Jenny’s Compostwiz Pty. Ltd. Business Process Management

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DEAKIN UNIVERSITY

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TABLE OF CONTENTS

EXECUTIVE SUMMARY        2

BPM & STRATEGY        3

PROBLEM ANALYSIS        4

PROPOSED SOLUTION        9

SOLUTION CONSIDERATIONS        12

RECOMMENDATIONS        13

REFERENCE LIST        14

EXECUTIVE SUMMARY

This report provides a brief knowledge about Business Process Management (BPM) and the enhancements it will give to Jenny’s Compostwiz pty. Ltd. when it is related with business strategy, organization structure and value chains of the company.

Although Jenny’s business strategy has always centered on innovation, while examining the business process of the company, limited execution of technology has been seen found. Delay in order fulfilment process is considered the major cause for the problems like lack of communication and disputes amongst the managers of the different departments. The second main problem is the use of paper based and manual work which has caused delays in processing the orders. The problems has been analyzed in this report with the current running of Jenny’s business with the support of simple As Is Process diagram with the perspective of The To-Be diagram. Simultaneously, the management problems are explained in the Project Scoping Diagram. Business Process Architecture (BPA) has been explained in the proposal solution, to provide the outline of the company’s problems and the business processes. Therefore, it is profitable for the company to adopt an ERP (Enterprise Resource Planning) system which will benefit the firm to get rid of the management problems. Finally recommendations are provided to help Jenny’s Compostwiz pty. Ltd. to gain competitive advantage and earn profits through enterprise database system, automation of prices and process management.

1. BPM AND STRATEGY

The objective of a business process is to achieve an organizational goal, which is geared to the needs of a customer. The business process perspective designs organizations, making sure that interaction and coordination are present so that information is readily accessible. The reduced hierarchy in the process organization, with flows across the organization at lower levels, allows the process to be completed quickly and efficiently.

Compostwiz pty. Ltd.  Is experiencing decrease in the revenue and lack of coordination among the departments which has given rise to the downfall of the business. Therefore, adopting a BPM approach will help the organization to be competitive and cost-efficient. Accordingly, BPM approach would be helpful to Compostwiz Pty Ltd in the following ways:

• Relief from the paper- based system which helps in saving the cost and time.
• Increased staffs efficiency due to reduced manual effort.
• Controlled and monitored divisions by performing the task online.

The primary intention of executing BPM for the company is that it helps in the enrichment of the processes that supports value chains and positioning of the business encircling the internal and external perspectives. Processes that do not add value along the value chain need to be eradicated. This gets accomplished through the internal procedures that relate sub-processes to the external measures and value chains which postulate the overall consequences for functioning of the value chain. For example, Toyota was able to realize significant benefits of BPM by introducing a process focus into its vehicle manufacturing operations (Consdine, Parkers, Olesen, Yvette, Blount, Speer Pg.: 52)

Successively, if Jenny’s company adopts a BPM, it will help it to connect with organization’s internal and external environment, balancing and matching the resources such as processes, systems and people throughout the organization.

2) Problem Analysis

Major issue being inventory procurement and delivery due to manual set up of the organisation is done on emailing basis. Computerisation of work is very much necessary for the organisation. Another major issue is paper work needs to be minimized, low cost database management can be done through online forms usage and integrating in to the system and a few having control of it. Whereas at a higher level there can be two steps for Jenny, one is implementation of ERP systems and two implement a higher speed internet network to disseminate information. 

The input costs will be high for the implementation of intranet, SAP and network in the organisation. The training costs will also increase as only 22 employees have a basic or intermediate knowledge of computers. However, the training process can be implemented on a gradual scale, the directors and top level managers if any should be provided training initially and it can be slowly implemented on others as well as hands on experience and supervision under the manager and director of respective departments.

Another challenge for Compostwiz is the availability of stainless steel probe which could operate effectively in all soils and all temperatures. Again, this probe is supplied only by the supplier in Istanbul.  The supplier is considered to be a monopolist and hence it takes decision of price fixation. 

Another important factor of under management is the accounts receivables section, most of the files are kept in physical format and it is not stacked up serially in case of any miss happening, the total stacking also gets disarrayed and it is trashed. So, there is no tracing of an order from client and as a result the firm is losing its customers base. So, again things should go from manual format to computerized form to keep a proper track of debtors. It can be efficiently managed through ERP system. It will reduce the total operating cycle of the firm. 

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              Fig. 2.1  PROJECT SCOPING DIAGRAM FOR COMPOSTWIZ PTY. LTD.

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                 Fig. 2.2 As- is Process diagram of Compostwiz Pty. Ltd.

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                              Fig. 2.3 Causes, Problems and Consequences Model

Hence the firm should take care of the above problems and re-engineering the process would result into profit increasing. However, it is very much necessary at this level as the operating costs needs to be curbed if the firm wants to survive the market conditions. Steps should also be taken to improve the marketing aspect of the product and research and development because in the meeting this department was totally silent about what latest developments are being taking place in similar product segment and what can be the future scope of the product in the market which in turn will decide the life cycle of the product.