FANSHAWE COLLEGE

Team Emerge Consultants

Integrated Business Consultancy

Submitted By: Team Emerge

Abin Jose - 0946848

Arpit Gagneja - 0977757

Divyang Lakhani - 0976653

Krishnaraj Kadathukadavil Gopalan - 0947112

Naveen Kumar Athuluri - 0948798

Sree Sarada Boppana - 0962940

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Table of Contents:

1. Bosco and Roxy’s Introduction…………………………………….………

2. Emerge Consultants Introduction…………………………………….

…...4

3. Key Issues…………………………………………………………….……..5

4. Key Objectives………………………………………………..….…………6

5. Internal and External Analysis

a. S.W.O.T Analysis………………………………………...……………..7

b. The McKinsey 7-S model……………………………...………………...9

c. Additional Resources……………………….……...

…………………..10

6. Decision-Making Criteria…………………………...

…………………….11

7. Alternatives………………………………………..………………………12

8. Selection of preferred alternative………………..……………………….14

9. Prediction of outcome…………………………..…………………………

14

10.Contingency plan……………………………….…………………………15

11.Implementation Plan………………………….…………………………..15

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12.Summary……………………………………….………………………….17

13.References……………...………………………………………………….18

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Bosco and Roxy's:

Introduction:

Bosco and Roxy's is a 20-year-old Gourmet Dog Cookies company, founded by one of

our Professor Jamie Crook and his spouse Michelle. At Bosco and Roxy's bake gourmet, they

make hand-decorated dog cookies with human-grade ingredients. Besides providing decorated

cookies for each occasion, they also offer daycare, overnight, weekends, and holiday boarding

to the furry guests. In a 30,000 sq.ft. the modern facility produces its cookies and frozen

yogurt, which they distribute throughout Canada and the U.S.A. They sell to large retailers

like Pet Smart, Wufers, Pet Value, and others within Canada. They recently received some

huge orders from above mentioned clients and their client base has been increasing since the

start. Recently, the power couple has decided to make human food like bread, cookies, and

muffins. They are also planning to have a few other items available for small local businesses

to help during this pandemic.

Vision:

Michelle and Jaymie from Bosco and Roxy's believe dogs are family, and the only suitable thing

for dogs who are truly loved and spoiled, are their scrumptious gourmet treats that you'll want to

take a bite of yourself, we know, we did! 

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Emerge Consultants:

Introduction:

Team Emerge Consultants are a fine group of Business Management students from

Fanshawe College. We are six students who come with a package of various backgrounds and

experiences.

Abin Jose:

Abin Jose is a Commerce Bachelor's Degree holder from the University of Calicut, India.

He has dreams of starting his own business and getting exposure to it, and he even ran an Ice-

Cream Company that belonged to his Cousin. Warren Buffett and Elon Musk as his Business

Models, he also aspires to become a successful businessman in the future as his role models.

Arpit Gagneja:

Arpit Gagneja has done his graduation in Chemical Engineering from Chennai, India. He

has experience from a graduate engineer trainee to the sales and marketing division and went on

to the business development and existing client management of Deepak Nitrite Limited in around

3.5 years spam of time.

Divyang Lakhani:

Divyang Lakhani is a Bachelor's Degree holder in Business Administration. The young

individual aspires to be an entrepreneur and, as we speak, is currently working on his ideas. He is

driven by challenges and always has a new perspective to absorb the knowledge and reciprocate

it in his work.

Krishnaraj Kadathukadavil Gopalan:

Krishnaraj Kadathukadavil Gopalan has completed his MBA-Marketing and Human

Resources from Bangalore University, India. He is very keen on supply chain management and

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has even done his further Shipping and Logistics Management studies. His vision is to build an

empire of enterprise and excelling in Supply Chain and Logistic Sector.

Naveen Kumar Athuluri:

Naveen Kumar Athuluri is an Electronics and Communication Bachelors Degree Holder.

As an SAP analyst for BELL from CGI for 2.5 years, his experience gave him exposure to

implementation, development, and support on various projects he has worked on. He aspires to

become an entrepreneur, and the entry into the operations sector is just the initial step to it.

Sree Sarada Boppana:

Sree Sarada Boppana holds her Bachelor's Degree in Civil Engineering. Her career

started as a Quantity Surveyor for two years in Abu Dhabi, U.A.E., to a Project Co-Ordinator for

a year in Ace Interiors, India. She has a collective knowledge of On-site and Off-site

Management and Operations. She aspires to launch her own Construction Company and be a

successful individual; also, working for the Canadian Forces is one of her aspirations.

Key Issues:

1) No proper Enterprise Resource Planning (ERP) system in place for raw materials, work

in progress, and finished inventory management.

2) There are no designated locations marked for the storage of each category.

3) The documentation and data management are not at par.

4) Implementation of the new ERP system before the end of December.

5) There is no proper flow of material movement, and there are very few markings on the

floor

6) The output of each batch is not measured as per the Bill of Materials (B.O.M.).

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Key Objectives:

 Counting inventory levels.

o With proper Inventory Management and the implementation of an ERP system, it

would create a proper understanding of the inventory and reduce wastage.

 Marking the physical location of each category based on inputs from B&R.

o Assigning physical location for each category in the plant will ensure a designated

place for a particular material. This would help not only with the inventory but

also reduces chaos during the production.

 Create and implement a tracing system for inventory moves until the Master plan

is implemented.

o Training the team members with the records and movement history would help

trace back to the inventory levels.

 Min/Max levels and Kanban's set up on the production floor for reordering and

inventory relocation.

o The Kanban set up is to maintain real-time communication and transparency at

work.

o The work items being established on board would make things clear to the team

members on the target.

o With the Min/Max levels of the production onboard on record, it would assist in

planning the production and inventory management for raw material.

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Internal Analysis and External Analysis:

For the internal and external analysis of Bosco and Roxy's (B&R), we have carried out S.W.O.T

analysis and used the McKinsey 7-S model and a few other observations.

S.W.O.T Analysis: -

Strengths:

˫ For the manufacturing of the products, they are using advanced equipment.

˫ Strong financial statements are shown with annual revenue of 5.54 million USD.

˫ While having a growth of 80 to 120% per year, B&R maintains its persistent presence in

Canadian and American markets.

˫ It has advanced research and development team.

˫ Direct to consumer model is adapted.

˫ It has innovative products and a high amount of sales.

˫ Few big orders in hand and have a fair market reach.

From Government of Canada facilities provided during Covid-19:

˫ It has provided 2 billion dollars for rent support

˫ Wage subsidy

˫ Black entrepreneurship program

˫ Loan and grant programs for easy cash flow in the business

˫ C.R.B. and C.E.R.B. support the people to maintain a comfortable cash flow in the

economy, so the people's spending capacity will not be affected.

Weakness:

˫ Lack of inventory management technique.

˫ Delay in the installation of a new ERP system.

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 ˫ Lack of room for proper storage of finished and unfinished goods.

Opportunities:

˫ Can focus more on retailing and online sales.

˫ According to various data, 32% of the market is dominated by Dry food and followed by

snacks and wet food to focus on these two segments.

˫ Rising pet ownership is an excellent opportunity for companies.

˫ Government supporting the Canadian business and companies is a positive sign to the

industry.

˫ The Canadian food inspection agency (CFIA) regulated pet food imports to regulate low

quality and low-price products from other countries.

˫ The proud Canadian products logo helps to improve new customers and increase market

share.

Threats:

˫ The Canadian pet industry is worth approximately 1.9 billion Canadian dollars, and many

companies are manufacturing, so high competition is in this market.

˫ A vast market attracts new companies and international brands.

˫ Due to COVID, the economy is facing a challenging situation and the same dwell with

B&R.

˫ The market-dominant by the big four companies and accounted for more than 53%.

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The McKinsey 7-S model:

The McKinsey
7-S model

Hard Elements Soft Elements

Strategy Structure System Shared Values Style Skills Staff

Strategy: To get capture more market share and support from North American Retailers.

Structure: They follow the proper hierarchy of organization flow.

System: A proper ERP System installation is still undergoing, and a system needs to be updated.

Lack of documentation is also one of the issues.

Shared Values: To have a systematically organized process through the plant to achieve better

productivity is the shared value among the people working there.

Style: There is a mix of both Autocratic and Pacesetter leadership styles observed.

Skills: Proper training for all the employees and special training sessions are encouraged during

the seasonal changes.

Staff: There is good coordination among the team and a willingness to adapt to the changes.

Other observations:

According to various data, the Canadian dog population has grown from 7.6 million to

8.2 million from 2016 to 2018, and the community is still increasing. Almost 41% of the

household owns at least one dog, and over the last ten years, the population of dogs increased

to 10%, which shows a significant future for pet products, especially for dogs' food. To meet

the demand, the company installed high-quality machines and a considerable workforce to

regularly produce dog treats. They have two warehouses to store the stocks. Not only that, the

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high-quality products offered by Bosco & Roxys attract new customers every day. So, any

fluctuations in demand significantly increase demand they can maintain by working

throughout the day. A critical advantage is that most of their customers are regular buyers,

from individuals to big companies like PetSmart. So they always have a regular order in hand,

so they don't need to worry about sales decline; the company reported a reasonable growth

rate every year.

It is a great idea to build a profitable business relationship with veterinarians. M ost of

the pet owners believe and trust their veterinarians, so if the company can gain the trust of the

veterinarians, they may be willing to sell the products in their clinic's nut for that the company

should do the following things:

˫ Have some knowledge about the competitor and their services to the veterinarians

˫ Meet vets once a month and keep up with the latest products and their benefits.

˫ Ensure the vets that their products are of high quality and maintain all safety standard

according to the government of Canada

˫ Provide good commission and allowance to the vets

Benefits of acquiring the model:

˫ Opportunity to get new customers

˫ Comprehensive marketing for the company with less cost

˫ By meeting with the vets the company can develop new products according to current

demand and needs.

˫ Get regular information about the competitors' techniques and methods

Additional Resources:

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 The food and drug administration is responsible for ensuring that all human and animal

food products are safe to consume and ensures that the food products are properly

manufactured, safe, packed, and adequately labeled. The Federal Food, Drug, and Cosmetic

Act (F.F.D.C.A.) require that all animal foods, like human foods, be safe to eat, produced under

sanitary conditions, contain no harmful substances be truthfully labeled. Besides, canned pet

foods must be processed in conformance with the low acid canned food regulations to ensure the

pet food is free of viable microorganisms, see Title 21 Code of Federal Regulations, Part 113 (21

CFR 113). The recognization of other substances such as sources of minerals, vitamins or other

nutrients, flavorings, preservatives, or processing aids can be generally safe (G.R.A.S.) for the

intended use (21 CFR 582 and 584) or must have approval as food additives.

It is not easy to get F.D.A. approval. To get F.D.A. approval, the manufacturer must

submit lab, animal, and human clinical testing data to F.D.A. Then F.D.A. study the data and

approve the product if the agency determines that the product is not harmful. The F.D.A.

approval process takes one week to 8 months. All the procedures will carry out electronically.

Decision-Making Criteria:

The following are the points that led to decisions about the issues faced at Bosco and

Roxy's.

 Proper allocation and designated names for the racks.

o We have assigned names to each rack at the plant in an orderly manner and shared

the same with the Masterplan team for incorporation.

o With this allotment of the designation and names, it would be uncomplicated to

search for the particular material.

 Proper Floor Marking and Training

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 o We have suggested having the floor marking in the plant for the racks to move

around if necessary.

o The racks are not supposed to go out the boundary line and need to be replaced in

the same marking zone.

o With Masterplan's help, we are trying to achieve a bar code of the rack's location

concerning its area location. The information has already been shared Masterplan.

 Well Structured Map

o We prepared a map with all possible locations and the areas and assigned names

to the racks and areas.

Alternatives:

 Inventory Clear Up

o Before the installation of the Masterplan, we have suggested the total inventory

clear up of the finished products and the raw materials in the plant and the

warehouse

o Inventory arrangement of the unfinished goods needs to be organized to avoid any

surplus material being left out on the floor

 Reassemble the plant

o We have suggested a complete transformation of the plant concerning their in-

plant warehouse.

o This would not only help them easy handouts for raw material but also creates

much storage than the current arrangement

o With the reformation of the plant, it is convenient to assign the locations for the

machinery and racks and team members in an orderly manner

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 New ERP software

o They were spending around $10k a month for SAP, which is no more convenient

for them and that requires way too many inputs and efforts

o There were three options to consider, Masterplan ERP, Ship Station ERP, and

Fishbowl ERP

o The Masterplan is a cloud-based ERP system that includes all the modules that

Bosco and Roxy's looking for. It can manage production operations, engineering

processes, inventory, distribution, quality control, and company financial systems.

Many other manufacturers use this ERP software across Canada and U.S.A.

o Whereas in the Ship Station, only inventory can be managed. It has other options

to set inventory alerts, view stock levels, and allocate stocks. Bosco and Roxy's

rejected it.

o Fishbowl is a hybrid manufacturing and warehouse management solution

designed for small and midsize companies. It also includes features like inventory

control, material requirements planning (M.R.P.), job shop floor control, work

order management, manufacturer orders, and bills of materials. However, the cost

was relatively high as compared to the Master Plan.

o Also, Masterplan's cost is around $3k per month, which is significantly less

compared to SAP and Fishbowl.

 Adding in more Human Resources

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 o Right now, at Bosco and Roxy's, they do not have a warehouse manager to

manage the inventory. They are also not using the FIFO (First In First Out)

method, so we recommend hiring a warehouse manager or an associate to manage

the works in the warehouse.

o While implementing the Masterplan, the company will provide adequate training

to Bosco & Roxy's staff handling the ERP.

o We also recommend the company familiarize the staff with about First in First out

method so the loss of materials can be significantly reduced.

Selection of preferred alternative:

Out of the three alternatives we provided in the last module, we have started

implementing the new ERP system, Master Plan. We recommend Masterplan to our client

because it is less costly and effective than other ERP software. It will help Bosco and Roxy's to

track inventory consumption and analyze problems that affect inventory management.

Bosco and Roxy are struggling with inventory management and this step will help them

streamline their operations and manage the inventory in a better way. Excel is not enough to

manage the inventory, and there is a vast need for ERP software.

Although, at a later stage, we helped with the data entry to trace the movement of

materials because that is another step to understanding the inventory level in the plant.

Prediction of outcome:

The main advantage is that it helps to label raw materials and finished goods and trace the

consumption of raw materials. This advantage is the main reason for selecting this ERP system.

Our client is facing challenges in tracing both finished and raw materials in the warehouse.

Other advantages of the Master Plan that will help Bosco and Roxy's in the short and long term:

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 1. Bill of Materials (B.O.M.'s) can be verified using Master Plan

2. Traceability of both R.M. and F.G.

3. It can also help them to configure recipes

4. Material requirement planning

5. Barcode labels

6. Inventory alerts and management

Contingency plan:

Even though we are implementing the Master Plan ERP, it will take a few months to

understand its efficiency and deficiency. We advised our client to create electronic copies of all

the data and asked them to save them. We also advised them to create a backup of the computer

before starting up and creating a stable recovery start point.

Along with implementing the Master Plan, we also help them put the racks on right

places and give them locations. We are planning to fix the movement of R.M. to the plant and

movement of F.G. to the warehouse instead of keeping them on the floor.

Even if they fail to implement the Master Plan by December, they will manage the inventory

based on the locations we allotted to store the material.

Implementation Plan:

We are helping Bosco and Roxy's in implementing the Master Plan by the end of

December. We are responsible for giving physical locations and deciding the storage locations

for all the material, be it R.M., W.I.P. or F.G. We suggested an implementation plan to Bosco

and Roxy's, and they have approved it, and we have initiated the implementation by barcoding

all rack and locations. We will submit the implementation plan with this report.

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 We have discussed the implementation plan with the client, and they approved it last

week. We have already completed the oven front area, behind the training room, on the storage

racks for bases, and in the packaging area.

Steps to be followed:

1) Count the number of storage racks and trays they already have. (Completed)

2) We have started with barcoding each storage rack based on the implementation plan

provided with the report. (In progress – Will be completed as soon as racks are all

moved)

3) Movement of racks and shelves based on the availability of space and storage locations.

(In progress – To be completed before 15th December 2020)

4) Naming the workstations, placing floor and ceiling markings for identification (Deadline

20th December 2020)

5) A physical count of inventory that is already planned in December end week. This

activity will take two days (Deadline: Last week of December)

6) Data entry of all invoices and purchases must be maintained all the time to maintain

traceability (Deadline: Daily activity)

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 The above plan is what we have suggested for Bosco and Roxy’s for they base storage.

Summary:

• The implementation of the new ERP system ensures a smooth movement in the plant.

• With proper barcoding on the racks, it would be easy to track the inventory.

• The signage would give proper direction to the workers in the plant.

• A lot of rework can be eliminated, and they can have consistency in flow.

• Effective management of human resources and material is possible.

• Efficiency, proper productivity, and time management are achievable.

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References:

1. 8 Steps For Helping Your Employees Accept Change

(https://www.forbes.com/sites/brentgleeson/2016/10/17/8-steps-for-helping-your-

employees-accept-change/?sh=501f925129f2)

2. 12 Reasons Why Employees Resist Change in the Workplace

(https://catherinescareercorner.com/2011/07/26/12-reasons-why-employees-resist-change-

in-the-workplace/#:~:text=Employees%20resist%20change%20because%20they,another

%20job%20easily%20and%20quickly.&text=Guiding%20Against%20Resistance

%20%E2%80%93%20While%20we,we%20can%20change%20our%20own)

3. Inventory Management (https://www.masterplansolutions.com/inventory.html)

4. Fishbowl Inventory Software (https://www.softwareadvice.com/ca/scm/fishbowl-

inventory-scm-profile/)

5. COVID-19 Government Funding for Canadian Businesses

(https://www.mentorworks.ca/what-we-offer/government-funding/covid-19/)

6. U.S. Food and Drug Administration - How to Register and List

(https://www.fda.gov/medical-devices/device-registration-and-listing/how-register-and-

list)

7. How To Get FDA Regulated Products Across The Border (https://www.pcb.ca/post/what-

you-need-to-know-to-get-your-fda-regulated-product-across-the-border-2528)

8. Latest Canadian Pet Population Figures Released (https://www.cahi-icsa.ca/press-

releases/latest-canadian-pet-population-figures-released#:~:text=Cats%20continued%20to

%20outnumber%20dogs,from%207.6%20million%20in%202016)

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9. Import Policies: Pet Food (https://www.inspection.gc.ca/animal-health/terrestrial-

animals/imports/import-policies/animal-products-and-by-products/pet-

food/eng/1321129023397/1321129556426)

10. Canada Pet Food Market - Growth, Trends, And Forecast (2020 - 2025)

(https://www.mordorintelligence.com/industry-reports/pet-food-market-in-canada-

industry)

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