DEAKIN UNIVERSITY

FACULTY OF BUSINESS AND LAW

MPM-701 BUSINESS PROCESS MANAGEMENT

Technobuild Pty Ltd

Business Report

SUBMITTED BY

NAMESTUDENT ID:PERCENTAGE %

ABRAR ASLAM21445361950%

ASHWIN PONNA VENUGOPAL21448655450%

Table of contents

TABLE OF CONTENTS 2

EXECUTIVE SUMMARY3

. BPM AND STRATEGY3. PROBLEM ANALYSIS4. PROPOSED SOLUTION8. SOLUTION CONSIDERATION10. RECOMMENDATIONS10

REFERENCES 11

II. Executive SummaryAbout the company:Technobuild Pty Ltd is a company which produces a building device that measures the amount of moisture in different types of soil and then computes exactly how much foundation must be laid and how much concrete is required to provide the optimal support. It is more efficient and practical when compared to other machines. This company not only produces but also sells the machine to customers. The name of the machine is Technobuild and it is extremely familiar and popular with people related to the construction field.Issues Faced: The business methods in Technobuild Pty Ltd are predominantly in light of advancement and separation. The business had a profit to start with, however the business and profit as of late was diminished. This is distinctly realized from the table that is given by Keith. The outline about the organization likewise demonstrates that Technobuild Pty Ltd is following paper based work and manual exercises which are very customary. Due to increase in the delay process it is clear that the organization's profit has lessened.Recommended Solution:The organization can increase its turnover by executing the enterprise system. This will in turn helps company to attain greater heights. The company should implement Enterprise Resource Planning (ERP) system, Supply Chain Management (SCM) system, Supplier Relationship Management (SRM) system and Customer Relationship Management (CRM) for the improvement in the delivering process of the machine. The organization needs to execute all these system in each and every department, by doing this, the problems identified with the supplier, between each department and with the customer can be resolved.

.. BPM and StrategyTechnobuild is a construction tool which is produced by Technobuild Pty Ltd. Sufficient information was gathered by the company to serve the customers. Business Process Management can be defined as a management discipline focused on using business processes as a significant contributor to achieving an organizations objective through the improvement, ongoing performance management and governance of essential business processes.(John and Johan 2014, p.03). It can even be considered as business optimization process. In brief, BPM includes a group of activities or processes to achieve a desired goal in an organization. The BPM method in Technobuild Pty. Ltd will invent new processes to be carried out which will help them to recover the losses. With the help of BPM, the company can perform work more easily and provide all the data accurately which will help them to perform faster. If we apply BPM in Technobuild Pty. Ltd, it will expand the business profit and take the business to the next level.

BPM is more than just a software, more than just improving or reengineering your process- it also deals with managerial issues. (John and Johan 2014, p.08) One of the main purpose of using business process management is to reduce cost and time. The quality of all the work done in the organization should be enhanced which will automatically increase the quality of the product that is developed. The assessment of an enterprise depends on business process management. Business process management helps in improving the sales turnover of the company. With the help of BPM, a company can have a competitive advantage over its competitors. For example, a company making more profit by selling its goods and service to the customer than its rival or the competitors in the same filed. Strategic planning consists mainly of two characteristics. Firstly, the industry structure view, which focuses on the outward looking observation, from a firm to the environment. The second feature is resource-based views, which mainly focuses on a firms resource and capability. A value chain is a set of all process included from time of production to the delivery of goods. Value chain means from one process to another process to achieve the desired goal. The idea of the value chain is that every activity in the chain or sequence adds value to the final product (Harmon, 2007,p.41) Implementation of value chain in Technobuild Pty Ltd enables in the cost reduction and improvisation in the speed of the delivery of the product which will lead to the increase in market share and maximize the companys overall profit.

. Problem Analysis Keith's Technobuild Pty Ltd organization has confronted abatement in sales and profit for as far back as three years. In extremely late years business has been globalized which has prompted an exceptional increment in competition. This naturally has an effect in the business, despite the fact that organizations are universally battling. This effect influenced Keith's Technobuild and there were numerous different issues too in the organization which influenced the business and benefit.A standout amongst the most vital and particular issue in Keith's organization is the time delay. The time delay in the organization is investigated utilizing the 'As-Is' procedure chart [Fig (i)]. There is a great deal of time wasted in the whole process right from getting the sales order to conveying requests to the suppliers and receiving the confirmation for the goods dispatched. For example, it takes one entire week for production to check for the inventories and five to six weeks of time to get the supplier's affirmation. Moreover, every single department in the organization concentrate only on their work which makes a separation and lack of communication in between departments which makes the work less productive. There is no automation of records since the company is using a manual method for maintaining archives. The delay is also caused due to delay in decision making between the people in the organization. It therefore results in postponement of delivery of the product to the clients. Likewise Keiths company has no team for marketing or a division which is solely concerned in marketing the product. Innovation in the product is the only advantage which differentiate the company with the other competitors in the market and since Keiths company has no different department for marketing maximizing sales and developing the strategy has become cumbersome process. This has costed the sales turnover of the company. Fig (i): Current As-Is process diagramCustomersPlaces the orderGeneration of the invoice

SalesReceives the order from

ProductionPack, label &write stock detailsYesChecks physical stock

Order received1 weekNo

Shipping and LogisticsShipping approved

PackingNotation MakingShippingReceive order

AccountsPayment ReceivedCopy of sales orderSales, shipping, payment order & invoice received

PurchaseRequest purchase orderCouple of daysReceive dispatch & invoice

Supplier5 to 6 weeksPayment Received DispatchReceive the purchase order through surface mail

Flow in Process, Management Problems on daily basis:One fundamental issue in Keith's organization is that there is nobody for observing the organization's polices and guidelines to develop a business process. The absence of observing in the whole process for long time is not present according to which promises can't be made on whether there is sufficient stock or not. The organization does not have any managers who can overlook with the whole process. This identifies with no "Administrator Accountability" in the organization. There is no responsible manager to deal with the procedure and to accomplish the methodology objectives or to check if the data is sufficient, which prompts the separated methods. Fundamental centre of the Managers in every office is confined to their own particular errands, which makes the organization loose its efficiency. Since there is a postponement in the supply of products the clients are troubled with the service provided. This is because of utilization of surface mail for sending requests. It takes at least six weeks even before the affirmation and invoice received and few of the parts are not landed in time.

Problems in Controls & Enablers:Keiths organization absolutely needs IT framework. All the techniques are taken after and executed physically, as opposed to utilizing a modernized framework. Inventories, deals & transportation request are checked physically prompting delay in whole process. Information is being recorded by paper work which is a time waster. Organization has one of most out-dated programming & equipment that diminish the effectiveness of operations in Keith's Technobuild Pty Ltd.

Projecting Scoping Diagram

Order receivedStock checkScheduling orderDelivery of order

De CONTROLS CONTROLS ENABLERSINPUTSPoor Decision making.Lack of coordination among staff

Manual record keeping (paper based records)

Communication using surface mail.Customer orders not fulfilled in time.

Less sales and decrease in profit.

Order receivedStock checkScheduling orderDelivery of order

DeOUTPUTS

Increasing customer complaints

OUTPUTS

No proper infrastructure.No IT team.

. Proposed SolutionBy examining the issue in Technobuild Pty Ltd it unmistakably demonstrates that business process administration (BPM) framework is lacking in the whole organization. It's about time Keith solved the existing issues by applying the appropriate BPM framework and reorganize the company's management system. BPA (Business Process Architecture) lays the blueprint for operating and transforming the enterprise .Business architecture includes various models that define business goals, objectives, initiatives and metrics (Acharya 2012, p.8). BPA is a group of linked functional activities which are meant to fulfil the objectives and demands of the organization. If BPA is formed in Keiths company then the lower level and the upper level staff will have the clear idea of the work and what is expected from them. This will help in reducing the lack of discipline amongst the staff and improve their relationship with each other. If a company has a good information system, it will help them to work faster and secure a better position in the market. A better information system will enable a company to give tough competition in the market. If Keith improvises the enterprise system of his company then it will help him to reduce the delays in the work. In simple words, the manual work process has to be eliminated in order to deliver the goods demanded on time. Enterprise Resource Planning System or Enterprise System are software systems for business management encompassing modules supporting functional areas such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and management, transportation and e-business (Rashid, Hossain & Patrick, 2002, p.36)To-Be Process Diagram explains how ERP system can help each department in the company to work efficiently. Now when Production Department receives the current data about the inventory and the purchase request can be sent in a lesser time than before. This is possible because the ERP is providing the easy method for the generation of the purchase request even though the raw materials are less. The request that is generated is stored in the database of the companys system. Automatic generation of purchase orders and for the suppliers it is electronically dispatched using the Supplier Relations Management system. A copy of the purchase order saved in the system. As for as the fulfilment process, as soon as a purchase order is placed by a customer, the system automatically checks for the product and customer in the database. In the sales department, if the product is shown available, sales order is generated by the sales system and data is refreshed in the ERP system. Then the order list for delivery is determined. After the selection of order, the system uses the relevant data to create the picking up of document and packing list. Based on two documents the production department will prepare an updates for loading the relevant data. Once the loading order is received, the accounts department will work on preparing an invoice and it will be sent to the customer. Therefore by implementing ERP system in Technobuild Pty Ltd, companys business and performance of the overall company will be efficient and there will be proper communication between the departments .There will be systematic flow in the process and the delay will also be reduced to the maximum.

To-Be Process Diagram

Customers Places OrderCRM

Sales Receive the order and create sales order

ProductionReceiving order for sales, check for stock and update database.In stockPrepare goods for pack &label.Out of stockSend purchase request and update databaseReceive materials

LogisticsShipping goods Updating databaseERP

AccountsPrepare and Send invoicesReceiving invoices

PurchaseReceive purchase requestOrganize purchase order

SuppliersSCM and RSMPurchase order is received Materials & invoices sent

. Solution Considerations

The first step requires the establishment of IT department. The IT department will take look over all the issues related to the new system. This will ensure the long term maintenance of the new Enterprise System. Therefore, the company will have to recruit few IT professionals. Moreover, the new enterprise system will reduce the manual work and so not many employees will be required as before. The next step Keith need to take is to implement ERP system. So he will have to ask his finance department to see if the firm has sufficient fund to invest in the software. Moreover, the training cost also has to be considered. Employees should be given training so that they get familiar to the ERP system. In the next stage, the infrastructure cost has to be determined. The company is using out dated and low level computers with customary configuration. Therefore, an additional expenditure in buying high level computers and printers with better configuration is required so that ERP System can be implemented on it. The SRM AND SCM have to be established as it will eliminate the surface mail for the communication between the supplier and buyer. The SRM and SCM have to be adopted as the delay occurred in receiving the materials will be reduced.

. Recommendation A manual work process should be replaced by computerized enterprise system. The employees should be provided training on ERP, SCM, SRM and CRM by a team of specialists in that field. Keith should adopt BPA so that every department will have a certain objective or targets to achieve the desired goal of an organization. The new IT department has to be set up to solve the issues related to the new Enterprise system. The efficiency of the new process has to be maintained so that it does not affect the quality of the products and services. Employees should build good relationship among themselves as it will raise the companys performance

. References

Harmon, Paul, 2007, Business Process Change: A Guide for Business Managers and BPM and Six Sigma Professionals, Morgan Kaufmann, USA, p. 41Hossain, Rashid & Patricks, 2002, Enterprise Resource Planning: Global opportunities and challenges, Hershey PA, Idea Group Publishing.Acharya V., 2012, Oracle BPM suite 11g developers cookbook over 80 advanced recipes to develop rich interactive business process using Oracle Business Process Management suite. Birmingham, Packt Publishings.Jeston john, Nelis Johan, 2014 ; Business Process Management , Routledge Taylor & Francis group , PP 03-08.Harmon, Paul , 2014, Business Process Change : A Business Process Management Guide For Managers and Process Professionals, Morgan Kaufmann Publications.Khan, Rashid N.,2004, Business Process Management : A pratical guide, Meghan-Kiffer Press, Tampa11