The document describes the process flow for CRU Computer Rentals. It details the steps from a customer order being placed through receiving, configuration, testing, repair if needed, and preparing units for rental. There is currently excess capacity of 100 units per week. Increasing sales by more than this amount would exceed CRU's ability to meet demand under the current system. Richard is provided recommendations to optimize the process flow, including improving receiving testing, increasing repair throughput, eliminating double handling, passing shipping costs to customers, and implementing an ERP system. Richard should monitor inventory levels, flow times through each status code, and resource utilization.
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The document describes the process flow for CRU Computer Rentals. It details the steps from a customer order being placed through receiving, configuration, testing, repair if needed, and preparing units for rental. There is currently excess capacity of 100 units per week. Increasing sales by more than this amount would exceed CRU's ability to meet demand under the current system. Richard is provided recommendations to optimize the process flow, including improving receiving testing, increasing repair throughput, eliminating double handling, passing shipping costs to customers, and implementing an ERP system. Richard should monitor inventory levels, flow times through each status code, and resource utilization.
The document describes the process flow for CRU Computer Rentals. It details the steps from a customer order being placed through receiving, configuration, testing, repair if needed, and preparing units for rental. There is currently excess capacity of 100 units per week. Increasing sales by more than this amount would exceed CRU's ability to meet demand under the current system. Richard is provided recommendations to optimize the process flow, including improving receiving testing, increasing repair throughput, eliminating double handling, passing shipping costs to customers, and implementing an ERP system. Richard should monitor inventory levels, flow times through each status code, and resource utilization.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
The document describes the process flow for CRU Computer Rentals. It details the steps from a customer order being placed through receiving, configuration, testing, repair if needed, and preparing units for rental. There is currently excess capacity of 100 units per week. Increasing sales by more than this amount would exceed CRU's ability to meet demand under the current system. Richard is provided recommendations to optimize the process flow, including improving receiving testing, increasing repair throughput, eliminating double handling, passing shipping costs to customers, and implementing an ERP system. Richard should monitor inventory levels, flow times through each status code, and resource utilization.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPTX, PDF, TXT or read online from Scribd
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CRU COMPUTER RENTALS PROCESS FLOW
Communication
Sales Specialist LRC/ Megacenter
ID customer Old/New Verify Credit
Auto-routing to nearest LRC/ Megacenter
Phone (1-800 #)
Customer
Customer Take Order Shipping dept. Package & label Shipped @ $25/unit
Printer Shp dt and spf instr Rev for accr. & del dt.
Config. Section
Carted
Parts group
Parts department Storage
500
QUEUE X O X O Order Sheets
Holding area
FIFO X O XO
Clean & install hardware/ software
Status 41 Status 42
Tech. (check config & order forms)
? Status 40
Repair group Status 41
Series of tests
Repair
500 1000 Defective Status 40 (30%)
Status 42 Status 20 Status 24
500
Receiving Megacenter
Preconfig. dept.
Remove stickers Check for not defective
Format HD
Basic cleaning
1500 Non-defective Status 24 (70%)
Status 40 15% of Status 24
225
Material Paper
Electronic Employee
2. Do not launch a sales drive this year. There is only an excess capacity of 100 units per week. If sales increases by more than 100 units per week, under the current system CRU will not be able to meet customer demand. Order forms Status 41 I = 500 T = 1 week R = I/T = 500 Available for Rent Status 20 I = 1400 T = 1 week R = I/T = 1400
500
500
1400
1400
500
Recd. Parts stuck to machines Status 42 I = 500 T = 1 week R = I/T = 500 Defective Status 40 I = 1000 + 225 = 1225 R = 150 T = I/R = 1225/150 = 8.17 wks
500
30% (150) 500
Receiving I = 500 T = 1 week R = I/T= 500
150
70% (350)
Non-defective Status 24 I = 1500 225 = 1275 R = 350 T = I/R = 1275/350 = 3.64 wks
a. Reduce flow times and inventory in status 24 (non-defective): Part of the problem lies in units not being identified properly in receiving. Have a more robust testing system at the receiving department. If all 15% of the units that are detected as faulty later are identified at this stage, flow time will change from 1500/350 to 1275/297. Though this will have no impact on the initial throughput, this will free up additional tech time and the check for not defective step could be eliminated. Over time more units can be processed through this department. b. Reduce inventory in status 40 (defective): Hire more labor to increase throughput and reduce the inventory buidup for status 42 (now at 500). This will free up additional units available for rent. The incremental cost of labor will be absorbed through additional sales generated. c. Reduce double handling of material between storage, repair and preconfig department. This will reduce the non-value added time and will free up technician time to process more orders. d. Pass shipping costs to customers to generate additional revenues of $25 * 1400 = $35,000/week. e. Implement ERP system to partner with suppliers so order forms can be eliminated and the process of receiving parts reduces to less than a week.
4. Key performances for Richard:
a. Inventory b. Flow time through status codes c. % utilization
