Presented by:

Tony Chaio | John Chu | Jervis Huynh

Raymond Lam | Yuko Miyazaki | Kent Yung t

Agenda Company Description Project Management Process Design Inventory Management Supply-Chain Management Forecasting Product Design Conclusion QUESTIONS?

Company Description Founded in 1996 by Minh Ngo Retail & Online Sales of Consumer Electronics 7 Locations Own brand of accessories – Velocity 100 million in Annual Revenue 219 Employees Strategy revolves around “Best Customer Service

Possible” & “Price Match”

“If a customer doesn’t return after purchasing from us, we don’t deserve their business” – Minh Ngo

Richmond Location

Opened in October 2010 As of July – Total Revenue is approx $7

mil 29 Employees 3 Store Managers 26 employees – Sales Rep, Technicians,

CSR & RMAs

Project Management Computer Gaming Tournament

› 60 Participants w/ capacity of 100› 4 major sponsors

Informally Planned› Project Manager- Mr. Damian Cheytanov,

Richmond Store Manger› No PM tools used

PM- (Cont.) Project Scope

› Acquire a minimum of 3 sponsors› Assign 3-4 additional employees › Find an adequate location› Ensure sponsorship equipment arrives on

time› Setup equipment & ensure computers and

software is running perfectly

PM Recommendations Utilize project management software

› MatchWare MindView 4.0 Provides a WBS Brainstorm and visualize ideas Accelerates project planning

› Microsoft Project 2011 Creates Gantt Charts Comprehensive definition of critical tasks

and subtasks Generate a timeline

Process Design

Current Processes Issues Recommendation

On

line O

rder

Pro

cess

• Lost sale due to e-commerce

• Urgent purchase (Gift)

• Transit times of parts

• Delays in transport

• Delays in manufacturing

Recommendations

Increase minimum carrying quantity for common components › Minimum carrying quantity for items less

sensitive to obsolesces› Implement safety stock

Inventory Management Current Inventory Models

› Count two product groups per day› Min / Max Replenish System

Obsolescence › Laptops, motherboards and video cards

Shrinkage› 1.5% shrinkage, approximately $80,000› Laptop memory, Flash Memory and Hard

Drives

Lapt

op m

emor

y

Flas

h Mem

ory

Hard

Drives

Compu

ter A

cces

sorie

s

Games

/Dvd

sGPS

Camer

as

Headp

hone

s$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

0%

20%

40%

60%

80%

100%

120%

MEMORY EXPRESS - Shrinkage Pareto Chart

Annual Dollar ValueCummulative

items that contribute to Shrinkage

Tota

l d

ollar

am

ou

nt

per

year

Inventory Management Issues

› Counting model does not take accurate screenshot of all inventory

› High holding costs compared to JIT

Recommendation› Centralized warehouse needed for

expansion in BC› Continue with Min/Max inventory system

Supply-Chain Management

Reverse Logistics

ME

Supply-Chain Management

Make or Buy Decision Issues Recommendation - Transportation - Storage - Labour - E-commerce Sales

Forecasting Current Technique

› Only Qualitative method

“Jury of Executive Opinion” Issues

› Need additional methods

Recommendation› Quantitative forecasting

(Exponential Smoothing Model etc.)› Sales Force Composite

Monitors

Month Actual QForecastin

gForecastin

gForecastin

g Forecasting

α = 0.1 α = 0.2 α = 0.5α = 0.0

(Opt)Oct 163Nov 178 166.22 166.22 166.22 166.22Dec 190 170.74 172.27 178.28 169.44Jan 182 176.20 180.22 193.24 172.67Feb 175 180.37 185.05 193.91 175.89Mar 175 183.37 187.11 186.01 179.11Apr 185 185.99 188.28 179.32 182.33

May 153 189.33 191.08 182.39 185.56June 192 188.78 185.39 160.58 188.78July 192.21 188.91 177.03 192.00Aug 195.32 191.11 177.76 195.22Sep 198.44 193.31 178.50 198.44Oct 201.55 195.51 179.24 201.67Nov 204.66 197.70 179.98 204.89

MAD 11.39 12.68 16.39 10.64MSE 15.71 16.61 18.59 14.76

MAPE 6.7% 7.5% 9.3% 6.2%

Exp

onenti

al S

mooth

ing

Product Design

In-house brand “ Velocity” LCD TV Mounts, External HDD, PC

Tower Development is initiated when an

opportunity is discovered Product Design & Production is

Outsourced to China Design sample is reviewed by

Executives & Experts within the Company

Recommendations

Use House of Quality Do Primary Research on Technological

Capabilities.› After a survey, we discovered some

characteristics of HDD that consumers sought after. i.e USB 3.0 & Low Operating Noise

› Velocity branded External HDDs are lagging behind competition in these 2 areas.

Hou

se o

f Q

ualit

y

Conclusions Reevaluate three of the company’s

weaker operational aspects.› Project Management› Forecasting› Product Design

Improvement means › Greater Cost Savings› Efficiency› High Quality Products

Questions?