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Chapter 4
Detailed Process DesignReference:
Tan, A. (2007). Business Process Reengineering in Asia: A Practical Approach, Pearson Education, Singapore.
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)
Introduction
In developing a detailed process design: A simultaneously redesign of the process and
technology structures are needed. An analysis to determine new resources and
developmental needs for existing employees (part of implementation planning)
Job positions should also meet the baseline requirements, ie: job responsibilities, outcomes, performance etc.
Process Structure
The new process must be verified. This is to ensure it meets the performance goals under different setting / operating scenario.
For simple processes, a modeling using a spreadsheet could be used.
For complex processes, computer modeling and simulation would be preferable.
Process Structure- simulation
Process simulation- experimenting with a model of a real system to determine how the system respond to changes.
Simulation provides: Experiment with the system Understand system responses to changes in the
environment Being process oriented
The simulation tool helps managers to study processes from a systems perspective.
This include a better understanding of cause and effect Allowing better prediction of outcomes
Process Structure - simulation
In a reengineering effort, simulation assist managers to: Validate the vision Analyze the critical path Prototype the process Understand performance characteristics Communicate the new process Develop system thinking
Process Structure - simulation
Business Process Simulation(BPS) tool: Flow diagramming based BPS tools, example,
visio and ProcessModel System Dynamics based BPS tools, example,
Vensim and Powersim Discrete-event Based BPS tools, example Arena
and ProModel Using the tools, it helps to analyze and
simulate the complex and dynamic business processes.
Technology Structure
It is a support structure. It allows companies to automate business
information processes. IT has contributed to intuitive GUI that enable
inexperienced staff to apply technology in their work.
IT allows users to manipulate data, images, charts, etc as well as quick access through multitasking and windows.
Technology Structure
Examples: Internet/Intranet technologies Wireless computing Real-time applications Object-oriented technology Etc.
During this stage, we need to determine the types of technologies that are required to support the new business processes.
Technology Structure
Example - Staff Apply for claim
HODEvaluate application Approve/Reject
DeanEvaluate application Approve/Reject
ClerkKeep the record Inform staff
Collect form
Finance
submit form to finance
Check form Approve/ Reject
Collect payment
Figure 4.1: Process Chart for applying claims of research fund
Technology Structure
The key activities involved:1. Apply for claims
2. Evaluate the application
3. Approve or reject by HOD
4. Evaluate the application
5. Approve or reject by Dean
6. Keep the record by clerk
7. Inform the staff by clerk
8. Collect the form by staff
9. Submit to finance by staff
10. Check the form by finance
11. Make payment by finance
Technology Structure
The activities listed can be classified as value-added or non-value added and potential IT can be identified for each activity.
Class activity: Based on the scenario given and the listed key
activities, identified the potential IT application to be used.
Key activities Type of activity (VA/ non VA) Potential IT application (if any)
Apply for claims
Evaluate the application by HOD
Approve or reject by HOD
Evaluate the application by Dean
Approve or reject by Dean
Keep the record by clerk
Inform the staff by clerk
Collect the form by staff
Submit to finance by staff
Check the form by finance
Make payment by finance
Technology Structure
Table 4.2: Identification of potential IT for new process
Technology Structure
The identification of IT for the new processes must be based on the benefits or values that the technology brings.
Not just the benefits to customers but how large its contribution will be on process improvement.
Refer to the example given in page 51.
Organization Structure
The detailed process design should include: necessary job positions, required skills and knowledge, number of people, teams and the supporting management structure.
Organization Structure
The organization should have the following characteristics: Minimize number of interfaces Maximize proximity of internal customers and
suppliers Optimize span of control number of direct reports
per manager Minimize number of layer Clarify of role and responsibilities Avoid overlapping or fuzzy responsibilities
Organization Structure
According to the advocate of BPR, the modern organization should abandon the old control mechanism.
3 reasons to support the claim By having modern IS , ex. Decision support
system, expert system etc. By having a well educated workforce The business environment has changed
Organization Structure
BPR emphasizes the value of reducing management levels and the number of managers within organizations.
The role could have changed to maximize the skills and knowledge.
Refer to table 4.3, 4.4 and Fig. 4.2 The BPR team will need to verify assumptions
regarding expected operating condition for the new process and staff/task performance metric.
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.