PROCESS IMPROVEMENT PROJECT

Process Improvement Project

Process Improvement Project

Overview of the Organization

Gary Burrell and Dr. Min Kao established the company “Garmin” in 1989. The company has been doing business since then, and evolved as one of the leading providers of navigation, communication and information devices. The company's business involves the designing and manufacturing of a wide range of user-friendly products, which include portable and fixed-mount products for the auto, mobile, outdoor, fitness, marine and general aviation markets.

In the current environment, there are more and more competitive and lower margins. As a result, the organization needs to seek opportunities for improvement in its processes to make itself more competitive than the others. One of the significant areas for improvement is the warehouse management. This area of logistics management is extremely significant for the organization to improve. It is an essential part when it comes to bring more value to customers and reduce costs (Ladley 2010, Pp. 369-552).

Logistics Issues

There are excessive costs of the processes related to procurement, production and storage due to the inefficiencies in the logistics processes. Therefore, the top management of the company needs make effective decisions to launch a project, which will take into consideration the analysis at strategic and operational levels. As a result, the management will be able to consider and implement appropriate logistics solutions to achieve new competitive advantages in line with the strategy. Following are the logistics issues for consideration:

Inadequate processes and information management in logistics

The lack of an overview of the logistics process by the company is generating inefficiencies in the entire process as much information as material is not flowing properly. This problem is basically due to two reasons (Ghiani 2004, Pp. 247-352):

Processes are designed, so that there is no flow information of different departments. The processes were defined for each of the departments ...