QUALITY AND PRODUCTIVITY INSTITUTE Case Study Of Business Process Reengineering Mid Term Research Presented By El Shaymaa Mohamed Nassar Magda Hassan Heshmat Under Supervision of Dr. Mohammad Mansour February 2011 This research studies the effect of using IT tools with different approach on BPR outcomes through existing cases. The research assumes replacement of a series of managerial blocks with online supply. It simulates benchmarking of New application versus the old one. 2 Contents Introduction ..................................................................... Error: Reference source not found Background & Literature Review ................................... Error: Reference source not found Contents...............................................................................................................................3 Introduction .......................................................................................................................... 4 Background & Literature Review ........................................................................................ 6 Problem Statement .............................................................................................................. 9 Planning ............................................................................................................................. 12 Design and Implementation ............................................................................................... 15 Conclusion ......................................................................................................................... 22 References .......................................................................................................................... 22 3 Introduction The modern business tendency is TQM “Total Quality Management” application to get competitive position within national or international market. Also, non-profitable firms tend to reduce costs and improve products and services. Taking TQM as a target of organization, a comprehension of TQM terminology must be considered as a policy of top management. The TQM can be an integration of different managerial departments to realize high qualified product or service in order to increase customer satisfaction, reduce costs of serial processes and consequently increase incomes of firm. Such a target is followed by identifying eight essential clauses refer to ISO9000 even if firm does not intent to get certificate, which are: 1- Detecting scope 2- Normative reference 3- Quality policy 4- Documentation 5- Purchasing 6- Internal Auditing 7- Product calibration 8- Measurement and improvement These clauses assure quality realization. However, application may suffer many implications if they are applied using traditional managerial methods. SCADA systems offer solutions for documentation as each event is monitored and recorded within spread sheets and databases. Then auditing is simply driven on data collected from actual 4 activity. Upon monitored data machines can be calibrated once information is sent. The resultant action is continuous measurement of product quality and continual improvement using appropriate preventive and corrective actions. Also, SCADA system can introduce collection of warehouses storage units and required procurements. Usage of iSCADA allows online connection with suppliers, so a quality assured outsources is realized. The quality policy is realized and communicated to low managerial level. The research assumes that SCADA enhances integrative virtual cross functional teams due to the following factors: 1- Complementary between the different departments 2- Data sharing and information availability 3- Self-managed and self-dependent team 4- Involvement of top management within circular managerial structure modeling 5- Effectiveness of lateral and vertical internal communications 6- Disappearance of intermediate managerial levels 7- Empowerment and involvement of workers 8- Realization of using managerial processing approach This means the realization of the eight quality management principles. The score of realization of each factor defines success level of SCADA application. However, this success may depend on degree of communication infrastructure and computer-aided technology in use. Security techniques define the trust level and decrease resistance of top management to SCADA application. 5 Background & Literature Review Business Process Reengineering (BPR) is not just a slight improvement, however it is rebuilding of managerial system of an organization in order to add value to this organization according to SMART “Simple Measurable Accurate Reliable Target”. A consultant office or top management can initiate a new model of a managerial system. The following figure shows a replacement of series of blocks by online connection [1]. Figure 1: Procurement Process Reengineering diagram The process reengineering diagram declares the reduction of in between time consumption plus just in time JIT feedback. This image can be photocopied in each serial of process in SCADA system. The BPR is applied upon predefined mapping of 6 regulations and rules until realizing success of new system. The following figure shows the principal concept of BPR procedure [2] Figure 2: BPR Successful Procedure The literature researches introduced three approaches of involving IT in BPR implantation which are Modular, Incremental and Combinable [3]. 7 Figure 3: Modular Approach of IT Support Figure 4: increment approach of IT support 8 Figure 5: Combinable approach h for IT support in BPR The figures 3, 4 and 5 declare different approaches of planning, designing and implementing BPR using IT support. In figure 3 the BPR is implemented by process as in figure 1, and designed for next process and so on. Problem Statement The existing business suffers a lot from long queues of managerial blocks. This managerial model belongs to centralized management system. It is supposed that series of blocks increase time consumption, reduce communication effectiveness, and reduce accuracy of transmitted data reception. This assumption is applied to industrial, accountant, service systems. Many general software packages were built to reengineer systems but they could not succeed. The main reason of failure or low effect of 9 reengineering as assumed is the ignorance of current state of organization, or the careless of attempting reengineering before slight improvement. Therefore, this research aims to study the application of SCADA “Supervisory Control And Data Acquisition” on Waste Water Treatment Plant in South-West of Port Said, where Management system exists on 10 km far from lift pump station. The SCADA depends on remote pump monitoring so a decision making is maintained at a time, and so a requirement of workers at shift is eliminated. The following chapters introduce the managerial structure of WWTP and initial sequence diagram of data transmission. This idea is applicable for CRM software where customer satisfaction metrics are remotely collected and monitored, statistically analyzed and appropriate control decision is taken Waste Water Treatment Plant (WWTP) is an integrative system unit. It owns an ideal managerial structure formed by 250 employees within different departments. The organization structure is designed as in the following figure, considering internal communication. 10 figure 6: WWTP Organizational Chart This figure shows the distribution of authorities an responsibilities, so top manager has the final decision of any procedure done within the firm. Managers of departments are authorized and responsible to follow the instructures of the top manager and to perform operational duties. As an ideal structure working orders are documented and formaly transmitted. SCADA system aims to reengineer communications and so it may eliminate intermediate departments as in figure 1 following modular approach in figure 5. This may realize the 11 objective of TQM. SCADA may add value, reduce inventory, and transportations, consequently reduce waste time, which are Lean 5S principles. Planning To correctly plan WWTP system, research begin by operational and maintenance relationship. Traditional process is implemented as in the following continual block diagrams in figures 6, 7 and 8. Considering arrows represent upward reports and downward instructions, also lateral communications can exist between similar managerial levels. This firm is considered ideal, well-structured; it owns complemented and well- defined skills of members. The interaction with customer is indirect. The effect of response rate appears in spent time of water proliferation and stopping duration. Really, the WWTP was considered one of the high-technological units, which applies remote- automation using central control panels and owns restrictive Management Information System. Therefore, communications are transferred in their definitive pathways. 12 Figure 6: Data Transmission From Control Panel To TOP Manager Figure 7: Data Transmission From TOP Manager To Excutive Workers 13 Figure 8: Data Transmission From Excutive Workers To Maintenance Manager and Material Supply S ta u s lis t S ta u s lis t W o rk e r C o n tro l Observation 01 p a n e l F o rm a n T ra in in g Documentation 02 S ta u s lis t O p e ra tio n Sta u s lis t Q u a lity M a n a g e r Financial funds M a n u a l Evalation 03 Top Manager M a c h in e Decision 04 M a n u a l perform operation monitoring and information transaction v e n d o r's a 0 m a n a g e