Feasibility Report

Feasibility Report

Feasibility Report

Executive Summary

We analyzed the problems of the company. The major problem of the company as also identified by the owner is the manual work and lack of utilization of information technology. We will recommend that the company must adopt ERP and implement it as soon as possible. The use of ERP will help the company in developing and maintaining the profitable operations. The company will benefit from the integration of the system as it will not only save time but will also make the resources of the company more efficient. It reduces the expenses of the company and enables the management to make decisions quickly and with fewer mistakes. The visibility of information available with the company increases and prompts the company to take corrective actions in case of problems. The company will be in a better position to analyze current service trends and to make sales forecasting, purchase parts accordingly and even integrate purchases for all service centers. ERP will help the company to reflect on the history of transactions in all areas to check for efficiency and problems.

Description of the problem

Pressure Hydraulics' owner is facing some current problems and he plans to expand his business operations he is worried that the current problems together with new problems will jeopardize the profitability of the company. The company is being managed manually and even the basic operations like accounting, bank reconciliation, payroll, inventory and others being managed manually. These issues are creating problems in the productivity of the company and needs to be sorted out by the management before or during embarking on the expansion plans. The problems are explained as below.

Current Problems

Monitoring

The company is spread over multiple geographic locations it is not possible for the owner to visit all the places. As an owner he needs to be aware of the business activities at each center so that he can take appropriate corrective and appreciative actions. As a owner it will be vital for him to focus on the strategic direction of the company rather the wasting time in the daily commute.

Order Booking

The order booking system is very crude. The orders are received by phone attended by the telephone operator. People call asking for quotation of work or they ask to have the work done on their hydraulics. The quotes are checked manually and are not updated. The delay in quotation and putting the customer on hold results in lost sales. The particulars of the customer along with order details are recorded manually in a journal (work book). The work book is prone to revision by the customer and often results in conflict over booking date of order. Since it is a manual system, it results in the overbooking or slack periods for orders and workers sit idle or get over burden.

Cost and Price Control

Since Price Book is maintained by the office assistant manually and updated from the invoices of parts purchased. Often it results that the changes in prices are not reflected ...