Monday, June 23, 2014

Operational Complexities Of 1-888-JUNK-VAN

Like any start up company, Marcus Kingo, owner of 1-888-JUNK-VAN, found himself dealing with the complexities of his company’s operations.  Mr. Kingo had always been an entrepreneur and discovered a way of making money with the disposal of solid waste.  Being the most profitable segment of waste management, Kingo wanted to capitalize on this opportunity

As the company grew he found it more and more difficult to manage the company itself from home with the operational system being used.

Number of staff:
·         2 call center operators
·         1 data clerk
·         3 drivers
·         3 helpers

The data was all collected throughout the day and entered in two shifts.  The morning shift call center operator entered new orders into the database and at the shift would have to email the database to the second shift operator.  The second shift operator would continue to enter orders but would also send out to the drivers the orders for the following day, as well as, email the database and the end of the day to the data clerk.  The data clerk would receive all the invoice, payments etc… from the drivers and integrate both databases.  Once integration was complete and payments processed, the updated database would be forwarded to the morning call center operator in order to continue to operational cycle.

Operational Problems:
·         Human error on the part of the call center operator and data clerk
·         Missing required data for invoicing, for example, customer emails
·         Drivers did not use templates to issue invoices and receive payment
·         Incorrect database’s were forwarded creating inaccurate data usage
·         Time consuming in correcting and updating database

Kingo required an operational program to help him manage his data in a remote access way in order to continue to run his business as a home based company.  This allowed him to cut costs on a facility rental as the company was still a small company.

Alternatives to solve the Operational Issues:

·         Microsoft Access Database
o   Could be implemented in a timely matter
o   Small budget required
o   Remotely accessed through VPN
o   $179 license price per computer
o   Not familiarized with shared server set-up
o   Might need to hired extra help with technical information

·         Custom Application
o   Customized application
o   Web-based systems provide remote access
o   Price of $2,000
o   Maintenance charge $60 per hour, per developer
o   Data migration not included
o   Application cannot be review beforehand which could create delayed if not correct

·         Google Docs
o   Free accounts up to 10 users
o   $5 per user per month, or $50 per user, per year
o   Online applications
o   Users work simultaneously on the same file
o   User profile specifications, for example, read only, or full access
o   Quick and easy to use
o   Data spreadsheets do not allow for relationship creation among spreadsheets
o   Data saved in “Cloud”, might create confidentiality problems due to sensitive data

·         Platform as a Service
o   Cloud computing
o   Capability to create your own applications
o   $300-$600 per month costs, dependent on storage space required
o   Additional customization $180 per hour
o   Includes data migration

·         Enterprise Resource Planning (ERP) System
o   Centralized database
o   Small firms expected to have 20 to 25 users
o   $2,500 per user per year
o   Higher licensing budget required
o   One pack for 4 licenses $12,000
o   Too much financial modules provided which were not needed

Out of the 5 alternative options, we are able to see that and ERP System would not be considered as it is too costly and not required due to the size of the company.  As a start up company, cost plays a big fracture when making this decision, so with that Platform as a Service and Custom Application are also not suitable.  Leaving Google Docs and Microsoft Access Database as the only liable solutions.

Google Docs meets all requirements with a small issue in regards to confidentiality.  Information entered into the spreadsheets will include payment details, for example credit card information.  This could present itself as a risk for the company decreasing orders as customers might find this non acceptable.

Microsoft Access Database is the way to go with a start up company.  With its small cost of $179 per computer costs can be cut here.  All requirements are met as long as additional technical skills are added to the personnel.  In this case the best solution would be for Marcus Kingo to invest in a Microsoft course at his local community college in order to familiarize himself with the product.  Except the additional purchase of SharePoint would have to be made.

Alternative Recommendation:
·         Windows Small Business Server 2011 Standard
o   Provides small startup business’ with all the operational essentials
o   Provides crucial remote access through a VPN “SharePoint”
o   $1,347.95 onetime purchase cost on Amazon
o   Allows all users to connect to the company’s networking using VPN

o   Can be setup easily by accessing the Network and Sharing Center in the Start button on Windows 7 PC

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