This paper will serve as a proposal, using a balanced scorecard approach to demonstrate the project’s value to Centervale Apparel, using the given data. This will included a cost-benefit analysis, such as payback period or ROI that relies on tangible measures of organizational value through cost savings, revenue enhancements, or improvements in the speed, quality, or efficiency of key processes that help achieve a competitive advantage.
Alternatives will be identified, if any, to the project implementation and provide a justification for each. A completed a risk assessment of all risks associated with implementing the project using an enterprise risk management (ERM) model. This paper will described total cost of ownership and include a description of the implementation project and ongoing maintenance costs. The benefits of the project will be explained, which include tangible and intangible benefits.
Business Case and Proposal for Project Selection 1. Executive Summary- This section should provide general information on the issues surrounding the business problem and the proposed project or initiative created to address it. Usually, this section is completed last after all other sections of the business case have been written. This is because the executive summary is exactly that, a summary of the detail that is provided in subsequent sections of the document. 1.1 Issue
The current systems do not work together, requiring redundant information input and processing. Because of the redundant processes, work is duplicated requiring multiple data entry points and sometimes results in inaccurate and irreconcilable data. There is a constant overage or shortage of supply due to the time it takes for data to get from one point to another. This causes unhappy customers and inventory carrying costs that could be avoided. In order to more effectively manage our administration, reduce costs, and improve customer satisfaction, Centervale Apparel replace legacy order fulfillment technologies by implementing a supply chain management (SCM) system. By doing so, it will eliminate redundant processes and the work that was duplicated requiring multiple data entry points and sometimes results in inaccurate and irreconcilable data.
1.2 Anticipated Outcomes By implementing a supply chain management system will improve the order fulfillment process It is estimated that the implementation of a supply chain management system will improve the order fulfillment processing time and reduce inventory-carrying costs. Implementing the SCM system will also enable the retirement of several legacy systems
1.3 Recommendation Various options and alternatives were analyzed to determine the best way to leverage technology to improve the business processes and reduce the overhead costs within Centervale Apparel. The approach described herein allows us to meet our corporate objectives of continuously improving efficiency, reducing costs, and capitalizing on technology.
1.4 Justification Initial estimates for the SCM Project are: •Employees will be able to enter and edit their timesheet data at any time from any location instead of phoning their data to their regional manager for entry into the mainframe system •Timesheet and payroll data will be immediately accessible for quality control and reporting purposes which will reduce the need for staff in non-billable positions to gather, analyze and compile data •Employees will have the ability to register for training which reduces the burden on managers and training staff
2. Business Case Analysis Team
This section of the business case describes the roles of the team members who developed the business case. It is imperative that participants and roles are clearly defined for the business case as well as throughout the life of the project. 3. Problem Definition
3.1 Problem Statement
This section describes the business problem that this project was created to address. The problem may be process, technology, or product/service oriented. This section should not include any discussion related to the solution. Since its inception, Centervale Apparel has relied upon legacy order fulfillment technologies to manage consumer’s orders. As the number of order increases, so does the burden placed upon employees to effectively process order in acceptable time frames.
Accuracy is another problem area associated with the legacy mainframe system. These manual tasks further add to the burden and expense of the company. Phase I: Supply chain management (SCM) system will be purchased. Phase II: legacy order fulfillment technologies be used as a backup system Phase III: Supply chain management will be implemented in Centervale Apparel
Phase IV: All employees will receive training on the new supply chain management. Phase V: The supply chain management will go live and the legacy mainframe system will be archived and stood down. First year costs (- indicates anticipated savings)
Purchase supply chain management (SCM) The project will cost approximately $1.2 million including infrastructure and resources to complete the implementation and $250,000 annually to support and maintain the new system with a ten-year lifecycle for the system. Reduce HR and payroll staff from 10 FTE to 8 FTE An immediate reduction of $100,000.00 per year. Inventory reduction of $300,000.00 per year.
Legacy maintenance savings $100,000 per year Net First Year Savings $500,000.00 Based on the cost benefit analysis above we see that by authorizing the SCM Centervale Apparel will save $$1,300,000.00 over a ten year period.
