Assessing success and establishing baselines

Before the company process will be completely enforced, there are several steps that need to be taken in the process. The first step is execution methods, then research and pilot tests, and eventually contingency planning. All of these measures involved must include the pros and cons that need to be considered in order to aid in the correct decision-making process. As a result, the project continues with development methods that are decided by the experience of the actual situation in the organization. The following approaches, the big bang alternative, the parallel option, the phased solution, and the hybrid scenarios are appropriate for a better execution plan. In the use of the big bang. Its pros include; the time of implementation and the rollout is shorter, the cost of implementation is reduced, and then the cutover occurs in a single day. On the contrary, the cons of this strategy include; details can be missed due to rush, bigger problems can be encountered which can be costly to fix, the team can also have a shorter time in learning the full details of the program (Melnyk, Stewart, & Swink, 2004).

Also, the occurrence of fallback plans is not easy in implementing and finally, having an issue at a single part of the software can affect the entire strategy. The particular advantages of the parallel run are; it is less risky, availability of fall back if the newly installed system is not accepted. Furthermore, the various users can learn the new regime as well as keep the environment legacy. The disadvantages of using parallel run strategy are; it is highly expensive, it can also lead to employing turnover due to the repeat of the system, and finally, executive commitment is always lost in the case of conducting the strategy (Shah Grover, & Kettinger, 1995). 

The phased approach option have the following merits; the users have prior knowledge on the process and the software since it is in subsequent stages, a problem at a particular phase can affect a small area of the business. Also, the rate of adoption is always slow, there is minimal burden lay on the IT department, and finally the project team can learn in phases. On the other hand, its demerits include; a long project implementation duration, it is costly on a limited budget, the team at a time can lose focus. The scenario planning process as the following benefits, the scenario can be recognized in the early stages, different disagreements can be understood in the process of implementation. It has the following impacts, its time wastage, its costly and evaluating scenario in the business is difficult.

Therefore, for this situation, I will choose the big bang option since it has the best pros and dismal cons. In using the big bang strategy, a complete implementation occurs only once, and the legacy application is cut out.

Establishing baselines

The various metrics that could be utilized include; one the capacity indicators which is calculated by taking determining the ratio between the produced amount and the time for the process. Another metric is the productivity index which is the ratio the total output and the resources used. And finally, the quality indicators which shows the relationship between total produced and the outputs that suit the usage for example that has no faults and deformities.

Materials cost

Per tire Labor cost per tire Average profit per tire %increase or decrease

In materials

Cost per tire %increase or decrease in labor cost per tire %increase or decrease in Average profit per tire 533,450/27,699 397,555/27699 27,699/

122.13 (1.95/21.23)*100% (1.7/12.67)*100% (141.45/85.10)*100% $19.28 $14.37 $226.55 9.19% decrease 13.42% increase 166.22% increase

It was important for the company to use an accurate baseline since data is used to give the insight and even improve the everyday decision that is made during the implementation process.

The project since the implementation strategy used worked best realizing larger profit margins at the end of a year after implementation of the project.

References

Melnyk, S. A., Stewart, D. M., & Swink, M. (2004). Metrics and performance measurement in operations management: dealing with the metrics maze. Journal of operations management, 22(3), 209-218.

Shah Grover, V., & Kettinger, W. J. (1995). Business process change: Concepts, methods, and technologies. Harrisburg, USA: Idea Group Pub.