Improving Production Scheduling

A. Project Title “Investigation into Scheduling Systems to improve Production Planning at Sinwa Rubber Industries Pvt. Ltd” B. Brief description of company background and structure History According to Sinwa holdings (2006) company was established at 1948 when the independence was gifted to Sri Lanka. The founder Mr. Mohamed Abdul Cader Mukthar was a very successful, courageous young entrepreneur. He was the first to set up a venture to manufacture rubber based products like footwear. The technical assistance was offered by Malaysia.
Finally the Ceylon Malayan Rubber Goods Limited was established in 1950. The Sinwa holdings (2006) further stated that the factory was established at Dehiwala, Sri Lanka. The starting number of employees was 25. The company looked into more business aspects as they started growing up. This ended up in setting up a fully automated adhesive plant. This made Sinawa Holdings the first to touch the adhesive productions in Sri Lanka. Currently their adhesive product which comes under the brand name “Multibond” had captured the adhesive market and also holds the first position in it.
In order to accommodate the business needs of the rubber products Sinawa a state of-the-art footwear factory and office complex was built in 1976 adjoining the original factory.. The organization was restructures in 1995 under the name Sinwa Holdings Limited. And currently functions as Sinawa Holdings Group. (Sinwa Holdings, 2006) When we take the company Sinwa Rubber Industries Limited they produce a variety of rubber products and footwear components. They supply these rubber components for a number of industries. These rubber components include EVA soiling sheets also.

List of rubber components manufactured by the Sinwa Holdings are as followings. * Rubber gum boots. * Rubber slippers * Rubber machine parts * EVA Sheets * Water Rings As indicated by Cader. M (2010) the production of Sinwa can is done using the B2O strategy (Build to Order). The company addressed mass production orders coming from the consumers. The customer is allowed to customize the product as required. From the above product list their key product is Rubber Gum Boots which has a very high demand both locally and internationally. According to the sinwaholdings. om these bum boots are used in different industries like construction, food, agriculture, dairy, security services and many more. These gum boots also manufactured according to the high international standards and under the brand name “ONTARIO” which stands in a high position in the market. But also they do mass production of rubber slippers for ODEL. The customers of the company can be divided into different industries. This is presented as followings. 1. Agriculture Industry CIC Agri Business Other small scale agriculture related businesses 2. Medical Industry Nawaloka 3.
Civil Constructional Industry Sierra Constructions Access Constructions Nawaloka Constructions Thudawa Brothers 3. Other Projects Hambanthota Special constructions Richerd Pieris Group. (Arpico) 4. Fashion and Textile ODEL Nolimit –Aarugambey Collection The competitor’s impact is low compared to other industries due to the product unique factor. The main competitors are small scale business people who import rubber slippers and gum boots from Thailand and Bangkok. But this issue has been controlled by the government because the government has put a CES barrier for the imported footwear.
That is the importer has to pay 300 rupees for each pair that’s being imported. So when the important pair price goes up around 2500 Rs. Sinwa provides high quality footwear for 1500 Rs. Since Sinwa operates as a mass production company and has a unique product like gum boots as the key product, they have a good market share in the market which they operates in. Since they don’t have a key competitor in the same manufacturing line. Sinwa has the good opportunity of expanding their business and products. * The company values and objectives are as followings
Customers: To consistently exceed customer expectations (Sinwa Holdings, 2006) Shareholders: To provide secure higher returns with consistent growth (ibid) Staff: To be a part of life… through job satisfaction, security, good remuneration, personal development and recognition (ibid) Channels: To provide leading brands with higher ROI, and develop mutually beneficial relationships (ibid) Society: Willingness to help (ibid) Suppliers: Long term secure business relationships (ibid) Principals: Long term secure business relationships with wide distribution reach The Divisions of the company Finance Division: This division is responsible for managing the finance aspect of the company. As in providing finance for the production process is a main key requirement of the division. * Marketing Division- This division is responsible in handling the marketing aspect, as in taking up orders, handling the customers, maintaining the order records for marketing purposes and ect. * Design Division-This division is responsible if a particular customer requires a design to be made for them by the company. Else when a customer provides a design the design division further examines the division. Production Division- This division is handling the production process which is making the final product. This division is responsible in making the product and packaging it and finally storing the products. * Administration Division-This division administrates all the activities including financial, marketing, procurement, production, inventory control and ect. Bankers * Seylan Bank Limited * Nations Trust Bank Limited * National Development Bank Limited * Bank of Ceylon * Peoples Bank * Hatton National Bank Limited * NDB Bank Limited Value Chain Analysis
Inbound Logistics (Receiving and warehousing of raw materials and their distribution to manufacturing as they are required) Firstly the company calendar consists of 12 Journal Cycles (JC) each JC consists of 4 weeks but its not monthly as in a JC could be 2 weeks from January and 2 weeks from February. The product forecasting which is done approximately is prepared by the production and marketing teams. According to that the row materials are being ordered and kept in stock. The materials required for gum boots are different from the footwear products and other products. The required raw material list consists of followings. Material Name * Required Quantity in Kg * Cost per unit * Total Value The number of row materials required for one unit production of gum boots are 82 The number of row materials required for one unit production of footwear is 36 When the row materials are available on stock in stores. According to the orders that come a request to release the row materials from stocks is raised. This is send to stores. Operations (The processes of transforming inputs into finished products and services) The required design for the footwear products is being given by the customer who will be received by the marketing dept.
After that the below process takes place. Step 1: Customer informs about the requirements. / Gathering the requirements Step 2: Preparation/Approval of formulation Step 3: Preparation of Costing Step 4: Checking Product Costing Step 5: Approval of Pricing Step 6: Make official quote to customer with all terms Step 7: Creation of BOM (Bill of Materials) in the System Step 8: Credit Application and Documentation Step 9: Creation of Customer in the System (excel sheet) Step 10: Receive official Purchase Order from Customer Step 11: Enter BOM to withdraw material from RM Stores
Step 12: Check actual cost against standards Step 13: Enter IDTN to transfer FG to RG Stores Step 14: Enter KAM to transfer FG from RG Stores to the FG Stores Step 15: Invoice Products Step 16: Make delivery based on delivery schedule Outbound Logistics (the warehousing and distribution of goods) Once the goods are being produced and packaged. The details of the finished goods are recorded and then the stock is moved to the stores. Once it’s moved the marketing dept. is informed about the completion of the task. Where they will inform the customer.
Marketing and sales (the identification of customer needs and the generation of sales) Marketing and sales department is responsible in negotiating the deals with the customer. Sometime expanding some deals, advertising the products and also managing the relationship with the customer are some of the responsibilities of the marketing dept. Service (the support of customers after the products and services are sold to them) The after sales services are like if a fault is seen in the finalized order by the customer the company will be replacing those products. C. Brief description of the BIT system objectives (i. e. ow is the BIT system going to add value? Efficiency, customer lock in, extension of business services? ) The current issue There are multiple issues risen up with the current system. They can be broken down as followings. 1. Planning the raw materials required according to the order The raw materials needed for the production are purchased on bulk due to low cost, but the inaccurate calculations of materials required due to reasons like multiple orders leads the company to purchase excess and sometimes less materials. Less materials availability will lead the company in missing the due date of product delivery.
Excess materials will create high wastage costs, extra labor costs to dispose it. 2. Tracking the status of a particular order and high response time. When a customer inquires about a particular order status there is no proper method to keep the track of the order. 3. Allocating resources for multiple orders The company currently has 5 production lines each line with the capacity of producing 100-140 product items at a time. The numbers of employees in each line are 28. The total HR capacities on all 5 production lines are 5*28=140. The machine capacity is 12 machines for each stage. There are multiple stages depending on the product type). There is situations where multiple different product orders are on board and some of the machines are idle. 4. Calculating the raw materials required. 5. High wastage of the raw materials due to poor planning. 6. Unavailability of resources for production due to inaccurate planning. This happens when multiple orders comes in. Where the company is out of resources. 7. Unstructured inventory system. Difficult to keep track of the amount of products completed. 8. Pressure on the management due to order planning structure.
The customer always expects the order on time and keeping a customer is important to the company. 9. Requesting for raw materials. When there are multiple orders coming in and on production when the raw materials are not in the plant manager sends a CAM(like a memo note) to the finance manager to allocate capital for the required materials but this takes long time where they will call for quotations and then buy the products. 10. Delivering a product on time There had been 6 situations for the past six months where there had been two delivery dates close by.
Due to improper allocation the company has failed in delivering the product on time which has created a loss in value of 4, 56000/= (rupees). The company doesn’t look into key aspects which needs to be looked in creating a production schedule such as production costs, inventory costs, lead time, working hours, capacity, inventory levels, available storage, and parts supply 11. Difficult in retrieving information 12. No proper communication channel between departments 13. Handling multiple orders The cause of the problems The situation is being analyzed further using a fish bone structure.
Where the root cause for this problem is improper production planning and scheduling. Objectives Of the system 1. Increase the production efficiency by 75% while minimizing the extra additional costs like labor costs. 2. Minimize the loss of capital from 50% which arises due to poor planning of row materials, and failing to deliver an order on time. 3. Provide an effective channel of communication by making information available. 4. Provide a prioritization methodology to prioritize the orders according to the work load. Minimize the conflicts up to 50% and use the maximum from the resources. 5.
Impalement a schedule routine according to the multiple orders. Which can increase the efficiency of production by 65%, and which is also easy to track the order status. Proposed Value Chain Activities The proposed value chain activities in order to achieve the above objectives can be described as followings. * Inbound Logistics -This will be affected because preparation and planning of costing, and raw materials required will be efficient and accurate. And also more effective production schedule for orders and also a proper plan for using the maximum utilization of resources will be addressed. Operations -Production operations will be effected and will be efficient. Tracking the order completion is not an issue any more. This will improve the capacity of the production units. * Outbound Logistics – This will be effected by the system where an effective inventory system will be available. There for retrieving information is not an issue anymore. * Marketing and sales- This is not affected directly but indirectly it will improve the quality of the service provided. * Service –Not Effected. Highlighted Value Additions From the proposed system it will mainly improve the inbound logistics as shown above.
This will cut down indirect costs like paper, storage ect. And raw materials are available for productions, raising memos; requesting and waiting for the approval for the required materials are not entertained anymore. The effects like wastage of row materials are handled. Basically this system will improve the value chain activities. This will improve the efficiency and the response time of the production activities. D. Brief description of the investigation required in the project. (i. e. software packages, access to information/expertise, user involvement etc. I will be using the primary and secondary investigation methods to collect information required. 1. Primary Investigation- This is used to analyze the current situation of the company and also to identify the flow of the procedures. There are several fact finding techniques which I will be using to collect information. a. Interviews The interviews fall into two types. They are structured interviews and unstructured interviews. The following personals will be interviewed. * Mr. Hema Narangoda(CEO/Sinwa Rubber Industries pvt. Ltd) Objective of the interview: Get the information about the overall process. * Mr.
Choolaka Gunawardena(Plant Manager) Objective of the interview: Get the facts about the production process, raw materials and resource handling. Production Planning. * Mr. Subhash Jayawardena- Manger Marketing Objective of the interview: To find out the process of accepting orders, tracking the progress of an order depending on customer inquiry. * Mr. Keerthi Silva- Manager Administration and HR Objective of the interview: To gather information about allocating human resources for a particular order. b. Observation Objective: Is to determine the problem and also to examine the flow of a particular production.
The practical issue of the process needs to be identified such as machine idling c. Document Review This is to determine the current production process of the company. There for the following documents will be reviewed. * The production plan for the month. * Details of the orders received. * Completed order details. * The row material order details. * MEMO- Document that will be used to request additional raw materials. 2. Secondary Investigation Secondary investigation includes the technical and academic research. This includes the similar system study also. * Similar Systems: MRP 1,MRP 2 Academic Research: This includes research and investigation into the development of the project. These information will be gathered from Research Papers Books Journals * Technical Research: This included identifying the hardware and software requirements for the developing system. Programming Language considered building a stand along system: C#. net with . Net 4. 0 VB. net with . Net 4. 0 Java Database technologies to be considered Oracle SQL Server 2005 with Service Pack 3 Hardware Requirements (Minimum) Windows 2003 server R2 64-bit or 32-bit with 2 GB RAM 80 GB Hard Disk Drive
Methodology Selection The applicable methodologies to develop this application can be described as followings. According to CMS. gov (2008) the system development methodology is a framework that can be used to structure, plan and control the process of developing an information system. The below given methodologies can be used for this project. Where it’s important to determine the most appropriate methodology. * RUP- Rational Unified Process * RAD- Rapid Application Development * Evolutionary Prototyping * Iterative and incremental development RAD is more important for short duration projects.
Although the time can be an advantage, RAD is applicable for highly skilled team work projects . This can raise up issues in identifying the requirements successfully. This lacks pre planning which is a key requirement for this project. There for RAD is not successfully applicable. In evolutionary prototype is a similar method of RAD. Evolutionary prototype needs more customer involvement which is not applicable for this project due to the high busy schedule of the users and people of the company. This is not 100% applicable due to the high user involvement.
After briefly analyzing the above given methodologies I have selected RUP as the development As indicated by ibm(2008) on the report Rational Unified Process- Best Practices for software development teams, the RUP has several advantage over the other methodologies. They can be pointed as followings. The RUP deploy commercially proven approaches to software development. The 6 best practices are important for similar projects to this. The RUP will help in developing the software iteratively, managing the requirements, to use component based architecture, visually model software, verify the quality and control changed to the software.
These 6 practices are important in building stand alone systems. This is applicable for my project. (IBM, 2008). Considering the project nature it’s very important that the appropriate requirements are analyses properly. The RUP verifies successfully and also it controls the changes. This is applicable for long duration projects. According to Combelles. A. K, Kruchten. P (2003), RUP addresses high risk areas very early. The requirements can be changed depending on the organization situations there for the main advantage using RUP for this project is that it allows you to refine the requirements as the project evolves.
As mentioned in Combelles. A. K, Kruchten. P (2003) The RUP accommodates and expects changes. The main focus of the RUP is at the final software product and the quality which is a mandatory aspect of this project. The Combelles. A. K, Kruchten. P (2003) further stated that the RUP is a generic model and the percentage of getting lost in the middle is low. The features of the RUP which is given below are extracted from Combelles. A. K, Kruchten. P (2003) which is also applicable for the current project. • Business case • Schedule • Vision document • Risks Architecture • Change requests and how to handle defects • Tests • The software product itself • User support documents • Project assessments Combelles,A. K,Kruchten,P. (2003). The IBM Rational Unified Process:An Enabler for Higher Process Maturity. [Online]. 2003. Available from : ftp://ftp. software. ibm. com/software/rational/web/whitepapers/2003/rup_tp178. pdf [Accessed: 20th Septermber 2010] E. Brief description of the research issues critical to the project and how you are going to find out about them. (e. g. literature and other sources of information etc. )
The research areas of this project can be divided into the below categories. 1. Production Planning techniques This includes the following areas * Aggregate Planning * Capacity Planning * Master Production Schedule * Rough Cut Capacity Planning 2. Manufacturing Resource Planning Systems 3. Similar systems study 4. Production Planning and scheduling Models * Theory of constrains * Economic Order Quantity * Just In Time * Bottle Neck Allocation Methodology 5. Linear Programming in scheduling optimization The following research papers are related to the above sections.
Production Agha,M. H. Thery,R. Hetreux. G. Hait,A. Le Lann. J. M(2009). Energy. Integrated production and utility system approach for optimizing industrial unit operations. [Online]35. (February). P611-627. Available from: http://www. sciencedirect. com [Accessed22/09/2010] Scheduling Chung,D. Lee,K. Shin,K. Park,J. (2005). International Journal of Production Economics. A new approach to job shop scheduling problems with due date constrains considering operation subcontracts. [Online]. 98. (November). P. 238-250. Available from: http://www. sciencedirect. com/science? ob=ArticleURL&_udi=B6VF8-4G94HNS-1&_user=9647975&_coverDate=11/18/2005&_alid=1469787352&_rdoc=1&_fmt=high&_orig=search&_origin=search&_zone=rslt_list_item&_cdi=6004&_docanchor=&view=c&_ct=54&_acct=C000058272&_version=1&_urlVersion=0&_userid=9647975&md5=56409e8c7e2bb6449dd96374791e82a1&searchtype=a [Accessed22/09/2010] Ernst,T. Jiang,H. Krishnamoorthy,M. Sier. D. (2004). European Journal of Operational Reserch. Staff scheduling and rostering:A review of applications, methods and models. Online]153(February) p. 3-27. Available from: http://www. sciencedirect. com/science? _ob=ArticleURL&_udi=B6VCT-48BKYWR-4&_user=9647975&_coverDate=02/16/2004&_alid=1469796890&_rdoc=1&_fmt=high&_orig=search&_origin=search&_zone=rslt_list_item&_cdi=5963&_sort=r&_st=13&_docanchor=&view=c&_ct=86&_acct=C000058272&_version=1&_urlVersion=0&_userid=9647975&md5=b17a7de18d60d420bf6864efca257c0c&searchtype=a [Accessed22/09/2010] Alvarez,E. Diaz,F. (2004). Robotics and Computer integrated manufacturing.
An application of a real-time scheduling system for turbulent manufacturing environments. [Online]20(December) p 485-494. Available from: http://www. sciencedirect. com/science? _ob=ArticleURL&_udi=B6V4P-4D9R7SS-1&_user=9647975&_coverDate=12/01/2004&_alid=1469889852&_rdoc=1&_fmt=high&_orig=search&_origin=search&_zone=rslt_list_item&_cdi=5764&_sort=r&_st=13&_docanchor=&view=c&_ct=278&_acct=C000058272&_version=1&_urlVersion=0&_userid=9647975&md5=4e02f64d4327ce5466271bac359a1c9e&searchtype=a [Accessed 22/09/2010]
Zeballos,L. J. Quiroga,O. D. Henning,G. P. (2010). Engineering Applications of Artificial Intelligence. A constraint programming model for the scheduling of flexible manufacturing systems with machine and tool limitations. [Online]. 23(March)p 229-248. Available from: http://www. sciencedirect. com/science? ob=ArticleURL&_udi=B6V2M-4Y3KV2H-1&_user=9647975&_coverDate=03/31/2010&_alid=1469908012&_rdoc=1&_fmt=high&_orig=search&_origin=search&_zone=rslt_list_item&_cdi=5706&_sort=r&_st=13&_docanchor=&view=c&_ct=907&_acct=C000058272&_version=1&_urlVersion=0&_userid=9647975&md5=969a937aa4381b7e51cd557067b63588&searchtype=a [Accessed 22/09/2010] Leitao, P. Restivo,F . (2008). Robotics and Computer-Integrated Manufacturing. A holonic approach to dynamic manufacturing schedule. [Online]. 24(October)p 625-634.
Available from: http://www. sciencedirect. com/science? _ob=ArticleURL&_udi=B6V4P-4R8KT42-1&_user=9647975&_coverDate=10/31/2008&_alid=1469911868&_rdoc=1&_fmt=high&_orig=search&_origin=search&_zone=rslt_list_item&_cdi=5764&_sort=r&_st=13&_docanchor=&view=c&_ct=239&_acct=C000058272&_version=1&_urlVersion=0&_userid=9647975&md5=74eb7b3dc4cd55a76ad11a2d3878d53b&searchtype=a [Accessed 22/09/2010] Babiceanu,R. F. Chen,F. F. Sturges. R. H. (2005). Robotics and computer integrated manufacturing.
Real-time holonic scheduling of material handling operations in a dynamic manufacturing environment. [Online]. 21(August,October)p 328-337. Available from: http://www. sciencedirect. com/science? _ob=ArticleURL&_udi=B6V4P-4FG4V9P-1&_user=9647975&_coverDate=10/31/2005&_alid=1469911868&_rdoc=2&_fmt=high&_orig=search&_origin=search&_zone=rslt_list_item&_cdi=5764&_sort=r&_st=13&_docanchor=&view=c&_ct=239&_acct=C000058272&_version=1&_urlVersion=0&_userid=9647975&md5=f51686bdb3211ef0a6f8e16ea5a8d34f&searchtype=a [Accessed 21/09/2010]
Herroelen,W. Demeulemeester,E. De Reyck. B. (2001). European Journal of Operational Research. A note on the paper “Resource-constrianed project scheduling:Notation, classification, models and methods”by Bucker et al. [Online]. 128(February) p 679-688. Available from: http://www. sciencedirect. com/science? ob=ArticleURL&_udi=B6VCT-41TN4MN-K&_user=9647975&_coverDate=02/01/2001&_alid=1469951904&_rdoc=1&_fmt=high&_orig=search&_origin=search&_zone=rslt_list_item&_cdi=5963&_sort=r&_st=13&_docanchor=&view=c&_ct=441&_acct=C000058272&_version=1&_urlVersion=0&_userid=9647975&md5=acb1a20e066c72b0247efbef9ae42a63&searchtype=a [Accessed 22/09/2010] Linear Programming in scheduling optimization Oguz,C. Salman,F. S. Yalcin,Z. B(2010). International Journal Of Prduction Economics. Order acceptance and scheduling decisions in make to order systems. Online]. 125(May)p 200-211. Available from: http://www. sciencedirect. com/science? _ob=ArticleURL&_udi=B6VF8-4YC1K2K-4&_user=9647975&_coverDate=05/31/2010&_alid=1469966560&_rdoc=6&_fmt=high&_orig=search&_origin=search&_zone=rslt_list_item&_cdi=6004&_sort=r&_st=13&_docanchor=&view=c&_ct=100&_acct=C000058272&_version=1&_urlVersion=0&_userid=9647975&md5=fc7b83236cdc2bf858a0adada30640dc&searchtype=a [Accessed 22/09/2010] Tahar,D. N. Yalaoui,F. Chu,C. Amodeo. L(2005). International Journal Of Production Economics.
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F. Brief description of the business tools used and the functionality of the system being implemented. (i. e. which business tools will be used for analyzing the BIT system and why. Also what functions are you implementing in the prototype and what functions are you leaving out. ) 1. Business Tools The tools and techniques that’s been planned to use for this project can be described and show as followings. These are used to analyze the internal and external environment of the business organization. a. Value Chain Analysis The main problem lies in the primary activities of the value chain.
There for its important to analyze the primary activities specially. This is used to identify the ways of how value is added to the product. This shows the value adding at each stage. This pictures the internal activities of the organization as well as it helps to get a picture of the overall business. b. SWOT Analysis This will help to identify both internal and external facts that will help in identifying the opportunities, threats, strengths and weaknesses of the company. This will help in using the strengths to minimize the weaknesses. c. PEST Analysis
This is related to the external environmental analysis of the company. 2. Prototype Requirements The prototype functions falls under two categories. Functioning requirements and non functioning requirements. The system which will be implemented will be having the below given functional and non functional requirements. a. Functioning Requirements * The system should have the facility of viewing the orders on production * The system should have the facility of viewing complete details of a particular order as in when it’s scheduled to be given and the current completion level. The system should have the facility of viewing the production schedule for a JC. * The system should have the facility of viewing the raw materials available in the stores * The system should have the facility of viewing the master production schedule * The system should allow to check the availability of raw materials for production * The system should have the facility of viewing the details of the row material suppliers. * The system should have the facility of Generating reports for the management related to production. . Non Functional Requirements The system shall have the below mentioned non functional requirements * Accuracy of the information * User-friendly System * Attractive and easy to handle * Security for the information provided * Provide different user level of accessibility depending on the designation. * Quick response for the requests * Able to store large amount of records G. What are the tasks you are intending to carry out and how are you going to ensure that your system and process re-engineering is complete and accurate?
In order to determine the accuracy and the completion of the system developed there are several testing methods to check it. This can be described as followings. * Unit Testing- According to MSDN. Microsoft (2010) this will isolate the smallest piece of testable code and determine whether it works exactly the way it’s expected. This is important to test all the units before integrating them because before integrating it’s easy to fins the errors. This is used as one testing method for my project. Functional/ System Testing- This will test for the required functionalities of the system. This will ensure that the determined functionalities are available with the system. * Integration Testing- According to MSDN. Microsoft (2010) the integration testing is the logical extension of unit testing. This identifies the problems occur when multiple units are combined. There for by using test plans errors with the interface between units can be identified. * User Acceptance Testing- This will check for the usability features like user friendliness and ect.
This testing phase comes after the above testing phases are completed. Basically this will be done with the users of the system. MSDN. Microsoft. (2010). Unit testing [Online]. Available from: http://msdn. microsoft. com/en-us/library/aa292197(VS. 71). aspx [Accessed:20th September 2010] MSDN. Microsoft. (2010). Integration testing [Online]. Available from: http://msdn. microsoft. com/en-us/library/aa292128(VS. 71). aspx [Accessed:20th September 2010] Work Breakdown Structure 1. Project initialization 2. Identify project objectives . identify the organization and identify the problem 4. Prepare the problem description 5. Preparation of the draft project proposal 6. Preparation of the PSF 6. 1 Finalizing the topic 6. 2 Clarification of the type of the system being implemented 6. 3 Identify the problems of the current system 6. 4Identify the requirements to be met in the project 6. 5 Determine the organizational structure 6. 7 Determine the value chain activities 6. 8 Identify the changed value chain 6. 9 Identify the scope and the objectives