to
be withdrawn. They also do mailshots to customers.
Supplier Acme Fashion Supplies buys products from suppliers. They are delivered
by a variety of methods, sometimes courier, sometimes by suppliers' own
delivery vans. There are four major suppliers and a number who supply
niche items.
Travelling Sales Team Acme Fashion Supplies have a small travelling sales team. As part of this
they bring or phone in orders.
Elementary Process Descriptions

Process 1: Sell Product and Take Order
The sales team raise sales orders because of receiving customers' purchase orders (by post
twice per day), orders passed in by the travelling sales team and sales calls received or made
throughout the day. As they are received, they are recorded on the sales team's master sales
spreadsheet (s/sheet), which is used to print out the multi-part sales order.
The multi-part sales order comprises:

 the sales order (filed on raising in the customer master file, together with the
customer's purchase order if one was received)
 a dispatch note (batched and passed to the stock room four times a day for picking and
packing)
 a delivery note (accompanies the dispatch note and is attached to the parcel, which is
then passed to the courier for delivery to the customer)
Priority is given to back-orders (as noted on the dispatch notes received from the stock room)
and these are reviewed against the recent deliveries part of the stock levels report from the
stock con-trol manager (see below).
At the start of the day, the stock room pass on the previous day's returns notes and one of the
sales team update the master sales s/sheet with the info before filing them in the customer
master file. The stock room also pass on a list of products that are dangerously low on stock
and those that have been delivered into stock the previous day. For sales orders that couldn't
be completely filled, the dispatch notes for them are passed back, too, so the sales team can
inform the customer and give priority to filling them when new stock arrives.
Again, at the start of the day, the Accounts department send through a list of customers
nearing their credit limit. Sales staff check this as they are raising orders to make sure that
each customer stays within their limit.
At the end of the day the sales team leader prepares a sales and returns report that is passed to
the accounts department. It contains deatils of the sales orders for that day and the details of
yester-day's returns, by customer. It includes the order / returns value, taking into account any
returns not fit for stock.
Every month, or sooner if requested, the sales team leader prepares a customer sales report
from the master sales s/sheet for the marketing department. The sales report includes:
 a summary of the best and poorest moving stock

 on a customer-by-customer basis, the value of and the products purchased.
Marketing keeps sales operations updated with planned campaigns including any product
pricing changes, offers and special discounts.
On a monthly basis, or sometimes more frequently, the sales team leader emailshots all
customers with a friendly note and details of any offers etc. A primary purpose is to shift
slow moving or dis-continued stock.
Every new customer is credit checked by the accounts department before being allowed to
place an order. If their application included an order, the order is put on hold until accounts
have com-pleted the checking. Once complete, accounts pass on the customer's details and
credit limit to sales operations (accounts will have created a new file in the customer master
file), together with the order if included with their application. Major exception - if declined,
sales make the call to the customer to explain.

Process 2: Fill and Dispatch Order

The two-part dispatch and delivery note forms that are received from the Sales Team drive
the dispatch process. A Goods Out member of staff collects stock from the shelves for a
customer's parcel and ticks off the items on the dispatch note as s/he goes.
When the parcel is complete, the delivery note is attached. Completed parcels are put in the
goods out area for collection by the courier, who calls to collect four times a day.
The dispatch note is used to update the stock master file with the new stock levels; the
number filled on each order line is subtracted from the present stock level to give the new.
The dispatch note is then put on a stick pin. Once or twice a day the are handed over to stock
control.
Process 3: Control Stock

This area is responsible for maintaining stock at their pre-determined levels. It must take into
ac-count targets for marketing campaigns, including any new and discontinued products
(notified by the marketing department).
The stock manager is the one primarily who does this, although some cover is provided by
other members of the stock team (i.e., Goods In and Out staff).
The stock manager examines stock levels on the stock master file for those that are below or
near-ing their minimum stock holding level. For those that are, he raises a purchase order,
perhaps phoning the preferred supplier first on important orders, to confirm the order can be
met. If not, he will raise the order with one of the alternatives.
He updates the stock master file record with the purchase order number to show that it is on
order. If a supplier subsequently puts an ordered product on back order, then the expected
delivery date is filled in.
During the day, Goods In pass over delivery notes from suppliers and returns notes from
custom-ers. The stock manager uses this information to update stock holding levels on the
stock master file. For each filled order line, the purchase order number against the product on
the master file is cleared.
The stock manager is given every dispatch note once the order has been filled. If any stock
level anomalies arise these can be checked. Otherwise they are filed in the customer master
file. The only exception to this is if an order line couldn't be filled. These dispatch notes are
passed back to sales operations so the customer can be notified.
At the start of the day, yesterday's returns notes are passed back to sales operations, together
with a report showing items dangerously low on stock.

Process 4: Receive Goods Into Stock

Returns from customers and purchases from suppliers are received first thing in the morning
and then, intermittently, throughout the day.
Goods In check the items into stock and update the stock levels on the stock master file. The
re-turns and delivery notes are passed to the stock control manager two or three times a day.
If re-turned items are not fit for stock this is marked on the returns note.
Process 5: Plan and Execute Advertising Campaign

The marketing department carry out marketing campaigns on monthly, seasonal or ad-hoc
bases. Campaigns are to:
1. introduce and push new product ranges

2. shift product about to be withdrawn
3. target specific customers with offers and discounts
4. move poorly performing product
They use the sales reports provided by sales operations to target the customers for 2 and 3,
above. 1 and 4 tend to go to the whole customer base.
Marketing keeps a mailing list database in Excel of all customers and manually select those
that are to be included in a mailshot (they use MS Word for this).
Mailshots by marketing presently are all paper based as some or all of brochures, vouchers
and product catalogues accompany the mailshot.
From time to time, they trawl through the entire customer master file to bring their s/sheet up
to date.
When a campaign is planned and during its execution marketing keep the stock manager
updated with targets and expected sales volumes (so that demand can be met from stock).
When a new product range is planned, marketing investigates suppliers, negotiate purchase
prices, and write marketing copy (including product name and description). They then pass
these to the stock manager so that they can be entered on the stock master file.
Input / Output Descriptions

Ref From To Volumes Description
IO1 Sell Customer Orders, see IO6, Orders and Returns. The top copy of
Product Master Returns, see IO10, the sales order is filed on raising.
and Take File Dispatch Notes, approx Yesterday's returns notes (received from
Orders 5-10 per week. the stock room) are filed here. Dispatch
notes for any back orders are also files

when fully supplied.
IO2 Sell Accounts Daily, at the end of the Sales and Returns Report. The details
Product day of today's sales and yesterday's returns.
and Take This includes, for each customer, name of
Orders order-taker, customer account number,
value of sales, value of any items put on
back order, value of items returned
(discounting the value of damaged
goods)
IO3 Accounts Sell A slow, steady 3 to 5 per New Customer Details. Contains
Product week. Can be a few tens customer account number, company /
and Take per week during an outlet name, name of sales contact and
Orders advertising campaign. email address (if provided), address,
credit limit. If the customer included an
order with their application, this is
included, too.
IO4 Accounts Sell Daily, first thing in the Credit Limits. This is a list, sorted by
Product morning. company name, of customers nearing
and Take their credit limit. Each list entry consists
Orders of a customer account number, name,
credit limit and account balance.
IO5 Sell Customer At most 1 or 2 per E-Mailshot. Customer email address.

Product month. The body of the message includes details
and Take of special offers and promotions;
Orders coordinated with marketing and used to
shift slow moving stock.
IO6 Customer Sell Approx 25 orders per Sales Order. Can be by phone, received
Product day, rising to 50 at peak in the post or handed over by one of the
and Take times in Spring, travelling sales team.
Orders summer, autumn and The flow contains all details needed to
winter. raise a sales order form. This includes the
customer's account number and details of
the items ordered.
Sometimes a customer asks about stock
levels during a sales call, and this is
answered by checking the stock levels

database or the Low Stock list.
IO7 Customer Plan and Approx 3 times per Customers for mailshot. Marketing use
Master Execute month. various criteria to include customers,
File Marketing trawling through the customer master file
Campaign each time to select them.
IO8 Plan and Customers Catalogues are sent 4 Offers / Catalogue Mailshot. Customer
Execute times per year with name and address, brochures /
Marketing additional pages for new catalogues / catalogue update pages.
Campaign items being sent about
once a month.
Offers go out around 3
times a month.
IO9 Fill and Courier Approximately 25 per Delivery Notes. Each parcel has the
Dispatch day, rising to 50 per day delivery note attached. It contains a line
Orders in peak times in Spring, for each item ordered, ticked when
summer, autumn and picked or crossed if put on back order.
winter.
IO1 Customer Receive Approx 500 per month Returns Note. Customer account
0 Goods number, name, address, returns note
Into Stock number and, line by line, the product
code and quantity returned. The stock
room will have noted any damaged goods
which are not fit to return to stock.
IO1 Supplier Receive Usually 4 per day, one Delivery Note. Each delivery into stock
1 Goods from each major received from suppliers is accompanied
Into Stock supplier. Each delivery by a delivery note. It contains one line for
note includes each product ordered that details number
approximately 20 lines. ordered and number on back order.
IO1 Control Accounts 3 or 4 per day Copy Purchase Order. When the stock
2 Stock room raises a purchase order a copy is
passed to accounts so they can match
against supplier invoices when they
arrive (out of scope).
IO1 Control Customer Approximately 25 per Dispatch Note. Each dispatch note is
3 Stock Master day, rising to 50 per day filed after a customer's order is filled.
File in peak times in Spring, This doesn't include dispatch notes for

summer, autumn and orders that couldn't be filled completely

winter. Also filled back- (these are passed back to sales). A
orders, approx 5-10 per dispatch note also accompanies filled
week. back orders.
IO1 Control Supplier 3 or 4 per day Purchase Order. As stock levels

4 Stock approach their minimum holding levels
they are added as a new line to an open
purchase order for the preferred supplier.
The Purchase order comprises supplier
name and address, purchase order
number, order code, quantity, item price
and total line price.
Problems / Requirements List

Ref Raised Short Full description Proposed solution, if
by description offered
PRL1 Bo Difficulty If the customer asks if we've got
Sibbuts looking up enough in stock to meet their order,
stock levels we've got to keep them hanging on
quickly for ages while we look up stock
levels. It's quite embarassing.
PRL2 Seenya Selecting Marketing spends a lot of time BS: When it's
Cumming customers trawling through the Customer computerised, it should be
for Master File to select customers dead easy to select
mailshots appropriate to a particular campaign. customer by various
takes a long They need to do this each time demographics. They could
time because the types of products they then be output into a
buy can change from order to order. spreadsheet from where we
They would like to use a version of could copy and paste into
the master sales s/sheet as it contains Outlook or Word.
a lot of the info needed.
PRL3 Lou Too much The Sales and Returns report for the LS: The master sales
Skannon time Accounts dept. takes too much time spreadsheet could be
compiling to put together each day. changed to hold the right
reports If it could be computerised, I'd save information, then the report
about an half an hour a day. could be printed by a
macro in it.

PRL4 Pylem Running Sometimes, especially during peak

Hye out of periods, the stock levels don't get
stock. updated properly when an order is
filled. This means we sometimes run
out of stock unexpectedly.
PRL5 Pylem Order Some of our suppliers allow online PH: A pc and wireless
Hye online. ordering. If we could do it, it would connection in the stock
speed up delivery and we'd be able to control room would let me
fill back orders more quickly. do that.
PRL6 Pylem Quality We all spend a lot of time cross PH: Any computerisation
Hye checking. checking documents to make sure must make this as
that all that has been ordered from automatic as possible.
suppliers gets delivered and ditto for
all orders and subsequent deliveries
to customers.
PRL7 Pylem Target We want to be able to be more
Hye setting and precise in setting our targets and
monitoring. monitoring performance against
them.
Event Catalogue Table

Ref Short Name Description and effects Handled Volumes
by
process(es)
Ev01Details of new A customer's application must be approved by the Process 1, 3 to 5 per

customer Accounts Department. This establishes their Sell week, a few
received from initial credit limit. Accounts will have opened a Product tens per
Accounts new file for them in the Customer Master File. and Take week
Sales then phone the new customer using the info Order. during peak
from Accounts and take their first order. If an periods.
order was included with their application, this
will have been passed on to sales with the other
details from Accounts.

Ev02 Customer Customer orders arrive by phone, in the post and Process 1, Approx 25
order received from the travelling sales team. The order details Sell orders per
are recorded in the master sales spreadsheet and a Product day, rising
printout from it makes up the sales order, and Take to 50 at
despatch, and delivery notes. Order. peak times.
Ev03 Order filled After each order is filled, the Goods Out staff Process 3, Approx 25
member updates the number in stock on the stock Control per day,
master file. If the new stock level is below the Stock rising to 50
minimum stock holding level, they tick the re- at peak
order box. times.
Ev04 Delivery Deliveries that are received from suppliers are Process 4, Up to 5
received from accompanied by a delivery note. As Goods In Receive times per
supplier staff check in the stock, they tick each item on the Goods Into day
delivery note. They then update the number in Stock
stock in C2 Stock Master File and pass the
delivery notes to Stock Control.
Ev05 Order placed Goods Out staff tick those stock items in C2 Process 3, 3 or 4 per
with supplier Stock Master File that reach their minimum stock Control average day
holding level as they fill orders throughout the Stock
day. The stock manager trawls the stock master
file at regular inetrvals throughout the day,
raising purchase orders for those ticked. As he
does so, he erases the pencilled tick and inserts
the purchase order number. He may phone a
supplier first to ensure they have the stock to
cover the order. The completed supplier orders
are posted at lunchtime and in the evening post.
Emergency orders can be faxed through
Ev06 Courier The courier collects parcels for delivery to Process 2, 4 times per
collects customers four times a day. The Goods Out staff Fill and day
parcels for member who deals with the courier signs a Dispatch
delivery to collection receipt for the number of parcels in the Orders
customer load. S/he keeps the pink copy and files it in the
dispatch log.
Ev07 Goods Customers are allowed to return unsold goods. Process 4 Around 15
returned by They must use one of our pre-printed returns Receive to 20 per
customer notes, pre-numberd. Goods are checked into stock Goods Into

if they are in original condition. As they are Stock day

checked in, the staff member ticks off (or amends
it to take into account rejects) the items on the
returns note. They then update C2 Stock Master
File to include the returned stock.
Ev08 List of The previous day's dispatch notes, for those Process 1
unfilled orders that couldn't be filled completely, are Sell
Customer passed to Sales at the start of each day. Product
orders Sales phones the customer to confirm whether the and Take
received from items should be put on back order and then Order
the Stock updates their master sales s/sheet with the
Room outcome. They file the dispatch notes (also
updated with the outcome) for priority attention
as new stock is delivered (also known as 'back
orders').
Ev09 Back-order Sometimes, especially if items have been on back Process 1 10 or 20

cancellation order for a long time, the customer will write in Sell times per
received or phone to cancel the back order. Whoever takes Product week.
the call updates the master sales s/sheet, finds the and Take
dispatch note that corresponds to the cancelled Order
back order and hand-writes the item(s) cancelled.
Non-functional Aspects
Physical security
Access to the warehouse, goods in and goods out areas is via secure doors, pin-number
controlled. Security cameras cover all entrances, exits and key points.
System security
All PCs have password protected log-ons and staff are supposed to lock their systems when
left unattended.
Audit approach
A post-in book is used to record all in-bound post. Each area counts in the number of post-
items they action and update the post-in book at the end of the day. This makes sure all items
have been dealt with.

Receipts that couriers sign when they accept the parcels for delivery to customers are tied up
with the original orders - confirming all orders in are either on back order or have been
supplied. A sim-ilar approach is used for goods in. All copies of supplier delivery notes and
customer returns gets cross checked against the originating paperwork.
Business rules
Ref Name Description of business rule
BR01 Orders from All new customers must be vetted by accounts before any of their
new customers orders are processed.
BR02 Stock levels Unless withdrawn, no stock items are to fall to zero holding.
BR03 Credit limit Customers are not allowed to exceed their credit limit. If an order
checking would put them over that limit a part-order can be filled. In such
situations, the customer is referred to the Accounts department.
Service level agreements

Ref Name Summary of key arrangements
SLA01 Couriers’ Collections are made 4 times per day. Rush collections can be made
collections (requested by phone call) but a higher rate per Kg applies. The response
time is 35 minutes, best endeavours.
SLA02 Supplier All suppliers use a mixture of their own delivery fleet and couriered post.
orders We have a next business-day delivery agreement with all the major
suppliers for urgent items and a 2-day service for all other orders. The
clock starts ticking from when they receive our orders but orders received
after 4pm are treated as arriving the following business day. Urgent orders
usually have to be faxed to a special number.
SLA03Terms and The full document is held on file as paper copy in the Marketing
conditions Department's filing system.
of sale
Targets
Ref Name Description of target
T01 Time to fill All orders are to be processed on the day of receipt, either being filled
orders and handed over to the couriers for delivery or passed back to sales for
placing on back order.
T02 Back orders All back orders are to be filled within 10 working days of receipt of initial

order.
Document retention policy

Every year, the Accounts department goes through the customer master file, removing items
older than 3 years to a document archive store in the department. Files held there are securely
destroyed after seven years.
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Giảng viên: ThS.

Phạm Thị Thanh Tâm

CASE STUDY FOR EXERCISE

Case Study – Business Analysis Page 1/15

 Juno Howmutsch, Financial Director

Case Study – Business Analysis Page 2/15

 a high-level view of the required system processes

Case Study – Business Analysis Page 3/15

Elementary Process Descriptions

The multi-part sales order comprises:

Case Study – Business Analysis Page 4/15

 a summary of the best and poorest moving stock

Case Study – Business Analysis Page 5/15

Process 2: Fill and Dispatch Order

Process 3: Control Stock

Case Study – Business Analysis Page 6/15

Process 4: Receive Goods Into Stock

Process 5: Plan and Execute Advertising Campaign

1. introduce and push new product ranges

Input / Output Descriptions

Case Study – Business Analysis Page 7/15

when fully supplied.

IO5 Sell Customer At most 1 or 2 per E-Mailshot. Customer email address.

Case Study – Business Analysis Page 8/15

database or the Low Stock list.

Case Study – Business Analysis Page 9/15

summer, autumn and orders that couldn't be filled completely

IO1 Control Supplier 3 or 4 per day Purchase Order. As stock levels

Problems / Requirements List

Case Study – Business Analysis Page 10/15

PRL4 Pylem Running Sometimes, especially during peak

Event Catalogue Table

Ev01Details of new A customer's application must be approved by the Process 1, 3 to 5 per

Case Study – Business Analysis Page 11/15

Case Study – Business Analysis Page 12/15

if they are in original condition. As they are Stock day

Ev09 Back-order Sometimes, especially if items have been on back Process 1 10 or 20

Case Study – Business Analysis Page 13/15

Service level agreements

Case Study – Business Analysis Page 14/15

Document retention policy

--- THE END ---

Case Study – Business Analysis Page 15/15

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