Damage Inventory Return, Research Paper Example

Vision

Provide one source of the truth for inventory management including status, location, quantity and source.

Mission Statement

The mission of our organization is to provide technologically integrated services to processing damaged inventory goods back to the supplier or to scrap the inventory and proceed to garner financial or inventory restitution from the supplier.

Project Objectives

• Create processes to ensure accountability for damaged goods
• Create a system for documentation of damaged goods inventory
• Incorporate integration between business processes and procedures with technological solutions
• Create a return to vendor process
• Create a system of record for all returns and damaged goods
• Create a network tool for team collaboration
• Provide connectivity of data among disparate groups
• Development of Knowledge Center to track, maintain and ensure availability of data to designated roles within the organization
• Increase engagement and data collection by leveraging technology
• Provide communication venues for members of the supply chain
• Enables line of sight to current inventory status, levels and locations in real-time or near real-time
• Increases the supply chain knowledge base by providing educational services, communication to staff and other web-based applications to keep the internal users connected with current policies, procedures and processes

Scope

The damaged goods inventory management process includes all functionality in the aspects of inventory management and control.  The overall inventory management program will include obtaining information, managing inventory levels, ensuring a process for return to vendor and ensuring accountability through documentation and evidence based decisions.

Justification

Increasing the quality and quantity of information will provide the supply chain all of the necessary data to make informed decisions on the action to take regarding inventory management.  Connecting the internal systems with external information will align the disparate communities of supply chain, quality and sourcing.  This will provide a line of sight to one source of the truth regarding inventory monitoring and controlling functions.  This provides the capability to hold the vendors accountable for their inventory damages and allows for restitution for non-conforming material.  There is one source of information that is accessible throughout the facilities by those that need the information.

Having the right information and providing the information to those within the organization provides those employees the accurate and reliable information needed to negotiate returns and costs associated with the non-conforming material.

The primary objective of creating the system and processes for damaged inventory returns is to increase the level of accountability and promote a venue for cost reduction as well as cost allocation to the appropriate party.  Working in a collaborative environment will ensure an overall better experience by the supply chain negotiators and inventory control specialists by allowing for accurate data to be transformed into actionable information.

Implementation Strategy

The implementation of this project will follow the waterfall project management methodology according to the Project Management Book of Knowledge (PMBOK).  The project itself will require implementation of both a technical solution as well as a business process implementation.  The technology implementation will include hardware and software implementation prior to the launch of the initial network collaboration and system implementation.  Concurrently with the hardware and software implementation the second half of the project will focus on the business processes implementation.

The hardware and software project will focus on the implementation of the equipment in the established data center.  The capital equipment will be ordered and the requirements are based upon the system requirements of the application as well as the potential growth and need for servers and infrastructure to support the network applications.  Once the hardware is in place the requirements for software configuration will be reviewed by the business owners to ensure the outlined business processes are coordinated with the functionality of the application.

The business process changes will be outlined based upon the requirements outlined in the project plan documentation.  The project manager has the responsibility to conduct a gap analysis and provide the necessary solutions to meet the scope of the project.  The end users of the system will be trained on the system prior to launch of the application and training material will be provided for both patients and medical staff.

In order to mitigate the risk of launching the application enterprise wide, there will be a limited or pilot release in one area of the plant that will last fifteen (15) calendar days.  During this time feedback will be obtained through bi-weekly (2 times per week) meetings with staff and surveys conducted by patients.  As feedback is received the necessary project management activities will be implemented prior to launching enterprise wide.  The project will then be rolled out to the entire operation for use by all employees.  The project is planned for a five (5) month duration.  This is planned to incorporate the timing for physical inventory.

Customers

Stakeholders

Project Resources

Organizational Chart

Completion Date

Schedule Start: Month 1 2014

Completion: Month 6 2014

Work Breakdown Structure

Measures of Success

Success is ultimately achieved by fulfilling the end users’ needs and expectations.  The goals and objectives of this project have goals that are specific, measurable, achievable, relevant and time-bound.  The project scope must align with the expectations of the stakeholders as well as the cost estimates, established budget and the proposed schedule of the project.  Each objective will have a pass/fail criteria established with the stakeholders so that at the end of the project the criteria accepted at the beginning of the project will be the same criteria that is measured for project completion.  The three key success criteria include creation and adoption of the business process, software implementation and successful returns and payments for returns from the vendor.

Success will be the implementation of an inventory control process coupled with an information technology solution while meeting the scope of the project.  If the scope is altered during the course of the project the acceptance criteria will be adjusted to meet the scope requirements. As with all projects, if the scope changes the schedule and cost of the project are also subject to change.  It is up to the project manager to manage the change in scope and limit the ramifications scope creep has on the project.

Milestones

• Established Return to Vendor Process
• Establish Repayment Process
• Implement Software to Support Processes
  • Prepare personnel for new process/software
  • Bring software up and operational
  • Implement new process/software
• Build Monitoring and Tracking System for Inventory Movements
• Implement security requirements

Assumptions

• Wireless connectivity exists
• Network infrastructure in each of the facilities exist
• Basic understanding of tablet/notebook interfaces exist
• Data integration is seamless between legacy systems and the new network IT and business implementations
• Data in the system is relevant and includes the highest level of integrity
• All regulatory and policy requirements are met regarding SOX and inventory control policies
• Knowledge base provided to the supply chain will be populated with the base level information and will continue to grow as the users interact with the system

Constraints

• Limited immediate knowledge base
• Queuing process is not optimized during initial implementation
• Feedback is based upon voluntary information
• Disparate IT teams
• Integrations between data quality, format and availability between networks must be configured
• Benefits include cost of recovery and qualitative measures for accountability

Delivery Schedule

The project will take 5 months to complete from the approval by the stakeholders until the go-live launch of the new process and software.  In order to accomplish this task there is a requirement of funding and resources that will be needed in order to accomplish the tasks necessary to be successful.

Risk Assessment

Project Budget

Each of these costs is base-lined on a project management team, analysts and subject matter expert in IT infrastructure and system development.  The initial investment will be ultimately repaid after 2 to 2.5 years of operations.

References

Budd, C. I., & Budd, C. S. (2009). Earned value project management. (2nd ed.). Vienna, VA: ManagementConcepts.

Cooper, D. F., Grey, S., Raymond, G., & Walker, P. (2005). Project risk management guidelines, managing risk in large projects and complex procurements. John Wiley & Sons

Dobson, M. (2004). The triple constraints in project management. Vienna, VA: ManagementConcepts.

Fleming, Q. W., & Koffleman, J. M. (2010). Earned value project management. Project Management Institute.

Magal, S. R., & Word, J. (2011). Integrated business processes with erp systems. RRD/Jefferson City: Wiley.

Project Management Institute, P. M. (2008). A guide to the project management body of knowledge. (4th ed.). Newtown Square: Project Management Inst.