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ALFRED NOBEL UNIVERSITY, DNIPROPETROVSK
The world experience in the use of reengineering of business
processesResearcher: 5th year student of International Economics Department
Illia Sukhomlyn
Scientific supervisor: Petrunya Y. Е., Doctor of Economics, Associate Professor
Language consultant: Miasoid G.I., Cand. Sci. (Pedagogy) Associate Professor
DNIPROPETROVSK
2015
SECTION 1. Theoretical and methodological foundations of reengineerin
SECTION 2. Assessment of the position and perspective of the PJSC "Evraz - DMZ named after Petrovsky“
SECTION 3. Recommendations for performance increase in the enterprise of PJSC "Evraz - DMZ named after Petrovsky“ after reengineering conducting
Purpose of the diploma researchAnalysis of international experience in implementing
reengineering and its application in Ukraine, as well as a theoretical justification for its efficiency in metallurgical enterprises of Ukraine.
Object of the researchPJSC "Evraz - DMZ named after Petrovsky“ which has
powerful industrial potential (production of full cycle).
Subject of the researchThe mechanism for implementation of reengineering of
metallurgical enterprises in the highly competitive and difficult economic situation in Ukraine, based on international experience.
Concept of reengineering
Reengineering is fundamental rethinking and radical restructuring of business processes for improvement in the company performance.
Reengineering can be divided into two types:
Crisis reengineering (business processes redesign) Reengineering development (business processes
improvement)
PJSC "Evraz - DMZ named after Petrovsky“ - company with a full metallurgical cycle, founded in 1887 as one of the first Ukrainian steel mills producing cast iron, steel and rolled products, today one of the leading companies in the steel industry of Ukraine.
Product Export Destinations are steel plants in Poland, Germany, Israel, Romania, Bulgaria, Egypt, Iran, India, USA, Baltic.
Unstable situation of the world steel market. Increase in competition. Financial and economic crisis. Steady increase in prices for iron, fuel, energy and logistics. Large amounts of obsolete and worn out equipment and
obsolete technologies.
Lean manufacturing (Eng. Lean production) – industrial enterprise management concept, based on a constant quest to eliminate all kinds of losses.
The effect of the implementation of Lean: Improving the safety of employees and the moral situation Reducing positions in inventories Increased productivity Improving the quality of the product Reducing unnecessary human movement and
transportation of materials or products Reducing the time to search and navigate the workshop or
production.
Outsourcing - is a transfer of functions, services or processes for performing by external organizations on a regular basis.
Articles expenditure Together RMC Sett-I. molds
Repair electroengine
Service Centre. e. Equip.
Service Centre. lounge. Equip. CBP KB
Additional costs -128 763 -22 800 -96 195 -2 880 -5 614 -717 -556
TMC -115 721 -19 200 -96 195 -325
services -13 042 -3 600 -2 880 -5 289 -717 -556
Lower costs 56 548 19 288 28 095 2 901 4 690 1 087 487
raw and basic materials 24 286 10 149 14 137
Support costs 2 176 1 131 216 251 464 93 22
energy consumption 8 158 7 652 506
salary 20 417 7 927 5 950 1 754 3 564 769 454
outsourcing organizations 1 405 44 140 359 637 221 4
administrative expenses 27 21 6
social costs 79 37 10 20 4 7
Additional Income 97 561 3 516 89 887 987 84 88
realization of metal 89 887 89 887*
rent 4 674 3 516 987 84 88
Together effect 22 346 3 21 787 21 63 454 18
* Income from the sale of 15 tons of long products vs molds production