GAAM Case Study: Business Process Analysis and Recommendations

This report analyzes the business processes of GAAM, a hydraulic system and metal products organization. It includes information on the purpose of the project, participants of the system, inputs and outputs, exceptions, and business process model. Recommendations for further development of the re-engineering procedures are also provided.

Running Head: GAAM CASE STUDY
Business Process: GAAM Case Study
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Introduction
The report deals with the case study of the GAAM. The organization generally deals
with the hydraulic system and the metal products. The organization provides the components
for the heavy-duty vehicles. In addition to this, they also sell the products to the
manufacturers which are both domestic and foreign as well. The headquarters of the company
are located in South Australia and the organization is generally responsible for the
employment of around 3,800 employees. The organization has operations in about
27locations in seven countries. In addition to this, the organization performs the processes by
using the re-engineering methods. A team was formed for the re-engineering of the projects
that are currently handled by the organization. The organization is now looking in to the
further development of the re-engineering methods followed by them. Hence, they are
proposing to provide them with recommendations for the further development of the re-
engineering procedures.
The analysis of the business processes of the organization have been described in this
report along with some recommendations and exceptions for the procedures.
The report consists of the purpose of the business procedures, participants of the
system, input and output of the systems, exceptions and business process model is provided
in this report.
Purpose
The main purpose of the project is to develop plans that would help the organization
in maintaining the business development process. In addition to this, the main concern in this,
situation is the overview of the purchase department. The main purpose of this analysis is
identification of the anomalies of the processes in the current flow of business procedures. It

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would also help in the mitigation of the required process and adoption of efficient process
that can be chosen efficiently and additional procedures can be added for the system.
Moreover, the additional process would help the system in performing the job of the
organization efficiently. Further, some additional process which are not required by the
system would also be optimized so that the efficiencies of the business procedures of the
organization can be improved to a great level.
Participants of the System
The main participants of the system are:
 purchasing manager
 two buyer
 secretary clerk.
The inventory items are handled by these participants. The purchasing manager
determines the requirements of the inventory.
The requisition of the purchases is based primarily on the data recorded on the
spreadsheets. The department of purchase uses a PC-based software that helps in the retention
of the historical information regarding the latest purchases of the organization. On an average
the 250 purchase orders are handled in a month, for the items of the inventory.
Inputs and Outputs of the System
 The main inputs to the system are the date of the purchase, P/O number, price,
quantity and the number of rejections.
 Each time any type purchase is made the information of the card would be stored in
the system and it is done on the same day when the actual purchase is made and in

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addition to this, the information on the card is also maintained by the program of the
system.
 After the goods are received by the department the P/O is checked out and report is
generated which is signed by the receiving department.
 The report is also printed by the Purchasing department. A checking procedure is
followed by these procedures that helps in the marinating the information about the
reception of the goods by the department. It helps in ensuring the product is delivered
appropriately.
 All the work is generally done by the secretary. In case there are discrepancies are
delivered to the customer. In case a defective item is received by the company a
vendor reject form is forwarded to the purchasing department. After this, the
purchasing department fills up the rejecting form including the details of the vendor,
receiving location and P/O and the item and the quantity being rejected.
 On receiving the form, the necessary purchase adjustments are made.
Exceptions
In addition to the main process there can be alterations in the business processes of
the organization. There have been assumptions made for the buyer and the process would be
starting from the buyer and the buyer would be performing the processes such as placing
order and making payments. The system processes are very efficient, however there is no
mention of the payment procedure and for the discrepancies in the delivery of the products to
the inventory. Hence, the payment process for the business of the organization has been
assumed and it is included in the section of exceptions. The process involves the steps of the
organization to provide the payment to the vendors from where they have purchased in their
inventories. The process would then be handled by the finance department in the
organization. They would at first procure the invoice for the products form the suppliers.

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After the invoice has been delivered the organization would select the payment method and
make the payment for the products which they have purchased.

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Business Process Model

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