Analysis of problems and bpr implementation in evergreen landscaping and maintenance company

LAWAL ABDULRAHMAN TAMBARITP024691 (ISM)

Table of ContentsINTRODUCTION...........................................................................................................................................3

Core Business segment............................................................................................................................3

Retail.......................................................................................................................................................4

Landscaping.............................................................................................................................................4

Lawn care................................................................................................................................................4

Key players..............................................................................................................................................5

Business operations and analyses of problems in Evergreen Maintenance Company............................6

Business operations.................................................................................................................................6

Business operations work flow................................................................................................................7

Analysis of the problems in evergreen....................................................................................................8

Sales department....................................................................................................................................8

Operations department...........................................................................................................................8

Administration department.....................................................................................................................8

Finance department................................................................................................................................9

Management executive council (MEC)....................................................................................................9

The fish bone diagram.............................................................................................................................9

Root causes identification.....................................................................................................................11

Pareto Analysis......................................................................................................................................12

Improper inventory management.........................................................................................................12

Improper logistic management.............................................................................................................13

Improper warehouse management.......................................................................................................13

No effective data storage......................................................................................................................13

No teamwork.........................................................................................................................................14

Unskilled employees..............................................................................................................................14

Poor plant layout...................................................................................................................................14

Poor security..........................................................................................................................................14

Business recommendation and potential solutions for problems identified in evergreen landscaping and Maintenance Company.............................................................................................................................15

Implementing business process re-engineering in evergreen landscaping and Maintenance Company...............................................................................................................................................................16

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Define project........................................................................................................................................17

Learn from others (customers, associates, benchmarking, and technology).........................................17

Create vision and design new business process model.........................................................................17

Supply chain management....................................................................................................................19

Operational performance improvement...............................................................................................19

Process management............................................................................................................................19

Business process integration.................................................................................................................19

Develop enabling technology architecture and organizational model..................................................19

Perform a gap analysis and prepare a business case for change (benefits and costs)...........................20

Define process, systems and training requirements, and plan implementation...................................20

Develop and pilot solutions...................................................................................................................20

Implement solution and measure performance....................................................................................20

Conclusion.................................................................................................................................................20

References.............................................................................................................................................21

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ANALYSIS OF PROBLEMS AND BPR IMPLEMENTATION IN EVERGREEN

LANDSCAPING AND MAINTENANCE COMPANY

INTRODUCTION Evergreen landscaping and Maintenance Company is a company with historical backgrounds

which lead to the present services provided by this company, as any organization it had the need

for growth and expansion of its products and services. The company provides services such as

retail, lawn care and landscaping services to its customers. Every organization faces different

types of operational, managerial problems of different categories and it’s the duty of the

organization to rectify the problem in order to improve the quality of its product or services.

Evergreen landscaping and maintenance Co. is a company that have prospect for the future and

this cannot be achieve if a positive action is not taken. This report will analyze and identify the

root causes of this company’s problems and proffer solutions to these problems, it will also

propose a strategy that will prevent these problems from occurring in the future.

Core Business segment Every organization or company in the world is known for a certain or various activities

depending on the nature of the company, therefore the core business segments identifies or

answer questions that roams in the minds of the customers or the public, the major question is

what product or services do this company offers? So it’s very essential for a company to clearly

identify its core business segments. Westerbeek and Smith (2005) 1defined core business as the

main business of an enterprise as opposed to any ancillary business and it is the activity in which

a business generates its greatest income. Evergreen landscaping and Maintenance Company is

characterize by three major core business segments which includes the following

Retail

Landscaping

1 http://books.google.com.my/books?id=N43SwFG2p7MC&pg=PA30&dq=Zook+and+Allen+core+business&hl=en&ei=HWDJTdmbGMXnrAe8uqiYBQ&sa=X&oi=book_result&ct=book-thumbnail&resnum=2&sqi=2&ved=0CD8Q6wEwAQ#v=onepage&q=Zook%20and%20Allen%20core%20business&f=false

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Lawn care

Retail This is usually at the end of supply chain; retail refers to the sales of goods to end users for use

or consumption not to be resold. It is quite obvious Evergreen major source of revenue is in

retailing(see diagram 1) of products such as seeds, tools, fertilizer, basic landscaping materials,

and pesticides from the company projections, current and completed fiscal year budget.

Landscaping This is also a major source of revenue for Evergreen; it involves certain activities that modifies

or improve the natural beauty of an environment. This company offers these activities as services

to their consumers. These activities include creating different topology (land positioning and

elevation) it also involves planting flowers and trees to your own taste.

Lawn care

The grassy lawns of homes and businesses need regular maintenance. Lawn care contractors are

the professionals who perform these services. Lawn care contractors use mowers and tractors to

trim grasses. Some lawn care contractors also apply manure treatments or chemicals to

exterminate grubs or other pests. This is also a core business segment in Evergreen, and it is

quite obvious that the services rendered by this company are interrelated. Below is the graphical

representation of the of the fiscal year budget of Evergreen.

Diagram 1

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RetailLandscaping

Lawn careOther

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Sales

Expenses

Profit

SalesExpensesProfit

Source: data from Evergreen complete fiscal year budget

The above graph clearly reveals that retail business in Evergreen is the major source of revenue.

This report has successfully analyzed the core business segment in Evergreen Maintenance

Company, now it’s time to identify the key players in this company.

Key playersIt is impossible for an organization to exist without individuals who are linked with the activities

of the organization, these individuals could be within or outside the organization, and the most

important people involved in organization activities are the key players.

NO KEY PLAYER FUNCTIONS

1.

Lily Doucette, President Does medium and long term

planning with the management

executive council(policy

matters)

2. Connie Somerset, Sales manager Makes projection of what will

sell, set prices and also make

promotions (MEC)

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3. Tulley Fix, Purchasing manager Handles paper works and

does some buying

4. Heather Cariad, Vice president finance In charge of financial

functions

5. Frances Harmone, Vice president Administration In charge of employees

6. Thomas Davidoff, Vice president operations Deals with operation and

physical plant.

.

Table 1

Business operations and analyses of problems in Evergreen Maintenance Company

It is certain that every organization most experience some sort of problems and organizations all

over the world experience different and similar types of problems, this section of the report will

give detail analysis of the business operations and problems in Evergreen Company and identify

the root causes of the problems associated with the company.

Business operationsBusiness operations varies in organizations due to the nature or type of business carried out in

the organization, for instance the business operations of a manufacturing company will be quite

different from a service company and even though a service rendering organization may have

similarities with each other they still tend to have different ways or method of operations,

because the type of operations is determined by the type of services rendered. Evergreen is a

service oriented company rendering retail, landscaping and lawn care services to its customers.

The day to day activities which leads to accomplishing the main purpose of the organizations is

referred to as business operations. Below is a work flow of the business operations of Evergreen

Maintenance Company.

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Makes project ion of products to be bought

PURCHASING MANAGER

ASST MANAGER RETAIL

Fills in the retail space

Looks for products

ASST MANAGER CONTRACT SERVICES

Finds customer through advertisements in local news papers and magazines

Negotiates contract

Orders product from wholesale dealers and contract growers

Prepare the necessary order form

Alert operational manager to prepare for stocking items

ASST OPERATIONAL MANAGER

Moves all the stock using trucks

TRANSPORT SUPERVISORt


Business operations work flow A workflow consist of sequential step, task, events, or interaction that comprise a work process,

it simply shows the procedures involved in accomplishing the main purpose of an organization.

Diagram 3 WORKFLOW OF EVERGREEN

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SALES MANAGER

Runs promotion and set prices

Costumers


Analysis of the problems in evergreenIt was early stated in this report that every organization is faced with different or similar

problems such problems may be managerial or operational, and it’s the duty of the organization

to try and rectify these problems. The problems of evergreen will be analyzed using some basic

problem solving tools such as the fishbone diagram, Pareto analysis chart.. The problems will be

identified first before the fishbone diagram can be used to identify the root causes, therefore the

problems will be identified base on the operations of the departments of evergreen.

Sales departmentThis is the department that carries out activities which involves sales in Evergreen and it has two

main branches retail and contract services. The problems faced by this department includes the

following

Customer makes request that are usually out of stock

The updates of inventories are out of date

Operations departmentThis department is responsible for all operational activities and physical plants in Evergreen, the

activities of this department is very vital to the company because it deals with delivering results

and maintenance of physical plants of the company, the department is faced with problems

which includes

Lack of adequate storage facilities

Poor security

Transportation difficulty

Administration departmentThis department is in charge of employee’s welfare and development and also handling internal

communication is the company. This department is experiencing problems such as

High staff turnovers

Lack of skilled employees

No integration between employees the work and products

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Finance departmentEvery organization or business deals with finance and financial functions such as investment

management, cash flow, account receivable and various financial responsibilities. Evergreen

finance department is face with one major financial problem which is

Money is tied up in inventory

Management executive council (MEC) This is the council that’s responsible for top management decisions such as policy making, it’s a

council made up of the vice presidents of each department, and this is very vital to the company

because policies determine how the company will operate and functions. That means this council

serves as the top management of the company, and just like any management team stumble on

problems, evergreen top management problems includes

Scare data in meetings

Problems are being ignored

Pet projects being revisited over and over

New ideas are being ignored

The fish bone diagramThis problem solving tool was invented by Dr Kaoru Ishikawa, a Japanese quality control

statistician, it is also referred to as cause and effect diagram, because it is used to arrive at the

potential causes of problems and identifying their root causes.

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PEOPLE

High staffs turn over

Seasonal staffs

Unskilled

No integration between employees

Some employees consider themselves above others

ENVIRONMENT

Children getting lost

Poor layout

Customers being scratch by cactus

Poor layout

THE PROCESS NOT SYSTEMATIC OR RELIABLE

PROCESS/METHODS

Money tied up in inventory

Improper inventory management

Problems are being ignored in MEC meetings

Scare data

No effective data storage

Cart being stolen

Poor security

Green house target for vandalism

MACHINES/EQUIPMENTS

Most Products requested are out of stocks

Inventory is outdated


Stocks disposal problem

Transportation difficulties

Storage shortage

Trucks shortageNo space in warehouse


Diagram 4

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No team work

Poor security

Improper warehouse management Improper logistic management


Root causes identificationThe root causes of problems simply means the origin of the problems, from the fishbone diagram some root causes of the problems of Evergreen have been identified the problems are listed below

Table 2

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No Problems Root causes Score 1. Stock disposal, and

Transportation difficulty

Improper logistic management

65

2. Stock disposal, difficulty and storage shortage

Improper warehouse management

50

3. Most product request out of stock, money tied up in inventory


80

4. Problems being ignored in MEC meetings

No effective data storage

45

5. Cart being stolen, Green house target for vandalism

Poor security

10

6. No integration between employees No teamwork

40

7. High staff turnover among seasonal staff

Unskilled employees

35

8. Children getting lost, customers being scratch by cactus

Poor plant layout 12


Pareto Analysis

impro

per inven

tory man

agemen

t

impro

per logis

tic man

agemen

t

Impro

per ware

house man

agem

ent

No effecti

ve data

storag

e

no team

work

unskilled

employee

s

poor plan

t layo

ut

poor secu

rity0

20

40

60

80

100

120

140

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

23.7%

43.0%

57.9%

71.2%

83.1%

93.5% 97.0%

Pareto chart

Root problems

scor

e

Diagram 5

Improper inventory managementInventory management refers to the processes which oversees the constant flow of goods in and

out of the inventory, according to Wrice M (2004)2 inventory management is the planning and

control involved in marketing, the right merchandise at the right time, in the right place, in the

right quantities, and the right place. Evergreen is stumbling on problems with regard to its 2 http://books.google.com.my/books?id=ddyEjQ9syvcC&pg=PA170&dq=inventory+management+is+the+planning+and+control+involved+in+marketing,+the+right+merchandise+at+the+right+time,+in+the+right+place,+in+the+right+quantities,+and+the+right+place.&hl=en&ei=zo3nTf-bBoq6vQOD2YnkDQ&sa=X&oi=book_result&ct=book-thumbnail&resnum=1&ved=0CC8Q6wEwAA#v=onepage&q=inventory%20management%20is%20the%20planning%20and%20control%20involved%20in%20marketing%2C%20the%20right%20merchandise%20at%20the%20right%20time%2C%20in%20the%20right%20place%2C%20in%20the%20right%20quantities%2C%20and%20the%20right%20place.&f=false

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inventory, money is being tied down in the inventory and the inventory is outdated and these

problems occurred due to improper inventory management.

Improper logistic managementLogistic management have been defined by different authors, according to Sople V (2007)

logistic management is basically an integrative process that optimizes the flow of materials and

supply to customers. While Schary P (2007)3 see it as “the corporate traffic cop” directing the

flow of materials from source, through production and distribution, to the final customers,

despite the differences in definitions logistic management as a common objective, which is to aid

organizations to be able to deliver products or services to customers when and where they want

them. Evergreen landscaping and Maintenance Company is faced with this problem of stock

disposal and transportation and this problem was cause due to improper logistic management.

This root cause can also increase cost and delay responsiveness to customers.

Improper warehouse management Warehouse management is a complete guide on how to manage warehouse operations and also

how to improve warehouse productivity and reduce cost associated with its operations.

Evergreen warehouse has no space to store large items; this really hinders the operations of the

company in terms of delivery large items requested by customers.

No effective data storage Data is very importance and vital to any organization, because most policies decisions are made

base on the data available with regards to the subject matter. Evergreen is ignoring vital

problems which need attention due to scare data, and any organization that is starved with data

which is relevant to its decision making is bound to face obstacles in running the affairs of the

organization.

3 http://books.google.com.my/books?id=UswE24CnC3wC&pg=PA2&lpg=PA2&dq=%E2%80%9Cthe+corporate+traffic+cop%E2%80%9D+directing+the+flow+of+materials+from+source,+through+production+and+distribution,+to+the+final+customers,&source=bl&ots=bAuN82vxhL&sig=X1Sc5VgxCtAMG7U_GsC_CFSBhBY&hl=en&ei=nI7nTZn5L4uCsQPp94nmDQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBcQ6AEwAA#v=onepage&q=%E2%80%9Cthe%20corporate%20traffic%20cop%E2%80%9D%20directing%20the%20flow%20of%20materials%20from%20source%2C%20through%20production%20and%20distribution%2C%20to%20the%20final%20customers%2C&f=false

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No teamworkEmployee’s involvement in any organization is very vital to any organizational business process,

but the involvement differs from organization to organization based on the methods of

operations, some are involved with teamwork while others are not. Teamwork according Brill

(20054) as the work which is done by a group of people who posses individual expertise, who are

responsible for making individual decisions, who hold a common purpose and who meet together

to communicate, share and consolidate knowledge from plans are made, future decisions are

influenced, and action determined. Teamwork is absent in evergreen, due to this some problems

were stumbled upon.

Unskilled employeesThese are the employees who do not have any training or skill with regards to the job they are

engage in. Evergreen is experiencing high turnovers among the seasonal staff and the root cause

of this problem is because most seasonal workers are unskilled.

Poor plant layout

Plant layout is very vital to an organization, because it is the physical distribution of machines, tools, furniture, equipments; it simply means the physical distribution of the company or organization. Evergreen layout is hindering the operations of the company, because some problems such as children getting lost are problems associated with the plant layout.

Poor securityEvergreen landscaping and Maintenance Company is battling with security related problems

which include cart being stolen, green house being targets for vandalism, all these problems are

security related. So there is definitely a flaw in the security network of the company.

4 http://books.google.com.my/books?id=7rkYu8Q5xxsC&pg=PA6&dq=as+the+work+which+is+done+by+a+group+of+people+who+posses+individual+expertise,+who+are+responsible+for+making+individual+decisions,+who+hold+a+common+purpose+and+who+meet+together+to+communicate,+share+and+consolidate+knowledge+from+plans+are+made,+future+decisions+are+influenced,+and+action+determined.&hl=en&ei=6Y_nTeSNNoLMuAOQkdiaDg&sa=X&oi=book_result&ct=book-preview-link&resnum=2&ved=0CDQQuwUwAQ#v=onepage&q&f=false

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Business recommendation and potential solutions for problems identified in evergreen landscaping and Maintenance Company

Business process re-engineering (BPR) is the business recommendation which is suitable of

evergreen company, because the processes of operations of this company needs re-engineering.

The concept of BPR originated from the management theory of Fredrick Taylor in the 19th

century, in order to make businesses best in class re-engineering of business processes was

adopted by managers. Fredrick Taylor first introduces BPR when he published his article “the

principle of scientific management” in the 1900s. Business process reengineering according to

Stanleigh M (20105) is the fundamental re-thinking and re-designing of a business process in

order to exceed customer and quality requirements. It is also a management approach used for

improvements by means of elevating efficiency, effectiveness of the processes that exist within

and across organization. The basic methodologies used in business process re-engineering (BPR)

are stated below.

BPR Methodology 1 BPR Methodology 2 BPR Methodology 3 BPR Methodology 4

1. Describe the project (establish boundaries)

2. Create vision, values and objectives

3. Redesign business processes and tools (model)

4. Evaluate concept (benefits statement)

5. Plan for implementing the solution

6. Implement the redesign

7. Transition to continuous process improvement

1. Define the project2. Document as-is

processes (diagnose)

3. Redesign business processes and technology

4. Develop a cost / benefit analysis

5. Plan and Implement new processes and systems

6. Evaluate process performance

1. Create project prospectus (define project)

2. Learn from others (customers, associates, benchmarking, technology)

3. Create vision and design new business process model

4. Develop enabling technology architecture and organizational model

5. Perform a gap analysis and prepare a business case for change (benefits

1. Define project and identify team

2. Brainstorm new processes and technologies

3. Analyze and prioritize opportunities (benefit analysis)

4. Select "best" opportunity and design solution

5. Develop and trial new processes, information systems and enabling tools

6. Plan transition and implement solution

5 http://www.bia.ca/articles/pj--pm-vs-pjm.htm

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(measure results) and costs)6. Define process,

systems and training requirements, and plan implementation

7. Develop and pilot solutions

8. Implement solution and measure performance

7. Measure results

Table 3 Source BPR online learning center

Implementing business process re-engineering in evergreen landscaping and Maintenance Company

Diagram 6

Methodology 3 will be used to re-engineer the processes of Evergreen Company.

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Create project

prospectus (define project)

Learn from others

(customers, associates,

benchmarking,

technology)

Create vision and

design new business process model

Develop enabling

technology architecture

and organizationa

l model

Perform a gap analysis

and prepare a business case

for change (benefits and

costs)

Define process,

systems and training

requirements, and plan

implementation

Develop and pilot solutions

Implement solution

and measure

performance

Improper logistic managementImproper warehousing managementImproper inventory management

Supply chain management


Define project

This is the first process in this methodology, the need to define the problems in evergreen

company and what the company is trying to achieve. The problems of this company have already

been identified and the root causes have been sorted out through the fishbone, see (diagram 4).

The company is trying to achieve a reliable and systematic process of operations and elimination

of the identified problems already existing in the company.

Learn from others (customers, associates, benchmarking, and technology)

This is the second process in this methodology; the process involves learning from others such as

customers, associates, benchmarking and technology. Learning from customers is very vital

because satisfying them is one of the major goals. It is quite obvious that the problems in

evergreen company is related to factors mention above the customer’s needs are not satisfied,

some associates not happy with the process and the technology is not suitable for achieving the

goals in the company.

Create vision and design new business process model

This process is concern with designing a business process which will implement business change

in relation to the organization development and growth.

Below is the recommended business process model for evergreen company

Problems

Solutions

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Diagram 7

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Supply chain managementSupply chain management according to Hugos. M (20066) is the coordination of production, inventory, location, transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served.

This is where the logistic problem warehousing and inventory problems will be rectified in evergreen in order to attain the best mix of responsiveness to the customers.

Operational performance improvement Adopting a new system which will improve the operational performance of the company and problems which hinder the operations of the company will be eradicated; such problems are poor security, unskilled employees, lack of teamwork and the ineffectiveness of the data storage system.

Process management This is a holistic approach which involves aligning the business process towards satisfying the customer’s needs.

Business process integrationBusiness process integration, also known as BPI, is the strategy of finding ways to connect

individual technology systems within the internal and external operation framework of the

company; it simply means the integration of the business processes.

Develop enabling technology architecture and organizational model

Evergreen should also develop and enabling technology such as GUI (graphical user interface) to

provide the means to manage the business processes and data within the company and with

external related process.

Perform a gap analysis and prepare a business case for change (benefits and costs)Evergreen company should perform a gap analysis for benefit and cost in order to analyze if the

benefits outruns the cost of changing the business process.

6 http://books.google.com.my/books?id=RJSNUE7AR54C&printsec=frontcover&dq=essential+of+supply+chain+management&hl=en&ei=EeTlTZ-ML5DqrQfFv7StCA&sa=X&oi=book_result&ct=book-thumbnail&resnum=1&ved=0CDEQ6wEwAA#v=onepage&q=essential%20of%20supply%20chain%20management&f=false

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Define process, systems and training requirements, and plan implementation• Evergreen company in this stage needs to define the process involved in the new business

process and the system the process requires and should also lay down the training

required to adopt the new business process.

Develop and pilot solutionsEvergreen company also needs to develop and pilot the solutions developed by the new business

process.

Implement solution and measure performanceThis is the final stage of the methodology. Evergreen will implement the solutions recommend

by the new process and also measure the performance to see if the new system eliminated the

major roots cause of the former system. This simply means measuring the performance of as it is

and how it was.

Conclusion The major problem of evergreen landscaping and Maintenance Company was the process was

not systematic or reliable; many companies around the world have similar problems in their

business process, this report identified the problems in the process and also proffered solution by

adopting a new system through implementing BPR (business process re-engineering)

methodology.

References Bacal B., 2005, 101 customer’s service training scripts for handling any situation [online], U.S.A, McGraw-Hill Company, Available fromhttp://books.google.com.my/books?

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Analysis of problems and bpr implementation in evergreen landscaping and maintenance company

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