Master of Engineering Thesis: Business Process Development at UniSA

This Master of Engineering thesis from the University of South Australia examines the development of new business processes for a manufacturing company, SICK AG, as it transitions from an equipment supplier to an integrated system solution provider. The research focuses on the challenges of adapting the company's business model to the Australian market, including issues related to sourcing, local standards, and customer expectations. The thesis reviews literature, analyzes the current customer project management (CPM) system, and proposes alternative solutions. The selected solution involves a modified CPM approach, integrated with document management and project management techniques. The study includes a cost-benefit analysis, pilot testing, and an implementation strategy, ultimately aiming to improve customer satisfaction and reduce rework costs within the Australian context. The thesis provides detailed insights into the company's background, project scope, methodology, and recommendations for future work.

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UNIVERSITY OF SOUTH AUSTRALIA
School of Engineering
Minor Thesis 1
Master of Engineering (Advanced Engineering Management)
Development of new business processes for the business
model transforming from a simple equipment supplier to an
Integrated system solution provider.
Student: Sanjesh Cartharn
ID No: 110063047
Supervisor: Dr.

Abstract
Any business must meet the requirements of their customers and it is the ultimate goal of
any organization, irrespective of their size. Similarly, this thesis work projects of the
manufacturing company, which is facing challenges in terms of adaption and sourcing. The
vision and mission of the firm is identified. The present implemented system in the
organization is analyzed along with issues it provides. The possible alternatives for the
problems are discussed, from which the best alternative is selected for implementing in the
company. The selected solution for implementation is studied and its benefits for the
company are analyzed. Various research papers are reviewed before selecting the best
alternative. The clear understanding of project management and operations management is
provided. The idea of cost analysis and its benefit is analyzed. Budget is the factor that is
considered for deciding the best solution, for the manufacturing company. The alternative
solutions for the organization is considered, and the best solution from the considerations is
integrated with CPM. The BPR is studied. The importance of redesign and project
management is analyzed. The Pilot testing is tested and run. Further, the implementation
strategy for the development of the solution is investigated. Next, the testing and evaluation
of the implemented solution is researched, to evaluate the performance of the system.
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Disclaimer
I hereby declare that this thesis is my own work and contains no material which has
been accepted for the award of any degree or diploma from any tertiary institution. To
the best of my knowledge and belief, this thesis contains no material previously written
or published by another person, except where due reference is made in the text.
Signed:
Type your name
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Acknowledgements
Enter your acknowledgements here.
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Table of Contents
Abstract...................................................................................................................i
Disclaimer..............................................................................................................ii
Acknowledgements..............................................................................................iii
List of Tables.......................................................................................................vii
List of Figures....................................................................................................viii
List of Abbreviations...........................................................................................ix
Chapter One – Project Background and Significance.......................................1
1.1 Introduction................................................................................................1
1.2 Company Background................................................................................1
1.3 Project Background....................................................................................2
1.4 Project Aim.................................................................................................4
1.5 Project Scope..............................................................................................4
1.6 Expected Outcomes....................................................................................4
1.7 Thesis Structure..........................................................................................5
1.8 Concluding Remarks..................................................................................6
Chapter Two – Literature Review and Project Methodology..........................7
2.1 Introduction................................................................................................7
2.2 Source of Literature....................................................................................7
2.3 Review of Literature...................................................................................7
2.3.1 Overview...................................................................................................12
2.4 Discussion.................................................................................................13
2.5 Project Methodology................................................................................14
2.6 Concluding Remarks................................................................................17
Chapter Three – Current System/Operation Analysis....................................19
3.1 Introduction..............................................................................................19
3.2 Customer Project Management................................................................19
3.2.1 CPM Process Model..........................................................................................................21
3.3 Current System Analysis..........................................................................22
3.4 Problem analysis and its cause.................................................................23
3.5 Concluding Remarks................................................................................24
Chapter Four – Consideration of Alternative Solutions.................................11
4.1 Introduction..............................................................................................11
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4.2 Alternatives...............................................................................................11
4.2.1 Integrated Business Plan (IBP)........................................................................................11
4.2.2 Test Data Management.....................................................................................................12
4.2.3 M1 ERP Software..............................................................................................................12
4.2.4 Modified CPM...................................................................................................................13
4.2.5 Orcanos Document Management Software System.........................................................14
4.3 Best Alternative........................................................................................14
4.4 Concluding Remarks................................................................................16
Chapter Five – Development of Solutions.........................................................17
5.1 Introduction..............................................................................................17
5.2 Industrial key features in Australia..............................................................17
5.2.1 Steps for developing the business solutions.............................................18
5.2.2 Document Management system................................................................19
5.3 Modified Customer Project Management (CPM)....................................20
5.3.2 Solution Development by Project Management.......................................21
5.4 Concluding Remarks................................................................................23
Chapter Six – Solution Implementation............................................................25
6.1 Introduction..............................................................................................25
6.2 Steps to integrate global business.............................................................25
6.3 Implementation of modified CPM............................................................26
6.3.1 Training Program......................................................................................31
6.4 Concluding Remarks................................................................................32
Chapter Seven – Testing and Evaluation..........................................................33
7.1 Introduction..............................................................................................33
7.2 Project Evaluation and Testing.................................................................33
7.3 Pilot Testing..............................................................................................34
7.3.1 Pilot run Checklist.....................................................................................35
7.4 Gap Analysis............................................................................................37
Chapter Eight – Cost/Benefit Analysis..............................................................38
8.1 Introduction..............................................................................................38
8.2 Cost-benefit analysis................................................................................38
8.3 Identify and Measure Benefits and Costs.................................................39
8.3.1 Data Analysis............................................................................................40
8.3.2 Comparing Solutions................................................................................41
8.3.3 Risk and Sensitivity Analysis...................................................................42
8.3.4 Return Investment....................................................................................42
8.3.5 Paying back..............................................................................................42
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8.3.6 NPV..........................................................................................................43
Chapter Nine – Conclusions and Recommended Future Work.....................44
9.1 Introduction..............................................................................................44
9.2 Observation...............................................................................................44
9.3 Issues Encountered...................................................................................45
9.5 Best Solution Implemented from the Considered Alternatives................45
9.6 Recommendation......................................................................................46
9.7 Future Work..............................................................................................46
References............................................................................................................47
Appendix 1: Industry Supervisor Reports........................................................55
Appendix 2: Project Daily Diary.......................................................................56
Appendix 3: Certificate of Practical Experience..............................................57
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List of Tables
Table 1Thesis Structure...................................................................................................................................6
Table 2 Scoring Model Table.........................................................................................................................15
Table 3 Pilot run table....................................................................................................................................37
Table 4 Cost-benefit Analysis........................................................................................................................40
Table 5Ranking..............................................................................................................................................41
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List of Figures
Figure1: SICK Project Management..............................................................................................................20
Figure 2 Fishbone diagram............................................................................................................................22
Figure 3: Overview of Project Management..................................................................................................23
Figure 4: Implementation of modified CPM..................................................................................................27
Figure 5 Work breakdown structure..............................................................................................................29
Figure 6 Project Management implementation plan......................................................................................30
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List of Abbreviations
BPM- Business Process Management
BPR- Business Process Reengineering
CBA-Cost and Benefit Analysis
CPM- Customer Project Management
EAI-Enterprise Application Integration
ERP-Enterprise Resource Plan
IBP-Integrated Business Plan
NPV- Net Present Value
ROI-Return On Investment
SAP-System, Application and Product in Data processing
S&OP-Sales and Operations Plan
TDM-Test Data Management
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Chapter One – Project Background and Significance
1.1 Introduction
The company considered for this thesis is a Germany based manufacturing firm. It is
a, highly experienced firm. The firm is named as SICK AG and it is a leading company,
for manufacturing the sensors and related solutions (Eurofound.europa.eu, 2017). This
firm includes Factory Automation, Logistics Automation and Process Automation. The
company had to rework on its existing business model, as it used traditional working
process. Hence, the company required to advance its working system, with the integrated
system solution. The changes were mainly involved in the sales service support, where the
business adopted the enhanced structure that concentrated on the customer project
management method. Right from the beginning of this new business model, the company
realized certain issues related to coordination. Then it realized that it lacked the
understanding about the primary objectives of the company, interdepartmental interface
and lacked certain skills that are essential for working on the business model. Thus,
adaptation and sourcing are the issues faced by the firm, where sourcing is considered as
the major problem. Because, the business model’s implementation was basically designed
for Germany, but it was also implemented in Australia. Therefore, when compared to
Germany, the Australian local market found it more challenging. The challenges of
adaptation included the local variances like, the standards, its rules and regulations,
different culture, then lead time expectations, customer pricing and so on. Whereas, the
sourcing issues revolved around, distributing the cable for suiting the Germany
manufactured product. Hence, the SICK requires a certain amount of rework, for
customizing the solutions. Perhaps, this solution could help the company to match the
local market of Australia. Therefore, the focus of this thesis is to work on meeting the
satisfactory solution for the Australian local market.
1.2 Company Background
SICK Sensor Intelligence is the name of the manufacturing company. It is in the
business for more than 70 years and is highly experience, in its field. It a German based
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firm. It has various specialized sales offices throughout the world. It accommodates more
than 40 international subsidiaries, it has more than twenty sales offices globally and
various clients have participated with the company (Eurofound.europa.eu, 2017). It
manufactures equipment and products that are marketed globally, and Australia is one
such place. The SICK Sensor Intelligence Company has categorized its products into the
following industry groups, namely:
1) Factory Automation
2) Logistics Automation
3) Process Automation
It successfully manufactures the equipment as follows:
a) Gas analyzers
b) Sensors
c) Gas flow meters
d) Safety scanners
e) Additional electrical analytical instruments
f) Bar code scanners
SICK provides working solutions with its designed equipment, for its end users like power
stations, natural gas suppliers, airports, courier companies and others.
1.3 Project Background
SICK AG Company wanted to rework on its business model, as it followed a simple
business model. Thus, it was necessary for the firm to advance its working system to stay
competitive in the technology oriented world. The working system was advanced with an
integrated system solution, which transformed the sales service support. The sales service
support section of the business adopted this enhanced structure, which focused on the
customer project management (CPM) approach. After the implementation of the newly
developed business model, the company faced problems related to adaptation and
sourcing. The adaptation problems refer to the coordination in the projects, lack of
understanding about the primary objectives of the company, interdepartmental interface
and lack of certain skills that are essential for working on the business model. Whereas,
the sourcing problem is considered as the major problem. It also faces problems related to
following the standard regulations, culture, lead time expectation, customer pricing and
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