This report provides a study into the existing information system and operational structure of MC Design & Contracting. It aims to provide an understanding of the relevance and overall effectiveness of its current information system and the company‟s operational structure in line with its strategic objectives and corporate vision. With that in mind this report will identify shortcomings and expansion possibilities within the existing system so as to suggest possible interventions.

1. Group 4:
Fortuin, E, 11372567
Johnson, B, 17432421
Naidoo, T, 17425514
Schoeman, P, 17389003
Steenberg, G, 17355559
Steyn, E,17370345
Van Der Westhuizen, C, 13380761
E-MAIL ADDRESS: bryan.johnson@za.abb.com
CONTACT NUMBER: 0826594511
SUBJECT: Operations and Information Management
NUMBER OF PAGES (excluding this page): 16
DUE DATE: Lecture 21:
GROUP:MBA Modular 2012 E 1
17/04/2013
LECTURER: Martin Butler, Konrad von Leipzig

2. IS Improvement Project

3. IS Improvement Project
Content
Introduction
Vision and mission
Overview
Objective
Improvement Plan
Process Improvements
Financial Analysis
Controls

4. IS Improvement Project
Introduction – Business history and profile
Company Company
History Profile
A project engineering company
1990 Company founded by specializing in turnkey projects
Manie Steyn of:
1993 Mechanical manufacturing • Automotive assembly facilities
facility opened • Automotive trim line facilities
1994 Electrical division opened • Automotive water test facilities
• Boiler installations
1999 Manufacturing expansion • Chemical process plants
• Compressor installations
2005 Merger and management • Manufacturing plants
changes • Paint shop facilities
• Piping installations
2010 Company’s 20th anniversary
/ BEE Certification

5. IS Improvement Project
Introduction - Vision and mission
Vision
MC Design & Contracting’s vision is to be an industry leader
and preferred partner to our clients by providing world-class
industrial process facilities and components.
Missions and Goals
OUR MISSION is to focus on four primary principles:
- We provide project-specific industrial process facilities that
contribute to our growth and success.
- We aim to provide an exclusive customer experience,
through our actions, our products and our services.
- We are people centred, but customer focussed.
- We conduct our business in a manner of critical self-
assessment and continual improvement

6. IS Improvement Project
Overview – Systems
Business
Software Operations
Marketing & Sales
Packages Contracting
MS Office Support services
MS Projects
Auotocad MS SQL Server
Pastel Central storage
File Server
ISO 9001
Quality System, Existing
Procedures
Work instructions
Systems
Document control, misaligned Syspro
records,
Project Cost
Financial Accounting
MRP
Scheduling

7. IS Improvement Project
Overview – Business operational flow chart

8. IS Improvement Project
Objectives
What do we want to achieve?
Improve current IS system so that we have …
• Alignment of systems
• Streamlining of systems
• Simple and easy processes
… which provides an efficient operation that can be maintained with the
minimal amount of errors, rework, and wasted effort.
When do we want to achive this?
Over a 9 week period in accordance with the estimated project plan
How will we achive this?
Through a dedicated project manager, utilising
• In-house work teams
• Syspro business solutions
• Management support
How will we know we have achieve our objective?
Measurement monitoring and taking actions.
• Project team reporting, Employee and Customer feedback
• Implement continous improvement projects

9. IS Improvement Project
Alignment of Systems
Objectives
to business needs
Business
Operations
Marketing & Sales
Contracting
Support services
Software
Packages MS SQL Server
MS Office Central storage
MS Projects File Server
Auotocad
Pastel
ISO 9001 Syspro
Quality System,
Project Cost
Procedures
Financial Accounting
Work instructions
MRP
Document control,
Scheduling
records,

10. IS Improvement Project
Improvement Plan
Step 1 Step 2 Step 3 Step 4 Step 5
Initiate Identify Identify Project
Close Out
project issues Improvements Execution
Project Initiation: Establish issues / Identify Execution of project Monitoring of
• Obtain problem areas, improvement including: process:
management though detailed Areas / Solutions • Training of staff • Customer
approval briefs from: feedback
• Marketing • Implement’n
• Kick off meetings • Marketing • Employee
• Quotation and • Adjustments to
with key staff • Quotation and feedback
Estimates system
• Appoint PM Estimates • Project reports
• Projects and
• Engage IS partner • Projects and Contracts • Continious
• Form project Contracts • “To Be” process Improvement
teams • “As Is” process maps Projects
maps

11. IS Improvement Project
Process Improvements
Process improvements through teams
Capture RFQ in
Place all
documents in
projects on the
1) Staff can work efficiently
Receive RFQ
quotation register /
assign QE number
server, open quote
templates and
notify manager by
email of pending
Manager does
feasibility
NO
Send regret letter
2) Early warning of shortcuts and risks.
NO
quote
YES
3) Staff buy in and commitment.
4) Staff involvement results in quality,
YES Manager Estimator
Directors review and prepares detailed Manager assigns
Approval approves cost estimate on RFQ to estimator
estimate quote template
YES
Negotiate
NO
efficiency and customer satisfaction.
Submit offer
(quotation) and Accept quote, Decline Change or quote
support negotiate or status to “decline”
documents to decline on quote register
customer
END
Change quote
Accept
status to
“accepted”, open
job in Syspro Place all
documents in
projects
folders on the
server &
hyperlink in
Syspro
From: Current “As Is” Process
Capture RFQ in
Syspro (quotation Syspro sends NO Syspro e-mails
Manager does
Receive RFQ module), system receipt customer regret
feasibility
assigns QE confirmation letter
number
Before improvements
YES
YES NO Assign estimator
Manager & Estimator
in Syspro,
directors prepares detailed
estimator is
approval in cost estimate in
notified of pending
Syspro Syspro
quote
Negotiate
Syspro generates
Decline Change or quote
& submits detailed Accept quote,
status to
costing and negotiate or
“declined” in
supporting decline
Syspro
documents
END
Enter sales order
in Syspro, send
Accept
out
acknowledgment
letter and convert
quote to project
To: Future “To Be” Process
After improvements

12. IS Improvement Project
Process Improvement Implement a culture of continuous improvement
You don’t fatten the pig with hope and by
weighing it alone!
In other words wishing for improvements and simply measuring
performance is fine, but it is what we do with the results that
makes the difference!

13. IS Improvement Project
Process Improvements / continuous improvement
1- Measure 2 - Analyze (Root Cause)
 What is happening?  All Possible causes
 Why / when / where does the problem  Most likely root cause(s)
happen?
 Who is involved with the problem?
 Verified root cause(s)
 How do we know we have a problem?
4 - Sustain (Maintain) 3 - Improve (Develop/Pilot/Implement)
 Permanent fix  All Possible solutions
 Preventative measures  Best solution
 Monitor effects of  Implemented solution
implementation

14. IS Improvement Project
Process Improvements
Maintain the gains
 Ensure the ISO 9001 quality system does not inhibit change.
 Positive changes made are to be captured in the quality system.

15. IS Improvement Project
Financial Analysis
Costs Costs = R 900 000 vs Benefits
Benefits = R 1 774 500
Software and people costs
Licencing , Consulting & Project Cost of Quality
Managemet costs R 279 500
R 485 300
+Sales volume increase
R 780 000
Training + Other / Contingencies
Quotes and Estimates +Reduction in COS
Projects and Contracts R715 000
R 275 195
Additional Harware
Server capability and memory Payback period < 6
upgrade. Months if all benefits
R 157 505 are realised.

16. IS Improvement Project
Project Controls
Project controls achieved through
 Project time schedule.
 Project Feedback reports, from PM team.
o What is good?
o What has the potential to be bad?
o What is bad?
 Feedback from other stakeholders.
o Employee feedback?
o Supplier feedback?
o Customer feedback?

17. IS Improvement Project