Enterprise Business Processes and Reporting (IS 6214) MBS MIMAS 2010 / th December 2010 Fergal Carton Business Information Systems

Last week Process mapping exercise for Cucina

This week Sales orders example : separating header and line items Notes on Arbutus breads Cucina project introduction Distribution of Cucina case Constitution of project groups

Northwind Data : Customers

Northwind Data : Order headers

Northwind Data : Order details

Arbutus bread 1 Product quality is the number one (and two, and three!) competitive advantage for Arbutus, with good customer service a pre-requisite Arbutus breads are fresh and par-baked, with customers choosing between the option that suits their business. In volume it looked like the fresh might have >75% of the business? Bread is a regular business, with customers tending to re-order the same products and quantities repeatedly. In this way, exceptions to one day’s orders can be handled manually, with the template order only modified if the exception becomes the rule. Weekend orders are much higher in general, with customers placing larger orders for Saturdays. Consumers take the time to choose their bread at the weekend. Customer orders are generally not taken by drivers, although they can do this. There is no requirement for a more real time method for placing orders, given the general stability of the demand patterns

Arbutus bread 2 Flexibility is key when allowing customers to place orders or to pay for invoices. Arbutus currently accept orders by , fax and phone, with voice mail picking up out of hours orders. Payment methods are cash, cheques and electronic transfer. Two drivers carry out three delivery runs during the morning, the first at 07h30 being the most critical. Drivers have 15 minutes at the end of the morning’s baking to load the vans and start on the first delivery run, otherwise congestion becomes a problem. One driver looks after city center, the other does south suburbs (Halfway, Airport, Grange, …) and smaller runs (eg. Glanmire). Orders coming in after hours are listened to by production staff before commencing their 2am shift, thus any late changes in customer requirements are taken into account Direct sales at Farmers markets account for the single biggest destination of Arbutus products, and this is a cash business

Arbutus bread 3 Customer orders are input directly into an Excel spreadsheet, this sheet summarises daily production figures into quantities of raw materials for production staff. This data is also used as the basis for the production of Delivery notes for customers A separate accounting system (TAS books) is used to run aged invoice reports and P&L statements The running of the operation has costs that break down into ingredients, plant overheads, vehicle running costs and labour. There is a notion of standard costs, but currently it is difficult to establish unit costs to a point where the taking on of a new high volume customer will be profitable or not. The cost of distribution is the real issue in this business. The use of parbaked products opens up the possibility to use third party distributors. In some new markets, for example with the new Granny Ryan bread mix, it may be envisaged to enter into a distribution agreement with an international logistics provider. The biggest challenge for the business is the bureaucracy surrounding legislative requirements for Health and Safety.

Cucina project You are bidding for the contract to supply Cucina with a solution Each group builds a demand management prototype for Cucina –sales order processing –customer invoicing –management reporting Starting from the business narrative in January, each group of students is responsible for –The management of the project through to completion in March –Analysis of requirements (process flows for as-is and to-be) –Design and build a suitable system, including the database, user interface and management reports. –Presentation of the prototype to the Cucina board of management