Module 3 Milestone Assignment

Date: 22/01/2021 Owner: Oluwatobi Osho
TITLE: OPM 6090 TECHNOLOGY OPERATIONS MANAGEMENT: Approval Date: Manager Approval: Emmanuel Dotong
MODULE 3: BUSINESS PROCESS ANALYSIS
PROBLEM DEFINITION DESIRED CONDITION (BPMN DIAGRAM)

The process of sending a Local Purchase Order (LPO) and raising an
invoice in the company requires a chain of processes that is time-
consuming, cumbersome and involves lot of paper trail, all which increases
inefficiency, causes the company to spend more and delay supplies to
customers.
BACKGROUND
Ark Pharma Group is a pharmaceutical company that provides medical
products to the end-users through middlemen called Distributors.
Distributors are expected to raise an LPO which is sent by the company’s
medical representative (Med. Rep) to the company’s Sales administrator
for invoicing. From when the order is generated to when it is invoiced and
sent to Supply chain, it takes an average of 2 – 8 hours to treat an invoice,
thanks to the processes and paper trail.
CURRENT CONDITION (BPMN DIAGRAM)

BENEFITS
- Improved efficiency
- Average LPO-invoice timeframe reduces by 50-92%
- Zero paper trail
- Increased cost-efficiency
RISK AND MITIGATION
S/N RISK MITIGATION

1 Customers’ inability to The customers will be trained on
use the application how to use the app. The Med Reps
will be instructed to always make
themselves available to guide the
customer. The app will be designed
for easy navigation
2 Ark Pharma App crash The application design will require

minimal phone specifications and
so will function well on phones
even with the barest sophistication.
ROOT CAUSE ANALYSIS (5 WHYS) 3 Possible network Nothing can be done as regards
downtime: The event this
when there's a general
Why? The LPO-invoice process is inefficient and costing the company network downtime with
more network providers
responsible.
Why? Raising an invoice takes an average of 2-8 hours
Why? Sales admin can't raise the order without necessary sign offs
Why? LPOs must first be printed and signed
Why? Stated process to send an LPO and raise the corresponding order are
more manual than digital (Root cause).
TITLE: OPM 6090 TECHNOLOGY OPERATIONS MANAGEMENT:
The process of sending an order and raising an invoice in the company requires a chain of
processes that is time-consuming, cumbersome with a lot of paper trail, The company, Ark
Pharma Group, have employees called Medical Representatives (Med. Reps) who are
stationed in various states called Stations. The primary assignment of these Med. Reps
include marketing, generation of orders, building new customers and maintaining
relationships with customers.
Sending an LPO is the first step in having an invoice raised for a customer. LPO is an official
document from a customer requesting that the customer delivers to them products in
quantities stated in the document. The Med. Reps are first required to go to the customer who
writes the LPO on a letter-headed document and signs it. The Med. Reps then snaps the
document and sends it via email to the sales administrator. The sales administrator prints the
document and takes it to the General manager who vets the LPO before clearing it for
invoicing with a signature. This document is then taken to the Commercial director for
vetting who also has to sign off before it is invoiced. In the event if any of these two required
signatories are not available, the LPO will be suspended till they are available to sign off. The
sales administrator can now raise the LPO. The invoice is printed and sent to Finance
department for vetting and sign off before it is sent to the Supply chain department.
Treating individual invoices like this takes an average of 2-8 hours before an invoice is sent
to Supply chain. In the absence of top management including general manager and
commercial director (due to a possible emergency), invoices might not be raised and there
will be increased downtime. Another concern is the paper trail. An average order-invoice
uses at least three papers, with 66% coming from the company. This might seem negligible,
but when you multiply this by an average of four orders from at least a thousand customers
every month, then it might not be a good look, including papers used for essentials, for a
company whose one of its core values is sustainability.

TITLE: OPM 6090 TECHNOLOGY OPERATIONS MANAGEMENT:
Enters the Ark Pharma App.
The app will totally affect the whole process but majorly, how the LPO is sent by the
customer, how the required signatories are gotten, how invoices move to the last end and how
Finance receives information on every invoice.
The customer will fill the order on the app, and click 'Send'. The order will be received by the
Sales administrator who will patch it through to the General manager (G.M) and the
Commercial director (C.D). The General manager and the Commercial director will digitally
sign off, The order will be raised by the sales admin via the app and invoice automatically
sent to Supply chain while Finance department will download necessary information from the
backend.
This will lead to an LPO-invoice process that involves zero paper trail and reduces the overall
company’s paper usage by about 7%.
With the app, timeframe to treat individual invoices drops by 50-92% (approximately 1-
2hours) as the whole process is online and signing can be done simultaneously. Factor in the
time it takes to print and walk to the offices where the documents will be signed, then the app
saves the employee more time, taking downtime to the barest minimum and boosts
cost/manpower-efficiency.
A reduction in timeframe for treating orders will mean that supplies will be sped up and
customers will find that more satisfying which is a good impression for the company's
business.

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Module 3 Milestone Assignment

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Date: 22/01/2021 Owner: Oluwatobi Osho

PROBLEM DEFINITION DESIRED CONDITION (BPMN DIAGRAM)

CURRENT CONDITION (BPMN DIAGRAM)

RISK AND MITIGATION

S/N RISK MITIGATION

2 Ark Pharma App crash The application design will require

include marketing, generation of orders, building new customers and maintaining

relationships with customers.

company whose one of its core values is sustainability.

Finance receives information on every invoice.

company’s paper usage by about 7%.

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