ACCT6001 - GAAM Business Process Analysis and Reengineering

This case study provides a detailed analysis of GAAM's business processes, a leading engineering organization specializing in hydraulic systems, metal products, and building systems. The study identifies key participants, inputs, and outputs for a proposed reengineering project aimed at improving the company's competitiveness. It explores the current process's strengths and weaknesses and outlines a revised business process model with a workflow diagram. The analysis includes identifying necessary changes, developing an expert team, defining key performance indicators (KPIs), and addressing potential exceptions during the reengineering process. The study also emphasizes the role of information technology in enhancing manufacturing processes, improving communication with buyers, and reducing manufacturing costs.

Running Head: GAAM BUSINESS PROCESS ANLAYSIS
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Title: GAAM Business process analysis

GAAM BUSINESS PROCESS ANLAYSIS
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Introduction
The research study will provide detailed understanding to the user regarding the business
process of the GAAM which is the leading engineering Organisation located in South
Australia that develops the hydraulic system, metal products and building systems. The
company mainly manufactures hydraulic equipment which includes telescopic cylinders, gear
pumps and Motors along with control valves. The company consists of around 4000
employees operating in 27 facilities in 7 different countries. In the case study, the company is
planning to expand its business to improve its competitiveness by conducting a reengineering
project. For that, this research paper will provide accommodation which includes the
necessary identification and requirement of the participants, input and output along with
business process model which can be highly effective in the implementation of the new
project. The paper will also identify the major strengths and weaknesses in the current
process of the company and how the new business process will help in resolving doors issues.
At last, a proper workflow diagram will be provided to give the reader a better
comprehension on the revised business process model for the project.
Participant, input and output
The participants of the new project in GAAM in would include the user, the suppliers,
influences, deciders, approvals and buyers. The suppliers of the company include Bullard,
Godiva, Hale, Hurst, Paratech, etc. who offers the main inputs for a new project such as
pound, puncture, fire pumps, fibreglass helmets, specialist equipments, emergency
equipments, cutters, rams, lightweight tools, etc. to the GAAM1. The main output of the new
project at GAAM would include petrol pumps, diesel pumps, floating and submersible
1 Koren, Y. (2015). The global manufacturing revolution: product-process-business
integration and reconfigurable systems (Vol. 80). John Wiley & Sons.

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pumps, forestry pumps, domestic pumps, tanks and bladders, TFT nozzles, Wyes and
Siamese, fire hose range, fire pump accessories, AMKUS rescue tools and much more.
Process flow
The reengineering business process for GAAM would require certain steps to be taken by
different employees within the company. In order to make the purchase of equipment easier,
the company is planning to introduce cards with certain limits ranging from AU$500 to
AU$1,000 offered to the buyers by the maintenance repair and operation (MRO) department2.
The process flow would include:
1. Identifying and communicating the requirement for change: In order to extend the
business, it is necessary for the management of GAAM to identify the changes that need to be
implemented in each of the department including the purchasing department so that project
executed. After identification, it is also necessary for the management to effectively
communicate the requirement and pursuing them in the process3. It is necessary to utilize
various Change management techniques to commit the employees towards the goal. Business
Process Re-Engineering can genuinely effect on everybody in the organization, and once in a
while this can have all the aspects of being a negative change.4.
2 Ibid
3 Hlupic, V., & Robinson, S. (2016, December). Business process modelling and analysis
using discrete-event simulation. In 2016 Winter Simulation Conference. Proceedings (Cat.
No. 98CH36274) (Vol. 2, pp. 1363-1369). IEEE.
4 Aguilar-Saven, R. S. (2017). Business process modelling: Review and
framework. International Journal of production economics, 90(2), 129-149.

GAAM BUSINESS PROCESS ANLAYSIS
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2. Develop a team of experts: The next step involves preparing a team of experts having the
necessary skills and abilities who can handle the business process reengineering. After
developing a team, it is also necessary to them with their duties and responsibilities which
they need to perform and fulfill with a certain deadline. For instance, the senior manager
responsible for supervising calling the shots. Similarly, the operational manager will be
responsible for supervising the in and out of the process5. And the reengineering expert will
be responsible for the development of the hydraulic tools and pump and report to their
supervisors. The purchasing department will have to issue the cards to the customers and
allocating them with certain limit6.
3. Identify and define key performance indicators: GAAM management needs to find the
inefficient processes within the company in any department such as the cycle time, change
over time, defect rate, inventory turnover, maintenance and repair, etc. The next process
involves defining the key process indicator which can be done through business process
mapping. When you have the careful KPIs characterized, you'll have to pursue the individual
procedures. The most straightforward approach to do this is to work together process
mapping. While it tends to be difficult to dissect forms as an idea, it's much simpler in the
event that you have everything recorded well ordered. This is where the operational chief
proves to be useful – they make it possibly simpler to characterize and examine the
procedures7.
5 Hlupic, V., & Robinson, S. (2016, December). Business process modelling and analysis
using discrete-event simulation. In 2016 Winter Simulation Conference. Proceedings (Cat.
No. 98CH36274) (Vol. 2, pp. 1363-1369). IEEE.
6 Olanrewaju, A., & Anahve, P. J. (2015). Duties and responsibilities of quantity surveyors in
the procurement of building services engineering. Procedia Engineering, 123, 352-360.
7 Amrina, E., & Vilsi, A. L. (2015). Key performance indicators for sustainable
manufacturing evaluation in cement industry. Procedia Cirp, 26, 19-23.

GAAM BUSINESS PROCESS ANLAYSIS
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4. Reengineering: The last implementing the reengineering of the business process. It is
necessary to first implement the solution and changes on a small scale and find out if the
KPIs are offering a better solution or not8.
Exceptions
During the business process reengineering, the management at GAAM may have to deal with
various exceptions which include technical exceptions, business exceptions and transient
exceptions. In the process of issuing new cards to the customers for making a purchase of
GAAM tools and equipments, it is possible that the old way of making a purchase become
less efficient than before9. Furthermore, in the deployment of cards for the purchase, there
can be various exceptions such as the new buyer will not be eligible to get a card, which will
reduce the overall revenue of the company. Therefore, it is necessary for the management to
identify the issues associated with the new business process and system and take necessary
measures to overcome them.
Business process model
8 Johansson, H. J., McHugh, P., Pendlebury, A. J., & Wheeler, W. A. (2018). Business
process reengineering: Breakpoint strategies for market dominance. Chichester: Wiley.
9 Ibid

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Business process model: The above figure showcases the business model of the new project
for GAAM where the request for the new hydraulics tool or pump will be made by the
customers which will then be transferred to the supplier who will deliver the raw materials to
the GAAM and placed in the inventory. This is where the production and manufacturing of
the end products will be done and after the products are made, it will be delivered to the sales
department who will sell it to customer. Payment is received from the customer through
MRO card that is recorded in the finance department and invoicing of supplier is done to
release the payment of supplier. In between, the manufacturing process will be performed by
the manufacturing department and the purchasing department will receive the payment from

GAAM BUSINESS PROCESS ANLAYSIS
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the card issued to the customer10. It mainly consists of 5 major steps, which are supply, input,
process, output and sales.
Fig 1: Business process model of GAAM
Process strengths
The business process reengineering should be implemented after identifying the strengths and
weaknesses of the company. GAAM is one of the largest manufacturing companies in
Australia hydraulic system and pumps which is the strength of the company11. It provides
numerous kinds of hydraulic products and consist of employees who are highly skilled and
committed to achieving the goals of the organization. Their attitude towards achieving
business process reengineering for GAAM is exceptional and their customer service is also
one of the finest in the fields. It will certainly attract new buyers for the company which will
increase the profit and revenue. Apart from that, the company also enjoys a large market
share and also a personal relationship with the customers. Most of their customers are regular
buyers and providing them highly efficient and low cost hydraulic systems and pump make
them loyal towards the company12. The manufacturing team is highly skilled in the
10 Amrina, E., & Vilsi, A. L. (2015). Key performance indicators for sustainable
manufacturing evaluation in cement industry. Procedia Cirp, 26, 19-23.
11 Okrent, M. D., & Vokurka, R. J. (2014). Process mapping in successful ERP
implementations. Industrial Management & Data Systems, 104(8), 637-643.
12 Gordijn, J., Akkermans, H., & Van Vliet, H. (2018, October). Business modelling is not
process modelling. In International Conference on Conceptual Modeling (pp. 40-51).

GAAM BUSINESS PROCESS ANLAYSIS
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development of hydraulic system and the suppliers providing resources have a very good
relationship with the company and deliver high quality resources.
Process weaknesses and inefficiencies
Even though the company consists of great strengths, there are various weaknesses the
company is facing which are limiting the business from achieving competition and expansion
of the business13. These include the confused service policies and the Limited product
availability which result in a delay in Service Delivery and product delivery. Furthermore, the
lack of qualitative goals and inadequate understanding of the customers and target audience is
one of the biggest weaknesses of GAAM. The top level management also lacks involvement
in the development of new service, which can certainly affect the new project and business
process reengineering. The technical department of the company is also very weak which
requires proper training and development of the employees. Apart from that, the poor
distribution of the figures related to the sales is making a metaphor for the company for the
past two years. If the company wants to expand its business in new territories and achieve
new business process, it is important for them to handle issues and what the customers with
the best of services.
Use of Information technology
Information systems can have significant job to perform the necessary exercises within the
manufacturing industry, for example, GAAM can use it for the creation chain and outside
Springer, Berlin, Heidelberg.
13 Anand, A., Wamba, S. F., & Gnanzou, D. (2016, June). A literature review on business
process management, business process reengineering, and business process innovation.
In Workshop on Enterprise and Organizational Modeling and Simulation (pp. 1-23).
Springer, Berlin, Heidelberg.

GAAM BUSINESS PROCESS ANLAYSIS
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associations, which include monetary associations14. The company can develop online
websites and applications for communicating with the buyers effectively and help them with
any of their queries regarding the item price, availability and other information. Henceforth
information technology can offer them an edge in delivering services to their clients,
providers and specialist co-ops. And hence to perform greatly in a quickly changing and
aggressive market information systems needs to be coordinated by the company. On the other
hand, IT can also help the company to achieve business process reengineering as it can results
in reducing the cost of manufacturing process, enhance the quality of products offered by
GAAM which can ultimately increase the output of the company. While considering the
procedures of manufacturing industry, GAAM management ought to be facilitated at
numerous dimensions15. Specialists should structure items as per a standard in which the
business can sell and manufacture the item at focused cost. Advertising division should sell
the items that are manufactured in the firm. Apart from that, the MRO department will also
benefit from IT as it will help them to identify and review the MRO card limits and generate
purchases without any issue. Information technology can offer all the devices to help
endeavors accomplish goals and objectives broadly regarding the future of company,
including:
 Quick transfer of goods starting with one item then onto the next;
 Quicker conveyance of goods and products to the clients;
 Better communication with cleints
 Daily requisition of items
 Tracking the activities of different departments of GAAM
14 Johansson, H. J., McHugh, P., Pendlebury, A. J., & Wheeler, W. A. (2018). Business
process reengineering: Breakpoint strategies for market dominance. Chichester: Wiley.
15 Zhang, Q., & Cao, M. (2015). Business process reengineering for flexibility and innovation
in manufacturing. Industrial Management & Data Systems, 102(3), 146-152.

GAAM BUSINESS PROCESS ANLAYSIS
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Business Process Reengineering
The Business Process Reengineering, also known as BPR, is a procedure which associations
drastically change the business point of winding up more effective. The expansive measures
that are taken in GAAM to restructure a procedure offers issues to the formal procedures, yet
it helps in realizing radical changes in the board corporate culture16. Associations that
participate in Business Process Reengineering are the first to look at the association and its
condition. Targets assume a main job in molding new procedures or changing existing
procedures. Business Process Reengineering predominantly connected in information
technology of the GAAM can be utilized to improve numerous procedures or associations.
Advantages of utilizing BPR are:
Abbreviate lead times: In information technology, specifically, there is a great deal of
potential that isn't yet being utilized17. Obsolete procedures, for example, the manual
execution of managerial issues, can be completely mechanized with a venture. The
speculations are recouped by the lower wage costs.
Increase efficiency: The objective of BPR for GAAM is to modernize obsolete procedures
and that frequently yields efficient results. For instance, in the wake of performing BPR, the
association can find that a specific procedure can be completed by two workers rather than
four. It's essential that the representatives themselves furnish information and think of
16 Hlupic, V., & Robinson, S. (2016, December). Business process modelling and analysis
using discrete-event simulation. In 2016 Winter Simulation Conference. Proceedings (Cat.
No. 98CH36274) (Vol. 2, pp. 1363-1369). IEEE.
17 Motwani, J. (2013). A business process change framework for examining lean
manufacturing: a case study. Industrial Management & Data Systems, 103(5), 339-346

GAAM BUSINESS PROCESS ANLAYSIS
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proposals; all things considered, they know superior to any other individual how the business
forms work18.
Improve quality: By changing undertaking introduction to process introduction, the attention
is put on the client. This has the preferred standpoint that every single irrelevant procedure
rapidly go to the foreground, after which they can without much of a stretch be removed or
adjusted19.
Improve focused position: Regularly, changes that an association makes are just bit by bit
taken note. So as to stay aware of the challenge, and to fulfill client needs, in any case, we
should act properly. BPR is in a perfect world appropriate for this on the grounds that the
extreme changes are executed in a relatively brief period.
Execute new technology: The MRO Cards can be used to help the buyers purchase items and
also get assistance using online workshop. The cards will allow the buyer to make a purchase
upto a limited amount such as $500-$1000. This technology can be extremely useful in
providing better buying experience to the customer.
Workflow Diagram
18 Ibid
19 Aguilar-Saven, R. S. (2017). Business process modelling: Review and
framework. International Journal of production economics, 90(2), 129-149.

GAAM BUSINESS PROCESS ANLAYSIS
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Fig 2: Workflow diagram of GAAM

GAAM BUSINESS PROCESS ANLAYSIS
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References
Motwani, J. (2013). A business process change framework for examining lean
manufacturing: a case study. Industrial Management & Data Systems, 103(5), 339-346.
Koren, Y. (2015). The global manufacturing revolution: product-process-business
integration and reconfigurable systems (Vol. 80). John Wiley & Sons.
Zhang, Q., & Cao, M. (2015). Business process reengineering for flexibility and innovation
in manufacturing. Industrial Management & Data Systems, 102(3), 146-152.
Okrent, M. D., & Vokurka, R. J. (2014). Process mapping in successful ERP
implementations. Industrial Management & Data Systems, 104(8), 637-643.
Anand, A., Wamba, S. F., & Gnanzou, D. (2016, June). A literature review on business
process management, business process reengineering, and business process innovation.
In Workshop on Enterprise and Organizational Modeling and Simulation (pp. 1-23).
Springer, Berlin, Heidelberg.
Johansson, H. J., McHugh, P., Pendlebury, A. J., & Wheeler, W. A. (2018). Business process
reengineering: Breakpoint strategies for market dominance. Chichester: Wiley.
Aguilar-Saven, R. S. (2017). Business process modelling: Review and
framework. International Journal of production economics, 90(2), 129-149.
Gordijn, J., Akkermans, H., & Van Vliet, H. (2018, October). Business modelling is not
process modelling. In International Conference on Conceptual Modeling (pp. 40-51).
Springer, Berlin, Heidelberg.
Hlupic, V., & Robinson, S. (2016, December). Business process modelling and analysis using
discrete-event simulation. In 2016 Winter Simulation Conference. Proceedings (Cat. No.
98CH36274) (Vol. 2, pp. 1363-1369). IEEE.

GAAM BUSINESS PROCESS ANLAYSIS
14
Amrina, E., & Vilsi, A. L. (2015). Key performance indicators for sustainable manufacturing
evaluation in cement industry. Procedia Cirp, 26, 19-23.
Olanrewaju, A., & Anahve, P. J. (2015). Duties and responsibilities of quantity surveyors in
the procurement of building services engineering. Procedia Engineering, 123, 352-360.