"Running head: PRECISION ELECTRONICS PARTS 1Precision Electronics PartsIFSM 461Introduction PRECISION ELECTRONICS PARTS2 Precision Electronic Parts (PEP) Inc. is a small privately-owned electronics companybased out of Kansas. Over the past 20 or so years PEP has manufactured replacement parts andelectronic components for medical equipment used in doctors’ offices and hospitals around thecountry. The company brought in a new product last year; low voltage motors that reduceelectricity costs and make other medical equipment more environmentally friendly. Over that lastfew months PEP has also introduced even more efficient low voltage motors used in differentindustries and not only the medical field. With the new line of low voltage motors the orderingand shipping department as well as the inventory management department have been strugglingwith the high demand and have not added any new personnel to help with the higher volume ofsales. The Executive Leadership team (who consists of the CEO, COO, CFO, and CIO) noticedthat they have been able to hold their own but are barely cutting it. A department who is notcutting it is the finance department, they have been falling further behind every week while thebusiness administration department has not but are close to their breaking point. Theinvestigation is held by Precision Electronic Parts’ IT Steering Committee (ITSC) consisting ofCEO Carolyn West, COO Tim Uduak, CFO Karl Manley, CIO Mark Temple, SVP Susan Black,and VP Jason Udo.Problem to be solvedIn order to solve the problem there must be a better way to organize the data informationforms to not only make sure the information that comes in is controlled safely but also canhandle a high volume of data coming in at once or within a short period of time. PEP needs anew system that will be able to handle the high volume of payment and billing transactions andtrack all of their inventory.Once the new system is implemented PEP should be able to keep up PRECISION ELECTRONICS PARTS3with the volume of which they are demanded by the high amount of interest in their product andsales.FindingsI. ScopeThe scope of this project is to improve the way PEP handles their business operations sothey can be more efficient and avoid getting backed up. That is going to be the way to do it sincethey do not have any additional room in their budget to hire more personnel. PEP needs toimplement a new IT system that will help them with their business operations so it can runquickly and effectively. In the new system, there will be new features that can help PEP withpayments, discounting, invoicing, and receipts. The new system will store the information betterfor easier and quicker access to all departments involved, with little to no confusion. The finance department will be able to receive payments and send bills to customersquicker than ever, allowing them to avoid falling behind in processing payments, billing, andinvoicing. Doing so will help all departments involved; the shipping, ordering, and inventorymanagement departments will benefit off the more organized system thus allowing them to dotheir jobs faster and maybe even find room in the budget to add personnel. The businessadministration department will continue to hold their own and will improve little by little whileall of the other departments improve with the new implemented system. II. ConstraintsWith every project comes constraints, it can be anything from scheduling to costs. Someconstraints that PEP could encounter might be is the availability of supplies from PEP’s vendors, PRECISION ELECTRONICS PARTS4they may be available later than PEP estimated thus causing a delay in that part of the project.Another common constraint businesses sometimes encounter while implementing a new projectmight be a part of the project taking up more budget than it was estimated too. There may be asolution to this constraint by rearranging a few things around to make up for the over-spendingof that part of the project. III. Fact FindingWith the increase in sales with PEP’s products the shipping, ordering, and sales departmentswill have to increase personnel to accommodate for the businesses success. Implementing a newsystem will help with the high volume of sales but it will not fix the issue completely becauseyou cannot have one person do the job cut out for two or three people. The inventorymanagement department will also need more personnel, all of these departments will need togrow and by doing so the efficiency and success of the company will increase and have less slip- ups in PEP’s business processes, saving them time and money.IV. Current CostsCurrent costs for the whole system cannot be identified without finding out exactly whatsoftware and hardware upgrades need to be done to meet the necessities for the new system. Thecurrent costs of the system are too high for what is being accomplished by PEP and the team sorestructuring current costs maybe be in the near future.Feasibility AnalysisI. Technical Feasibility PRECISION ELECTRONICS PARTS5PEP will have to interchange the whole system or most parts of the system toaccommodate the scope of the company. Some parts may be sufficient enough to keep with asmall tweak or update in that part of the system. Most will need to be completely replaced forPEP to successfully improve. II. Financial FeasibilityAt first the new system might be confusing and the new system and new personnel willcost PEP but after six months to a year the new upgrades will pay for themselves and make PEPmore money in the long run and in the meantime helps the members of PEP learn and master thesystem. Once the team master the new system there will be less mistakes and PEP will berunning much smoother with little to no mistakes. Even if there are mistakes there may be aquick fix or a way around the mistake affecting the company negatively. III. Organizational/ Behavioral FeasibilityThere does not have to be a complete organizational change to accommodate for the newsystem that is going to be implemented. About four to five people should be added to the team,but the team does not have to be restructured. There is not a need to relocate the company orupgrade the size of their factory, what PEP has now should be sufficient for a few yearsdepending on how fast sales are increasing. PEP should be able to broaden their generalcustomer base to around the country/world. RecommendationI. Estimate "