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1. What are the problems of the company?Ans: A company was experiencing problems with its Direct-Store-Delivery (DSD) operations. The distribution network consisted of more than 100 company-owned and/or operated DSD depots across the country. Many of the depots were small and located in isolated markets, and consequently experienced significant issues with inventory levels, order fill rates, and high operating costs.2. What were the problems of the employees to be involved in the project?Ans: Actually the employees were already consumed by ongoing operating responsibilities. Without effective planning to direct the implementation activities, successful execution within the approved time frame would be difficult, if not impossible.3. How was the project executed by IPM? Ans: IPM developed a comprehensive integrated project plan that included all of the required tasks for commissioning the new master depots and for closing the existing depots. Next, IPM led the team through an optimization process that reduced the schedule to the desired 18 months without jeopardizing customer service or production operations.IPM trained the clients newly hired project manager to take over the responsibility for the remaining implementation activities.4. Illustrate the flow of the project.Ans: Annual operating savings: $16MCapital investment reduction: $20MOrder fill rate: greater than 99% (improved from 96%)18 months, a 40% reduction from the original planIn addition to realizing the above results, the modified DSD network gives the company additional flexibility to expand their product distribution, therefore improving customer satisfaction and their own revenue


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