Salt River Labs Case Study
Q- What is the major problem at SRL? Who are the people involved and how do they contribute to the problem?
1. There are many problems that are apparent at Salt River Labs. The first major problem is the purchasing process. There are way too many people involved in this process. The current process involves series of five different people, or groups of people. This starts with the Chemists who send requisitions to supervisors, who send the requisition to Suzie Martinez, who sends the same requisition to Barbara, who finally sends the requisition to Arthur who makes the final decision about the requisition. Once a decision to approve or disapprove the requisition has been made, the requisition gets sent to Paul …show more content…
Then, we can get to the bottom of the financial problem.
Q-Develop a flow chart of the current purchasing process. Analyze it and make recommendations for improving the process. Show a flow chart of the process improvements you would recommend.
2. As mentioned above, the purchasing process that Salt River Labs is currently using is a very inefficient one. As shown in the Exhibit, at the end of this report, the current process involves a very large amount of unnecessary steps and paper movement. All of these different movements really slow the process of purchasing materials and supplies down drastically. The 2nd flow diagram demonstrates and suggests a more efficient way of going about the process of acquiring the materials needed. First we eliminated the unnecessary steps, Susie Martinez and Barbara Bensen, so that the requisition could get through much quicker. When the requisition gets approved, instead of sending it back to Susie or the supervisors, it get sent directly to Paul Jensen. By eliminating the middlemen in this process, SRL is easily able to get their materials in a quicker, and cheaper way. *Refer to Exhibit on page 6.
Q- Is the inventory control system at SRL meeting the needs of the organization? 3. The inventory control system is not meeting the needs of the organization. The current inventory “system” consists of a bunch of boxes