2. Quick Revision
HRMS - Recruitment, Employee appraisal, Employee Training
SDMS – Channels, Sales Flow (Enquiry, Quotation, Order, Delivery &
Invoice, Sales Analysis)
MPPC – Capacity Planning, Manpower Planning, Material Resource
and Manufacturing Resource Planning, Work Order Management &
EOQ, Material Procurement
Banking - Saving Bank Account, Cheques, ATM, E-Banking, Biometric
Devices
ABS - Enterprises Resource Planning (ERP), Supply Chain
Management (SCM), Customer Relationship Management (CRM),
Call Centre, BPO, KPO, TQM – Total Quality Management, Six Sigma
2
3. Case Study1
A Cosmetics company would like to expand its sales across
the remote villages & areas. But it doesn’t have enough
capital to start any new sales offices in these areas. Instead
it plans to tie up with a reputed Telemarketing
organization & make use of their services, for customer
order processing. Suggest suitable business processes that
can be applied, so that the above concept of telemarketing
is possible. Specify the different input documents (detailed
documents) that are necessary for your specified business
process & also suggest any supporting reports that can be
obtained from your specified business process.
3
4. Complete approach to solve case study
Read the case study twice
First collect the direct stated facts
Next collect the unstated facts
Generally 3 questions -> Suggest suitable business processes,
specify input documents, Suggest any supporting reports
Specify clearly all business process affected
List down input documents – draw formats wherever possible
List down output reports – draw formats wherever possible
Don’t assume against what has been stated (explicitly or
implicitly)
Write as much as possible
4
5. Approach – First collect the
direct stated facts
There is a Cosmetics company which would like to
expand its sales across the remote villages & areas
It doesn’t have enough capital to start any new sales
offices in these areas
Instead it plans to tie up with a reputed
Telemarketing organization & make use of their
services, for customer order processing
5
6. Approach – Next collect the
unstated facts
The company wants a good order processing system. The
order needs to be taken over phone by a third party
system and needs to be transferred to the company. So
way of communication/order confirmation/order
dispatching needs to be established (SDMS area)
Company is already established in the urban areas. But the
new rural market is different. So a different CRM way of
functioning must be in place (CRM area)
To handle the new orders the production of the company
needs to increase at a similar pace (MPPC area)
6
7. Check the questions
Suggest suitable business processes that can be
applied, so that the above concept of telemarketing is
possible
Specify the different input documents (detailed
documents) that are necessary for your specified
business process
Suggest any supporting reports that can be obtained
from your specified business process
7
8. Solution to case Study-Step1 –
CRM process
For the above case, the first process that needs incorporated is related
to the CRM area of management
It is process used to learn more about customers' needs and behaviors
(in our case the new set of rural customers) in order to develop
stronger relationships with them.
CRM includes information about customers, sales, marketing
effectiveness, responsiveness and market trends. The overall goals are
to find, attract, and win new clients, nurture and retain existing
8
9. CRM process
As a part of first CRM business process call centre executives make
outbound calls to the prospect customers. They would need to know
and impart the following:
The client demographics, buying habits, spending capabilities,
requirements, etc. (like for example the products bought by rural
customers will be very different than that of urban customers)
Exact description of the product
Pricing procedure of product
Distribution channel and handling of the product
Advantages of this product over its existing competitors if any
Group discounts and any other applicable schemes if exists
After support policies etc
Mode of payment
9
10. Solution to case Study-Step2 –
SDMS process
The second process that needs incorporated is related to the SDMS area of
management
Once the telemarketing/call center executive tries to convince and win an
order, it goes for further order processing
The customer thereby places an order through the phone.
The executive tracks down the following information:
Name of customer
Address of the customer
Contact details
Date of placing the order
Product code
Product description
Price
Discounts (if any)
Mode of payment
10
11. Order processing
The order processing business process has following features:
Transforms purchase order (received over phone) information to
actual order
Generates customer invoices
You can enter credit to generate a credit memo and update your
receivables
Track shipment information in order and invoice history inquiry
Email order acknowledgement and shipment notification
Display inventory at order entry time
12. Problems in order processing
Customers are virtual, telephonic, not actual.
Customer may back out orders as they cant exactly see the
products
Customers cannot be well targeted as compared to
segmentation
Availability of customer while the time of delivery
Customer support would be CRM based
Telephonic conversation sometimes may be unclear resulting
products mismatch
Return policies should be flexible
People do not like to get interrupted by telemarketers at
home
14. Managing the distribution
Once an order is created like the one above. A
company representative will look forward in the
delivery of this product to the prospective customer
The mode of transport to reach the customer, the
packaging of product and the line of distribution will
be chosen as optimized as possible
There should be minimal cases of pending orders.
Also a process to handle pending orders must be
defined
15. Solution to case Study-Step3 –
MPPC process
The dispatch of the product completely depends on the
availability of the product from the warehouse
The lead time is defined as the time required between the
raised order and the availability of this product to the customer
in case of this study
So the process needs to be optimized in such a way that the
product is available for delivery in the stipulated time frame
The capacity planning needs to be done so as to have sufficient
resources for production
The EOQ for purchase of raw material for products must be
calculated
16. Different input documents
CRM
Target customers information
Product catalogue
Company policy document
SDMS
Order processing form
MPPC
Total amount of orders for each product on periodic
basis
17. Supporting reports
CRM
List of calls made with the outcomes
Performance report of each sales executive
Summarized report of performance of telemarketing company
SDMS
List of orders received with details
Total quantity of different products required on periodic basis
Status of delivery and payment
MPPC
EOQ for raw material
Amount of direct and indirect material required
Input for capacity planning
18. Case Study 2
In the Distillation Plant, distilled water is prepared,
which is basically used in preparation of Medicines,
salines and Batteries. The order is placed for test
tube, vessels, flasks, coiled glass tube etc. The
suppliers processes the sales order and generates
bill. The distillation plant pays bill and get the
receipts.
19. Questions
Suggest a suitable business process, to model the
above situation & ensure a smooth flow, within the
production process
Specify the different input documents (detailed
documents) that are necessary for your specified
business process
Suggest any supporting reports that can be obtained
from your specified business process
20. Approach – First collect the direct
stated facts
There is Distillation Plant where distilled water is
prepared, which is in turn used in preparation of
Medicines, Salines and Batteries. These are the
customers for the Plant
Raw material for the Plant is test tube, vessels,
flasks, coiled glass tube etc., which is procured from
Vendors
A purchase order is raised by the plant to the
suppliers. They convert the PO to SO and processes
the sales order and generates bill
The distillation plant pays bill and get the receipts
21. Approach – Then collect the
unstated facts
There needs improvement in order processing system
There has to be a link between PO, SO and Invoice
The system should also help to maintain the
optimum quantity of inventory
22. Solution to Case Study2
The case relates to improvement in SDMS – Order processing,
Delivery and Invoice steps of Sales flow and MPPC (Capacity
planning, MP, MRP and EOQ – Inventory management) business
process
23. Input documents and data
Purchase Order
Sales Order
Delivery Note
Invoice
Vendor Analysis data
24. Steps
First step of process is Vendor Analysis which is done
on various factors to save the firm time and money,
and to do a better job of purchasing overall
Formal process of evaluating potential suppliers
based on selected criteria that might include not just
price, but product quality and selection, delivery,
ordering, inventory and product availability, service
reliability, as well as the value of the potential long-
term relationship
26. Output reports
MRP-I with data like What items are required? How
many? When ?
Inventory reports with optimum inventory and EOQ
Bills payable
Capacity and Manpower planning report
27. Case Study3
The purpose of the Open Access Insurance System is to provide
automotive insurance to car owners. Initially, prospective customers
fill out an insurance application, which provides information about
the customer and his or her vehicles. This information is sent to an
agent, who sends it to various insurance companies to get quotes for
insurance. When the responses return, the agent then determines the
best policy for the type and level of coverage desired and gives the
customer a copy of the insurance policy proposal and quote.
Suggest a suitable business process, to model the above situation .
Specify the different input documents (detailed documents) that are
necessary for your specified business process & also suggest any
supporting reports that can be obtained from your specified business
process.
27
28. Approach – First collect the direct
stated facts
Open Access Insurance System provides automotive insurance to car
owners.
Initially, prospective customers fill out an insurance application,
which provides information about the customer and his or her
vehicles.
This information is sent to an agent, who sends it to various insurance
companies to get quotes for insurance (Enquiry).
When the responses return (Quotation), the agent then determines
the best policy for the type and level of coverage desired and gives the
customer a copy of the insurance policy proposal and quote.
28
29. Approach – Then collect the unstated
facts
Need improvement in SDMS
Vendor analysis is to be done – need to define
parameters
Customers are expecting customised suggestions
based on their requirement
29
