hi-tech scm - final

8/6/2019 Hi-Tech SCM - Final

http://slidepdf.com/reader/full/hi-tech-scm-final 1/36

8/8/20111

Hi-TECH Computer

Specialists Center, Inc.SCM Case Analysis

Tess MatrianoJess Centro

Leo Cudiamat Ronald Dela Rosa



8/8/20112

COMPANY BACKGROUND

� A service-oriented, market based company

� Belongs to Software Application Package

Computer Training Center (SAP-CTC) industry

� Provides an easily understood education within the

reach of the masses� Offers computer-related services such as encoding

job and developing computer programs

� Located near CEPZA, which houses about 150

manufacturing companies� There¶s an intense rivalry among competitors like

AMA and STI due to established credibility



8/8/20113

Vision & Mission

MISSION

Provide a holistic, relevant, quality and globally-recognized IT-based

education in all levels and disciples. With this mission, it aims to

produce professionals and leaders that will be responsive to the

needs of science and the international community cognizant of the

welfare and benefits of its men and women thereby realizing their potentials as productive members of society for the honor and glory

of God Almighty.

VISION

To be the leader and dominant provider of relevant and globally

recognized information technology-based education and related

services in the global market.



8/8/20114

Hi-Tech Organizational Chart

Manager

Instructor

Part-time

Full-time

Training Assistant II

Training Assistant I

TrainingOfficer

Cashier/Bookkeeper

Assistant Secretary

Programmer

Programmer

System Analyst

Technician

Engineer

Technician

Accountant



8/8/20115

DEMAND ANALYSIS

Potential market is increasing in size, as indicated

by the following:

� Increase in the 15 ± 24 age bracket of Rosario,

Cavite population

� Increase in College level enrolment

� Increase in GDP, Per Capita Income, Consumptionand Savings



8/8/20117

COMPETITOR¶S ANALYSIS

Key success factors of SAP-CTC industry :

1. Marketing

2. Locationa) Accessibility by transport system

b) Visibility

c) High pedestrian traffic

d) Availability of qualified instructors



8/8/20118

OPPORTUNITIES

� Primary target market in Rosario, Cavite is growing

by 2.25% annually

� Inclusion of College Level to previous primary

target market of High School graduate

� The increasing need for Information Technology

literacy



8/8/20119

THREATS

� New trends in software

� Low entry barriers coupled with low skillsrequirement

� Presence of product substitute

� Anti-piracy movement



8/8/201110

CORPORATE APPRAISAL

Marketing Strengths:

� Good product

� Satisfactory price

� Good visibility

Marketing Weaknesses:

� No Marketing Department� Lack of long-term marketing strategy

� Lack of marketing research and disuse of

quantitative data for strategic purposes



8/8/201111

CORPORATE APPRAISAL

HRM Strengths:

� Very strict hiring system

� Periodic training for all instructors and staff that

ensure high level quality personnel

HRM Weakness:

� High turn-over rate



8/8/201112

CORPORATE APPRAISAL

Other Strengths:

� Strong reputation

� Synergy with sister companies

� Matriano Computer Center

� QUESTOR, Inc.

Other Weakness:

� Lack of formal management structure



8/8/201113

VICINIT Y MAP



8/8/201114

FIG. 1. HI-TECH BUSINESS PROCESS FLOW ON

COMPUTER TRAINING CENTER



8/8/201115

FIG. 2. HI-TECH BUSINESS PROCESS FLOW ON

SOFTWARE DEVELOPMENT



8/8/201116

FIG. 3. HI-TECH COMPUTER SALES/REPAIR FLOW



8/8/201117

FIG. 3. HI-TECH COMPUTER SALES/REPAIR FLOWFIG. 4. HI-TECH INTEGRATED SCM



8/8/201119

Developing Your Performance Roadmap

KEY ACTIVITIES TARGET ACTUAL REMARKS

I Operations

A Training Center

1. Increase no. of courses

offered

Currently exploring on care giving

classes

2. Meet target no. of enrollees On-track, increasing the scope

3. Manage schedule of classes

Being affected by space constraint and

lack of instructors

4. Increase laboratory

schedules


lack of instructors

5. Room schedules


lack of instructors

6. On-time completion of

courses

Classes and courses are delivered on

schedule

Target At risk

On-track



8/8/201121

Developing Your Performance Roadmap

KEY ACTIVITIES TARGET ACTUAL REMARKS

II Accounting/ Finance1. Tuition fees and

collection

On-track and is being managed

properly

2. Donation On-track, exploring opportunities

III Marketing/ Promo/ Sales1. Meet 10% annual increase

in sales

On-track, currently working on other

options or services that can be offered

2. Information dissemination

On-track, plan to tie up with other

organizations/ firms

IV HR/ Admin

1. Hiring of Teachers/Instructors

Searching for high calibercandidates

Target At risk

On-track



8/8/201122

How do we get there?Marketing/ Operations

Tie-up with other companies within the vicinity of EPZA for short termcourses:

Conduct seminars and free trial classesVisit their fairs and provide booths to promote the High-Tech servicesCoordinate with the HR Training of the companies and provide line upcourses and understand their need on the computer trainings

For computer Sales and Maintenance:Make a survey / environmental scanning on the existing internetcafé/laboratories and schools in the areaCoordinate and tie-up with this institution as target market for computer repairs and maintenance

Provide free services on the first 6 months and after sales supportIf possible, provide in-house training and support to those industries.For efficiency of services, need to look for investing a one stop shopsystem to cater the services and processes like SAP.



8/8/201123

How do we get there?

Per sonnel�Tie-up with other computer schools who would definitely provide

qualified graduates to teach and be part of the High-Tech org

structure.

�Get lists of graduates and conduct Jobs fair in the campus

�For people Development:oProvide enough trainings and attractive package

oDesign a career path that will attract applicants, like eventually

sending out for trainings, seminars etc.

�Offer part-time and temp teaching job to those employed

individuals who are willing to teach and be part of High-Tech

organizationoOffer classes on Sat and Sun so that part time employees can

teach

oNight classes might be another option to look into



8/8/201124


FinanceMake a study on the existing rates of training and courses, if

possible to lower down a bit for some courses as per bench

mark with the market, much better to attract partners

If possible to offer a much higher terms of payment for thoselong ± term contracts with companies, much better

Re-visit the discount rates if possible for those existing clients

and referrals (offer referral incentives if possible)

Close monitoring of the payments full and partial and

donations from known personnel.�Ensure on time collection of partial payment tuition fees

�Monitoring of scholars and qualified free courses to scholar

students, ensure there is a strong control



8/8/201125


Top ManagementStrategic positioning of the business by looking into a

potential expansionConsidering that there is currently an increasing

constraint on space (I.e. laboratories)Ensure quality services on time offered to clients

Close monitoring and expand the networks with the

other industries

Provide opportunities and ensure career growth of

employees and staffs



8/8/201126


Pur chasing

For people sourcing, coordinate and tie up with other schools and computer institutions, do jobs fair and offer

like a dry run initial screening

For the availability of parts for maintenance, look for

other potential suppliers

Have stocks or warehouse to store parts to ensure

enough parts will be available upon repairs.



8/8/201127


Pur chasing

For people sourcing, coordinate and tie up with other schools and computer institutions, do jobs fair and offer

like a dry run initial screening

For the availability of parts for maintenance, look for

other potential suppliers

Have stocks or warehouse to store parts to ensure

enough parts will be available upon repairs.



8/8/201128

Global Challenge

S M A R T

Define STRATEGY

Need to have clear objective on what is the roadmap of the business,is it going to be the most known IT school and develop a qualitygraduates or be a like a multi business firm (which includes the caregiving classes and sales of computers) but with the application of computer knowledge/technology.

Establish METRICS

Indicators should be clear and measurable and communicated to allthe stuffs and organization of HIGH-TECH.

Regular quarterly monitoring on the progress and areas forimprovement of the defined METRICS

Align your Organization

The structure should be well defined and cleared to the organizationto avoid confusion on the Roles and Responsibilities and understandthe clear cut definition of each of the function of the people.

This will eliminate duplication of work and opportunities for cost reduction/savings



8/8/201129

Global Challenge

S M A R T

Re-engineer, Re-design Process

Review existing courses being offered and have a regular planningsession with all the staffs to define the objectives either twice a yearetc.

Might be good if possible to tie up with a Process automation vendorslike SAP to improve the existing systems of the organizations.

Use TECHNOLOGY, Think THIRD PART Y

Need to have a cost and benefit analysis for a certain process plan tooutsource or put into 3PL set- up., however, if possible to have it in-

house by innovating the technology and less cost involve, better tokeep in-house.



Recommendations

Problem

Lack of space

Classroom/ Laboratory for

the Training Center Warehouse for Computer

Sales/ Repairs

Solution

Upgrade the facilities

to accommodate the

increasing number of students, and

to provide storage formaterials and supplies

Offer virtual office Create website

Offer on-line training

8/8/201130



8/8/201131

Implementation Timetable

Project: Improvement of Facilities

Estimated time to complete: 65 business

days

Task Name Duration Start Finish

Planning/ Analysis Phase 5 days Mon 10/1/07 Fri 10/5/07

1Prepare a proposal 2 day Mon 10/1/07 Tue 10/2/07

2

Identify constraints/

financing 2 day Wed 10/3/07 Thu 10/4/07 3Budget Approval 1 day Fri 10/5/07 Fri 10/5/07

Design Phase 5 days Mon 10/8/07 Fri 10/12/07

4Prepare layout 3 days Mon 10/8/07 Wed 10/10/07

5Evaluate layout 2 days Thu 10/11/07 Fri 10/12/07

Implementation Phase 15 days Mon 10/15/07 Thu 11/8/07

6Organize project team 5 day Mon 10/15/07 Fri 10/18/07

7

Prepare the physical

facilities 2 day Mon 10/22/07 Wed 10/24/07

8Materials order taking 3 day Thu 10/25/07 Fri 10/26/07

9Actual construction 44 days Mon 10/29/07 Fri 1/4/08

10Turn-over of project 1 days Mon 1/7/08 Mon 1/7/08

Use Phase 0 day Mon 1/8/08 onwards



8/8/201132

The Virtual Strategy

ON-LINE

INQUI

Wht tyeof

rodct or

service?

T INING

OURSE

SOTWRE

EVELOPMENT

OMPUTER

SALES /REPAIR

START

PRI ING AGREE? ISCUSSION

O TERMS

ON-SITE

VISIT

END

END

NO

ES

TERMSO

PAYMENT



Recommendation

Problem

Lack of project

monitoring for SystemsDevelopment

Solution

Develop own project

monitoring system that will showcase the talent of System Analyst andProgrammers.

8/8/201133



8/8/201136

Projected Cash Flows

2008 2009 2010 2011 2012CASH INFLOWS

INCOME FROM OPERATION 157,045 172,950 190,024 212,027 229,930

ADD BACK :

DEPRECIATION 32,100 32,100 32,100 32,100 32,100

TOTAL CASH FLOW 189,145 205,050 222,124 244,127 262,030

CASH OUTFLOWS

CAPITAL EXPENDITURES 342,000 0 0 0 0

PAYMENT OF INCOME TAX 15,705 17,295 19,002 21,203 22,993

TOTAL CASH OUTFLOWS 357,705 17,295 19,002 21,203 22,993

NET CASH INFLOW (168,560) 187,755 203,122 222,924 239,037

hi-tech scm - final

Documents