###BeginCaseStudy###
Case Study# 2
Corporate Information and Physical Locations.
Fabrikrm,Inc. is a building materials manufacturing company that specializes in producing raw
materials. Fabrikam customers include companies that make products for residential and
commiercial construction projects. Fabrikam has 5,000 employees and earns $600 million in
annual revenues. Fabrikam has plans and offices worldwide.
EXISTING ENVIRONMENT
Existing Business Processes
Fabrikam has the following business processes:
The Plant Safety department is responsible for notifying and scheduling employees for safety
training and medical testing procedures. The department also records and reports on training and
testing procedures for management and government safety regulatory agencies. All emplloyees
are required to pass an annual mine safety training course and various medica certification tests
to continue working. Non-compliant employees cannot work, reducing production enfficiency.
Government safety inpectors perform random onsite inspections and verify that employees are
certified. Each item of non-compliance costs Fabrikam time and lowers employee productivity.
The Plant Safet department hired a full-time Safety Coordinatinator and a temporary employee to
help employees maintain their certifications. They notify employees when their certifications are
about to expire and assist employees to schedule appointments to renew their certifications.
Existing Technology Infrastructure
Fabrikam has the following technologies implemented on the network:
A third-party, Web-based workforce management application
A Microsoft SQL Server-based Enterprise Resource Planning (ERP) system
Microsoft Office Excel used to update safety information by using spreadsheets.
Farbrikam has a Microsoft Enterprise Agreement (EA) that includes Microsoft Software
Assurance (SA). All client computers run either Microsoft Office Standard Edition 2003 or
Microsoft Office 97. The department is underskilled and understaffed.
BUSINESS REQUIREMENTS
Planned Changes
Fabrikam has the following business goals:
Provide role-based access to process, operational, and financial information.
Eliminate paper-based processes, including reporting processes.
Reduce the number of technology platforms that require support.
Problem Statements
Fabrikam has identified the following business problems:
Mine safety compliance issues have shut down production at some plants, creating 60 days of
lost productivity during the past year.
Safety training records are often inaccessible.
Training dates and medical testing results are often outdated.
Safety reports are only available to managers at the end of each month.
Safety performance metrics are shared via e-mail only.
Plant safety training and medical testing data is recorded on paper forms and then entered
manually into a spreadsheet on a Safety Manager’s computer.
Reporting is delayed because safety data is outdated and inaccurate.
Business Goals
Fabrikam has the following business goals:
Reduce costs associated with meeting regulatory compliance requirements:
Eliminate paper-based processes.

Improve access to safety performance reporting.
INTERVIEWEES
Vice President (VP) The VP is the executive responsible for overseeing general business
operations and for maintaining profitability. VP goals include:
Rducing operational cost. Increasing production productivity
Eliminating plant shutdowns caused by non-compliance.
Plant General Manager
The Plant General Manager (GM) is responsible for maintaining plant profitability, operational
efficientcy, production costs, product quality, and employee safety. Plant GM goals include:
Automating production monitoring, alerts, and reporting.
Eliminating paper-based processes.
Implementing an online system to track safety training records and medical testing records.
Production Operations Manager
The Production Operations Manager (OM) is responsible for maintaining overall operational
efficiency of production plants, and maintaining costs within budget. Production OM goals include:
Monitoring and reporting on safety performance for all plants.
Implementing a company-wide safety certfication management system.
Eliminating manual reporting on operational key performance indicators (KPIs).
Corporate Controller
The Corporate Controller is responsible for financial management, the IT department, budgeting,
and treasury.
Corporate Controller goals in clude:
Addressing unbudgeted costs that result from non-compliance issues.
Gathering business performance data worldwide and reconciling all data.
Addressing poor productivity caused by the lack of information sharing
Plant Safety Department Manager
The Plant Safety Department Manager is responsible for managing safety education and medical
testing. Plant Safety Department Manager goals include:
Accompanying government safety inspectors during their plant visits.
Implementing e-mail to notify employees who are due for training and testing.
Implementing alerts to the Human Resources department (HR) when employee are uncertified.
Implementing the daily sorting of spreadsheets to identify which employee are due for training
and testing.
###EndCaseStudy###

A portion of the current state business process for Woodgrove Bank is shown in the following
exhibit. (Click the Exhibit button.) This portion of the business process is repeated every quarter
for all 40 suppliers that the ESM group manages directly and is completed by one business
manager and one supplier manager. You need to identify the total labor costs the bank would
save by removing lines 2.8 and 2.11 from the process. What are the annual total savings?

A.
$18,000

B.
$72,000

C.
$96,000

D.
$144,000