Assignment 2 Lasa 1 Business Case And Project Proposal

Assignment 2 Lasa 1business Case And Proposal For Project Selection

Assignment 2: LASA 1—Business Case and Proposal for Project Selection You work for Centervale Apparel, a large clothing manufacturing firm. Centervale Apparel has budgeted $9.7 million for new technology initiatives in the coming year but the project requests currently in the queue for next year total about $15 million. Your boss, the executive director of operations, has asked you to put together a proposal for this project to replace legacy order fulfillment technologies by implementing a supply chain management (SCM) system. Your boss wants to ensure this project will be prioritized over other projects on the list and will be implemented in the coming year. Use the following data to prepare a proposal using a balanced scorecard approach to demonstrate the project’s value to Centervale Apparel.

Here is your brief. Business Problem: The order fulfillment team has been using several legacy technology systems to manage inventory and distribution. The current systems do not work together, requiring redundant information input and processing. Because of the redundant processes, work is duplicated requiring multiple data entry points and sometimes results in inaccurate and irreconcilable data. There is a constant overage or shortage of supply due to the time it takes for data to get from one point to another. This causes unhappy customers and inventory carrying costs that could be avoided. Project Description: Replace legacy order fulfillment technologies by implementing a SCM system. Project Cost: The project will cost approximately $1.2 million including infrastructure and resources to complete the implementation and $250,000 annually to support and maintain the new system with a ten-year lifecycle for the system. Project Benefit: It is estimated that the implementation of a supply chain management system will improve the order fulfillment processing time and reduce inventory-carrying costs. Implementing the SCM system will also enable the retirement of several legacy systems. Estimated annual cost savings are: Data entry staff reduced from 10 FTE to 8 FTE = $100,000/yr savings Reduction in inventory carrying costs = $300,000/yr savings Improved order fulfillment = 10–20% decrease in order to delivery time. This will improve customer satisfaction and retention Improved data accuracy Legacy system maintenance retirement savings = $100,000/yr Using the information that details the primary business goals for the coming year, you will need to demonstrate how implementing the SCM system will help achieve the business objectives. Note: Customers are retail companies who order from this clothing manufacturer. Assume a ten-year lifecycle for the SCM system. Using the module readings and the Argosy University online library resources, research methods of developing proposals by applying the balanced scorecard approach. Select two scholarly resources for use in this assignment. You will use these resources to justify your recommendations. The proposal should include the following: Describe the measureable value. This should include a cost-benefit analysis, such as payback period or ROI that relies on tangible measures of organizational value through cost savings, revenue enhancements, or improvements in the speed, quality, or efficiency of key processes that help achieve competitive advantage (note the difference between tangible and intangible measures in this proposal). Evaluate and choose alternatives. Make sure to identify any alternatives to the project implementation and provide a justification for each. Complete a risk assessment of all risks associated with implementing the project using an enterprise risk management (ERM) model. Describe total cost of ownership and include descriptions of implementation project and ongoing maintenance costs. Explain the benefits of the project, which include tangible and intangible benefits. Fully justify a recommendation with a compelling proposal that aligns to the business goals.

Paper For Above instruction

Implementing effective supply chain management (SCM) systems is essential for modern manufacturing organizations like Centervale Apparel to maintain competitiveness, optimize operations, and enhance customer satisfaction. This proposal leverages the balanced scorecard approach to evaluate the strategic value, financial implications, and risks associated with replacing legacy order fulfillment systems with an integrated SCM platform. It provides a comprehensive analysis of tangible and intangible benefits, potential alternatives, and a justified recommendation aligned with the company's business goals.

Introduction

Centervale Apparel operates in a highly competitive retail clothing market, where efficient order fulfillment is critical to customer satisfaction and cost management. Currently, legacy systems used in inventory and distribution management operate independently, causing redundant data entry, inaccuracies, and delays. These deficiencies result in increased inventory costs, delayed order processing, and dissatisfied clients. The proposed project aims to replace these systems with an integrated Supply Chain Management (SCM) system, which promises improvements in processing times, data accuracy, and cost reductions, ultimately providing a competitive advantage.

Measurable Value and Cost-Benefit Analysis

Using the balanced scorecard framework, the primary financial metrics for the project include tangible benefits such as cost savings and operational efficiencies. The project investment totals approximately $1.45 million over ten years, including $1.2 million for implementation and $250,000 annually for maintenance. The analysis estimates annual savings of $500,000, derived from reductions in data entry staffing, inventory carrying costs, and legacy system maintenance costs. The reduced staffing from 10 to 8 full-time equivalents (FTEs) leads to $100,000 annually saved. Additionally, inventory savings of $300,000 per year and legacy system retirement savings of $100,000 further contribute to financial benefits.

The project’s payback period is approximately 2.9 years, calculated by dividing the initial investment ($1.45 million) by the annual net savings ($500,000). Furthermore, the Return on Investment (ROI) over ten years exceeds 300%, signaling significant organizational value. These tangible benefits foster swift recovery of the investment and sustainable cost advantages.

Evaluation and Selection of Alternatives

Alternative options include maintaining current legacy systems, which would avoid initial costs but result in continued inefficiencies, or incremental upgrades to existing systems, which may be insufficient for long-term scalability. A third alternative involves outsourcing supply chain functions to third-party logistics providers. However, this could impact control and customization. The chosen alternative—full in-house implementation of an SCM system—offers the best balance between control, customization, and strategic value, aligning with business goals focused on operational efficiency and customer satisfaction. Justification for this choice stems from the superior long-term cost savings, improved data accuracy, and ability to retire outdated systems.

Risk Assessment Using ERM

The enterprise risk management framework identifies potential risks including technological integration failures, project scope creep, user resistance, data security breaches, and vendor dependency. Technological risks can be mitigated through phased implementation, rigorous testing, and vendor vetting. Change management strategies, including staff training and stakeholder engagement, reduce resistance. Data security risks are managed with robust cybersecurity protocols. Vendor reliance is addressed via service level agreements and contingency planning. Overall, a comprehensive risk mitigation plan minimizes potential negative impacts, ensuring a smoother implementation process.

Total Cost of Ownership and Maintenance

The total cost of ownership over ten years includes initial implementation costs ($1.2 million), annual maintenance and support costs ($250,000 per year), and ongoing staff training and system upgrades. The initial infrastructure investment covers software licensing, hardware upgrades, and integration processes. Ongoing costs encompass system support, cybersecurity, regular updates, and user training. Economies of scale and the retiring of legacy system expenses contribute to reducing total ownership costs over time, improving overall financial viability.

Benefits of the Project

Beyond the immediate tangible benefits—cost savings, improved order processing speed, and inventory management—the project offers intangible benefits such as enhanced data accuracy, greater scalability, and improved customer satisfaction. Faster and more reliable order fulfillment translates into increased customer retention and brand reputation. The ability to retire outdated legacy systems reduces ongoing maintenance complexity and resource drain. These benefits align with the company’s strategic goals to streamline operations, reduce costs, and enhance competitiveness.

Conclusion and Recommendation

Based on the balanced scorecard analysis, financial metrics, risk mitigation strategies, and alignment with strategic goals, it is recommended that Centervale Apparel prioritize the SCM system implementation for next year’s technological upgrades. The substantial ROI, rapid payback period, and broad strategic benefits justify the investment. Proper risk management and detailed planning will ensure successful deployment, ultimately strengthening the company's operational foundation and market position.

References

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