Change Management: Implementation of an Online Delivery Tracking System

Guest lecture about managing change / change management in a UK SME: Implementation of a micro SCM system / Onlne Delivery Tracking System

• Austen Jones

• Leeds Metropolitan University

• Saftronics Ltd

website:                 www.leanscm.co.uk

Presentation Structure

• Overview of Saftronics and its Products

• Explain how Production is undertaken highlighting importance of Metalwork

• Outline Metalwork ordering process

• Problems associated with Metalwork

• How problems have been reduced

• Lessons learned from the implementation

• Conclusions

About Saftronics Ltd…

• Established 1979

• Management buyout 2001

• 130 staff

• 33,000sq ft factory

• £7-8m turnover

About the Products…

• MCCs / Control panels

• Assembled rather than ‘manufactured’

• Products are ‘unique’

• Assembled from standard parts

• 12 week delivery time

• Average order ~£20k

About the Products…

• Large metal cabintes comprising metal doors and wired metal backplates populated with electrical components

• Production unable to start until the metalwork items have been delivered from the supplier

• Production of the metalwork items is the task on the critical path of each job that has the longest lead time

Metalwork Ordering Process…

Metalwork Process Problems…

Metalwork Problems…

• metalwork delivered late

• metalwork not delivered complete

• unknown what will be delivered when

• unknown what is outstanding

• no measures in place

Metalwork Improvement Opportunities…

Ensuring on-time deliveries…

• Control of Paint process given to Supplier

Ø Agreed realistic delivery dates

Ø Pay Supplier on 30 days rather than 60 days

Ø Pay Supplier a modest ‘management fee’

Ø Supplier became accountable for delivery date adherence

Ø Supplier fined for late deliveries:

Ø£100 one off charge (per late job)

Ø1% order value per day

Tracking Delivery Performance…

• New system needed to:

Ø Record when metalwork orders are placed!

Ø Record Actual delivery dates

Ø Be easily accessible to a variety of people

Ø Be up-to-date and centralised

Ø Track individual parts rather than just jobs

Ø Provide accurate information for Planning purposes to both parties

Ø Be accepted by the users!

• Database system + Web-based access

Tools Used & Assistance…

• Database: MS Access 2002

• Web interface: Macromedia Dreamweaver MX

• Domain name and web hosting: me-too.net Ltd

Screen Shots – Performance Indicators…

Implementation & Change Management… What I did Wrong!

Implementation & Change Management… Lessons Learned!

Implementation & Change Management… What I did Right!

Conclusions about Managing Change…

• Easily accessible and editable information held centrally is a boon as it provides the Planning functions with up to date, relevant and visible information that enables informed decisions to be made.

• Enables meaningful planning of jobs

• Delivery performance measurement now possible

• System implemented successfully… but later than expected.

• Importance of mistakes and reflection.

Acknowledgements…

B O’Toole & D Webb

Leeds Met

J Robinson

Saftronics Ltd

me-too.net Ltd

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