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Utilizing An Asrs System

Essay by 24  •  May 1, 2011  •  779 Words (4 Pages)  •  1,608 Views

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Executive Summary

CanGo is a small-sized company that retails a variety of products and services, ranging from books and videos to online gaming services. CanGo has had problems in the past with market strategies and formal planning. Liz, the founder of CanGo, and management would like to expand into the online gaming market. Our company, Quality Management Solutions, is writing a business plan on how to assist them the planning process of implementing a storage and retrieval system for online gaming. We will go over the features and benefits of the companies that we have researched and give them the recommendations on which one we believe will best fit their needs. We will also be assisting them on how to implement this system to get help them to make sure that their company will be competitive when they open into this new market segment.

The Quality Management Solutions consultants working on the CanGo project will be implementing a reliable and cost-effective ASRS system for the CanGo firm. Working on the implementation process consists of effective communication from our consultants and their brainstorming, recommendations and ideas, of which we will combine with our client's requirements and expectations for a new ASRS system.

The initial phase of this implementation is to focus our priorities on implementing this new technology at CanGo and to present a quality product, which will entail our coverage and research into the flexibility, costs, maintenance, capacity, space and the long-term benefits of CanGo investing in an ASRS. In addition, we will be reviewing and comparing the firm with other small firms and their utilization of their ASRS system and how a highly advanced system will bring flexibility, productivity and maintain being the quality product, which we have chosen after during our analysis.

First, we looked at the firm and its accommodation for this new system. The capacity of this new system has informed us to review the size of the ASRS and the location. In addition to discussing and making decisions on the size of the ASRS, we were given the opportunity to view areas of the installation, maintenance, and the start-up cost of the ASRS. Although, the start-up costs may seem inflated when compared to the current system in use, but the benefit of such a system as the new ASRS brings forth a better return in this investment for CanGo and will give them a competitive advantage in the market of online gaming.

In our comparison of data from the three vendors that manufacturer quality products, the consultants have reached a consensus and we will be forming a business relationship with Mega Stars Systems. Of course, our main specifications of this ASRS system, such as start-up cost, maintenance, space, capacity were granted and the vendor was able to ascertain all our needs on this project. Here are the comparisons of the vendors that we chose to research:

Comparison of Alternatives

Description HK Systems Hanel Mega Stars Systems

QUANTITATIVE FACTORS

Initial Investment $1,917,790.00 $2,212,319.00 $1,768,100.00

Operational Costs per year $83,953.00

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