DOCSLIB.ORG

Business Process Management in Manufacturing: from Process to Value

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Business Process Management in Manufacturing: from Process to Value Manufacturing the way we see it Business Process Management in Manufacturing: From Process to Value New Capgemini research shows how organizations can move to the next level of BPM maturity BPM can help As manufacturing companies emerge Taking a Close-Up Look at BPM manufacturing companies from the economic slowdown, in Manufacturing address global competitive they are looking for topline growth To better understand the current opportunities while still maintaining state of BPM in the manufacturing challenges and economic control over costs. But years of industry, as well as the benefits pressures, enabling them globalization and expansion − some and implementation opportunities, to reduce costs and organic, but much of it through Capgemini conducted research improve the value they mergers and acquisitions − have looking at the BPM practices of create as well as their resulted in complexity in the value leading manufacturing companies. speed-to-market. chain, redundancy in systems and Among the key findings: processes, and a lack of transparency and flexibility in processes. Improving Manufacturing companies are performance can be a challenge in this investing in BPM(T) to further environment. optimize their complex business processes, as well as to manage Business Process Management (BPM) processes that are not yet is a powerful approach to deal with automated. these issues. BPM aims to improve and The application areas for BPM in optimize the business processes of an manufacturing are centered around organization, supported by Business Innovation & Lifecycle Management Process Management Technology (ILM; shorter time to market), (BPMT). BPM can help companies Customer Relationship Management address global competitive challenges (CRM; leveraging multi-channel and economic pressures, enabling client interaction) and Supply Chain them to reduce costs and improve Management (SCM; managing the value they create as well as their volatility in the supply chain). In speed-to-market. addition, support functions like administration and finance can be Though manufacturing organizations made more efficient and compliant. have been putting BPM initiatives in Three types of BPM implementation place for some time, only now has levels are observed within the the underlying technology reached manufacturing sector: individual a threshold point where it can truly process transformation, agility deliver new potential – by improving layers on top of legacy applications cost efficiency, speed-to-market and and end-to-end transformation. acceleration of innovation. BPM(T) implementation at most of the companies studied is at a nascent stage and predominantly deployed at a process level as opposed to an enterprise-wide transformation. 2 the way we see it Identifying the Benefits of BPM BPM Implementation Landscape The research identified a number in the Manufacturing Sector of benefits achieved from the Although manufacturing companies implementation of BPM among the have started to realize early benefits manufacturing companies studied: from BPM implemented in a landscape that ranges from operational process A global diversified technology and levels to strategic enterprise level, the industrial manufacturer automated companies still have a long way to its paper-based processes within the go to extract the full potential from procurement division using BPM to BPM transformations. The evolving shorten the SCM cycle for approvals landscape broadly comprises three and receipt of goods. types of process transformation A leading automotive manufacturer opportunities leveraging BPM in deployed BPM to increase efficiency manufacturing companies: and decrease costs with respect to document management in its I. Individual Process marketing function. Transformation: Transformation that focus on improving discreet A global industrial equipment processes/functions within company leveraged workflow one or two components of the automation and visibility through manufacturing value chain BPM for greater operational control over its sales process. II. Agility Layer Across Legacy Applications: Transformations One of the largest global automotive that focus on integration of cross- companies resolved complexities in functional systems like PLM that its warranty management process connect several key components by implementing BPM, thereby of the value chain improving quality and costs in its customer support services. III. End-to-End Transformation: Transformations that focus on A global industrial equipment creating a “BPM transformed” manufacturer’s machinery organization with integration of construction division leveraged all the components of the value BPM’s process modeling, risk chain management and visibility tools to achieve SOX compliance. An aerospace and defense manufacturer overcame the cross- border integration challenge in its design process by implementing a BPM-PLM (Product Lifecycle Management) integration suite. Through effective implementation of BPM across the value chain, an aerospace and defense company benefited from strong governance and quality control within one of its divisions. BPM in Manufacturing 3 Three Types of BPM Implementations: Type I, Type II and Type III E2E BPM I BPM-PLM I I IMPLEMENTATION Engineering E Design BPM-ERP P Y T BPM-SCM Innovation & Product Lifecycle Management Inventory Control BPM-CRM I I Management E P Y Marketing T Campaigns Supply Chain Management I Sales Order Warranty HR & Finance E Management P Y T Marketing & Sales Customer Support Services Other Support Processes Note: E2E = End-to-end (enterprise-wide) Source: Capgemini Among the companies studied, most In the case of engineering design, have implemented Type I projects most of the companies studied are (functional level) with few focusing using BPM to link to external R&D on Type II (cross-functional level) or sources, collaborate on research and Type III (enterprise level). However, troubleshoot design problems. The opportunities clearly exist for BPM implementations here are being companies to move to Type II BPM supported by technology changes such implementations with the potential for as collaborative platforms, social BPM additional benefits and to Type III for and process orchestration engines full benefits. across a Service-Oriented Architecture landscape. Type I: Individual Process Transformation In the area of marketing campaigns, At the lowest level, companies are BPM is being used to orchestrate adopting BPM in certain processes campaigns, which enables companies within their core functions. This to scale up the marketing operations approach offers improvements in and thus create efficient repeatable individual processes, which can processes. Leveraging cloud-based be across the board. Warranty technology, these campaigns allow management, for example, can manufacturing companies to connect encompass several areas, including more directly with potential customers marketing campaigns and engineering and multiple partners, resulting in design. BPM can enable companies to higher campaign success rates. cross these silos more effectively by providing better visibility, agility and, most notably, governance control of their processes. 4 the way we see it Type II: Agility Layer Across Type III: End-to-End Legacy Applications Transformation One step up is about having a layer of At the highest level some BPM capabilities across a functional manufacturing companies are area, such as CRM, SCM or PLM. launching initiatives to reorganize Architecturally this acts as an agility themselves to become “process- layer across the existing IT system focused” organizations. These landscape. companies have determined that a need exists for best-in-class With this approach, BPM can extend architecture, IT systems and a PLM functionalities by embedding governance control mechanism that flexibility, agility and visibility in spans the entire enterprise covering all Product Lifecycle Management stakeholders – from the board down systems. BPM can also extend SCM – for all of the different end-to-end benefits by embedding governance processes. They are looking at how to and real-time monitoring of the entire redesign the process model from the supply chain in collaboration with the top down and fitting applications to partner ecosystem. Additionally, BPM that landscape. However, in terms of can enhance CRM through effective both implementing this transformation interaction of the process owners and and supporting it with technology, legacy applications across the these companies still have a long way value chain. to go. BPM in Manufacturing 5 Implementing BPM for We focus on five key areas to reduce Research Methodology Manufacturing: How Capgemini costs and make manufacturing Capgemini’s BPM in Manufacturing Can Help organizations more innovative and study involved research into the Regardless of the current state of agile. To go from process to value, all evolution and use of BPM within a manufacturing company’s BPM these areas need to work in harmony. the manufacturing sector. The implementations, Capgemini can BPM practices of more than 20 help identify and implement the 1. Value and Performance leading global manufacturing right BPM level for an organization. Management to define goals and companies were mapped against Our end-to-end Business Process evaluate and steer progress functional areas such as R&D Management approach treats processes 2. Accelerated Business Analysis and engineering, procurement, as assets that directly contribute to
Load more

Recommended publications
  • Procurement of a Business Process Management (Bpm) Tool
    ANNEXURE TERMS OF REFERENCE CIPC BID NUMBER: DESCRIPTION: PROCUREMENT OF A BUSINESS PROCESS MANAGEMENT (BPM) TOOL CONTRACT PERIOD: XBRL Solution Version 01: Nov 2016 Page 1 of 24 TERMS AND CONDITIONS OF REQUEST FOR TENDER (RFT) 1. CIPC’s standard conditions of purchase shall apply. 2. Late and incomplete submissions will not be accepted. 3. Any bidder who has reasons to believe that the RFT specification is based on a specific brand must inform CIPC before BID closing date. 4. Bidders are required to submit an original Tax Clearance Certificate for all price quotations exceeding the value of R30 000 (VAT included). Failure to submit the original and valid Tax Clearance Certificate will result in the invalidation of this RFT. Certified copies of the Tax Clearance Certificate will not be acceptable. 5. No services must be rendered or goods delivered before an official CIPC Purchase Order form has been received. 6. Price must be valid for 90 days 7. The Government Procurement General Conditions of contractors (GCC) will apply in all instances. 8. As the commencement of this project is of critical importance, it is imperative that the services provided by the Service Provider are available immediately. Failing to commence with this project immediately from date of notification by CIPC would invalidate the prospective Service Provider’s proposal. 9. No advance payment(s) will be made. CIPC will pay within the prescribed period as per the PFMA. 10. All price quoted must be inclusive of Value Added Tax (VAT) 11. The successful Service Provider must at all times comply with CIPC’s policies and procedures as well as maintain a high level of confidentiality of information.
    [Show full text]
  • HP's Approach to Quality Management Under Business Process Outsourcing
    HP’s approach to quality management under business process outsourcing Driving operational excellence beyond service-level requirements Overview Traditionally, quality in the BPO context has been • Increase operational efficiency of outsourced processes through quality restricted to defining, measuring, and reporting the • Improve compliance with internal policies and external requirements status of service-level agreement (SLA) metrics. • Enhance productivity and establish ongoing process improvements However, sophisticated clients are increasingly demanding value beyond service-level compliance, requiring proactive identification of process improvement opportunities and compliance mechanisms. If you have outsourced or are planning to outsource Quality as a value driver for some of your business operations, you too may outsourcing be concerned about some of the key challenges relating to quality: With increasing complexity in the type of business • Maintaining quality initiatives: How do you make processes being outsourced to third-party providers, sure quality initiatives continue to drive improvements the demand for quality as a practice is steadily even after outsourcing? expanding—directly impacting your employees, customers, vendors, and business partners. • Improving performance standards: How can you use quality to drive performance improvements without While business process outsourcing (BPO) leverages a significant incremental costs? service provider’s people, process, and technology • Driving adherence to quality: How can you
    [Show full text]
  • How Many Processes Does Your Organization Use to Run Its Business?
    BPTrends ▪ January 2012 How Many Processes Does Your Organization Use How Many Processes Does your Organization Use to Run its Business? Carl Lehmann Most managers don’t know the answer to this question. But you must know which ones add customer value and which create liability. Organizations serious about Business Process Management (BPM) take stock of their process as assets by conducting something as simple as a business process inventory. In my last BPTrends Article I discussed how industry leaders use portfolio management techniques to take stock of business processes, continuously assessing them for strategic value and effect. Processes considered “Core” to operations must perform well. They demand commitment, ownership, investment in performance enhancement and optimization. “Non-core” processes that create liability or risk demand consolidation, decommissioning or outright elimination. A portfolio management approach to BPM begins by conducting an inventory exercise. A Business Process Inventory A Business Process Inventory is an exercise that uses a standardized process framework (or reference model) to help identify, catalogue and classify business processes and evaluate their quality. It prioritizes various Core and Non-core processes based on their ability to create and deliver customer and shareholder value. It is accomplished through a facilitated discussion with members of your management team and business process owners. It elicits how they perceive the value and quality of various businesses processes and how well or poorly each process is being managed. Indeed, most organizations measure process performance quantitatively using key performance indicators (KPIs). However, the quality of how well a process is defined, documented, changed, evaluated for compliance and value, etc.
    [Show full text]
  • BPM & Quality Management (TQM): Will the Twain Meet?
    BPM & Quality Management (TQM): Will the Twain Meet? Old-timers from the process profession may look at BPM a trifle suspiciously and maybe derisively as well, thinking, “well, isn’t it more old wine in a brand new bottle?”. They might well have a point. Process Management has been an ongoing evolving area of research and application for most of the last century, and as a structured discipline at least from the early thirties. So, is BPM an avatar of Process Management? We attempt an analysis of this question in this Column by comparing BPM and the body of knowledge under the name of Quality Management or Total Quality Management (TQM) to explore the commonalities and differences. Why TQM? TQM today represents an umbrella comprising a cumulative body of knowledge, science and techniques which has been popular in organizations for the last three decades. In the last couple of decades, TQM has to some extent, ceded the limelight to complementary approaches, e.g., BPR followed by Six Sigma and subsequently Lean. We propose that the TQM philosophy, to a large extent, encompasses these various approaches at a conceptual level. TQM has been fairly popular as a process and quality management philosophy in several parts of the world, especially in India. We believe that as the BPM bandwagon gathers steam and covers more organizational real-estate, a closer look and alignment with prevailing and complementary approaches will be most beneficial. TQM: A Blast from the Past Structured approaches to improve process quality emerged in the 1930’s at Western Electric with legendary figures such as Walter Shewart, Edwards Deming, Joseph Juran, to name a few,.
    [Show full text]
  • Business Processes and Business Functions
    Business Processes and Business Functions Business Processes and Business Functions: a new way of looking at employment A new BLS classification system used in conjunction with the Agency’s Mass Layoff Statistics program yields fresh information on business processes and functions affected by mass layoff events Sharon P. Brown hen employers decide to add or including the current employment structure eliminate jobs, they are sometimes of a firm, organizational expansions and job guided by larger choices to add or growth, and the geographic location of out- Weliminate entire classes of activity—business sourced work. Called Business Processes and functions—within the company. What may Business Functions, the system is based on an appear to be incremental hiring may in fact approach that is a synthesis derived from exist- be the gradual buildup of a new business ing literature, models of firms’ activities, current function, such as an in-house information research on outsourcing and offshoring, the re- technology development department. Or, in- sults of a feasibility study of business functions stead, a mass layoff may stem from a decision conducted by the BLS MLS program, and the to outsource a specific business function, such ongoing collection of the relevant information as human resources management, logistics, throughout the Nation by the program. janitorial maintenance, or even manufactur- ing. Deciding which business functions to Movement of work statistics source to outside vendors and which to per- form in-house is a critical part of corporate Restructuring and outsourcing of business strategy, as companies seek to become more functions has long been part of the U.S.
    [Show full text]
  • Defining the Quality of Business Processes
    Defining the Quality of Business Processes Robert Heinrich1 and Barbara Paech2 Abstract: Business process models are used to gain a joint understanding of complex processes. Often they are applied in change projects where either the supporting IT or the processes themselves or both are to be improved. So it is an important question to assess the quality of the modeled business processes. However, so far there is no standard definition of the quality of a business process. Furthermore, business process models are not tuned to capture quality aspects. The goal of our work is to collect important quality characteristics and attributes of processes and to enhance business process modeling languages with means to express these attributes. This paper is a first step in this direction. We define a first set of quality characteristics, attributes and measures for these attributes in a business process. As an example we evaluate how well these measures can be expressed in a BPMN model. 1Introduction Business process models aim at providing a joint understanding of business processes. Therefore, they typically cover information about structure and behavior like description of activities or decisions within the process. But they do not aim at providing quality information. Quality information, for example, is information about the reliability or the usability of a business process. That information is of high interest for organizations because business process models are often used in change projects where either the supporting IT or the processes themselves or both are to be enhanced. Furthermore, the quality of a business process highly affects the success of an organization.
    [Show full text]
  • Effects of Business Process Reengineering and Enterprise Resource Planning on Supply Chain Management Performance
    3rd International Conference on IT and Intelligent Systems (ICITIS'2013) Dec. 25-26, 2013 Bangkok (Thailand) Effects of Business Process Reengineering and Enterprise Resource Planning on Supply Chain Management Performance Ugur. Bac, and T. Erman. Erkan and metrics are essential in setting objectives, evaluating Abstract—In today’s growing economy, all companies aim to performance, and determining future courses of actions [4]. increase their profits and they are getting more competitive. In this Various performance metrics have been developed to competition environment, companies which improves the measure, evaluate, and monitor the operation of the entire performance of their supply chain gains an advantage. The use of supply chain. Lockamy and McCormack [5] indicated in their both Business Process Reengineering (BPR) and Enterprise Resource Planning (ERP) systems are the most important factors that affect research that there were only a small number of studies Supply Chain Management (SCM) performance. In this study, a deep attempting to empirically link specific supply chain field-study has been made on the Turkish enterprises to determine management practices such as quality assurance to supply BPR’s and ERP’s effects on SCM performance. Understanding of chain performance. The appropriate performance metrics can these relationships is vital for realizing the importance of BPR and be used to evaluate the probability of success in achieving the ERP. Findings have been analyzed with statistical methods to target, to provide advice or corrective suggestions to the summarize the current situation in Turkish enterprises. Results of this study have showed that both BPR and ERP have positive effects on organization, to provide a feedback system to the manager and improving the performance of SCM.
    [Show full text]
  • An Analysis of Cooperative Performance Using Balanced Scorecard Method
    Advances in Economics, Business and Management Research, volume 69 3rd International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2018) An Analysis of Cooperative Performance Using Balanced Scorecard Method I Wayan Suwendra I Nyoman Sujana Department of Economics Education Department of Economics Education The Faculty of Economics, Universitas Pendidikan Ganesha The Faculty of Economics, Universitas Pendidikan Ganesha Singaraja, Bali, Indonesia Singaraja, Bali, Indonesia [email protected] [email protected] Iyus A. Haris Department of Economics Education The Faculty of Economics, Universitas Pendidikan Ganesha Singaraja, Bali, Indonesia [email protected] Abstract— This study aimed at finding out cooperative organization or business. The measurement of performance is performance using Balance Scorecard method in the period of one of the ways to evaluate the attainment that has been 2013- 2017.This study was conducted in from July to September, obtained by an organization. With a good work performance, 2018 using a descriptive method. The data were collected through the organization can see and evaluate. The achievement that documentation, interview and questionnaire. The result showed has been reached during the current period, so that the that the cooperative performance viewed from the financial organization can determine a precise strategy later in the future. perspective using the indicator of the SHU (remaining business result) growth and members’ savings growth was good enough, Performance measurement is done to see whether the from the membership perspective using the indicator of the business has met and reached the target that was desired by the growth of the number of members and SHU percentage for stakeholders [1], thus performance measurement is one of the members the cooperative performance was good.
    [Show full text]
  • Bptrends 2020 Survey
    This page intentionally left blank Copyright (c) 2020 Business Process Trends. www.bptrends.com 2 Partner Technology Evaluation Centers (TEC) is a global advisory and consulting firm in business for over 25 years. We empower organizations to make better decisions about technology by supplying impartial data, a proven evaluation methodology, and incisive industry intelligence. Our services include expert project management for best-fit software selection, robust enterprise architecture planning, impartial implementation oversight, and bespoke engagements for organizations evaluating their digital transformation plans. Our online resource library provides guidance across a wide array of software application areas, covering industry news, software reviews and comparisons, and thought leadership on high-impact technology trends. In practical terms, TEC helps reduce the time, cost, and risk associated with enterprise software selection. Sponsors Creatio (formerly bpm’online) is a leading low-code, process automation and CRM company. It has been highly recognized as a market leader by key industry analysts. Creatio’s intelligent platform accelerates sales, marketing, service and operations for thousands of customers and hundreds of partners worldwide. The mission of Creatio is to help companies ACCELERATE! For more information, please visit www.creatio.com Copyright (c) 2020 Business Process Trends. www.bptrends.com 3 Over 1 million users in more than 1,300 organizations worldwide rely on Signavio’s unique offering to make process part of their DNA. Signavio’s business transformation suite enables mid-size and large organizations to effectively mine, model, monitor, manage and maintain their business processes. The intelligent Suite addresses digital transformation, operational excellence and customer centricity, placing them at the heart of the world’s leading organizations.
    [Show full text]
  • Integrating Commodity Pricing for a Global Integrated Energy Company
    • Cognizant Case Study Integrating Commodity Pricing for a Global Integrated Energy Company Business Scenario making this process cumbersome and faulty. An increasing number of errors in logged deals Gas and electricity prices have been extremely resulted in a substantial loss to the business. volatile over the last few years, owing to changing market conditions. Suppliers use competitive Because of these issues, our client decided to pricing to gain market share, which leads to the explore an integrated proposal management need for distinct pricing strategies that target system that not only integrates various systems each product group and sales channel. but is also robust and user-friendly to handle its day-to-day operations, such as generating pricing Market forces are driving the need for not just and proposals for its electricity and gas business product scalability but also product adaptability units. The company first started implementing to suit market conditions. With the deregulation the integrated system for electricity, with plans to of markets, and suppliers’ penetration into new extend it to commodities such as gas and oil. geographies, energy companies need to con- tinuously enhance their existing systems to gain We partnered with the client to build the proposal customer confidence and business. As a result, management system, which was aimed at inte- it is now imperative for energy companies to grating processes across the sales, operations, implement robust pricing and proposal systems wholesale desk (trading), contract administra- to integrate operations so they can effectively tion and billing teams, which are instrumental react to dynamic market situations. throughout the entire pricing process through a single workflow.
    [Show full text]
  • Business Process and Information Technology Alignment: Construct Conceptualization, Empirical Illustration, and Directions for Future Research
    ournal of the J ssociation for nformation ystems A I S Research Paper ISSN: 1536-9323 Business Process and Information Technology Alignment: Construct Conceptualization, Empirical Illustration, and Directions for Future Research Paul P. Tallon Magno Queiroz Sellinger School of Business, Loyola University Jon M. Huntsman School of Business, Utah State Maryland, USA University, USA [email protected] [email protected] Tim Coltman Rajeev Sharma School of Management, Operations and Marketing, School of Systems, Management, and Leadership, University of Wollongong, Australia University of Technology Sydney, Australia [email protected] [email protected] Abstract: Since strategic alignment first rose to prominence with Henderson and Venkatraman’s (1993) seminal paper, research has tended to focus on the extent of fit between IT and business strategy at the firm level. Although useful, a firm-level view of alignment could mask what firms are doing to realize intellectual alignment between business and IT strategy and whether their actions will likely succeed. In this study, we build on an emergent stream of research that considers alignment between IT and business strategy at the process level. Since research tends to view this form of alignment through the lens of IT support for business strategy, this perspective fails to account for how IT can enable the development of new business strategies. Accordingly, we conceptualize alignment between IT and business strategy at the process level using the lens of IT shortfall (a lack of IT support for business activities) and IT slack (having more IT than needed to support current business activities). Using data from matched surveys of IT and business executives at 317 U.S.
    [Show full text]
  • Business Process Analysis Guide to Simplify Trade Procedures
    The secretariat of the Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional development arm of the United Nations and serves as the main economic and social development centre for the United Nations in Asia and the Pacific. Its mandate is to foster cooperation between its 53 members and 9 associate members. It provides the strategic link between global and country-level programmes and issues. It supports Governments of countries in the region in consolidating regional positions and advocates regional approaches to meeting the region’s unique socio-eco- nomic challenges in a globalizing world. The ESCAP secretariat is located in Bangkok, Thailand. Please visit the ESCAP website at www.unescap.org for further information. The shaded areas of the map indicate ESCAP members and associate members. UNITED NATIONS NETWORK OF EXPERTS FOR PAPERLESS TRADE IN ASIA AND THE PACIFIC UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE Business Process Analysis Guide to Simplify Trade Procedures i Business Process Analysis Guide to Simplify Trade Procedures United Nations publication Sales No. E.09.II.F.21 Copyright © United Nations 2009 All rights reserved Manufactured in Thailand ISBN: 978-92-1-120588-6 ST/ESCAP/2558 The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries.
    [Show full text]