2 1 Competency 1 Assessment OPS/574 Process Evaluation One of the services

2
1
Competency 1 Assessment
OPS/574
Process Evaluation
One of the services that Shopify provides to its merchants and vendors is order fulfillment. This process is necessary, particularly where these stakeholders are incapable of effectively executing this process on their own (Shopify, 2022). One of the key processes of performing this activity is order consolidation and shipment, where the organization will aid its merchants fill large orders by consolidating all the available inventory into a single order fulfillment center and then dispatching it to its intended origin/consumer. This process can be tedious for Shopify, especially given that most vendors are new at running their organizations (United States Securities Exchange Commission, 2021). The firm encounters various challenges that may lead to potential errors or defects in its order consolidation process. Thus, driven by the need to further understand the challenges that affect the process within Shopify, the assessment sought data from one of the company’s employees. In the process evaluation, I need for you to only discuss the process. What will you do to improve this process?
Upon acquiring the data, I used a control chart, and a select intervention, the Pareto analysis, to further understand the key causes of the errors experienced, and help this organization establish the appropriate solutions/remedies to the problem. This paper focuses on improving Shopify’s order consolidation process to enable customers to combine more than one order. The limitation was that every order on the platform has a specific order number that defines it, and consolidating them would mix internal data and reference details. Why consolidate? I receive orders all the time for businesses in various packages and the order is not consolidated. Therefore, Shopify customers had to work around the challenges. However, the improvement procedure involves developing a dashboard with the following tabs; Orders (available), Draft Orders and Create Order. This platform will allow customers to consolidate their purchases.
What is your expected outcome? You are to look at each step and identify what should change to improve the process. This is what a process evaluation is all about. ME
Evaluation of Control Chart and Process Metrics
The evaluation of this process was guided by a control chart and the process metrics. First, the data captured provided the number of incorrect products per the consolidated orders from 15th to 21st May 2022. Second, the order consolidation process for the sampled shipment provides detailed information regarding the number of correct and incorrect orders. Third, the order timeline provides information on the time it took customers to process particular orders. The analysis includes the total number of processed orders in the 7-day period. Below is the table summary of the correct and incorrect consolidated orders from May 15 to 21, 2022.
Days
15th
16th
17th
18th
19th
20th
21st
Total
Correct Consolidated Orders
227
213
199
223
248
175
215
1500
Incorrect Consolidated Orders
22
25
18
29
20
17
19
150
Table 1: 7-day data on the number of correct and incorrect orders as per the consolidation.
From the above data, it was possible to establish the key process controls for this period, such as the lower and upper limits of the number of correct and incorrect products.
Figure 1: 7-day data on the number of correct and incorrect products per the consolidation.
The control chart is incorrect. Please see the video on how to create the control chart…
The provided data source also contained further information concerning the sources of order consolidation errors and defects, which enables a further evaluation of this process. For instance, from the data set, five causes of order consolidation were identified and the specific number of defects attributed to each was also provided.
Table 2: Data analysis for the control limits
The Pareto chart serves as a crucial tool for Spotify to achieve process improvements since it relates to establishing some of key activities within this process that contribute to the highlighted outcomes (Nicolae, Nedelcu & Dumitrascu, 2015). I need to know the data and what the data is telling you. After analyzing the data, this chart was developed to have a clear understanding of what each defect source contributed to the overall number of defects experienced in the distribution center. What is the analysis? State….From the analysis of the chart findings, it was evident that the “already defective product” aspect constituted the main contributor to the number of defects experienced in the consolidation, and delivery/shipment processes. This information implies that the majority of the errors experienced are from the merchants’ side, whereby they are unable to ensure the complete absence of already defective products. The implications can be dire to the merchants, Shopify platform, and the consumers if defective products are delivered.The organization should be aware of the issue and look for interventions that may help address the problem. Numerous approaches could be used to encourage the merchants to lower defective products within their respective inventories. For instance, increasing inspection rates, especially before product dispatch from vendor warehouse to consolidation centers. There is also the approach of placing high-quality checks and standards on the merchants currently utilizing this platform. Overall, the vendors and the platform itself can significantly gain from addressing the challenges identified with order consolidation. Good data … but there is no evaluation and I am not sure what type of chart this is but it is not a control chart. This section is where you discuss the data. What is the USL or UCL and LSL or LCL? What is the mean and standard deviation? ME
Executive Summary
Process Evaluation (SPC)
Organizations, such as Shopify, that perform large-scale logistics and supply chain-based activities for their merchants/vendors, encounter numerous challenges. One of them is order consolidation. In this assessment, Shopify through its order fulfillment centers, helps its respective merchants fulfill large orders, primarily through order consolidation. However, the process has encountered numerous obstacles, which ultimately lead to a presence of incorrect orders. A key approach has been that of data collection directed at the issue, and this initiative has uncovered the specific origins or causes of defective orders and their level of contribution to overall total defects within such an order. ME – You need to summarize the current process and state what was done to improve the process and what is the expected outcome.
Evaluation of Control Chart and Process Metrics Based on SPC Methods
The control table and SPC tool utilized aided in uncovering the primary contributors to the process metric namely defects within consolidated orders, and their respective rate of contribution in terms of the number of defects. From both tools, it became clear that Shopify was experiencing defects within vendor consolidated orders due to several causes as seen in table 2 and the largest cause of defects within such orders, was orders products that already arrived from vendor supply chain networks already defective. This is where you state the process metric, summarize the data and what the data is telling you as well as the control chart. NM
Evaluation of Whether the Process Would Benefit from the SPC Tool
The process would benefit from the use of SPC tools, given that there were multiple causes identified for the analyzed problem. The tools carry out problem analysis and help in better understanding the issue from a quantitative perspective. When you evaluate, you will determine WHY the translating process will benefit from lean, Six Sigma or other tools. You must state the reason why. It is not clear how this process will benefit at all from Six Sigma. This needs to be explained. You should tell how lean, six sigma or other tools will benefit this process based on your evaluation. NM
Description of the SPC Project
The SPC project involved the use of a Pareto Chart to help understand the level of contribution that each cause had to the total number of defects within Vendor consolidated orders. The Pareto Chart helped as seen in Figure 2 helped point out this, identifying already defective products as the leading cause of product defects within vendor consolidated orders.
This is where you state what was done in Assessment 1 from the process you decided to evaluate to the recommendation. This is where you discuss what was done in this assessment from start to finish. Nothing else. This is exactly what was done for the process evaluation, what was the process metrics used. How did you collect the data? NM
Recommendations for Improvement
Shopify should work closely with their merchants/vendors to identify the reason why some of their products arrive at their order fulfillment centers already defective and establish key solutions to revert this trend. No, you are to research why. Work closely with the vendor to identify why their products arrive defective. This is nothing I would go to a board and recommend. You are to have specifics as to what you would like done and why? You do not know any reasons you have identified. So, why is this an issue? NM
Conclusion
This assessment is about process improvement for a select organization, Shopify, that is currently experiencing challenges, and could benefit from existing tools and interventions related to process improvements. The processes selected entailed the order consolidation and dispatch aspects, with key details about its process metrics also provided. Order consolidation observed in the platform supports the merchants receiving large orders and lacked the desired stocks to realize this demand. The assessment created a control chart for all activities and/or contributors of product defects within this process. Using a Pareto chart, I identified some of the major contributors that would facilitate Shopify to improve understanding and response to the issue of order consolidation.
References
Nicolae (Mănescu), R., Nedelcu, A., & Dumitraşcu, A. (2015). Improvement the quality of industrial products by applying the Pareto Chart. Review of the Air Force Academy, 13(3), 169-172. DOI: 10.19062/1842-9238.2015.13.3.29
Shopify. (2022). Shopify Fulfillment Network: Grow Your Business with Two-Day Delivery. Shopify.com.https://www.shopify.com/fulfillment?itcat=blog&itterm=60645957
United States Securities and Exchange Commission. (2021). Registration Statement Pursuant to Section 12, and Annual Report Pursuant to Section 13(A) or 15(D) of the Securities Exchange Act of 1934: Shopify Inc. (p. 3-172). Ottawa, ON, CA: Price Waterhouse Coopers.https://s27.q4cdn.com/572064924/files/doc_financials/2020/ar/40-F.pdf