BPR Case study

Re – engineering in Triton Engineering Company Ltd.

Do?

  • designing, manufacturing and supplying butterfly and control valve.

Got?

  • ISO 9001-2000 certificate
  • the company has survive for about 30 years in making values.

Target?

  • set up seperate annual export.

Seperate Export Market?

  • The domestic enquiries will be handle by Marketing Director (The Present Procedure) – MD

 

Chapter 6

 

Change Management in Reengineering

 

Objectives
  • To understand the change management process.
  • To understand the framework that commonly used
  • To outline the challenge and critical skills involved.

 

Introduction
  • The management of change is now commonly viewed as a complex and difficult area worthy of special attention and study.
  • The notion of BPR as a change initiative will be examined and compared to a set of approaches from change management.

 

Summary
  • The Boddy and Buchanan framework
  • The challenge in change management.
  • The critical skills for change management.

New Process Mappping

New Process Mapping for –> Walk in Customer Process

walk-in

Figure 1 : New Walk in Process

 

Based on figure 1, it describe the user can make 2 choices in accomplish their requirement and satisfaction, either by; online or direct come to the company. Due to traditional paper based approach business that been done by the Affluent Master sdn. bhd. to promote their company, our group had decide to do promotion through both; by computer based(online) and paper based. This will help client to make their own decision based on the time, location, and etc. (e.g. client from foreign country can used online – no need to travel)

New Process Mapping for –> Main Company Process

maincompany

Figure 2 : New Company Process

 

Same goes to this figure 2, it describe the user can make 2 choices in accomplish their requirement and satisfaction, either by; online or direct come to the company. Due to traditional paper based approach business that been done by the Affluent Master sdn. bhd. to promote their company, our group had decide to do promotion through both; by computer based(online) and paper based. This will help client to make their own decision based on the time, location, and etc. (e.g. client from foreign country can used online – no need to travel)

Midterm Exam Paper

The exam questions & formats CISB 524 ( Feb 2009 )

The exam been taken for 2 hours. Full marks for this paper is 40 marks. The exam question been prepared by Pn. Rina. There are 4 subordinate questions;

  1. Question 1
    1. Give 3 reasons to undertake BPR and derive the business goal that can be interrelated with those three reasons. (12 marks)
  2. Question 2
    1. List the component of Process Mapping (6 marks)
    2. Business processes can be defined in three categories. Briefly describe the 3 categories. (6 marks)
    3. Differentiate between Value-added analysis and non-value added analysis. (3 marks)
  3. Question 3
    1. What are the techniques for high level process redesign methodology? (4 marks)
    2. What are the templates that could be used u der Assumption Surfacing? (6 marks)
  4. Question 4
    1. The Detailed Design stage consist of 3 key components. Name the 3 components. (3 marks)

Discussion

Process mapping

We had discussion on making two draft of  process mapping.  The Affluent Master Sdn. Bhd. contain 2 type business process, therefore we need to dradt and make two process maping that been added / integrate with new feature(s) or idea(s) by our group.

This meeting been held on wednesday, 12pm at Ilmu apartment.

 

Mid term Exam

Midterm exam is been held on Thursday, 19th february. The chapter that been include on the paper is chapter 1 to 4.

Learn chapter 5

 

Objectives
  • To understand the activities involved in this phase.
  • lTo understand the considerations that have to take during this phase
  • To outline the requirements in this phase.

 

lIntroduction

The purpose of this phase is:

  • To establish the financial, manpower and skills training needed for implementing the new process.
  • To outline the considerations used.

              

Implementation plan should include:
  • Management structure for implementation
  • Financial costs and benefits analysis
  • Business and policy review
  • Implementation options
  • Preliminary implementation schedule

 

 

Summary
 
Process implementation includes:
  • New organization structure
  • Financial costs and benefits
  • Business and policies
  • Implementation options
  • Implementation plan

Excersice TQM & BPR

Concept of  TQM  

  • Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.  
  • TQM has been widely used in manufacturing, education, government, and service industries, as well as NASA space and science programs.  
  • The concept of TQM was developed by an American, W. Edwards Deming, for improving the production quality of goods and services. Then it adopted by Japanese  in 1950 to resurrect their postwar business and industry, used it to dominate world markets by 1980.  
  • TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.

 

Differences between TQM and BPR

 

Differences

TQM

BPR

Type of change

Gradual change

Proposes dramatic change

 

Changes in environment

 

Any kind of change

Change due to information revolution

 

Synonym

Process Improvement

Process Innovation

 

Improvement

Incremental improvement and revolution

Breakthrough improvement via a step change in performance

Pace

Focuses on gradual and adaptive changes

Looks for radical improvements

 

Involvement

 

Whole organization should be involved

Needs to be implemented step by step in a process that gives the most competitive advantage to the organization

 

 

Goal

 

Improve only a specific selected process

Improve not only this selected process, but also other processes that require redesign in order to provide new values to the customers

 

Time Requirement

Involves a long-term commitment to quality improvement

 

Involves a short time duration

 

 

Initiative

Every area of business contributes to quality and customer perception. improve quality come from the participation of employees as a bottom-up approach

Involves a top-down orientation. a need for a retrained and highly qualified workforce

 

 

 

 

Focus

 

 

 

Improving processes. Focused on continuous improvement and incremental performance improvements

Completely destroying old processes and inventing radically new ones that result in dramatic increased efficiencies. corporate performance improvement requires discontinuous improvement-breaking away from the outdated rules and fundamental assumptions that underlie operations

 

Chapter 4

Objectives

  •  To understand the phases involved in Detailed Process Design
  • To understand the process, technology and organization structure

Introduction

 Purpose:

  • To establish a new organization structure and infrastructure for supporting the redesigned process.
The stage consists of three key components:
  • Process structure (what, when and how)
  • Technology structure (which)
  • Organization structure (who)

Summary

 

The phases in detailed process design involved:
  • Process structure
    • Develop the detailed process and use the simulation tool for validating process
  • Technology structure
    • Scan the emerging technologies to support the new process.
    • Require justification such as what, why and how?
  •  Organization structure
    • Structure a new organization to support the new processes and assign a performance target for each.

BPR Project Assumption

Techniques for high level design;

  • Assumption
  • Idea generation
  • Selection & integration
  • Process validation

Redesign Method

 

Assumption Surfacing template with idea generation;

Assumptions

Challenges

Ideas

What Template

Specialized hardware and software are required to come out with a product

Must maintain hardware and upgrade software for better performance

Use more upgrade hardware and software

Giving the best services is important to Affluent Master

User will get quality product and time consuming

Promote the service more widely

Who Template

A designer designs the product

Designer may have lack of ideas

Hire more designer to give more ideas

A client opens a tender

No company will provide the service required by the client

Client have to open the tender in various type of media

A customer provides idea and feedback for the product

Customer may come out with difficult ideas or negative feedback

Customer can give idea by illustrating it on a paper/soft copy

A stakeholder will observe the product during testing and give feedback that will increase the product’s quality

The quality of the product will be affected or revolutionize based on the feedback given by the stakeholder.

 

Where Template

The products are designed in-house environment

The environment may be small or limited of resources

Increase the size of environment

A customer must collaborate during the development phase (in-house) until testing (client environment)

The client can’t made a proper decision for giving full cooperation during the development that will cause delay or abandon of the project.

Client must first set and make wise decision on what they want or desired for the product

The client opens a tender usually in public (internet, newspaper, etc)

More clients post tender that will increase competition among clients

Client post tender on selected service

When Template

Client must open tender before development of the product

Improper, incomplete, imprecise tender will cause conflict / confuse to AM company to make decision and analyze the budget and resource for developing the project.

The tender should explain detail on price and services that will be needed

A customer must make the payment after all of the process have been done

Customer will not pay as the usual price

Make sure all of the customer’s detail are taken

A client sends official letter when Affluent Master is selected to provide the service

Client did not send official letter for confirmation of their selection.

 

Correction/redesign is done when customers did not satisfy with the design

Difficult to get the output that makes the time of completing the product takes longer

Customer should give ideas before the implementation

Why Template

A client opens tender to choose the best price and quality of the service

Client had difficulty in deciding the right price and quality for the service. This will lead to interruption or delay.

The price and quality have to be specific

Affluent Master will submit a quotation to client to list the price and services provided

The quotation that been submit did not meet the client requirement or satisfaction.

The quotation must list the price and services provided

Client prepare official letter for pricing from quotation to tell that the company is selected to provide the service

Client tries to negotiate for cheaper price but gaining for quality product.

List the actual price for the service

How Template

Correction/redesign is done based on customer’s requirement

High expectations of customer may be difficult to make the correction/redesign

Customer can give idea by illustrating it on a paper/in soft copy

Delivering is done based on user’s environment (deliver/come and pick)

The product did not successfully deliver to client.

All of the product must be recorded

Payment can be in cash or bank draft

Some client prefer to pay in other way.(e.g. online, bank draft, etc.)

Payment must be recorded with types of payment

 

 

  • The template can be used as a guide for this stage.
  • Challenge the assumptions made earlier.
  • Ideas should only be evaluated once the brainstorming session is finished.

BPR Project

We had a meeting in making the assumption sufring template, and challenges based on the company that we interviewed.

Assumptions

Challenges

What Template

Specialized hardware and software are required to come out with a product

Must maintain hardware and upgrade software for better performance

Giving the best services is important to Affluent Master

User will get quality product and time consuming

Who Template

A designer designs the product

Designer may have lack of ideas

A client opens a tender

No company will provide the service required by the client

A customer provides idea and feedback for the product

Customer may come out with difficult ideas or negative feedback

A stakeholder will observe the product during testing and give feedback that will increase the product’s quality

The quality of the product will be affected or revolutionize based on the feedback given by the stakeholder.

Where Template

The products are designed in-house environment

The environment may be small or limited of resources

A customer must collaborate during the development phase (in-house) until testing (client environment)

The client can’t made a proper decision for giving full cooperation during the development that will cause delay or abandon of the project.

The client opens a tender usually in public (internet, newspaper, etc)

More clients post tender that will increase competition among clients

When Template

Client must open tender before development of the product

Improper, incomplete, imprecise tender will cause conflict / confuse for the AM company to make decision and analyze the budget and resource for developing the project.

A customer must make the payment after all of the process have been done

Customer will not pay as the usual price

A client sends official letter when Affluent Master is selected to provide the service

Client did not send official letter for confirmation of their selection.

Correction/redesign is done when customers did not satisfy with the design

Difficult to get the output that makes the time of completing the product takes longer

Why Template

A client opens tender to choose the best price and quality of the service

Client had difficulty in deciding the right price and quality for the service. This will lead to interruption or delay.

Affluent Master will submit a quotation to client to list the price and services provided

The quotation that been submit did not meet the client requirement or satisfaction.

Client prepare official letter for pricing from quotation to tell that the company is selected to provide the service

Client tries to negotiate for cheaper price but gaining for quality product.

How Template

Correction/redesign is done based on customer’s requirement

High expectations of customer may be difficult to make the correction/redesign

Delivering is done based on user’s environment (deliver/come and pick)

The product did not successfully deliver to client.

Payment can be in cash or bank draft

Some client prefer to pay in other way.(e.g. online, etc.)

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