Organisational Restructure

Optimising business processes in high volume/high frequency environment and redesigning the organisation structure

Situation

The Order Management group of a global metal manufacturer handles the forecasting, ordering and logistics function for product sold across the Asia-Pacific region. The Business Unit experienced significant growth in transactions due to increased customer volumes, reduced order sizes, internal production delays, partial shipments, increasing complexity of export customs compliance requirements and introduction of Sarbannes Oxley compliance requirements. Additional organisational functions have recently been transferred into the unit including end-to-end logistics management and collections.

These issues contributed to increased workloads and stress levels for key staff. Customer satisfaction and business results were also impacted.

Task

Conduct an independent review of the Order Entry and Fulfillment processes to identify actions to optimise all processes & organisational structure; identify resourcing and skills requirements; ensure provision of acceptable and sustainable levels of staff workloads.

Action

  1. Information gathering, documentation and verification of 'as-is' business processes to reveal data gathering points and opportunities for improvement.
  2. Identification of non-value adding demand on order entry and fulfilment processes.
  3. Smart Mapping of Forecasting, Order Entry and Fulfilment processes.
  4. Identification of non-value process steps, major causes of rework and expediting.
  5. Development of tangible action steps to address sub-optimal processes.
  6. Analysis of current jobs to assess elements contributing to satisfaction and elements that contribute stress and dissatisfaction.
  7. Redesign organisation structure and identify required skills set.
  8. Evaluate impact on service delivery performance in relation to forecasting, order management, capacity planning, information visibility and accuracy.

Results

  • Development of workload software simulation to test different work group designs and evaluate impact of business growth projections on staffing levels, workload balance, productivity levels and assist in selecting optimal organisational design structure.
  • Blueprint document outlining 'to be' future state design of key business processes, identifying:
    • Improvement actions for forecasting and order entry and fulfilment processes.
    • Improvement actions for on-time, in-full delivery performance.

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