Workweek 3: Generate Quotes For Customer Contact And Conduct

2 Wks3 Wksgeneratequotesqocustomercontact Customerconduct Pocconduct S

Generate Quote SQO Customer Contact Customer Conduct POC Conduct Sales Mtg / Demo Sales / Technical Review Special Bid Deliver Quote Execute Proposal Finalize Procurement PT = 5 days LT = 2 wks PT = 3 hrs LT = 1 wk PT = 2 wks LT = 3 wks Total PT = 138 Hrs (3.4 wks) Total LT = 605 Hrs (15.1 wks) 5 days 2 wks Current State Value Stream Mapping for Sales Conversion PT = 3.5 hrs LT = 4 wks 2 hrs 2 wks 3.5 hrs 4 wks a PT = 2 hrs LT = 2 wks Sales Technical Pricers Review Standard Bid PT = 20 min LT = 1 hr 6b Pricers Sales PT = 3 hrs LT = 3 hrs Sales Sales PT = 2 hrs LT = 2 wks PT = 4 hrs LT = 3 wks Sales hrs 2 hrs 3 hrs 1 wk 3 hrs 3 hrs 4 hrs 3 wks Current State Metrics for Sales Conversion Overview of the Process The Sales Conversion Process begins with contact with the customer and includes the activities to understand their requirements, present a solution (both in concept and to prove out), provide pricing proposals through to procuring the software and executing a PO. The Sales Process has not been traditionally included when mapping operations within an organization; thus, there are no defined metrics for the steps of the process. The PT and LT times shown are anecdotal and should be more formally assessed by “going to the gemba.†Challenges As a workforce, Sales reps are likely one of the hardest groups to map as many Sales Reps would argue that what they do is more art than science. Typically, Sales Reps have not been required to account for their time to any detail. This makes the Sales Process challenging in that there have not been any true time studies to use a foundation. The Sales Process needs to be studied at the process level, not at an individual customer level. There are categories of waste within the areas of waiting, extra processing, correction, etc. Much of the process is manual, and likely to continue to be manual, which means you are relying on human action which is prone to error, distraction, etc. This is further support to study in detail. Variability is a third challenge. The variability across reps (personalities and skills), customers, industries, and geographic locations makes it harder to determine what is value add and what is wasteful which will be critical in establishing a process on a large, repeatable scale. There is also variability in the execution of the process (what steps are taken, in what order, etc.) which causes variability in the process times. Bottlenecks Within Sales, the customer is heavily involved. There is a lot of external wait time spent waiting for the customer to respond, be available, etc. As an example, the Meeting noted is on average 2 hours; however, the elapsed time is 2 weeks. This time is waiting for the customer to respond and to find available time on their calendar that matches your own. Another example is the procurement process. At this point, the Sales Rep is waiting for the customer to complete their own procurement process. These are not controllable within the Sales Process and therefore contributes to the longer lead times. The primary internal bottleneck has to do with the quote/proposal generation which is a very manual process. The Sales Rep creates the quote, submits it to a Pricer and then the Pricer reviews it to make sure that it meets specifications. If there is inaccurate or missing information, he will return the quote to be fixed. If not, he will process it and the quote will be generated and sent to the rep for customer delivery. For a pricer, the review can be as little as 10 minutes to days of back and forth with the Rep. There is variability in the types of bids being reviewed as well as volume due to time (end of month, end of quarter, etc.). It is not uncommon to have over 10 bids in their queue at a time and frequently working 3-5 bids at the same time. This is an area that contributes to the long delays but also is an area that could benefit from analysis to determine value add vs. wasteful steps. Current State Highlights image1.png image2.jpg image3.png MAN 4504 Operational Decision Making Insert Date Insert Name Florida State College at Jacksonville Value Stream Mapping and Analysis: 1 Current State Value Stream Map Title: : Customer Insert LT Insert PT Insert LT Insert PT Insert LT Insert PT Insert LT Insert PT Insert LT Insert PT Insert LT Insert PT Total LT = Total PT = * Total LT and PT are calculated by summing the LT and PT values for all processes. 2 Value Stream Current State Overview Overview of the Process Describe the process here Challenges List and briefly describe the challenges here List and briefly describe the challenges here List and briefly describe the challenges here Bottlenecks List and briefly describe the bottlenecks here List and briefly describe the bottlenecks here List and briefly describe the bottlenecks here References Martin, K. & Osterling, M. (2014).

Paper For Above instruction

The current sales conversion process is a complex and multifaceted operation that involves multiple steps from initial customer contact to final procurement. Understanding and optimizing this process is critical for improving sales efficiency, reducing lead times, and minimizing waste. This paper examines the existing process, highlights its challenges, identifies bottlenecks, and provides strategic recommendations grounded in lean principles and value stream mapping (VSM) to enhance overall performance.

Introduction to the Sales Conversion Process

The sales conversion process begins with customer contact, where initial engagement seeks to understand customer needs and establish rapport. Subsequently, this pathway includes presentations, technical reviews, bids, proposals, and procurement activities. Historically, organizations have not systematically mapped these steps, leading to a lack of quantitative metrics and insight into process efficiency. This absence of metrics impairs targeted improvements, making it imperative to first establish clear measurements of process times and delays.

Current State of the Sales Process

The process comprises various stages, each with estimated processing and lead times. For example, initial customer contact and needs assessment involve approximately five days of process time (PT) and a two-week lead time (LT). Technical reviews, proposal development, and quote generation are characterized by manual efforts, with PTs reaching up to 20 minutes for bid reviews and several hours for sales activities. Procurement is often delayed due to external dependencies, such as customer procurement procedures that are beyond the control of the sales team.

According to the gathered anecdotal data, the total processing time (PT) sums to approximately 138 hours (around 3.4 weeks), while the cumulative lead time (LT) spans roughly 15.1 weeks (605 hours). Although these figures highlight significant delays, they are based on informal assessments and emphasize the need for detailed data collection through 'going to the gemba', or observing the process directly.

Challenges in the Sales Conversion Process

The primary challenge involves the variability in process execution, driven by human factors, customer responsiveness, and manual procedures. Sales representatives often regard their work as an art rather than a science, resulting in inconsistent process adherence and undocumented time utilization. This variability complicates efforts to develop standardized procedures and identify wasteful activities.

Additionally, the extensive manual effort required in quote generation and bid review introduces delays and potential errors. Most stages are susceptible to waste due to waiting times—especially external delays caused by customer responsiveness. For instance, customer meetings, despite being short in duration, can span up to two weeks in elapsed time due to scheduling conflicts and waiting for customer responses.

Procurement cycles further extend overall lead times, owing to dependency on external customer processes. These delays are not controllable internally, highlighting areas where process improvements may have limited immediate impact.

Bottlenecks in the Sales Process

Internal bottlenecks primarily occur during quote and proposal generation, a manual effort that consumes significant time and resources. Sales reps prepare quotes, which are reviewed by pricers—a process varying from 10 minutes to multiple days, depending on bid complexity and workload. Overburdened pricers manage multiple bids simultaneously, resulting in extended delays, especially at the month-end and quarter-end peaks. This manual review process, compounded by inaccuracies or missing information, often requires back-and-forth communication that further prolongs the cycle.

External bottlenecks include customer response times and procurement procedures, which are inherently beyond the sales team’s direct control. These external factors substantially contribute to the long lead times observed, underscoring the importance of stakeholder collaboration in process improvement initiatives.

Analysis and Recommendations

Applying lean principles and value stream mapping techniques reveals several opportunities for targeted improvements. First, automating parts of the quote and proposal generation process could reduce manual effort and mitigate delays. Implementing standardized templates and decision-support tools can streamline review cycles and improve accuracy.

Second, establishing clear metrics for process steps will facilitate ongoing measurement of efficiency and waste. Developing dashboards for real-time monitoring can aid decision-makers in identifying bottlenecks quickly and deploying corrective actions.

Third, recognizing external delays underscores the importance of proactive customer engagement strategies and early alignment on procurement timelines. Regular communication, pre-qualification processes, and stakeholder involvement can reduce waiting times and improve overall responsiveness.

Finally, fostering a culture of continuous improvement among sales teams through training and data-driven analysis will be essential for sustaining enhancements. Investing in process automation, stakeholder collaboration, and data collection analyses promises a more predictable, efficient, and repeatable sales process.

Conclusion

The sales conversion process, crucial for organizational growth, faces significant challenges and inefficiencies rooted in manual procedures, variability, and external dependencies. By adopting structured process mapping, standardization, and automation strategies, organizations can reduce lead times, minimize waste, and enhance customer satisfaction. Continuous assessment and stakeholder engagement will be vital to sustain these improvements and develop a more agile, scalable sales operation.

References

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