Business Process Reengineering

This report aims to discuss the aspects of the company GAAM and how the business process could be modified using the implementation of IT solution for enhancing their business process.

Running head: BUSINESS PROCESS REENGINEERING
BUSINESS PROCESS REENGINEERING
Name of student
Name of university
Author’s note:

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BUSINESS PROCESS REENGINEERING
Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
Participants, Inputs and Outputs to the current system..............................................2
Process flow...............................................................................................................3
Exceptions..................................................................................................................4
Business process model..............................................................................................5
Process strengths........................................................................................................5
Process inefficiencies.................................................................................................6
Proposed IT solution..................................................................................................8
Business process re-engineering................................................................................9
Proposed workflow diagram....................................................................................10
Conclusion....................................................................................................................11
Reference......................................................................................................................12

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BUSINESS PROCESS REENGINEERING
Introduction
This report aims to discuss the aspects of the company GAAM and how the business
process could be modified using the implementation of IT solution for enhancing their
business process. The company GAAM is the international company who manufactures
majorly the hydraulic systems, metal products and the building systems. Particularly, this
makes the hydraulic equipment like the motors, gear pumps, control valves and the telescopic
cylinders. The purchasing department is majorly responsible for procurement of the hydraulic
pump inventory. The MRO or the Maintenance, Repair and the operating supplies are
purchased via this department. The purpose of this analysis is the implementation of the
accounting information system in the company for enhancing the business process.
Discussion
Participants, Inputs and Outputs to the current system
PARTICIPANTS INPUTS OUTPUTS
Purchasing department,
purchasing manager, two
buyers and one secretary
The purchasing department
receives the request for the
MRO suppliers from the 36
distinct individuals in the
company. The requests
could take form of the MRO
card or any purchase
requisition. The individuals
of the company execute the
purchases using the cards
that are utilised for
A P/O is then generated for
the item that is being
purchased. If this item has
been requested using any
card, then the card would be
returned back to that
department who requested
this purchase afterwards the
request for the purchase has
been placed. If any item has
been requested through the

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BUSINESS PROCESS REENGINEERING
purchasing the items on any
regular basis. As the card
reaches purchasing
department, the card is then
reviewed and it is signed by
MRO buyer.
purchase requisition, then
the form would be filled in
purchasing department. In
the emergency situation
when any kind of item is
required instantly, then a
purchase number is
generated that might not be
sequentially based number
that are used on normal
P/Os.
Process flow

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BUSINESS PROCESS REENGINEERING
The request for the MRO supplies is done by the employees of various departments. This
request could be taken in the form of the MRO card or any purchase requisition. The cards
are then utilised for purchasing the items that might be required regularly and the purchase
requisitions are used for purchasing the new items. The purchasing department receives the
request for the material to be bought and then the MRO buyer generates the P/O for items
that are to be purchased. After the request has been completed then the card is returned back
to the department who had requested for the purchase afterwards the purchase has been
successfully placed.
Exceptions
Additionally along with the normal process with the business, there are some
variations where there might be some situations when any item is required immediately, then
the department would require any purchase number that would be different from the
sequentially based number that is commonly used on normal P/Os. As soon as the number
has been set aside, the purchase could be made. Purchasing department would then complete
this P/O as well as distribute this normally.

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BUSINESS PROCESS REENGINEERING
Business process model
The process of the organisation includes the placing of the required orders by the
individual staffs of the organisation and the conditions where any material is required
urgently. The MRO places the request for the required materials to the purchasing officer and
then the administrator manages the request and finally it is forwarded to the vendor and then
the material is bought.
Process strengths
The benefits of the present business process in the organisation is that it provides the
categorisation of the information that has to be provided to the employees (Hammer, 2015).
The managers and the administrators manage the information that is stored has to be offered.

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BUSINESS PROCESS REENGINEERING
The employees of the organisation have a clear idea about the working of the organisation as
there are not computerised mechanisms for working within the organisation (Jeston, 2014).
There is no complexity among the various working mechanisms. There is minimal threat to
the data of the organisation as it is not stored in any central database and the information
about the various departments and managed by the distinct departments. There is no risk of
losing of the information due to any kind of power outages or any kind of system crash. The
company maintains their backup of the data at all times and this data is stored in the file
management system of the organisation without any worry of data loss (Chang, 2016). The
financial information is stored in the finance department and they maintain the data
accordingly without the issue of any data loss.
Process inefficiencies
The company is facing several problems in the conventional business process for
which they have intended to implement the business process reengineering. Some of the
present business inefficiencies are:
There is the major challenge of the management of the operations and the process
flow all across the diverse systems and the platforms and this is universal (Laguna &
Marklund, 2018). The combination of the manual tasks with the reliance that the departments
of the company do on any smooth workflow daily creates the situation where it is virtually
impossible for maintaining any other kind of competitive advantage (Huang et al., 2015).
The growth of the integration has created the situation when more solutions and the
systems are being implemented and each of them requires the set of predefined processes for
enabling the successful utilisation (Vom Brocke & Rosemann, 2014). Without any
standardised solution, like any kind of information system in the organisation which enables
the streamlining of the processes, the employees are immensely forced to constantly shift

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among the disparate information sources that results in the issues of the productivity and the
greater employee issue.
One more issue that is being faced by the organisation is the issue of bottlenecks. It is
the situation when any organisation continues to work with the processes that have helped the
organisation for significant time and the organisation feels no need of any kind of change
(Vom Brocke et al., 2014). Frequently, the companies would overlook the sources of the
power slowdowns due to the lack of the visibility and the inability of understanding the
impact of the bottleneck. The organisation GAAM used to believe this theory up until now
but in the recent times the company is intending to change the business process (Rinaldi,
Montanari & Bottani, 2015).
One more problem that is being face by the organisation is the issue of the size of the
process duplication. This issue is leading to the damaging of the business process. the
repeating of the steps of the business leads to the dilution of the quality of the process and it
also confuses the persons who have executed the steps (Pattanayak & Roy, 2015). It is
commonly viewed when there has been any lack of the collaboration among the departments
of the organisation or the processes that have been adapted in the less than any systematic
manner.
The company have faced the issue of the lack of proper insights for enhancing the
business process of the organisation (Christin Jurisch et al., 2014). It has been observed in the
present times that even though the companies include the correct information about the
business intelligence, it might lack in to the inaccessible or the erroneously reported due to
lack of the real-time data. The managers of the company cannot take the proper business
decisions as there are not proper and updated information about the market they are doing
business in (Der Aalst, La Rosa & Santoro, 2016). Without the overall understanding of the

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total components of the business, the executives loses the ability of the identification of the
critical weakness and the plan for the predictable growth (Hussein et al., 2014). If it is put
simply, the managers could not remain as reactive to the operational vulnerabilities or the
mitigation of the complexities of executing any business in the global economy.
Proposed IT solution
The solution that is recommended for the organisation is the purchase management
system that would perform the required checking of the order and it accepts the order if all
the criteria are fulfilled (Eke & Achilike, 2014). It helps in eliminating the additional work of
the employees of checking the orders. The employees could place their order in the online
platform and get the notification about the delivery time and data. All the departments are
connected using a single platform where all the departments could place their order of the
MRO suppliers (Esbenshade et al., 2016). The card or the requisition would be generated
from the system and it would be stored in the database for monitoring the pending deliveries.
Once the delivery has been made then it would be transferred to the completed orders (Milan
et al., 2014).

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BUSINESS PROCESS REENGINEERING
Business process re-engineering
The proposed business process reengineering would help the organisation to implement the
required changes easily and then enhance the processes (Sikdar & Payyazhi, 2014). The
portal consisting of the elements where the order is required to be placed is under the control
of the purchase manger and the MRO buyer maintains the request for the purchase and then
the form is generated form the system that is then reviewed and if all the criteria are fulfilled
then the purchase would be approved (Kasemsap, 2016). In the emergency situation when
any individual requires to make an instant purchase then they would place their order on the
system and place the order instantaneously. If it is discovered that the form is not approved
for allowing the purchase then the form would be sent back to the department.

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BUSINESS PROCESS REENGINEERING
Proposed workflow diagram
The purchase management system works with the collaboration of the MRO buyer and it
would create an effective system in the organisation. The research vendor sends the request to
the purchase management system and it would receive the request for the purchase and then
the P/O would be created and it would either generate the form or the purchase card. And if
the purchase card has exceeded the monthly limit then it would be returned back to the
department and if the card is generated successfully then the purchase would be approved and
purchase could be made. If any form is generated from the purchase management system then
it would be reviewed by the MRO buyer and then it would be approved and the proper
signature would be placed on the form.
Conclusion
Therefore, it can be concluded that the business process reengineering would help the
organisation to implement the successful business process modification and then gain the

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BUSINESS PROCESS REENGINEERING
maximum business benefits. The request for the MRO supplies is done by the employees of
various departments. This request could be taken in the form of the MRO card or any
purchase requisition. The cards are then utilised for purchasing the items that might be
required regularly and the purchase requisitions are used for purchasing the new items.
Additionally along with the normal process with the business, there are some variations
where there might be some situations when any item is required immediately, then the
department would require any purchase number that would be different from the sequentially
based number that is commonly used on normal P/Os. The growth of the integration has
created the situation when more solutions and the systems are being implemented and each of
them requires the set of predefined processes for enabling the successful utilisation. One
more issue that is being faced by the organisation is the issue of bottlenecks. It is the situation
when any organisation continues to work with the processes that have helped the organisation
for significant time and the organisation feels no need of any kind of change. One more
problem that is being face by the organisation is the issue of the size of the process
duplication. This issue is leading to the damaging of the business process. The repeating of
the steps of the business leads to the dilution of the quality of the process and it also confuses
the persons who have executed the steps. The solution that is recommended for the
organisation is the purchase management system that would perform the required checking of
the order and it accepts the order if all the criteria are fulfilled. It helps in eliminating the
additional work of the employees of checking the orders.

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BUSINESS PROCESS REENGINEERING
Reference
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BUSINESS PROCESS REENGINEERING
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