Business Process Management Case Study and Report

This report examines the existing Business Process Management and operation governing system of Johnson and Johnson and suggests suitable strategic changes considering the Enterprise Architecture and the information processing system of the company.

Running head: BUSINESS PROCESS MANAGEMENT
Business Process Management Case Study and Report
Name of the Student
Name of the University
Author note

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Executive Summary
In this report, the existing Business Process Management and operation governing system of
Johnson and Johnson will be examined and the most suitable Strategic changes will be planed
considering the Enterprise Architecture and the information processing system of the
company. The Strategic Planning and remodelling of Business Process Model and Notation
can help the business organisation to improve their operational integrity through
incorporating several new technologies such as ERP, SOA, Cloud, Big data, WMS, BPM
while reducing the total operational time complexity.

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Table of Content
Introduction................................................................................................................................4
Process discovery.......................................................................................................................4
Process analysis..........................................................................................................................6
Process implementation.............................................................................................................7
Process Control..........................................................................................................................8
Commentary...............................................................................................................................9
Conclusion................................................................................................................................10
Reference:................................................................................................................................11

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Introduction
Strategic Business Process Management refers the process of integrating information
system aligned with essential business operations through more advance and efficient
network based word distribution and execution operation in order to improve the quality and
time handling within a business organisational structure. In this report, the existing Business
Process Management and operation governing system of Johnson and Johnson will be
examined and the most suitable Strategic changes will be planed considering the Enterprise
Architecture and the information processing system of the company. For this the logistic
department, IT governance department, Warehouse maintenance system, Accounts
department, Operational management, Customer communication and sales department will be
considered. The Strategic Planning and remodelling of Business Process Model and Notation
can help the business organisation to improve their operational integrity through
incorporating several new technologies such as ERP, SOA, Cloud, Big data, WMS, BPM
while reducing the total operational time complexity.
Process discovery
The company named Johnson and Johnson was established in 1886 as a surgical and
medical products manufacturer. The company has more than 120,000 employees and more
than 200 bunches worldwide, through which they have developed a world level medical and
health product distribution system. Being a medical and health related product manufacturer,
the company has an integrated Purchasing Operation System that includes the Order
Receiving, Processing and Delivery procedure that need flawless and accurate department to
department connectivity and activities flow through adopting new changes in business
operation.
Being a medical and health related product Manufacturer Company, the management
has to maintain a balanced procurement process that ensures appropriate supplies, materials
and vendor services. Most of the goods and materials are kept in the warehouses and Freezers
whereas as per the requirement the goods are transported from the vendor storage to
procurement department. From last one year, the Purchasing Operation (OP) is requiring a
lengthy time due to the slow and inefficient procurement procedure from storage vendor.
After accumulation of the order details, the fetching request is send to the procurement and
accounts department. The procurement department procure the item successfully from the

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vendors and the accounts department develops the pricing details with bills. Throughout this
cycle two separate discrepancy-checking processes are incorporated that operates
individually. This operational discrepancy is reducing the performance quality of the
company while increasing the consumer attrition rate.

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Figure1: Existing Purchasing Operation and Procurement Process
Source: (Created by author)
Process analysis
Theoretical cycle time for Purchasing operation (TCT):
24+6+2+1+6+12+48+6 (neglecting the simultaneous billing operation that requires 8 hours)
= 105 hours
Cycle Time (CT):
((24+6+2)/0.4)+((24+6+2+1+6+12)/0.2)+48+6 (neglecting 8 hours of billing operation)
= 80+127.5+84+6
= 219.5 hours
Cycle time efficiency CTE = (TCT/CT)x100= (105/219.5)x100= 47.8%
It is clear the current existing cycle time efficiency is very low which is 47.8%
causing customer dissatisfactions and performance issues. The major cause behind this
system is repeated discrepancy test and availability test. Some major issues are causing these
hindrances considering slow data processing, low data transfer rate equipments failure, data
inconsistency and others. In the presented organisational purchasing operation clearly shows
that multiple data checking and by-parts or conditional module used in the procurement
department causing significant delay in overall cycle. In an average, the instance percentage

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has been assumed as 4% for the product availability check operation. In some cases this
percentage may increase up to 8% and decrease to 2%. Apart from that, the wiring system are
also disputed and unrepaired. The faulty electrical wiring system of the warehouse main
electrical distribution area is causing additional disturbance in electrical distribution
management to operate advance equipments.
The excessive repetition of order detail discrepancy and product availability can be
reduced by single operation. At the same time the lower distance from the initiation of the
Purchasing Operation process can also decrease the potential implemented cycle time as well.
In this situation, the multi tasking data checking operation for discrepancy and availability
check could require additional process time or waiting time. However, by lowering the
multiple loops count the process flow can reduce the overall practical cycle time
significantly. On the other hand, This amendment in Purchasing Operation model can
increase the Theoretical Cycle time (TCT).
Process implementation
Figure2: Changed Purchasing Operation and Procurement Process
Source: (Created by author)
Changed Theoretical cycle time for Purchasing operation (TCT):
24+6+12+1+6+48+6 (neglecting the simultaneous billing operation that requires 8 hours)
= 103 hours

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Cycle Time (CT):
((24+6+12)/0.4)+1+6+48+6 (neglecting 8 hours of billing operation)
= 80+127.5+84+6
= 166hours
Cycle time efficiency CTE = (TCT/CT)x100= (103/166)x100= 62%
As per the above presented calculation of altered Purchasing Operation (PO) process
it is visible that the overall Cycle time efficiency has been increased from 48%(approx) to
62%, which is an increment of 14% efficiency. The major cause of this efficiency is
significant amount of deduction of practical Cycle Time due to less number of operating
conditional loops in the Purchasing procedure. In this system, the availability of the products
will be detected with the initial discrepancy check operation causing some additional times
for data fetching from vendor database.
Process Control
Throughout the process, the monitoring and controlling is an essential factor that can
lead to successful implementation of changed model of Purchasing Operation. Multiple
individually measures are incorporated to measure the original performance of the system
comparing with the Baseline Performance Chart with the lower and Upper Control Limit
under certain parameters and constrains. The data from progress report of overall
procurement improvement with required times for each process nodes can be assess through
the Baseline Performance Chartthe small discrepancies can be eliminated. By Run Chart the
three assessment information can be found to measure the development. These three data
from the Run Chart are Upper Control Limit (UCL), Average or Mean Value (Avg) and
Lower Control Limit (LCL) (Cheng & Chang, 2012).
If the target of the upper limit of the time taken by the Purchasing Operation samples
is 48 hours and the lowest limit of the Purchasing operation is 32 hours then through The
assumed perception of Control plan Run chart, the number of days and sampling of
Procurement Processing will be
UCL = 48
Avg = 40

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LCL = 32
The Graphical representations of process and time data can also help to assess the
improvement of the overall purchasing cycle. It will also help to analyse the scope of further
improvement. Several samples of input output data process can be collected for graphical
analysis. The Y-axis of the graph represents the number of samples in each day and the X-
axis represents the amount of hours taken by the process. The statistical frequency analysis is
possible by measuring the Mean, Median and Standard deviation of the sample times required
from the procurement process (Antony, 2014). After that, SLT or Service Level Target will
be plotted in the graph according to resultant Mean, Median and Standard deviation. By
changing the operational performance the required time of each sample can be reduced. On
the other hand, the target should be to meet the SLT within the stipulated timeline.
In order to implement the required changes within organisational Procurement
Process and Purchasing Operation the management should also assess the workforce with the
force field analysis and implementation plan. For adopting the new improved Purchasing
Operation model, the change management plan can help the management to convince and
motivate the workforce to accept the new changes. Adequate training and development for
the new system are also essential. Sharing values, empowering approach, encouraging
communication, cooperative work culture will also help in this change management model.
Commentary
In order to collect the data of the internal procedure several primary data collection
tools have been used where the ethical confederation is chiefly essential for any research for
ensuring the authenticity and the credibility of the study. The ethical consideration of this
study allowed conducting the research under certain rules and regulations while getting an
approval from the ethical measure. The research has been conducted in a way that could not
be cause any personal and occupational harm to the respondents as well as to the respective
organisations under the enforcement of Data Protection Act. The research also ensured that
the collected information from the employees and review details of Johnson & Johnson will
not be implemented in any other unauthorised work except this research.

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Conclusion
As per the above report it can be said that, Strategic Business Process Management
refers the process of integrating information system aligned with essential business
operations through more advance and efficient network based word distribution and
execution operation in order to improve the quality and time handling within a business
organisational structure. The company has an integrated Purchasing Operation System that
includes the Order Receiving, Processing and Delivery procedure that need flawless and
accurate department to department connectivity and activities flow through adopting new
changes in business operation. Moreover, reducing the system processing loops count can
increase the CTE of the purchasing operation. At the same time, for implementing the
planned changes in the current Procurement Process and Purchasing Operation the
management should execute effective change management with appropriate monitoring and
controlling.

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