Overview of BPM, Process Analysis, Design and Development
Problems, Issues and Opportunities of the Current Process.
The ABC Food Corporation is a Japanese food exporter and distributor in Australia. It has 6 distribution branches in each state with a surplus outlet at Queensland’s Gold Coast. The company’s headquarter is in Melbourne. The organizational structure is primarily made up of sales and marketing, and accounting department. The company takes order from customers (shops, market, and hospitality service) through email, fax and telephonic calls. Then the order list is forwarded to sales team, to create order. After the order passes through quality check, the Transport Company picks up the order to deliver it to the customer.
The company’s process is completely based on human interaction, therefore the issues and problems caused by miscommunication, delay, old IT system and alteration in order, occur more often. Due to these problems the company have to face financial losses as well as customer dissatisfaction. This report investigate about these issues in detail and discuss the method of enhancement within the framework of Business Process Management. The BPM is explained and discussed that could help in gaining better understanding of the problems and finding the solutions which could ensure the company’s optimized performance.
The Business Process Management attracted lot of attention from analyst consultants, end user, managers, academics and vendors since past 20 years. This budding interest can be seen in significant knowledge, a growing scope, and collection of tools, methodologies and techniques (Vom Brocke & Rosemann, 2014).
The BPM adaptation is increasing, with an increase in challenge to offer widely accepted and precise definitions, overall framework and taxonomies for BPM. Business Process Management (BPM) is a broad structure for transforming and managing processes in an organization (Hammer, 2014). The goal of BPM is to optimize business process in order to attain greater performance of system such as quicker response, better service and more profit (Viryasitavat et. al., 2018). The objective of BPM is to attain the strategic goal set by the organization through individual development goal. The BPM is a tool to achieve business objectives. The implementation of BPM must have positive impact on the business by providing benefits. It focuses on core business activities that contributes towards achieving organizational goals (Jeston & Nelis, 2014).
The approaches to process performance of BPM have gradually developed Business Process. The process analysis is an essential component of BPM. The process needs to be managed once it is started. The performance of the process, related to customer satisfaction and company’s requirements, is compared to the target achieved. The targets are usually based on market competition, organizational requirements, customer expectation and other sources (Hammer, 2014). Process design is the most basic aspect of a process. It specifies the nature of task, performer of the task, recipients of the task, time, location, circumstances, and degree of precision and available information. Without a proper process design, the individual activity will be uncoordinated and chaotic environment in the organization.
The BPM activities can be commenced in many ways, such as,
The latest avatar of BPM is six sigma which is a tool to reduce performance inconsistency by analysing and evaluating the outcome and taking reference from statistical data to recognise the cause of performance degradation.
The ABC company is facing many problem related to management and workflow. To avoid these minor issues which are creating unnecessary delay and financial losses, it is important to analyse the issues associated with it and reshape them to get optimum output.
The foremost problem is delivering wrong order to the customer which is creating customer dissatisfaction. Due to miscommunication, the telephone operate often misinterpret the order and passes it to the sales staff. When wrong order is delivered, it creates customer dissatisfaction and potential harm to the company’s reputation. The telephone operate needs to apologize for the miscommunication and the order is recreated and deliver, which impose preventable burden on sales and accounting staff. All these excessive work is caused by a minor miscommunication.
The customer sometimes change or amend their orders after picked up for delivery by the transport company. Then the company have to bring back the goods from the customer and re-arrange the order as per the customer request on the scheduled date. The company have to pay twice to the transport company, for the first delivery and second time for delivering changes order.
The credit system gives credit of $1000 to each customer which has to be paid within next 14 days. Sometimes, the customer place another order before the completion of 14 days. The current system would not let the account staff to view the existing credit details of the customer. Therefore, the order is placed without knowing the previous credit amount of the customer, until the account department receives invoice, payment and then check credit details. This gives more advantage to the customer over company in terms of dollar credit.
Transportation is another issue which is causing delay in scheduled delivery and sometimes damaged to the delivered goods. The transport company takes time to give delivery confirmation. If any damage or delay happens, the ABC Company is required to provide compensation or refund to the customers.
In order to enhance the performance of the company, it is essential to redesign the current process system and remove all the issues and problem which is creating hindrance in providing quality service to the customer and attaining maximum monetary profits. The financial loss caused by these problems are avoidable. The redesigning of the system will optimize the company’s operational workflow and performance of employees. For the company to establish itself as a tough competitor, it is important to redesign the business process.
Hammer, M. (2014). What is Business Process Management?. Handbook on Business
Process Management 1, 3–16.doi:10.1007/978-3-642-45100-3_1
Jeston, J., & Nelis, J. (2014). Business process management. Routledge.
Viryasitavat, W., Da Xu, L., Bi, Z., & Sapsomboon, A. (2018). Blockchain-based Business
Process Management (BPM) Framework for Service Composition in Industry 4.0. Journal of
Intelligent Manufacturing. Doi: 10.1007/s10845-018-1422-y
Vom Brocke, J., & Rosemann, M. (Eds.). (2014). Handbook on Business Process
Management 1: Introduction, methods, and information systems. Springer.
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