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SADM 5/ed - CASE STUDY 2 TCS - Introduction

Page: I-1

Tool Crib System (TCS)

INTRODUCTION

n this section you will learn the necessary background information to be able to complete the 12 milestones of this case study. This information includes a history of the business, a description of the businesss current facilities, and the descriptions of the problems that triggered the project.

Case Background Eudrup University is a large public multicampus institution that was founded in 1850. The main campus is located in Indianapolis, Indiana. Currently, that location has over 40,000 enrolled students. Eight additional smaller campuses are located throughout the state, each ranging from 2,000 to 9,000 students. The main campus has over 10,000 full-time employees. Approximately 2,000 employees are employed with the universitys Physical Plant, which is responsible for the maintenance of building and grounds. The main campus of Eudrup consists of over 153 buildings that are spread out over the 15,000-acre campus. The Physical Plant has grouped the buildings into zones and assigned a group of employees to provide maintenance for the buildings within that zone. Each zone is assigned a group of employees that collectively possess the skills needed to provide proper upkeep. Such employees include carpenters, electricians, painters, welders, plumbers, and the like. The Physical Plant also has a group of employees with special skills that are assigned to zones for special projects that may arise.

Prepared by {Lonnie D. Bentley} for Systems Analysis & Design Methods 5ed by J. L. Whitten, L. D. Bentley, & K. C. Dittman

Copyright Irwin/McGraw-Hill 2001

SADM 5/ed - CASE STUDY 2 TCS - Introduction

Page: I-2

Organization Structure The following individuals report directly to Timothy Allen, Director of Eudrup Physical Plant. Each of the managers has a group of foremen and supervisors that report directly to him or her.

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The Problem In August of 1999 Timothy Allen and his management staff completed a one-week retreat aimed at assessing the Physical Plant operations. Several initiatives resulted from this retreat. It was determined that the most important initiatives were those that primarily dealt with the Tool Crib and Warehouse operations. The Tool Cribs function is to provide the tools needed by Physical Plant employees to perform their job duties. Employees are provided with a toolbox containing commonly used, and relatively inexpensive tools such as hammers, screwdrivers, tape measures, and so on. Other tools that are needed to complete a job must be checked out through the Tool Crib. When the job is completed, the employee must return the checked-out tool. Oftentimes tools become lost, stolen, or damaged and are therefore never checked back in and made available for others. The dollar amount of lost and stolen tools has reached an alarming total. It has been estimated that over $125,000 worth of tools are lost or stolen each year. Timothy Allen has decided that something must be done to get the losses under control. Thus, he is giving top priority to the development of a new Tool Crib system that that will track the check-in and check out of tools and monitor employees and their tool accountability. The Warehouse is responsible for obtaining and storing supplies that are needed to complete jobs. For example, the Warehouse makes sure to maintain a supply of screws, nails, plywood, drywall, and other materials. The Warehouse operates in two locations. The main warehouse is a
Prepared by {Lonnie D. Bentley} for Systems Analysis & Design Methods 5ed by J. L. Whitten, L. D. Bentley, & K. C. Dittman

Copyright Irwin/McGraw-Hill 2001

SADM 5/ed - CASE STUDY 2 TCS - Introduction

Page: I-3

large building located approximately three miles away from the main campus. For convenience, a smaller warehouse is located on the campus and stores a small amount of the most commonly used materials. When workers need materials for a job assignment they are supposed to check both warehouses to see if the goods are available. Unfortunately, oftentimes the employees are impatient and will simply check the availability of materials at the smaller, more conveniently located warehouse. If the goods are not available, they routinely choose to simply move on to the next job assignment rather than checking with the main warehouse. While the main warehouse will provide for the delivery of materials, employees prefer not to have wait for their delivery. To complicate things further, even though the materials may be available at the larger warehouse, employees frequently request that the smaller warehouse order needed materials that are not in stock there. The net result is excessive inventory and inventory carrying costs! While management is not sure of the total dollar amount that can be attributed to carrying excessive inventory, they are in agreement that it is likely very substantial. Therefore, a new and improved warehousing system is another top priority for the Physical Plant.

Prepared by {Lonnie D. Bentley} for Systems Analysis & Design Methods 5ed by J. L. Whitten, L. D. Bentley, & K. C. Dittman

Copyright Irwin/McGraw-Hill 2001