Week 4 Analysis Report
DeVry University, BUSN460 ]
Overview
After reviewing the material one can see that CanGo is ready to move forward with upgrades technology. CanGo is looking to expand, but is still unsure of which way to go. Jack met with Warren and Debbie in which, he shared with them the ideas of an Automated Retrieval/Storage System (AS/RS). Jake explains to them that process flow charts give them the data to review. He states that they need to simplify, eliminate, automate, and integrate. Jack shares with Debbie and Warren the information about bar-coding and how it would benefit the company. He explains the vertical material movement and how it benefits a distribution facility as quick setups benefited the flexible manufacturing facilities. Jack also explains how beneficial one AS/RS would be, but elaborates that if there was two AS/RS’s they would be top notch. Having two separate AS/RS would help increase the volume shipped or to ship double the number of titles at the same cost. The group discussed how Liz would not be happy with the numbers, but you need to look at the net present value and the internal rate of return. Jack assured them that he calculated everything including the startup and installation costs. He explains that they should look at the long term strategic impact the AS/RS and change will have on the future of the company. Take this data to Liz and the other members of the team.
Jack and Warren both are unhappy with the current system at CanGo and know that the company needs to change. They are sure that by implementing new system that some of the ongoing issues will be resolved and things will ultimately get better. They have talked with Debbie, and are now taking it to Liz and others for their input. The group meets and Warren shares with the group that they have put the current setup through a test. The way this was done is that they had a team member work through the system
References: Class Videos. (2010, January 4). Cango Quicktime Videos [Video File]. Videos listed on http://www.devryu.net/ec/crs/default.learn?CourseID= 3680404&CPURL=www.devryu.net&Survey=1&47=5655192&ClientNodeID=906358&coursenav=0&bhcp=1