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Designing Performance Analysis and IDEF0 for Enterprise Modelling in BPR Soung-Hie Kim*, Ki-Jin Jang

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Designing Performance Analysis and IDEF0 for Enterprise Modelling in BPR Soung-Hie Kim*, Ki-Jin Jang Int. J. Production Economics 76 (2002) 121}133 Designing performance analysis and IDEF0 for enterprise modelling in BPR Soung-Hie Kim*, Ki-Jin Jang Graduate School of Management, Korea Advanced Institute of Science and Technology, 207-43, Cheongryangry, Dongdaemun, Seoul 130-012, South Korea Received 20 July 1999; accepted 22 September 2000 Abstract This paper presents overviews of both a manufacturing enterprise modelling and quality performance analysis used to perform a number of successful business process re-engineering (BPR) e!ects. The frameworkpresented in this paper can support the analysis of activities and information #ows within the scope of manufacturing application in BPR. In addition, the paper discusses the selection of techniques and IDEF0 tools used to implement the modelling and performance capabilities. To demonstrate and validate the modelling method and process graph, an example has been carried out in designing the product of a television manufacturing company. 2002 Elsevier Science B.V. All rights reserved. Keywords: BPR; Functional modelling (IDEF0); Process graph; Incidence matrix 1. Introduction area and in administration. BPR utilises compo- nents of several other tools and concepts such as Many manufacturing enterprises are undertak- Systems Engineering, IDEF (Integration DEFini- ing a critical analysis and redesign of their business tion), activity-based costing (ABC), brainstorming processes to achieve breakthrough improvements workshops (BW), functional economic analysis in performance. Business process reengineering (FEA), process benchmarking (PB), customer satis- (BPR) is the fundamental rethinking and radical faction measurement and cross functional team redesign of business processes to achieve dramatic building in addition to total quality management improvements in measures of performance such as (TQM) of the quality movement. BPR seeks perfor- cost, time, quality, speed, and services [1]. The mance breakthroughs through radical redesign of general idea of business process reengineering strategic, value-added business processes and the (BPR) is to provide means for optimizing and en- systems, including the resources, and organiza- hancing business processes both in the product tional structures that support them. We also need to develop further an under- standing of how to apply BPR in improving the * Corresponding author. Tel.: #82-2-958-3611; fax: #82-2- competitiveness of enterprises. We need more 958-3604. information about the impact of reengineering on E-mail address: [email protected] (S.-H. Kim). the overall performance of a given organization. 0925-5273/02/$ - see front matter 2002 Elsevier Science B.V. All rights reserved. PII: S 0 9 2 5 - 5 2 7 3 ( 0 0 ) 0 0 1 5 4 - 7 122 S.-H. Kim, K.-J. Jang / Int. J. Production Economics 76 (2002) 121}133 For this purpose, the modelling and analysis of 2. BPR model methodology BPR will play an important role in reengineering business processes by providing the necessary in- 2.1. The nature of BPR model formation on decision-making, showing various al- ternatives within BPR, and their impact on the This section provides a brief description of the performance of a whole organization. Also, the BPR process technique and IDEF0 modelling modelling and analysis of BPR will help to gain review. BPR pursues simultaneously multiple im- more insights into the concept, enabling the overall provement goals such as quality, cost, lead time, application of BPR. This requires the modelling of #exibility, outcome, innovation and accuracy. BPR business processes and reengineering, using various may be de"ned as a critical analysis and radical tools such as simulation, IDEF, networkmodels, redesign of work #ows and business processes in queuing theory, etc. Also, the applications of man- order to achieve dramatic improvements in impor- agement science (MS) and operations research tant measures of performance, such as cost, quality, (OR) models play a greater role in the understand- service, and speed [4]. Major BPR e!orts are ing and implementation of BPR [2,3]. shown in redesigning internal organizational pro- The aim of this paper is to coordinate informa- cesses, changing fundamental product delivery and tion #ow for activities, enhance requirement customer services procedures, and reexamining and recon"gurability, and to minimize errors and the repositioning corporate strategy [5,6]. unplanned evolution of activities in BPR project A conceptual model explaining major compon- executions. ent factors of BPR, with possible organizational Section 2 will de"ne BPR process modelling and changes in the information technology is shown in IDEF0 techniques. The proposed model frame- Fig. 1 [7,8]. As discussed earlier, an e!ective supply workis developed in Section 3. Section 3.1 over- process system can be achieved by BPR. BPR re- views the proposed framework, and Section 3.2 quires organizational change with the help of sim- describes the IDEF0 model and process graph. In pli"cation and standardization, and with other Section 4, we describe a set of methods for matrix information technologies such as commerce at light forms and an example of an analysis model in speed (CALS)/electronic commerce (EC), supply supporting the BPR process. The conclusions are chain management (SCM), enterprise resource plan- outlined in Section 5. ning (ERP), computer integrated manufacturing Fig. 1. Major component factors of BPR. .
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