ACCT6001 Assessment 2: Business Process Analysis of GAAM International

This report conducts a comprehensive business process analysis of GAAM International, a manufacturing company specializing in hydraulic systems and heavy-duty vehicles. It examines the current MRO (Maintenance, Repair, and Operations) process, detailing inputs, outputs, and participant roles within the existing system. The report identifies process strengths, such as secure data storage, and inefficiencies, including manual tasks that hinder operational swiftness and competitive advantage. It highlights exceptions like emergency purchases and credit limits. The analysis proposes utilizing information technology to automate processes and improve efficiency. The report suggests business process re-engineering and workflow diagram to streamline operations. The conclusion emphasizes the importance of information systems and suggests mitigation measures for identified issues. The report aims to provide a thorough understanding of GAAM's business processes and offer actionable recommendations for improvement.

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

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BUSINESS PROCESS ANALYSIS
Table of Contents
Introduction....................................................................................................................2
Purpose...........................................................................................................................2
Input, output, and participants to present systems.........................................................2
Activity description or process flow..............................................................................3
Exceptions......................................................................................................................4
Business process model..................................................................................................5
Process strengths............................................................................................................5
Process inefficiencies.....................................................................................................6
Utilisation of Information Technology..........................................................................6
Business Process Re-engineering...................................................................................7
Proposed Workflow Diagram........................................................................................8
Conclusion......................................................................................................................8
Bibliography.................................................................................................................10

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BUSINESS PROCESS ANALYSIS
Introduction
The aim of this report is to discuss the business process re-engineering of the GAAM
international company. The industry within which this company functions is the
manufacturing industry. The main working sector of this company is the cranes, heavy duty
vehicles as well as the high level buildings. Head-quarters of this company is placed within
South Australia. This organisation functions along with 27 facilities and almost 3800
employees who work together towards achieving the common goal for the organisation.
Within the present business processes, there is the major requirement of re-engineering the
process for allowing the improvement of the functions of this business.
Purpose
The intention of this re-engineering process for the GAAM organisation could help
this organisation with the development of the complete business procedures of this
organisation. The MRO process is the major procedure, which are required to be addressed
by the policy of the re-engineering that has been adopted by this organisation. There is a
major requirement of investigating the MRO process along with the identification of the main
flaws within the business functions of the GAAM organisation. The design phase of the re-
engineering process has to be executed for allowing the swift mitigation of the discovered
flaws with the development of the present system along with the complete business efficiency
for this system.
Input, output, and participants to present systems
Inputs Participants Output
The request for the products
is received at the purchasing
department for the supplies
The major participants who
are associated with the
functioning of the present
The purchase order could be
generated for any kind of
item that is required to be

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BUSINESS PROCESS ANALYSIS
of MRO from GAAM
organisation. Request is
made by the 36 individuals
within the organisation.
Requisition form or the
MRO card are utilised to
submit the requests.
Individuals within the
organisation executes the
purchasing with the
assistance of the requisition
form or the cards. The use of
the cards is done commonly
for purchasing the items
according to the major
requirements of this
company. The MRO card is
basically returned to
purchase department once
the item has been purchased
in the organisation.
Reviewing and then signing
this purchase by the
organisation is executed by
the MRO buyer.
system of this organisation
are secretary, purchasing
manager, and the buyers. It
could be observed that all
the participants are included
within the purchase
department.
purchased by this company.
In the situation when the
item has been purchased
with the utilisation of any
card then it is the procedure
that the card would be
returned to respective
requesting department and
the placing of the request for
the purchase would be done.
In any situation when the
request for any item is done
with the utilisation of the
purchase requisition form,
then form purchasing
department is required to
executing the filling out the
form. In the situation of any
emergency, the number of
the purchase order would be
generated as well as the
complete process as well as
the result are gained with
reference to the purchase
order.
Activity description or process flow
The initiation of the process is done when any request for purchasing is received for
any of the MRO supplies. The recording of this request is done within the MRO card as well
as filling of the requisition for the purchase is done. The main intention of the requisition is
when any new item is required to be purchased by this department. As soon as the card or

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BUSINESS PROCESS ANALYSIS
requisition is received by the purchasing department, the process of review initiates and then
the creation of the purchase order is done for this desired purchase. Afterwards the recording
of the purchase details has been done, the department receives the used order card. In the
situation when the requisition form is used for placing the orders, the form is filled up by the
purchase department. The P/O program comprises of the P/O; on a daily basis, the MRO
requisition is received by the purchasing department.
Exceptions
Some of the observed exception within the business process of GAAM organisation
could be discovered are listed below as:
Emergencies: In the situation when the purchase is made by the MRO buyer and it
creates the situation when the purchasing department immediately requires any item. The
purchasing department needs the purchase number and the purchase number is made to be an
exception, which could be analysed as significantly different from list of the purchases that
have been already assigned for purchases. This creates a disorder, as the immediately
required P/O number does not match the sequence of the P/O purchasing order. This P/O
would be placed aside and will gain something distinct approach from other P/O numbers.
Credit limits: Commonly, the limits placed on the credit is from range of almost 500
to 1000 AUS dollars and it could be considered that when there the limit exceeds the
requisition is endorsed from individual. There is the major requirement of consulting to the
higher authority for this process and it leads to the delay of the purchase of item as the
permission is gained from the review of the various departments.

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BUSINESS PROCESS ANALYSIS
Business process model
Process strengths
The main process strengths of business process of the GAAM organisation could be
categorised as:
 Accessing the information by the managers and the administrators of the system could be
easily done as the information stored in the systems of the GAAM organisation has very
less restriction for the administrators and the managers.
 The storing of data is done securely in the system of the organisation as the central
database is missing and the security of data of the GAAM organisation is extensive to
prevent the data from any kind of breaches. Manual storage is significantly helpful for
various departments as the storing of the data is done within the individual registers. The

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BUSINESS PROCESS ANALYSIS
file storage system placed in the organisation is used for maintaining the backup hardcopy
of all the data of the GAAM organisation.
Process inefficiencies
The main process inefficiencies that could be discovered within the GAAM
organisation are:
 The tasks that are done manually hampers the swiftness of the functioning of the
organisation. The competitive advantage of this organisation within the industry is
significantly hampered by the manual procedures.
 The manual processes of the organisation effects the proper working of the
organisation that does not allow the extensive growth of the organisation within the
industry. Due to these manual processes, the response time is significantly high for
the staffs and the customers of the organisation. Hence, it leads to the increased
inefficiency of the processes.
 It has been discovered that the set of the predefined procedures are missing from
within the business processes of the organisation that could be significantly helpful
for the effective integration of majority of the procedures as well as the departments
of this GAAM organisation. Because of the absence of the standard solution within
this company, employees of GAAM organisation are needed to consistently migrate
from the assigned tasks and execute the present tasks. It leads to the rising of
significant issues within the employees and it also leads to the reduction of
productivity significantly.
Utilisation of Information Technology
It could be analysed that the proper use of information technology within the business
processes of the organisation could lead to the automation of the business processes and it

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BUSINESS PROCESS ANALYSIS
would help in achieving significant growth in the market. It would facilitate the facility of
performing the evaluation as well as the analysis of the procedures automatically in the
business. With the implementation of the information system in the organisation, the
availability of the data storing facility would be done. Additionally, the major effects of the
data redundancy factor could be mitigated from this business and it would lead to the increase
in the complete business efficiency. It could be predicted that there would be elimination of
the error due to the data duplicity that would allow the employees of the organisation to make
the required updates within the prevailing data storage objects that is circulated all through
the department network of this company.
Business Process Re-engineering

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BUSINESS PROCESS ANALYSIS
Proposed Workflow Diagram
Conclusion
It could be concluded that the utilisation of the information system within the
organisation is significantly important. The present procedures within the organisation is
described briefly in this report. All the manual procedures are described briefly within this

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BUSINESS PROCESS ANALYSIS
report and from the analysis of the issues faced by the organisation, appropriate mitigation
measures are suggested for the organisation. The present procedures as well as the business
re-engineering processes are described briefly within the report with the support of the
illustration.

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BUSINESS PROCESS ANALYSIS
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