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.
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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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2BUSINESS PROCESS MANAGEMENT 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 consideringtheEnterpriseArchitectureandtheinformationprocessingsystemofthe company. The Strategic Planning and remodelling of Business Process Model and Notation canhelpthebusinessorganisationtoimprovetheiroperationalintegritythrough incorporating several new technologies such as ERP, SOA, Cloud, Big data, WMS, BPM while reducing the total operational time complexity.
3BUSINESS PROCESS MANAGEMENT Table of Content Introduction................................................................................................................................4 Process discovery.......................................................................................................................4 Process analysis..........................................................................................................................6 Process implementation.............................................................................................................7 Process Control..........................................................................................................................8 Commentary...............................................................................................................................9 Conclusion................................................................................................................................10 Reference:................................................................................................................................11
4BUSINESS PROCESS MANAGEMENT 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,ITgovernancedepartment,Warehousemaintenancesystem,Accounts department, Operational management, Customer communication and sales department will be considered. The Strategic Planning and remodelling of Business Process Model and Notation canhelpthebusinessorganisationtoimprovetheiroperationalintegritythrough 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, thecompanyhasan integratedPurchasingOperationSystemthatincludestheOrder 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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5BUSINESS PROCESS MANAGEMENT vendors and the accounts department develops the pricing details with bills. Throughout this cycletwoseparatediscrepancy-checkingprocessesareincorporatedthatoperates individually.Thisoperationaldiscrepancyisreducingtheperformancequalityofthe company while increasing the consumer attrition rate.
6BUSINESS PROCESS MANAGEMENT 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
7BUSINESS PROCESS MANAGEMENT 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 electricaldistributionareaiscausingadditionaldisturbanceinelectricaldistribution 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 andavailability check could require additional process time or waiting time. However, by lowering the multipleloopscounttheprocessflowcanreducetheoverallpracticalcycletime 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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8BUSINESS PROCESS MANAGEMENT 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 undercertainparametersandconstrains.Thedatafromprogressreportofoverall 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 thelowest 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
9BUSINESS PROCESS MANAGEMENT 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. InordertoimplementtherequiredchangeswithinorganisationalProcurement 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.
10BUSINESS PROCESS MANAGEMENT Conclusion As per the above report it can be said that, Strategic Business Process Management referstheprocessofintegratinginformationsystemalignedwithessentialbusiness operationsthroughmoreadvanceandefficientnetworkbasedworddistributionand 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 plannedchangesinthecurrentProcurementProcessandPurchasingOperationthe management should execute effective change management with appropriate monitoring and controlling.
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