Process Scoping and Analysis Report for BMPC Pty Ltd.

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This report is focused on an organization “BMPC Pty Ltd.” which is a medium sized business having more than 20 employee but less than 200 employees. The report highlights the importance of BPM (Business Process Management) approach, benefits of BPM, problem analysis, and recommendations for the organization.
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Running head: PROCESS SCOPING AND ANALYSIS REPORT
Name of the Student:
Student Number:
Process Scoping and Analysis Report
Name of the Organization: BMPC Pty Ltd.
Name of the Client: Cathryn. K Baker (CEO)
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1PROCESS SCOPING AND ANALYSIS REPORT
Executive Summary
This report is focused on an organization “BMPC Pty Ltd.” which is a medium sized business
having more than 20 employee but less than 200 employees. This report has been prepared for
the CEO (client) to present the issues that are existing within the organization. In the first section
of this report, the importance of BPM (Business Process Management) approach has been
highlighted so that the client can easily understand the necessity of business process
management. Further, the illustrations has been carried out on benefits that will be achieved by
the business upon adoption of business process management. In the next section, analysis is
carried out to demonstrate the problems faced by the business in terms of their operations as well
as business activities. A Gap Model has been designed to illustrate the problems and their causes
along with the consequences. An “As Is” process diagram is also presented to demonstrate
existing situation of the business. Process scoping diagram has also been prepared to highlight
the process flow problems so that essential measures can be taken to improve the existing
situation of the business organization. Finally, the recommendations have been provided in last
section of this report so that necessary process changes can be implemented within the business.
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2PROCESS SCOPING AND ANALYSIS REPORT
Table of Contents
Introduction......................................................................................................................................3
BPM and Strategy............................................................................................................................3
Importance of BPM approach......................................................................................................3
Explanation on Business Process Management...........................................................................4
Organization chart...................................................................................................................5
Benefits of BPM..........................................................................................................................5
Problem Analysis.............................................................................................................................7
Identification of problems............................................................................................................7
Gap Model.............................................................................................................................10
Current ‘As Is’ process of the organization...............................................................................12
Project scoping diagram............................................................................................................13
Recommendations..........................................................................................................................14
References......................................................................................................................................15
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3PROCESS SCOPING AND ANALYSIS REPORT
Introduction
This report has been prepared for the Cathryn. K Baker who is the CEO of BMPC Pty
Ltd. The chosen organization is a medium sized business with more than 20 employee but less
than 200 employees. This report has been prepared for the CEO (client) to present the issues that
are existing within the organization. In the first section of this report, the importance of BPM
(Business Process Management) approach has been highlighted so that the client can easily
understand the necessity of business process management. In this report, the concept of BPM
(Business Process Management) is being highlighted so that client can easily understand the
benefits that will be achieved by implementing BPM strategy in the organization. The
importance of BPM implementation for operations within the organization has been illustrated in
the report. Further, problems existing within the organization has been analyzed to determine the
critical or urgent issues that have to be taken into consideration. The problem analysis is carried
out so that improvements can be done in the existing processes within the organization. Various
models also have been prepared on behalf of certain analysis to give a detailed insight into the
concepts being illustrated in different sections of the report.
BPM and Strategy
Importance of BPM approach
In context to the case of BPMC Pty Ltd., it has been identified that there is a requirement
to incorporate a BPM approach within the organization as it has grown rapidly since
establishment. The concept of departmentalization has also been introduced in the organization
which means that various tasks are completed in processes comprising of many steps to ensure
fulfilment of business objectives. A functional view of the organization has been adopted and it
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4PROCESS SCOPING AND ANALYSIS REPORT
has been identified that despite of numerous strengths there are several shortcomings. The
organization is divided into various departments that focuses on the activities that are closely
related. The departmentalization approach within the organization has provided specialization as
well as division of labor that enhanced the overall organizational efficiency. However, there is a
communication gap existing within departments which is arising as a hindrance to overall
success of the organization. The departmental heads does not have the idea of what is going
wrong in the other departments as a result there occurs numerous delays while executing the
orders. Hence, there is a requirement that the company should adopt BPM approach which will
be focused on the business processes running throughout departments in the organization.
The primary goal of implementing BPM approach within the organization is that it will
help them to enhance the existing processes that provides support for value chains and stable
position in the market. This approach will help the organization to achieve their desired goals in
terms of competition with their rivals by fulfilling the customer demands and enriching their
experience (Ensslin et al. 2017). The processes can be enhanced in both internal as well as
external perspectives such that profit can be ensured and they can gain competitive advantage in
the long run. The existing process or system does not have collaboration or integration between
the departments which in turn leads to delay in the order delivering process. The adoption of this
approach, will help to organization to maintain connection with their internal as well as external
environment. This approach will also eventually help to balance and match the resources
required for executing their business processes so that there is no wastage of resources.
Explanation on Business Process Management
The term BPM (Business Process Management) is defined as the process through which
organization could achieve their objectives. The improvements will be implemented with the
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5PROCESS SCOPING AND ANALYSIS REPORT
help of business process management and the essential business processes are controlled using
this approach. This approach is considered deliberative as well as collaborative which depends
highly on technological developments and innovation (Chang 2016). For incorporating
improvements, managing and controlling the business processes more effectively, the
organization must should not only focus on the business performance or customers. Instead the
organization must adopt a strategic direction towards aligning the resources as per the chosen
direction and enhancing the discipline for daily operations. It is evident from the concept of BPM
that it has a wide implications in context to the culture and competitiveness of the organization.
Organization chart
Figure 1: Organizational chart of BMPC Pty Ltd.
(Source: Created by Author)
CEO
(Cathryn. K Baker)
Operations
(Mike. P Stanton)
Human Resources
(Wutapo. K Lockie)
Account
(Derya. N Gucluc)
Procurement
(Stan. b Fox)
Marketing
(Gary. T Yu)
Sales
(Yufeng. x Chi)
R&D
(Rebecca. S
Carroll)
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6PROCESS SCOPING AND ANALYSIS REPORT
Benefits of BPM
BPM (Business Process Management) will facilitate improvements required in the
business processes and controlling of the essential activities so that overall efficiency can be
increased. It will help to achieve greater profitability so that the required business activities can
be completed successfully. The benefits will be achieved by minimizing operational costs and
improving quality of goods as well as services that are offered to the customers. Mainly, BPM
approach will allow the organizations to make better decisions and it will also facilitate
involvement of the entire organization so that the strategies can be executed. For improving
essential business processes, firstly the management have to determine their current position in
the market (Jeston 2014). The management has to take steps for evaluating the current position
so that they can easily benchmark their performance with respect to competitors within the same
industry. The management team should have the responsibility of monitoring the environment
closely for identifying the competitors so that industry best practices can be implemented within
the organization so that they can improve their position in the market. Finally, the management
will be able to implement a new strategy so that the organization could achieve competitive
advantage over their rivals in the market. The successful implementation of the strategy will
ensure proper management and controlling of the essential business processes of the organization
which in turn will help to align the organizational resources with the overall strategy.
The fundamental goal of adopting BPM approach inside the organization is that it will
facilitate enhancing the present techniques that offers assistance for value chains and stable
position in the market. This approach will help the relationship with accomplishing their pined
for targets in regards to contention with their foes by fulfilling the demand of customers for and
enhancing their experience (Rosemann 2015). The methods can be enhanced in both inside and
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7PROCESS SCOPING AND ANALYSIS REPORT
furthermore outside perspectives with the ultimate objective that advantage can be ensured and
they can build high ground as time goes on. The present strategy or system does not have joint
exertion or integration between the divisions which consequently prompts delay in the demand
passing on process. The assignment of this approach, will help to establish relationship with their
internal and external environment. This approach will similarly over the long term help to
modify and organize the resources required for executing their business shapes so that there is no
wastage of resources.
The approach of business process modeling is used by the business organizations in terms
of value chain analysis that is comprises of different comprehensive gathering of different
activities. The set of activities that are collectively and widely performed in case of the business
process modeling include the designing, production, marketing, delivery, product line support etc
(De Bruin and Doebeli 2015). These specific activities are very much essential for the business
processes and the values those are added to the products are measured because it can move from
one approach to another one with the help of the value chain analysis. The concept of value chain
can be utilized by Cathryn for identifying the process within the business organization. However,
these cannot add on any values to the products and the services that are offered by the business
organization. Based on the business and organizational necessity these processes can either be
eliminated or be evaluated repeatedly according to the changing requirements.
Problem Analysis
Identification of problems
The maim issues that this business organization is facing is delay delivery of ordered to
the customer. Due to this reason the amount of complains are continuously growing in the
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8PROCESS SCOPING AND ANALYSIS REPORT
organization from the company. It may negatively impact the competitive advantages and the
commercial revenue of the business organization (Kirchmer 2017). The delivery and service
delay of the business organization may occur due to lack of proper communication between the
consumers and the service providers. The responsiveness of the consumers may be diminished
and accordingly the total market share can also be impacted due to these reasons. The company
uses manual data and service set up, as a result serious issues are being identified that are
associated to the inventory procurement of the business organization. It is determined that, if the
manual data inventory management system of the organization is replaced by computerized
system then these issues can be resolved or diminished accordingly. The rates of man made
errors are also increasing simultaneously due to the excessive usage of paper works within the
organization. Low cost online data management system can also be used by the organizations for
managing large set of information in an easier way. All the service level activities can be
integrated all together if the manual data processing in completely replaced by the computerized
system.
On the other hand, for the higher authorities there are two more ways through which
these issues can be resolves. Either a new system or a high speed internet network for
dissemination of the information can be utilized by Cathryn. The business organization has two
major process flow issues those are: inadequate measurements of the sub processes and poor
level decision making for the processes. In order to govern, the rules and regulations of the
business organization proper business level processes are to be followed by the business
organization. Again the poor process flow decision making is subdivided into two measures such
as lack of proper information and lack of rules and regulations. Basically, due to lack of control
of quality and quantity measures, undefined frames of time the process measures act as evidence.
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9PROCESS SCOPING AND ANALYSIS REPORT
As these measures are not properly identified thus, the business organization is facing serious
operational, functional and managerial issues.
Noteworthy issue being stock acquisition and transport due to manual set up of the
affiliation is done on informing premise. Computerization of work have to be especially
centralized for the affiliation (Bernardo, Galina and Padua 2017). Another noteworthy issue is
paper work ought to be constrained, ease database organization ought to be conceivable through
online structures usage and joining in to the system and a couple having control of it. In spite of
the fact that at a bigger sum there can be two phases for Cathryn, one is execution of new
structure and two is realizing a higher speed web framework to circulate information.
Another essential factor of under organization is the records receivables section, by far
most of the archives are kept in physical design and it isn't stacked up serially if there ought to be
an event of any miss happening, the total stacking moreover gets befuddled and it is pulverized.
Along these lines, there is no following of a demand from client and in this manner the firm is
losing its customers base. Along these lines, again things should go from manual association to
automated shape to keep a suitable track of record holders. It can be beneficially directed through
new system. It will reduce the total working cycle of the firm.
In case of under management another important factors which is identified is the finance
management sections rather accounts related section. Most of the physical information are stored
in terms of files format and also are not at all serially stacked (Lehmann 2016). Due to this
reason financial miss happening may take place an accordingly the entire stacking may be
disarrayed which may lead to a trash. Again, there is no option available to the consumers to
track the current condition of their ordered products. As a result the total numbers of the
consumer base is losing. In this case also for minimizing these errors the manual order booking
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10PROCESS SCOPING AND ANALYSIS REPORT
system should have to be replaced by the computerized system by the business organization. In
order to keep proper tracking of the debtors the manual system should be replaced. With the
implementation of a new system these particular issues can be resolved. The total cost and time
of the operating cycle will also be minimized with the successful implementation of the new
system in their business organization.
Gap Model
Figure 2: Gap model for the problems in BMPC Pty Ltd.
(Source: Created by Author)
In the above mentioned gap model several gaps are being identified including unsatisfied
consumers, excessive utilization of time for successful fulfillment of the orders etc. In addition to
this another gap that has been identified for the process flow is apparent finger pointing
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11PROCESS SCOPING AND ANALYSIS REPORT
occasioned by the spanning process via different business departments. As all the organizational
processes are not properly measured and controlled thus, data redundancy are taking place.
Therefore, in order to increase the overall efficiency of the business organization these
performance gaps are to be bridged with proper operational and functional approaches. The
project scoping diagram elaborates the utilization of Information System (IS) and professional
success can also be achieved through data warehousing.
Historical sales approaches are needed to be utilized by the business organization for
determining and scheme the optimal demands of the consumers. In order to meet the projected
demands of the consumers the production and packaging department of the organization should
produce enough stock and store it to the warehouse where the products are ready to be shipped to
the customers. In order to implement such requirements proper procurement of the warehouse
requirements and trained employee deployment in the warehouse department are necessary to be
implemented by the organization head. In order to process the service accurately the roles of the
appointed employees will be order taking, checking details of the products to be shipped etc.
Again the company is required to invest capital for enterprise level Information System
implementation including ordering, telecom system, payment systems etc. In addition to this,
another factor on which the company is require to focus on is establishment of policies and
procedures for governing the business activities and operations.
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12PROCESS SCOPING AND ANALYSIS REPORT
Current ‘As Is’ process of the organization
Figure 3: “As-Is” process diagram for the BMPC Pty Ltd.
(Source: Created by Author)
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13PROCESS SCOPING AND ANALYSIS REPORT
Project scoping diagram
Figure 4: Process scoping diagram for the BMPC Pty Ltd.
(Source: Created by Author)
The business is required to take care of the above problems and re-engineering issues it
will give the company commercial revenue and process improvements. If the company wills to
survive in the competitive market then the operating cost should have to be curbed. Strategic
business steps are to be undertaken by the business organizations for improving the marketing
aspects in terms of products, research and development. Proper marketing strategies considering
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14PROCESS SCOPING AND ANALYSIS REPORT
the future scope and marketing approaches will help the company to gain commercial market
revenue and competitive advantages as well. Throughout the products development life cycle
period these factors are to be mentioned and managed by the business authority.
Recommendations
In context to the business processes of BPMC Pty Ltd., various issues have been
identified and analyzed that should be taken into account so that they can achieve organizational
excellence. Some of the recommendations from analysis are provided as below:
These problems can take massive form if proper mitigation strategies are not
undertaken at the operation level. In order to survive in the competitive market the
total investment or cost is needed to be limited by the business organization.
Finally, the management will be able to implement a new strategy so that the
organization could achieve competitive advantage over their rivals in the market.
The successful implementation of the strategy will ensure proper management and
controlling of the essential business processes of the organization which in turn
will help to align the organizational resources with the overall strategy.
Different processes are needed to be incorporated to the business to connect the business
processes all together. For maintaining the value chain, the organization should implement
accurate business functions such as finance management, IT procurement, and logistics.
With a successful incorporation of these processes the business will be able to provide a
smooth operational and functional process flow in the business organization. Thus, Cathryn
should utilize proper business process architecture for strategic execution of the business
approach.
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15PROCESS SCOPING AND ANALYSIS REPORT
References
Bernardo, R., Galina, S.V.R. and Pádua, S.I.D.D., 2017. The BPM lifecycle: How to incorporate
a view external to the organization through dynamic capability. Business Process Management
Journal, 23(1), pp.155-175.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
De Bruin, T. and Doebeli, G., 2015. An organizational approach to BPM: the experience of an
Australian transport provider. In Handbook on Business Process Management 2 (pp. 741-759).
Springer, Berlin, Heidelberg.
Dumas, M., La Rosa, M., Mendling, J. and Reijers, H.A., 2018. BPM as an Enterprise
Capability. In Fundamentals of Business Process Management (pp. 475-500). Springer, Berlin,
Heidelberg.
Ensslin, L., Ensslin, S.R., Dutra, A., Nunes, N.A. and Reis, C., 2017. BPM governance: a
literature analysis of performance evaluation. Business Process Management Journal, 23(1),
pp.71-86.
Haddad, C.R., Ayala, D.H.F., Uriona Maldonado, M., Forcellini, F.A. and Lezana, Á.G.R., 2016.
Process improvement for professionalizing non-profit organizations: BPM approach. Business
Process Management Journal, 22(3), pp.634-658.
Hernaus, T., Bosilj Vuksic, V. and Indihar Štemberger, M., 2016. How to go from strategy to
results? Institutionalising BPM governance within organisations. Business Process Management
Journal, 22(1), pp.173-195.
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16PROCESS SCOPING AND ANALYSIS REPORT
Jeston, J., 2014. Business process management. Routledge.
Kirchmer, M., 2017. Small and Medium Enterprises Need Value-Driven BPM. In High
Performance through Business Process Management (pp. 169-182). Springer, Cham.
Lederer, M., Kurz, M. and Lembcke, U., 2014, April. Applying the strategy-oriented business
process modeling to S-BPM. In International Conference on Subject-Oriented Business Process
Management (pp. 67-84). Springer, Cham.
Lehmann, C.F., 2016. Strategy and business process management: techniques for improving
execution, adaptability, and consistency. Auerbach Publications.
Niehaves, B., Poeppelbuss, J., Plattfaut, R. and Becker, J., 2014. BPM capability development–a
matter of contingencies. Business Process Management Journal, 20(1), pp.90-106.
Rahimi, F., Møller, C. and Hvam, L., 2016. Business process management and IT management:
The missing integration. International Journal of Information Management, 36(1), pp.142-154.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer, Berlin,
Heidelberg.
Rosemann, M., 2015. The service portfolio of a BPM center of excellence. In Handbook on
Business Process Management 2 (pp. 381-398). Springer, Berlin, Heidelberg.
Scheer, A.W. and Hoffmann, M., 2015. The process of business process management. In
Handbook on Business Process Management 2 (pp. 351-380). Springer, Berlin, Heidelberg.
Tregear, R., 2015. Business process standardization. In Handbook on Business Process
Management 2 (pp. 421-441). Springer, Berlin, Heidelberg.
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