Chapter 4

Detailed Process DesignReference:

Tan, A. (2007). Business Process Reengineering in Asia: A Practical Approach, Pearson Education, Singapore.

Objectives

To understand the phases involved in Detailed Process Design

To understand the process, technology and organization structure

Introduction

Purpose: To establish a new organization structure and

infrastructure for supporting the redesigned process.

The stage consists of three key components: Process structure (what, when and how) Technology structure (which) Organization structure (who)

Introduction

In developing a detailed process design: A simultaneously redesign of the process and

technology structures are needed. An analysis to determine new resources and

developmental needs for existing employees (part of implementation planning)

Job positions should also meet the baseline requirements, ie: job responsibilities, outcomes, performance etc.

Process Structure

The new process must be verified. This is to ensure it meets the performance goals under different setting / operating scenario.

For simple processes, a modeling using a spreadsheet could be used.

For complex processes, computer modeling and simulation would be preferable.

Process Structure- simulation

Process simulation- experimenting with a model of a real system to determine how the system respond to changes.

Simulation provides: Experiment with the system Understand system responses to changes in the

environment Being process oriented

The simulation tool helps managers to study processes from a systems perspective.

This include a better understanding of cause and effect Allowing better prediction of outcomes

Process Structure - simulation

In a reengineering effort, simulation assist managers to: Validate the vision Analyze the critical path Prototype the process Understand performance characteristics Communicate the new process Develop system thinking

Process Structure - simulation

Business Process Simulation(BPS) tool: Flow diagramming based BPS tools, example,

visio and ProcessModel System Dynamics based BPS tools, example,

Vensim and Powersim Discrete-event Based BPS tools, example Arena

and ProModel Using the tools, it helps to analyze and

simulate the complex and dynamic business processes.

Technology Structure

It is a support structure. It allows companies to automate business

information processes. IT has contributed to intuitive GUI that enable

inexperienced staff to apply technology in their work.

IT allows users to manipulate data, images, charts, etc as well as quick access through multitasking and windows.

Technology Structure

Examples: Internet/Intranet technologies Wireless computing Real-time applications Object-oriented technology Etc.

During this stage, we need to determine the types of technologies that are required to support the new business processes.

Technology Structure

Example - Staff Apply for claim

HODEvaluate application Approve/Reject

DeanEvaluate application Approve/Reject

ClerkKeep the record Inform staff

Collect form

Finance

submit form to finance

Check form Approve/ Reject

Collect payment

Figure 4.1: Process Chart for applying claims of research fund

Technology Structure

The key activities involved:1. Apply for claims

2. Evaluate the application

3. Approve or reject by HOD

4. Evaluate the application

5. Approve or reject by Dean

6. Keep the record by clerk

7. Inform the staff by clerk

8. Collect the form by staff

9. Submit to finance by staff

10. Check the form by finance

11. Make payment by finance

Technology Structure

The activities listed can be classified as value-added or non-value added and potential IT can be identified for each activity.

Class activity: Based on the scenario given and the listed key

activities, identified the potential IT application to be used.

Key activities Type of activity (VA/ non VA) Potential IT application (if any)

Apply for claims

Evaluate the application by HOD

Approve or reject by HOD

Evaluate the application by Dean

Approve or reject by Dean

Keep the record by clerk

Inform the staff by clerk

Collect the form by staff

Submit to finance by staff

Check the form by finance

Make payment by finance

Technology Structure

Table 4.2: Identification of potential IT for new process

Technology Structure

The identification of IT for the new processes must be based on the benefits or values that the technology brings.

Not just the benefits to customers but how large its contribution will be on process improvement.

Refer to the example given in page 51.

Organization Structure

The detailed process design should include: necessary job positions, required skills and knowledge, number of people, teams and the supporting management structure.

Organization Structure

The organization should have the following characteristics: Minimize number of interfaces Maximize proximity of internal customers and

suppliers Optimize span of control number of direct reports

per manager Minimize number of layer Clarify of role and responsibilities Avoid overlapping or fuzzy responsibilities

Organization Structure

According to the advocate of BPR, the modern organization should abandon the old control mechanism.

3 reasons to support the claim By having modern IS , ex. Decision support

system, expert system etc. By having a well educated workforce The business environment has changed

Organization Structure

BPR emphasizes the value of reducing management levels and the number of managers within organizations.

The role could have changed to maximize the skills and knowledge.

Refer to table 4.3, 4.4 and Fig. 4.2 The BPR team will need to verify assumptions

regarding expected operating condition for the new process and staff/task performance metric.

Summary

The phases in detailed process design involved: Process structure

Develop the detailed process and use the simulation tool for validating process

Technology structure Scan the emerging technologies to support the new

process. Require justification such as what, why and how?

Organization structure Structure a new organization to support the new processes

and assign a performance target for each.