Business Process Management and Redesign

This document discusses the concept of business process management and redesign in organizations. It includes an analysis of the current workflow diagram, EPC diagram, and BPMN model of ABC University. The document also highlights the business process layers, issues faced in the process, and SAP workflow design. It provides valuable insights into the importance of BPM in improving business management.

Running head: BUSINESS PROCESS MANAGEMENT AND REDESIGN
Business Process Management and Redesign
Name of the Student
Name of the University
Author’s note:

1BUSINESS PROCESS MANAGEMENT AND REDESIGN
Table of Contents
AS-IS Workflow Diagram:..............................................................................................................2
EPC Diagram:..................................................................................................................................4
Report:.............................................................................................................................................5
Organization Description:............................................................................................................5
Business Process Layers:.............................................................................................................6
Business Process Issues:..............................................................................................................7
BPMN........................................................................................................................................10
SAP Workflow Design..................................................................................................................11
Bibliography:.................................................................................................................................20

2BUSINESS PROCESS MANAGEMENT AND REDESIGN
AS-IS Workflow Diagram:
Figure 1: Workflow Diagram of ABC University
(Source: Created by Author)

3BUSINESS PROCESS MANAGEMENT AND REDESIGN
Figure 2: As-Is Model of ABC University
(Source: Created by Author)

4BUSINESS PROCESS MANAGEMENT AND REDESIGN
EPC Diagram:
Figure 3: Event-Driven Process Chain Diagram Model of ABC University
(Source: Created by Author)

5BUSINESS PROCESS MANAGEMENT AND REDESIGN
Report:
Organization Description:
ABC University provides education based service since the last 50 years now. The
service that is provided by the ABC University includes facilitating of nearly 20,000 students.
The number of students and staffs have been increasing in a constant rate. This is one of the
major reason that the incorporating of the Business process model and emphasizing on the same
has been a major concern for the bettering the management section of the organization.
As per the current situation, the academic and the administration related employees
requires purchasing of equipment’s for better completion of their tasks. In the initial stage, the
employee needs to fill in and sign the paper regarding the specification of the product that is
required in the commencing of their task. The supplier from whom the products will be taken
will also be stated by the employees. Two photocopies of the managers are taken. The financial
managers provide the budget line for covering of the cost. Procurement managers locate the
policies and cover the purchase requisition. The financial and the procurement managers are
concerned with the returning of the purchase request. After both the aspects are acknowledged,
the request is procured as per the amendments of the Purchasing department. After this stage the
financial and the procurement managers approve the employee’s purchase requisition. In case the
demands are not approved by the two mangers the demand gets cancelled and hence the
employees can again resubmit. The purchase clerk is responsible for the purchasing of the
requisition as per the University’s Enterprise system. In case the employee have provided with
the vendor that is unknown, the dealing starts and hence the management of the negotiation
process is performed. After getting of the quote the clerk enters the details in the data base. Hard
copy is sent to the vendor. The goods are delivered to the concerned department. The clerk

6BUSINESS PROCESS MANAGEMENT AND REDESIGN
checks the product quality and in case any significant issue is detected the purchase is cancelled
and in case the product maintains the quality of the product, the clerk informs the employees and
hence they collect the item. After the collection of the products, the receipts from the ES is
provided to the Account payable office. After this process the clerk compares the cost of
purchase order and the good receipts. Three way matching technique is used in the system. After
completion of the process the clerk initiates the payment process. The employee can stipulate the
product in case the product is not received before the required time.
With the enhancing of the BPM in the business management system the main aspect that
is taken into consideration is that the business process redesign is performed and the results that
are gained are better than the processing of the business that is commenced in the previous
stages. Cost reduction and quality of the service has also been one of the major aspect that
provides better commencing of the business processing.
Business Process Layers:
There are three business process layers in the ABC University. These layers are
workflow, business process and value chain. The workflow of physical layers is measureable
business process layer that is comprised of technology and people. The As-Is workflow diagram
in the ‘figure 1’ describes the current processes of the organization. The business process is the
second layer. This layer is the combination of tasks. These set of tasks in business process layer
take input(s) and process the input to generate output. The process layer has a workflow system
that organizations utilize for managing the execution of business process. The value can be
considered as what clients pay to the organization. However, in this case, the value is the quality
of goods received from the vendors as well as cost effective processes that reduce internal
processing cost. In order to increase the value of the business processes, changes in the activities

7BUSINESS PROCESS MANAGEMENT AND REDESIGN
and current ABC University is required. The ‘figure 3’ business process model shows the
changes in the current ABC University business process model.
Business Process Issues:
First Issues: The issue of granting permission have been one of the major concern for the
processing of the purchase method of the ABC University. As per the issue the permission
granting process have been very difficult as the processing of the permission granting system
needs to be performed as per the decision of both the procurement managers and the financial
manager. Suppose the product that is required by the employee is stated and the managers will be
checking the needs. It is obvious that both the managers will not be having a proper
understanding regarding the needs of the products. Hence if a single managers rejects the
demand of the product the entire process stops. This reduces the efficiency of the process. After
the mangers reject the demand of the employee, for getting his need fulfilled again the employee
has to follow all the steps from the beginning and hence both time and effort is lost.
The first business process issue is the conformation form financial manager and
procurement manager. The biggest opportunity of addressing this issues reducing delay time.
The employee will not have to wait for both the managers to confirm the order. It is assumed that
that these two managers is working based on some principles implemented in the business
process. If these principles can be implemented in the system then the system can automatically
verify the data in the purchase requisition form. The only limitation is the accurate
implementation of the policies in the system.
Second Issue: As per the case study the functional process of the ABC University is
unique. This buying of products via internet platform cannot be performed. The main reason

8BUSINESS PROCESS MANAGEMENT AND REDESIGN
behind this aspect is that in ABC University prepaid system is absent. However to perform
transaction via the internet platform, needs prepaid processing for completion of the transaction
process. Another issue that is present includes the fact that in the case that is stated above is that
the clerk deals and negotiates with the dealers who are decided by the employees. This dealing
process will not be possible in case of using the internet. While selling the goods the identity of
the seller of the product is not disclosed and neither can the dealer be connected. Hence using of
the internet will not be beneficial in the processing of the business management. This lack of
management processing has been affected by their process. Another aspect that is taken into
consideration is that the security of the business organization can be performed. These are the
major reason that the implementation of the internet shopping has not been implemented in the
processing of the ABC University.
Dependent on the manual purchase from the vendors is a backdated process in the
modern technological era. There is very less possibility of properly comparing the goods quality
and price provided by the vendor. Through the implementation of change in purchase process
can allow the employee to be surer of what they are buying. The employee can compare the price
of the goods easily as each vendor has online system which shows product cost. The limitation is
that what quality of goods the organization will receive is not known until shipment arrives. The
employee cannot physical inspect the goods quality. The payment will be done through secure
gate way such as PayPal or any other using credit card.
Third Issue: This issue of separate entity of the purchasing and the accounting
department endures the fact that proper management of the business processing gets affected and
hence the business management gets affected in a negative manner. As they have semesters in
different time of the year, it gets difficult for the processing of the product conveyance. This

9BUSINESS PROCESS MANAGEMENT AND REDESIGN
enhances the fact that proper understanding of the business organization will be providing high
amount of issue in the managing process. As the campuses of the purchasing and the Accounting
department, the communication performed in the transaction process gets more difficult. This
also ensures that one of the department will be having a lot of pressure in the functional process
whereas the other department will be sitting idle. This will reduces the balance of the system.
This incurs the fact that proper management of the business processing will have to be
performed.
The goods are received irrespective of the semester. The new system can allow the
purchase department to track from which campus the purchase request has been submitted. This
way the purchase department can place the order as per the semester dates. The limitation is that
the goods may be required irrespective of the semester schedule and this has to be submitted as a
note in the form manually.

10BUSINESS PROCESS MANAGEMENT AND REDESIGN
BPMN
Figure 4: BPMN Model of ABC University
(Source: Created by Author)

11BUSINESS PROCESS MANAGEMENT AND REDESIGN
Figure 5: Pay with Credit Card Sub Process
(Source: Created by Author)
Figure 6: Make Payment Sub Process
(Source: Created by Author)
Figure 7: Submit Purchase Request in ES Sub Process
(Source: Created by Author)
SAP Workflow Design

12BUSINESS PROCESS MANAGEMENT AND REDESIGN
Figure 8: Organizational Unit in ABC University
(Source: Created by Author)
Activity Name Description
Submit Service of Good
Acquisition form
The employee fills and sign a form with the description of goods
to be purchased. Employee also define the quality of goods,
expected delivery date and approximate costs for purchasing the
products
Nominate Supplier The employee nominate a supplier of their wish
Request quote Instead of nominating a vendor, the employee can request quote
from the suppliers. This request is done to obtain the accurate
specification of the product employee wants to buy. If vendors
response with a quote then those quotes are added with the form.
Make photocopies Before sending the forms to financial manager and
Procurement manager, the employee makes photocopies of the
form.
Attach budget line The financial manager is responsible for attaching the budget
line for covering the cost
Compare purchase against
policy
The procurement manager checks which policy that covers the
proposed purchase
Make changes in form After receiving the budget line and procurement manager
response, employee makes changes in the form to follow the
manager instructions
Make Copy The employee copies the forms and requests so that if anything

13BUSINESS PROCESS MANAGEMENT AND REDESIGN
gets lost they can have backup
Cancel purchase request The financial manager or procurement manager can cancel the
request
Enter form in ES The purchase clerk enter the form details into the enterprise of
the system. If the employee did not mention any vendor then
purchase clerk select a master vendor
Generate purchase order After purchase clerk receives a quote from the vendor, they add
the quote in the system. After quote is attached, the clerk creates
a purchase order.
Find purchase order The clerk in Goods Receipt Department searches for a purchase
order in enterprise system.
Return shipment If the clerk cannot find a purchase order associated with the
shipment then shipment is returned to the vendor
Check shipment The clerk at Goods Receipt Department is responsible for
checking whether the mentioned quantity and quality matches
with the shipped goods
Return shipment In case the clerk finds that there is huge issues in goods quality
then goods are returned to the vendor. As well as accounts
payment department and employees are informed that order has
cancelled
Deliver to employee
department
The Goods Receipt Department clerk will send the products to
the employee department and inform them through email.
Inform Accounts Payable The Goods Receipt Department clerk shares the purchase

14BUSINESS PROCESS MANAGEMENT AND REDESIGN
Office requisition form with the Accounts Payable Office once the
employee acknowledge the parcel
Compare invoice The Accounts Payable clerk checks the goods receipt form with
the vendor invoice to match everything mentioned in the invoice
is valid or not
Transfer amount After getting the payment authorization, the clerk initiates a
bank transfer to the vendor’s bank
Activity Name Assigned
To
Type When
Assigned
Reason for selecting the type
when assigned
Submit Service
of Good
Acquisition form
Employee Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Nominate
Supplier
Employee Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime
activity, it is
selected as job
Request quote Employee Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the

15BUSINESS PROCESS MANAGEMENT AND REDESIGN
department because it is runtime
activity, it is
selected as job
Make
photocopies
Employee Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Attach budget
line
Financial
Manager
Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Compare
purchase against
policy
Procurement
Manager
Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Make changes in
form
Employee Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Make Copy Employee Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime

16BUSINESS PROCESS MANAGEMENT AND REDESIGN
activity, it is
selected as job
Cancel purchase
request
Employee Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime
activity, it is
selected as job
Enter form in ES Purchase
clerk
Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Generate
purchase order
Purchase
clerk
Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime
activity, it is
selected as job
Find purchase
order
Goods
Receipt
Clerk
Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime
activity, it is

17BUSINESS PROCESS MANAGEMENT AND REDESIGN
selected as job
Return shipment Goods
Receipt
Clerk
Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Check shipment Goods
Receipt
Clerk
Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Return shipment Goods
Receipt
Clerk
Position Design
Time
.
It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department
Deliver to
employee
department
Goods
Receipt
Clerk
Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime
activity, it is
selected as job
Inform Accounts
Payable Office
Employee Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime

18BUSINESS PROCESS MANAGEMENT AND REDESIGN
activity, it is
selected as job
Compare invoice Accounts
Payable
clerk
Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime
activity, it is
selected as job
Transfer amount Accounts
Payable
clerk
Job Run time It is common activity in the org
unit (Sales) that should be able to
be performed by Position in the
department because it is runtime
activity, it is
selected as job

19BUSINESS PROCESS MANAGEMENT AND REDESIGN
Figure 9: Sap Workflow Design of ABC University
(Source: Created by Author)

20BUSINESS PROCESS MANAGEMENT AND REDESIGN
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