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Business Process Management

Transcript: Process Redesign Group 20 standard machine delivery Sub-process: check quality requirements What we changed Procurement Gassmann Testing Metrology GmbH (GTM): small manufacturing company in Germany Production of various devices (inter alia force transducers and standard machines) Depicted business process: Standard Machine delivery Machine for force measurement applications Process Description Shipping Process Context Thank you for your attention Production Company wide integrated IT system Supports faster interdepartmental information exchange reduced information search time Improved communication with suppliers Reduction of cycle time Reduction of costly errors Improved internal quality Less flexibility The Devil's Quadrangle David Mischke Aydan Gasimova Giada Binelli Saskia Garbe Process Description Expected Benefits standard machine delivery - redesigned Problems with the process Introduction of new integrated ERP system improved communication with supplier Resequenced "Calibration number request" Sub-process: check quality requirements - redesigned Business Process Management Slow interdepartmental paper-based communication Error-prone manual copying of information Poor internal quality: process participants do not feel in control of the process Fragmented IT infrastructure: each department uses its own IT system Slow communication with suppliers Production Procurement Start event: Order received Output: Standard machine End point: Delivered standard machine Involved participants: GTM: Procurement, Production, Laboratory, Finance Suppliers, Logistics partner

Business Process Management

Transcript: Features There‘s a way to do it better – find it. Thomas A. Edison * Einführung in BPM: - Historie - Wer führt BPM aus? - Wichtigkeit von BPM - BPM Triade * BPM Features and Goals * BPM Life Cycle * The Golden rules * BPM Kennzahlen * Vorrangig, anwendung, verbesserung * Vorteile und Nachteile * Ziele * Software * Biespiele * Schlussfolgerung * Questions ERP vs. BPM 4. Monitoring: is a phase where process performance is measured, analyze, evaluate, tracking every single processes, so that information on their state can be easily seen and statistics of each peformances can be provided. *Erfassung und Überwachung von Prozessen. *Behandlung von Schnittstellen und Aufgaben nach Störanfälligkeiten in einem späteren Zeitpunkt. *Ermittlung von benötigten Methoden, Daten und Zeiten für Prozessabläufe *Identifizierung und Reduzierung von Überlastungen oder Überkapazitäten. *Einblick in Prozessschritte und damit Simulierung von Prozessveränderungen. -BPM is a discipline, it’s something a company does. -Process means a flow of business activities and seeing those activities as connected toward the achievement of some business transaction. -BPM is about improving processes. It presumes the idea that you view business as a set of processes and BPM is the act of improving those processes. -BPM should not be a one-time exercise. It involves a continuous evaluation of the processes and includes taking actions to improve the total flow of processes. -A person/company doing BPM needs to have the big-picture view of the process (or so called “end-to-end view”). To understand the correct optimizations we need to consider those optimizations within the context of a complete business process. Improving a single step of a process is not BPM. Vorrangig, anwendung und verbesserung -Cost efficiency -Revenue growth -To reduce human error through automation -Harmonisation of procedural landscape -Increasing quality and customer’s satisfaction -Productivity improvements Durchlaufzeit Wann kann man mit einem Ergebnis rechnen? Gesamter Zeitbedarf einer kompletten Prozessdurchführung Liegezeit Zeiten ohne Aktivität im Prozess. Kriterium für Verbesserungspotenzial? Einarbeitungszeit oder Rüstzeit Prozessbeteiligter wechselt zu oft die Aufgabe > Zeit steigt Kommunikationskennzahlen zweckmäßige, räumliche Nähe Bearbeitungszeit Dauer um Aufgabe zu erledigen Wer? Was? Womit? Wichtigkeit von BPM Wer führt BPM aus? BPM is complimentary to ERP and may move into the ERP domain but is not likely t become the new development platform for ERP solutions. Process Management and automation Inhalt *CEO - Chief Executive Officer *CTO - Chief Technology Officer *COO - Chief Operations Officer *CPO - Chief Procurement Officer *Controlling *Quality Manager *Bereichsleiter *Arbeitsgruppen *Mitarbeiter focuses on optimizing the efficiency of existing business processes; monitoring process effectiveness, process modelling and simulations. It can thus, be described as a process-intelligent layer that may or may not be integrated with an organization’s ERP. Steigerung Produktivität Senkung Kosten höhere Effizienz Transparenz freigesetzte Ressourcen bessere Leistung Teamzufriedenheit Kundenzufriedenheit 2. Modeling: takes the theoretical design and introduces combinations of variables. BPM Features and Goals BPM Triade Ziele 1. making sure the Co-workers have confidence and trust in each other 2. Ensuring an open communication between employees and managers. 3. sharing vision and information with employees. 4. organization is able to respond to changes in markets quickly. 5. Senior management has confidence and trust in you and your manager 6. having efficient communication channels for transferring information. 7. appointing people responsible for processes. 8. The organization extensively uses information system. 9. Managers support changes in processes 1. Making a process management to a top management initiative The introduction of process management , with an objective to harmonize and also optimizing business processes, is long-term oriented strategical matter. For a company approach, which in harmony with its company strategy, it needs a top-down approach. Next is a change-management-task, that can only work, if the thinking and action is always be called for in the process. 2. Embedding process management into company’s DNA The advantages of process management can only be implemented entirely, if the thinking and action in the process merge into company’s DNA and therefor entering the daily task of the employees. 3. Begin targeted initiatives for process optimization Targeted initiatives for process optimization should be initiated, to embed process management sustainable in the company. It is really important for the start of the implementation. 4. Organizing all processes as end-to-end processes for customer consequently Most of the tasks in the company are distributed over the whole complex organizational structure. This is also applied for the

Business Process Management

Transcript: Cost Implementation Time Risk Data Management User resistance Platinum Concepts Pty Ltd No solid marketing strategy Improper inventory control Ineffective HR department Lack of communication and co-ordination EFFICIENCY EFFECTIVENESS Recommendation Major Problems BPM and Strategy As-Is Process To-Be Process Enterprise Resource Planning Customer Relationship Management AGILITY Urgent Problem Proposed Solution Solution Consideration An enterprise resource planning (ERP) system is a software and database that automates and integrates information processing in real time over a large number of business processes and functions in an organization.” (Anderson, Banker, Menon, Romero 2011 ) Supply Chain Management Business Process Management Project Scoping Diagram Thank you Implementation of IT Inter-departmental co-ordination Resource Utilization Customer satisfaction Manual Paper based method Business Process Architecture Supplier Relationship Management Group no. 69 Reshma Srinivasan 213391764 Eric Rodrigues 211040882 Mipandeep Singh 213511718 Based on Jim Harvey's speech structures Problem Analysis BPM is defined by Jeston & Nelis 2008 as, “the achievement of an organisation’s objectives through the improvement, management and control of essential processes.” Implementation of ERP to avoid delays Employees must be well-trained Solid marketing strategy Use of controlling techniques such as Break Even Analysis Introduction of SCM and SRM Insource its IT function

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