Orense, Aleia Coleen

Magbanua, Nicole

NAME: Morada, Kurt Bryan SECTION: D3A

Pasahol, Arabella

Pilares, Nhel Andrei

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OPERATIONS MANAGEMENT
LABORATORY EXERCISE on Process Analysis

1. Map the process using Swimlane Diagram

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2. Suggest 1 potential improvement in the process.

Since the distribution center (DC) has been receiving a lot of complaints from dealers regarding
lost orders and the time required to process orders for items that are already in stock at the DC,
they should improve their system by keeping their warehouse organized and hiring efficient
employees. They should make a list of products that are out of stock so they can easily proceed
with other orders immediately. They should also upgrade to inventory management software,
wherein they could check their inventory in real-time.

3. Suppose one of the GMC DC's key customers has told DC management that:

- All deliveries for in-stock items must be made within 8 hours from when the
order was placed.

- Order conformance quality must be 99% or higher. That is, 99% of the orders
must be delivered with the right items in the right quantities.

Can the DC meet these minimum requirements? Explain your answer.

According to the detailed process flow chart, it is stated that after picking up the fax by
the DC’s to the mail service, it took 1 hour to deliver the order to the picking area. When the
order arrived, it took 2 hours before the clerks processed the order. During the order processing,
the clerk checked if the item was available or in stock for 5 minutes. After determining that the
order requested product is available, the order was confirmed and puts in a box, then checks if
the item is wrong or wrong number of quantity, if there was a mistake of placing an item then
must notify the dealer and passes the order to the plant however, this will take 1 week to
arrange a special shipment to the dealer. Furthermore, if the item was placed correctly the order
must be delivered to the dealer. Same as for the wrong items, however, it would take 1 week
before the delivery to the dealer and by then, the order must be received by the delivery. And to
sum up the details, the GMC distribution center would not be able to meet the 8 hours time
frame of their key customers, as based on the process flowchart from taxing to delivery it will
take 1 week, 3 hours and 5 mins due to some errors in the order placement.

As for the order conformance, by looking at the detailed flow chart, the GMC distribution
center has made a wrong placement of order. Looking at this, the order conformance must be
99.5% since only 1 out of 200 orders was placed wrong. And it is not bad for a 99% order
conformance demanded by the key customer of GMC distribution center. However, this one
wrong replacement has a significant impact on the delivery time process.