Auto Assemblies Pvt.

Ltd

Getting an Overview of the Case Company analysis: The organisation is an old player in the market of business of manufacturing auto assemblies for car OEM market and spare part market. AAPL has been in this business for over 15 year. It has an international recognition. 6 years back aapl had shifted its main focus to Japanese and Korean Car manufacturers who had set up new plants.

) Financial Statement Analysis: The financial system was based on IBM technology. The business was doing good after shifting its palindrome to new businesses.

19992000 total cost 460

2000-01 509

2001-02 540

2002-03 594

Ratio analysis:-

Marketing System aanalysis: Targeting minimum 3 more companies in the coming financial year. Problem faced is the poor document maintainence, data upgradation ,and creating online sales order and purchase order. Lack of modern technology. Handful human resources. The weak IT management was threatening the loss of potential customers as well as hindering the expansion of business.

Production and Distribution Systems:-

Weak supply chain management. Just in time inventory which hindered the production cycle. Poor warehousing and logistics. High work in progress costs and delay of time. Late invoicing by a week.

Organizational Structure The Md takes keen interest in expansion of business. The communication between levels of organisation was optimal. The heads of various departments communicated via meetings held. The new CIO with experience was appointed on whom the organisation had hopes lied on. The organisation has a vertical flow of leadership and authority ie the targets were assigned by the high level management along with resources and the deadlines were provided to accomplish them. RN D dept analysis: The dept wanted to implement new production technique which required for the competetion. They required the CAD system.

IT analysis:The company had an outdated It system which did not meet the exapanding needs of the system. The employeed staff in the IT of about 67 were excessive as per the size of the organization. All the designers of the system left the organisation which resulted in lack of experts in the company for the maintainence and upgradation of the IT system. Problems of improper inventory mangemnet , poor supply chain management, improper documentation , lag in invoicing , were due to improper upgradation or lack of IT support. web-based system to track warranty support AAPL was providing to its client. Competition anaylsis:The study of outsourcing markets of India and China and the work of the IT companies working for auto part manufacturers in Germany and Japan made the aapl realize that their IT section lags behind which hinders the working of corresponding depts. Of company as stated above and requires immediate updation.

Problem Statement:-

Ploblem areas: The campany wants to increase the profitability by 5 % points and has to take according measures. Poor and outdated IT system is one of the major problem the organisation is facing. The marketing team faces the problem of poor sales order creation which creates problem in getting electronic orders from potential customers like Hyundai and Toyota. Delivery status on online basis was required with minimum lag time of 1 hour which in the present scenario was found to be of 1 week. The r n d dept. required the CAD system to be installed in order for auto assembly . improper management and inappropriate human resources in IT department. Improper logistics leading to increase in waiting time of 45 days which in turn increasing WIP. Attrition resulted in Lack of experts for updating and maintainence of IT systems. Outsourcing preparation of It plan of aapl to abc consultants for 3 years had to be followed back. Web based system was crying need of AAPL. Improper maintainence of documentation.ie use of worksheets which is not fulfilling the growing needs. Affect of the problems: R nd is unable to have automate assembly system. Profit is deteriorating. Expansion of market is hindering. Viz company is unable to fulfil its upcoming goals. There are chances of losing potential customers like Hyundai and Toyota. Comepetion with other IT companies using automated web based systems to get market of japan and germany. Documentation is becoming cumbersome. Company is losing revenue due to inavaialabilty o f web based system. Lot of revenue is wasted in WIP.

Objective:The objective is to make an IT strategy and budget of 2003-04 and present it to the Md of the company within the deadline of 10 days. The motive of this analysis report is utilize the budget of 4 to 5 crores rupees for the proper udgradation and development of web based system and maintainence of IT technology of AAPL in order to achieve the profit growth of 5 % points.thus to come up with most optimal IT starategy and budget for the company

Analysis of alternatives:Recommended solution and justification.:Implementation::-