ArticlePDF Available

Abstract

Order management process is one of supply chain management process, which has an important role related to the customer satisfaction and profit of the company. The company should reengineering their business process to compete with other company and responsive to customer needs. IDEF0 and Business Process Reengineering (BPR) method is used tomap, review, and analyze existing business process. In this research, the existing and new business process design is simulated using Igrafx and the result shows process time reduced by 16, 66%.
VOL. 11, NO. 7, APRIL 2016 ISSN 1819-6608
ARPN Journal of Engineering and Applied Sciences
©2006-2016 Asian Research Publishing Network (ARPN). All rights reserved.
www.arpnjournals.com
4917
IMPROVING ORDER MANAGEMENT SYSTEM IN PUMP INDUSTRY
M. Dachyar and Listya Zufri
Department of Industrial Engineering, Faculty of Engineering, University of Indonesia, Indonesia
E-Mail: mdachyar@yahoo.com
ABSTRACT
Order management process is one of supply chain management process, which has an important role related to the
customer satisfaction and profit of the company. The company should reengineering their business process to compete with
other company and responsive to customer needs. IDEF0 and Business Process Reengineering (BPR) method is used
tomap, review, and analyze existing business process. In this research, the existing and new business process design is
simulated using Igrafx and the result shows process time reduced by 16, 66%.
Keywords: management information system, order management, business process reengineering, enterprise resource planning.
1. INTRODUCTION
Today, the growth of manufacturing industries in
Indonesia are likely to decline, it makes a lot of companies
started looking for ways to be able to continuously exist
and survive. Indonesia declining industrial growth can be
seen on a Nikkei Markit 2015 report which showed that
the growth of manufacturing industry from September
2014 until May 2015 tended to decrease (Nikkei Markit,
2015). To deal with decreased growth in manufacturing
industry, companies had began competing for efficiency in
their business processes in order to reduce costs and
compete with competitors in similar fields. The company
began compiling various strategies, one of strategy that
can be done to improve their business process are applying
information technology.
One of the companies that want to implementing
information technology as their strategy is Pump
Company. Pump Company sells productsusing assembly
production assembly-to-order production pattern, where it
provides various types of pumps in accordance with the
specifications ordered by the customer. Pump Company
produces three different kinds of pumps, such as: end
suction, multi state, and high technology pump, each
pumps has a wide variety of diameter sizes. The pump
company has faced several problems, which are : data
input process is still manual, difficult to know the stock of
goods, miss communication between divisions because of
information can’t be seen by entire division, and the
customer received the product over customer request
delivery. The company should consider to applied
information technology to provide ease of access to
information in all the divisions.
An applied information technology that can be
used to allow actual data to be visible to and integrate
processes between all divisions is the Enterprise Resource
Planning (ERP) System. This system can help
organizations to integrate the supply chain process,
receiving, inventory management, customer order
management and other business functions (Sumner, 2014).
Beside of having some advantages in providing all
division to be easy to access all data, the ability to
integrate information across divisions, increases business
process performance, etc. There are some obstacles in the
implementation of ERP systems, such as the expensive
cost, takes a long time to implement ERP System, require
the full commitment of top- management, and requires
training of employees.
Therefore, in order to successfully implement the
ERP system we needed to Design business process at
Pump Company to. Designing ERP is needed to make
standard process. This research was conducted in order
management process. Order management was chosen
because the process is directly related to customer
satisfaction that will be affected to the company’s profit.
2. LITERATURE REVIEW
2.1 Order fulfilment
In order fulfilment or order management we can
found all activities that related to defining customer
requirements, designing the logistics network and fulfil
customer orders (Croxton, 2006). Order fulfilment process
are including all process like, procurement, fulfilment,
delivery, service to customer demand. The activity
undertaken in order fulfilment business process is divided
into 5 sub- process, such as: (1) Enter Order, (2) Process
Order, (3) Handle Documentation, (4) Fill Order, (5)
Delivery Order. (Waller, Woolsey, & Seaker, 2006).
2.2 Enterprise resource planning
ERP system is a software package that is
integrated with a number of business processes, such as
manufacturing, supply chain, sales, finance, human
resources, and budgeting (Schniederjans & Yadav, 2011).
On the other hand, the ERP system is also a
comprehensive software package that seeks to integrate a
series of processes and business functions to present a
comprehensive holistic view of the business from a single
information and information technology architecture
(Kamhawi, 2007).
Benefit of ERP are reduced cycle time, reduced
cost operations, make transaction process faster, increased
customer serviceness, enable access data through entire
company, and Provide communication between
organization, customer, and supplier. (Sumner, 2014).
Besides many benefits gained by ERP system, there are
also disadvantages of this system if we are not pay
attention in planning and implementing this system. The
VOL. 11, NO. 7, APRIL 2016 ISSN 1819-6608
ARPN Journal of Engineering and Applied Sciences
©2006-2016 Asian Research Publishing Network (ARPN). All rights reserved.
www.arpnjournals.com
4918
disadvantages of ERP system are : adequacy of new
business process design., centralized structure, difficulty in
customizing., high implementation costs, matching ERP
with business needs, technology readiness of organization,
time consuming, employee resistance to change, does not
allow for non-standard processng, inadequate training.
(Özkarabacak, Çevik, & Gökşen, 2014).
2.3 Business process reengineering
Reengineering is the fundamental rethinking and
radical redesign of business processes to achieve dramatic
improvements in critical contemporary measures of
performance such as cost, quality, service and speed
(Hammer & Champy, 1993). BPR has several
characteristics, such as: (1) Fundamental, which focuses
on the process of what the company to achieve its
objectives and how the process is carried out, (2) Radical ,
resolve the root causes and designing new solutions , (3)
Dramatic, the impact of the changes made through the
BPR is very large and significant, (4) process , BPR -
oriented investigation process. (Hammer & Champy,
1993).
There were severals company that have
implemented BPR, such as Milk Company (Dachyar &
Christy, 2014), International Business Machines
Corporation (IBM) (Hammer & Champy, 1993), and Ford
Motor Company (Harvard Business Review, 1990)
2.4 Integrated definition for function modelling
(IDEF0)
Integrated Definition for Function Modeling
(IDEF) is a method that useful to modelling information in
Software Engineering (SE), business process, and process
business improvement (Aguilar-Saven, 2004). Depiction
of a multilevel (hierarhical) conducted with IDEF0 model.
At the highest level is called context diagram that contains
one activity that shows the entire system as a single
activity and also Context Diagram also commonly called
Diagram A0 or Parent Diagram. For more detailed activity
called as child diagram or Diagram A1, A2, dsb. (JOVAN,
REDRAG, & VEIS, 2008). In IDEF0, we used flow chart
to explained sequence of each activity. Flow Chart is a
graph that have symbol to show the operations, data, flow
direction, and the equipment that used to identify, analyze
and solve problems (Aguilar-Saven, 2004).
3. RESEARCH METHODOLOGY
This research is uses Consolidated Methodology
approach that consist of (Muthu, Whitman, & Cheraghi,
Business Process Reengineering: a Consolidated
Methodology, 2006):
a) Prepare for Reengineering
b) Map and Analyze As-Is Process
c) Design To-Be Process
d) Implement Reengineering Process
e) Improve Process Continuously
Detail description about consolidated
methodology will be explained in Figure-1. Below.
Figure-1. Flow chart consolidated methodology.
3.1 Prepare for engineering
First stage begins with Prepare for Engineering.
In this phase we need to understand Order Management
System in Pump Company. In order to understand order
management system in Pump Company we need to know
about background of this company, order management
system in Pump Company, and division that related to
order management system. This company is a joint venture
company between Indonesia and Japan. In Indonesia, the
company was incorporated in the gorup companies that
consist of pump manufacturing company, Casting Iron and
Non-Ferrous Metals Company, and Engineering Service
Company. After that, we conducted an interview with
some managers about process flow in order management
system and problem that could appeared during order
management process. Then performed a preliminary
analysis of the problems that occur from interviews,
procedure process, and company’s documents (flow chart,
customer order, and customer’s delivery time). Then, the
objective of this study was designed to reduced delivery
time (shipping).
3.2Map and analyze as-is process
In this step we need to identify existing process
and perform simulations to see a process that does not
produce appropriate output and non added value activity.
Order management system in Pump Company consist of
five mains process, namely prepare for receive request,
request process, processing goods, shipping process, and
payment process.
3.2.1 Map as-is process with IDEF0 technique
To understand about the depiction of the
beginning process, IDEF0 model can be written in two
from, such as, Node Trees and node Index. In this picture
below we can see Node Index in Level 0 (Order
Management System).
VOL. 11, NO. 7, APRIL 2016 ISSN 1819-6608
ARPN Journal of Engineering and Applied Sciences
©2006-2016 Asian Research Publishing Network (ARPN). All rights reserved.
www.arpnjournals.com
4919
Node Index pada Level 0 (Sistem Order
Management)
A1 ReceiveRequest
A2 Request Process
A3 Processing Goods
A4 ShippingProcess
A5 Payment Process
Figure-2. Node Index in Level 0 (Order
Management System).
Figure-3. Map existing order management system
using IDEF0 technique.
In IDEF0 Technique, There are fours components
that used to describe an activity or process, namely ICOM
components (Input, Control, Output, and Mechanism).
ICOM components in Order management System are:
a. Input. Form Purchase Order
b. Control. Term payment, term delivery, pump kanban,
approval document, inventory in warehouse, shipping
schedule, purchase order, Material Requirement
Planning (MRP), dan term price.
c. Output. Payment.
d. Mechanism. PPIC, Engineering, Accounting
Production, Warehouse, dan Customer.
Node index in level A1 (Receive request)
a) Customer Propose Purchase Order
b) Sales Receive Purchase Order
c) Sales Make Sales Order
Node index in level A1 (Receive request)
1 Customer Propose Purchase Order
2 Sales Receive Purchase Order
3 Sales Make Sales Order
Node index in level A2 (Request process)
A21 Making Approval Document
2 Giving Approval Document to Sales
3 Giving Approval Document to Customer
4 Customer Contact Sales
5 Purchase Order Confirmations
6 Giving Sales Order to PPIC
Node index in level A21 (Make approval document)
1 Making Part List
2 Making Form Approval
3 Making Pump Documentation
Node index in level A3 (Processing goods)
1 Receiving Sales Order
2 Production Planning
3 Production Process
4 Storing Goods in Warehouse
5 Planning for Shipping
Node index in level A4 (Shipping process)
1 Making Delivery Order
2 Delivery Order Signatures
3 Making Invoice
4 Making Tax Invoice
5 Delivery Goods
Node index in level A5 (Payment process)
1 Customer Receiving Goods
2 Customer Pay the Bill
3 Customer Giving Payment Receipt
4 Receiving Payment
3.2.2 Result as-is process
To make an analysis of the existing order
management system (As-Is), we performed simulation of
exisiting business process using Igrafx software. This
software is designed capture and simulates business
process.
Table-1. Result as-is process simulation using Igrafx Software.
Transaction statistic (Days)
Count Avg cycle Avg work Avg wait Avg block
As-Is Order
Management
Process
52 128,72 6,34 122,39 0,03
After doing some interviews and maping as-is
process, we found out that are several problems that
happened in this company.
a. Internal factors:
There are some redundant processes
The document that deliver to a division is not fastly
process.
VOL. 11, NO. 7, APRIL 2016 ISSN 1819-6608
ARPN Journal of Engineering and Applied Sciences
©2006-2016 Asian Research Publishing Network (ARPN). All rights reserved.
www.arpnjournals.com
4920
The company did not have a system to integrate
information from one division to another.
Input Process conducted manually.
Regulation process that takes a long time.
b. External factors:
Estimated process time usually did not match with
actual time.
The production capacity in Pump Company is not
meet the customer request.
3.3 Map and analyze to-be process
In this stage, we are searching for any
possibilities to improve order management system in
Pump Company. After that, we map process improvement
(To-Be- Process) using IDEF0 model.
3.3.1 Determinate improvement strategy
To make business process improvement strategy,
we used various ways, such as:
a. Practice to Design New Process. (Mansar, 2007).
b. ESIA Method (Eliminate, Simplify, Integrate,
Automate).
c. Benchmarking generic (best practice) (Mahtani, 2006)
Best Practice to design process improvement
consist of ten best practices, such as:
Task elimination
Eliminate unnecessary tast from a business
process.
Task composition
Combine small task into composite tasks and
divided large tasks into workable smaller tasks.
Integral technology
Try to elevate physical constraints ina business
process by applying new technology.
Enpower
Give workers most of the decision making
authority and reduced middle management.
Order assignment
Let workers perform as many steps as possible
for single order.
Resequencing
Move tasks to more appropriate places.
Specialist-generalist
Consider to makeresourcesmore specialize or
more generalist.
Integration
Consider the integration with a business process
of the customer or a supplier.
Parllelism
Consider wether tasks may be executed in
parallel.
Numerical involvement
Minimize the numberof departements, groups,
and persons involved in a business process.
From Benchmarking best practice, ESIA Model,
and Best practice to design new proces we get several
strategies that will be used to conducted new process.
Those strategies to improve order management system can
be seen in Table-2.
Table-2. Result of new process improvement simulation.
Strategy Best practices
Accounting is making delivery order and invoice Numerical Involvement Resequencing
Eleminate Purchase Order Confirmation Eleminate
Resequencing storage process Resequencing
Resequencing Request Process Benchmarking, Resequencing, Automate
Eliminate making part list process and combine
making approval documents process and making
documentation process
Eleminate, Task Composition
The responsibility of signature process is moved to
Accounting Division Numerical Involvement
Resequencing payment process Benchmarking, Automate
After making several startegies, we designed a
scenario that contains of some combinations of these
strategies. There are four scenarios that can be
implemented in this company. These scenarios are based
on the analysis of the level of importance of each strategy
derived from brainstorming with three company’s
manager.
3.3.2 To-be process simulation result
Results of all scenarios of new order management
process design that simulated using Igrafx Software
contained in Table-3.
VOL. 11, NO. 7, APRIL 2016 ISSN 1819-6608
ARPN Journal of Engineering and Applied Sciences
©2006-2016 Asian Research Publishing Network (ARPN). All rights reserved.
www.arpnjournals.com
4921
Table-3. Result of new process improvement simulation.
Skenario Count Avg cycle Avg work Avg wait Avg block
1 52 110 4,64 105,36 0,14
2 52 107,27 4,65 102,61 0,03
3 52 119,04 4,67 114,37 0,05
4 52 122,95 4,75 118,2 0,05
After perform the simulation, the result of
average cycle will appear in the Igrafx Software. Next, we
calculated the efficiency of the process by compared
average cycle of each scenario (To-Be Process) to the
existing process (As-Is Process).
Analyses of these strategies based on Business
Redesign Best Practice are:
a. Accounting is making delivery order and invoice
(Numerical Involvement Resequencing)
Previously, making delivery order was sales
division’s job, but to accelerate the process further,
we decided to move the process into accounting
division’s job. After that, making invoice will be
faster than before, because the number of division that
involved in this process is reduced.
b. Eleminate Purchase Order Confirmation (Eleminate)
Purchase order confirmation was eliminated because
PO confirmation have the same process (inspection)
as making approval documents process.
c. The responsibility of signature process is moved to
Accounting Division
Making part list can be eliminated because this
process is also performed in the production planning
process. after that, because making pump
documentation is only a pump inspection we can
combine this tasl with making approval documents.
d. Resequencing Request Process (Benchmarking,
Resequencing, Automate)
In this process we added the booked sales orders and
releases for picking process to facilitate the
subsequent process so the process becomes more
efficient.
e. Resequencing Payment Process (Benchmarking,
Automate)
Table-4. Scenario of strategies that used in designing the to-be process order management
Scenario
Strategy1 Strategy 2 Strategy 3 Strategy 4 Strategy 5 Strategy 6 Strategy 7
Accounting
is making
delivery
order and
invoice
Eleminate
Purchase Order
Confirmation
Resequencing
storage
process
Resequencing
Request
Process
Eliminate making
part list process and
combine making
approval documents
process and making
documentation
process
The responsibility
of signature
process is moved
to Accounting
Division
Resequencing
payment
process
1       
2    
3
    
4
   
Added two processes, which are accounting give
payment receipt to sales and sales make payment
confirmation to customer.
From five strategies that have been proposed,
there are some proposals to support this company to
implemented these strategies, such as:
a. Implementing Information System like Enterprise
Resource Planning (ERP) to manage data storage,
facilitated sharing data for entire company, and allows
company to tracked data history.
Challenges: There are still several processes that have
not been standardized, its implementation requires a
lot of money, and a necessary training required for the
employees to use this software.
b. Implementing Information System like Enterprise
Resource Planning (ERP) to manage data storage,
facilitated sharing data for entire company, and allows
company to tracked data history.
Challenges: There are still several processes that have
not been standardized, its implementation requires a
lot of money, and a necessary training required for the
employees to use this software.
VOL. 11, NO. 7, APRIL 2016 ISSN 1819-6608
ARPN Journal of Engineering and Applied Sciences
©2006-2016 Asian Research Publishing Network (ARPN). All rights reserved.
www.arpnjournals.com
4922
c. Implementing Information System like Enterprise
Resource Planning (ERP) to manage data storage,
facilitated sharing data for entire company, and allows
company to tracked data history.
Challenges: There are still several processes that have
not been standardized, its implementation requires a
lot of money, and a necessary training required for the
employees to use this software.
d. Reviewing Kanban Pumps that used as safety stock
and making forecast demand
Challenges: There are various types of pumps that
company’s offered and customer demand is
fluctuating so it’s hard to predict or forecast customer
demand.
3.3.3 Map the new order management system using
IDEF0 model
We perform mapping for the new order
management system to show the flow of information in to-
be process new process). ICOM components of Parent A0
diagram of the design of the new order management
system are:
a. Input: Form Purchase Order
b. Control: (1) Term payment, (2) Term delivery, (3)
Kanban Pump, (4) Approval Document, (5) Inventory
in warehouse, (6) Shipping schedule, (7) Purchase
order, (8) MRP, (9)Term price
c. Output: Payment Receipt
d. Mechanism: (1) Engineering, (2) PPIC (3) Sales, (4)
Customer (5) Warehouse (6) Produksi, (7)
Accounting, (8) Shipping Agent, (9) ERP System.
In Figure-4, we can see component-component
that constructed in To-Be process and activities that
conducted in order management system.
Figure-4. Map to-be processusing IDEF0 model.
Table-5. Comparison between as-is and to-be process.
Subsproses Comparison between as-is and to-be process
As-Is To-Be
Request Process
A serial process thet conducted by Engineering
division are make parts lists, create document
approval, and make documentation
Eliminate making part process. Then, combine
make approval documents and make pump
documentation into review engineering process
Engineering division give sales order to PPIC
Flow of information is changed, so the Sales have
the responsibility to give sales order to PPIC
Terjadi perubahan alur, sehingga sales yang
memberikan sales order ke PPIC
There are purchase order confirmation process Eliminate Purchase Order Confirmation
Processing Goods PPIC received a sales order, checks the stock
and then proceed with the raw material
When PPIC receive sales order the processwill
continue to examine the state of the pump, booked
orders and release orders for the pick.
VOL. 11, NO. 7, APRIL 2016 ISSN 1819-6608
ARPN Journal of Engineering and Applied Sciences
©2006-2016 Asian Research Publishing Network (ARPN). All rights reserved.
www.arpnjournals.com
4923
Shipping Process
Sales division is responsible to Make delivery
order
Accounting division is responsible to Make
delivery order
Signature of delivery order will performed by
sales, PPIC, engineering, accounting, security
guard, warehouse, CEO of the company
Signature of delivery order will performed by
Sales, Accounting, PPIC, Warehouse, dan
Engineering
4. DISCUSSIONS
This research resulted scenario two as design
process improvement for order management system in
Pump Company. Compared to another scenario, these
scenarios have the shortest cycle time. The combination of
strategies in these scenario were accounting is make
delivery order and invoice, eliminate purchase order
confirmation, resequencing storage process, resequencing
request process, eliminate making part list process and
combine making approval documents process and making
documentation process, the responsibility of signature
process is moved to Accounting Division, resequencing
payment process. If we want to be succeeded to
implemented this scenario into the company we have to
review standard time to perform each process, be careful
in selecting ERP vendor, learn about another ERP
packaged that related to order management system, such
as Inventory management, Account Receivable, etc, and
give employee’s training to operate this system and review
technology and organization readiness to this system.
5. CONCLUSIONS
This research resulted four scenarios to design new
process improvement in pump company.The best
scenario is scenario number two with the combination
of the process of removing the division that made the
permission, reduce the number of divisions that
signed a permit, abolish the activity of a confirmation
of purchase order, and make parts list.
Efficiency percentage of the second scenario
simulation is 16.66% when compared with today's
order management process.
REFERENCES
Aguilar-Saven R. S. 2004. Business process modelling:
Review and framework. Int. J. Production Economics. pp.
129-149.
Chuang P. 2010. Incorporating disservice analysis to
enhance perceived service quality. Industrial Management
and Data Systems. 110(3): 368-391.
Croxton K. L. 2006. The Order Fulfillment Process. The
International Journal of Logistics Management .
Dachyar M. and Christy E. 2014. Designing Process
Improvement of Finished Good on Time Release and
Performance Indicator Tool in Milk Industry Using
Business Process Reengineering Method. Journal of
Physics: Conference Series. 495(1): 1-10.
Hambleton L. 2008. Treasure chest of six sigma growth
methods, tools and best practices: a desk reference book
for innovation and growth. United States: John Wait.
Hammer M. and Champy J. 1993. Reengineering the
Corporation: Manifesto for Business Revolution.
HarperCollins Publishers, Inc.: New York.
Jovan D., Redrag D. and Veis Š. 2008. Functional and
Informational Model of Expert Specialization Using Idef
Standard. Romanian Technical Sciences Academy.
Kamhawi E. M. 2007. Critical Factors for Implementation
Success of ERP Systems: An Empirical Investigation from
bahrain. International Journal of Enterprise Information
Systems.
Muthu S., Whitman L. and Cheraghi S. H. 2006. Business
Process Reengineering: a Consolidated Methodology.
Proceedings of the 4th Annual International Conference on
Industrial Engineering Theory, Applications, and Practice,
1999 US Department of the Interior-Enterprise
Architecture.
Nikkei Markit. 2015. Nikkei Indonesia Manufacturing
PMI™. Jakarta: Nikkei Markit.
Özkarabacak B., Çevik E. and Gökşen Y. 2014. A
comparison analysis between ERP and EAI. Procedia
Economics and Finance 9.
Schniederjans D. and Yadav S. 2011. Successful ERP
implementation: an integrative model. Business Process
Management Journal.
Sunmer M. 2014. Pearson New International Edition
Enterprise Resource Planning First Edition. London:
Pearson Education Limited.
Waller M. A., Woolsey D. and Seaker R. 2006.
Reengineering Order Fulfilment. The International Journal
of Logistics Management.
... Cilj ovog rada je da se ukaže na značaj i ulogu upravljanja procesima realizacije porudžbine primenom modela. Na taj način utvrđuju se neusaglašenosti i definišu potencijalna područja poslovanja koje je moguće unaprediti, a koja su od izuzetnog značaja za kompaniju jer direktno utiču na satisfakciju korisnika [1,5]. ...
... Potom, pristupljeno je analizi postojećeg stanja. Identifikovani su procesi koji ne dodaju vrednost ali i procesi koji generišu greške i kašnjenja [1]. Sistem upravljanja porudžbinama kompanije sastoji se od pet glavnih procesa, a to su: prijem porudžbine, obrada porudžbine, priprema porudžbine, proces isporuke i proces plaćanja koji su grafički predstavljeni dijagramom toka na slici 1. Na dijagramu toka, potprocesi označeni narandžastom bojom odnose se na proces prijema porudžbine, potprocesi obeleženi zelenom bojom predstavljaju deo obrade porudžbenice, aktivnosti označene plavom bojom odnose se na samu izradu, odnosno pripremu porudžbine i na kraju, aktivnosti označene crvenom bojom predstavljaju potprocese koji se odnose na proces isporuke i plaćanja. ...
... Sa druge strane stvarno vreme trajanja procesa je značajno duže od očekivanog vremena realizacije procesa. Na osnovu uočenih anomalija funkcionisanja procesa, definisan je dizajn budućeg procesa koji podrazumeva sledeće strategije [1]: ...
Conference Paper
Full-text available
Quality is a key factor for the success that enables companies to prosper in the market for the long run. When ordering, customers expect a complete and quality service. For the realization of said service, it is necessary to continuously monitor, measure and analyze business processes, which is essential for the application of this model. This paper presents the basic methods and principles of business process modeling for order realization with specific examples of application in a company. It is presented here how the possibility for better resource management within the order realization process is applied, more efficient data exchange between different functional units and employees within them, the possibility of monitoring the process and resources.
... Order management involves methods of acquiring, monitoring and processing customer orders. The order management process starts from placing an order and ends when the customer receives the goods (Dachyar & Zufri, 2016). However, organizational order or direction provides guidance to all employees by creating formal reporting relationships that control the workflow of the educational organization. ...
Article
Full-text available
This study investigates the managerial problems faced by the institutional heads in the area of educational management in Bangladesh. The aim of this article is to recognize the key influences, challenges and barriers of the organizational heads in the education management sectors and to pursue the adequate solution of those complications, which are the strong barriers to achieving the organizational objectives in the field of educational management. For this research, qualitative descriptive methodology was employed to collect secondary data from different authentic sources. In Bangladesh, organizational leaders in education sector face numerous challenges and difficulties in carrying out their managerial activities in the field of educational management. In terms of administrative abilities, they have immense gaps and deficiencies in conducting their respective actions and obligations in the educational institution, such as managing the institutes with supervision, control, assessment, motivation and effective utilization of resources. This study is critically reviewing the Henri Fayol's 14 principles for application into educational management. This study also recommends Henri Fayol's principles for developing management skills of academic institutional heads.
... It represents a collection of connected activities that together would create value for customers [9]. Previously, Business Process Reengineering (BPR) method has been used to map, review, and analyse existing business processes from order management processes in the pump industry [10]. In addition, BPR method has also been used to design new processes for the delivery or distribution of finished goods at pharmaceutical companies [11] ERD is a technique used to model the data requirements of organizations using systems analysts as the requirements of the analysis phase of a system development project, while diagram making techniques provide the basis for the design of a relational database that underlies information from the system being developed [12]. ...
Article
Full-text available
Hospitals must ensure that their medical devices are safe, accurate, reliable, and comply with a particular level of performance. Taking one private hospital in Indonesia as a research object, in radiology, the conventional X-ray and Panoramic devices are the highest usage equipment. Proper maintenance should be done to avoid any possible breakdown. The process of maintaining medical equipment adopted by the hospital is currently 37,41% consist of manual administration (paperwork) and only 54,04% of actual inspection and maintenance activities. This research aims to improve the maintenance process of conventional X-rays and panoramic devices, by utilizing the Internet of Things (IoT). Business Process Reengineering (BPR) is used to rectify the health equipment maintenance process. The information system is proposed to the maintenance process using Data Flow Diagram (DFD). This research recommends four maintenance process improvement options, where the highest time efficiency is 56.25%, which is generated by the selection improvement "intervention of Computerized Maintenance Management System (CMMS) software, integrated QR Code and radio-frequency Identification (RFID) tags, and condition-based monitoring technology/sensor".
Chapter
Full-text available
Ülke ekonomilerinde önemli bir yere sahip olan aile işletmelerinin başarısında diğer işletmelerde olduğu gibi lojistik faaliyetlerin önemli bir rolü vardır. Günümüzün son derece rekabetçi küresel pazarlarında, işletmelerin üzerindeki değer oluşturma ve bunu müşterilerine sunmanın yeni yollarını bulma baskısı giderek artmaktadır. Maliyet, kalite ve hizmet boyutlarında küresel pazarlarda rekabet etme ihtiyacının artması, geleneksel sistemlerden daha verimli lojistik sistemlerin geliştirilmesine yönelik ihtiyaçları ortaya çıkarmıştır. Bu nedenle, son yıllarda lojistik, operasyonel bir işlevden kurumsal işlev düzeyine geçmiştir. İşletmeler ve tedarik zincirlerinin genelinde etkin lojistik yönetiminin maliyetlerin düşürülmesi ve hizmetlerin geliştirilmesi hedefine büyük ölçüde yardımcı olabileceğine dair artan bir kabul vardır (Lourenço, 2005:330). Bu bölümde ülke ekonomileri için büyük bir öneme sahip olan aile işletmelerinin uluslararası ticaret süreçleri ve lojistik faaliyetleri ele alınmıştır. Bu kapsamda öncelikle aile işletmesi kavramı ve özellikleri, aile işletmelerinde uluslararası ticaret konu ve uluslararasılaşma modelleri incelenmiş daha sonra ise işletmeler için önemli bir fonksiyon olan lojistik faaliyetler ele alınmıştır.
Article
Full-text available
To maintain position as a major milk producer, the Indonesian milk industry should do some business development with the purpose of increasing customer service level. One strategy is to create on time release conditions for finished goods which will be distributed to customers and distributors. To achieve this condition, management information systems of finished goods on time release needs to be improved. The focus of this research is to conduct business process improvement using Business Process Reengineering (BPR). The deliverable key of this study is a comprehensive business strategy which is the solution of the root problems. To achieve the goal, evaluation, reengineering, and improvement of the ERP system are conducted. To visualize the predicted implementation, a simulation model is built by Oracle BPM. The output of this simulation showed that the proposed solution could effectively reduce the process lead time and increase the number of quality releases.
Article
Full-text available
Nowadays the traditional management approach has given its place to modern mentality. The traditional structured functionality has evolved into system understanding which concerns the whole of enterprise. System approach is used to solve the problems of the organization. The strategic weapons which are necessary to manage the organization as a whole, are “information systems”. The critical points about rational management of organizations and obtainment competitive advantage are information and using of information. An enterprise solution on the basis of the software is needed to ensure the integrity of the organization and the integration between the elements. Enterprise Resource Planning (ERP) whose development is based on 1960s, is a holistic software that is fairly valid in terms of organizations. Disadvantages of ERP has led organizations to search for different software. Enterprise Application Integration (EAI) emerges as solution partner in this sense. In the study, explaining the establishment holism in the organizations and ensuring integration in the focal point, ERP and EAI are analyzed in a comparative manner.
Article
Full-text available
For process of modeling are developed suitable CASE tools. In the course of building this process a standard is used for functional modeling of IDEF0 realized through BPWin tool. Family of integrated IDEF methods presents basic tool of some modern strategies and methodologies of business process improvement, like for example: BPR, CPI, IPD, TQM etc. In paper is given functional and informational model of "Process of expert specialization of employees in education" using graphical language IDEF0 that is, CASE BPWin tool. How to cite this article: Šerifi, V.; Dašić, P. and Dašić, J.: Functional and information model of expert specialization using IDEF standard. Modelling and Optimization in the Machines Building Fields (MOCM), Vol. 14, No. 2 (2008), pp. 268-279. ISSN 1224-7480.
Article
Full-text available
Research on enterprise resource planning (ERP) systems implementation has drawn much attention, in the last decade. Identifying and testing the critical factors that affect implementation success for this type of systems is one of the important streams of research in this field. Based on data gathered from a sample of 70 respondents, actively involved in their companies' ERP implementation process, this study aims to extend this stream of research with another framework of success factors based on a developing country setting, namely Bahrain. The influences of some selected critical factors were examined on two success dimensions: project success and business metrics success. Results support previous research findings in this area concerning the impact of factors such as project planning, organizational resistance, and ease of use on ERP project success metrics. Also, the study results show that project planning, business process reengineering, and organizational fit have significant influence on business success metrics. However, no significant impact was found for some classical success factors such as top-management support, technical fit, training, competitive pressure, and strategic fit on both project and business success. The article ends with implications for these findings and possible extensions for the study.
Article
Purpose – The paper aims to present a conceptual model that better defines critical success factors to ERP implementation organized with the technology, organization and environment (TOE) framework. The paper also adds to current literature the critical success factor of trust with the vendor, system and consultant which has largely been ignored in the past. Design/methodology/approach – The paper uses past literature and theoretical and conceptual framework development to illustrate a new conceptual model that incorporates critical success factors that have both been empirically tied to ERP implementation success in the past and new insights into how trust impacts ERP implementation success. Findings – The paper finds a lack of research depicted in how trust impacts ERP implementation success and likewise a lack of a greater conceptual model organized to provide insight into ERP implementation success. Originality/value – The paper proposes a holistic conceptual framework for ERP implementation success and discusses the impact that trust with the vendor, system and consultant has on ERP implementation success.
Article
Business process reengineering applied to the order fulfillment process is becoming very popular. This research provides an overview of reengineering order fulfillment and presents some methodologies which may be helpful to managers. Several examples from the literature are provided as illustrations of issues involved in reengineering order fulfillment. Critical success factors are described including organizational structure, information technology architecture, and performance measurement. Three computer manufacturers are studied to identify the impetus for reengineering order fulfillment, opportunities and problems. Issues associated with benchmarking order fulfillment as an input to reengineering are also presented.
Article
Order fulfillment is a key process in managing the supply chain. It is the customers' orders that put the supply chain in motion, and filling them efficiently and effectively is the first step in providing customer service. However, the order fulfillment process involves more than just filling orders. It is about designing a network and a process that permits a firm to meet customer requests while minimizing the total delivered cost. This involves more than logistics, and it needs to be implemented cross-functionally and with the coordination of key suppliers and customers. In this paper the order fulfillment process is described in detail to show how it can be implemented within a company, and managed across firms in the supply chain. The, activities of each sub-process are examined; the interfaces with functional silos, processes and firms are evaluated; and, examples of successful implementations are provided.
Article
A business process is the combination of a set of activities within an enterprise with a structure describing their logical order and dependence whose objective is to produce a desired result. Business process modelling enables a common understanding and analysis of a business process. A process model can provide a comprehensive understanding of a process. An enterprise can be analysed and integrated through its business processes. Hence the importance of correctly modelling its business processes.Using the right model involves taking into account the purpose of the analysis and, knowledge of the available process modelling techniques and tools. The number of references on business modelling is huge, thus making it very time consuming to get an overview and understand many of the concepts and vocabulary involved. The primary concern of this paper is to make that job easier, i.e. review business process modelling literature and describe the main process modelling techniques. Also a framework for classifying business process-modelling techniques according to their purpose is proposed and discussed.
Article
Purpose – To ensure the service quality, it is very important and necessary for a company to systematically identify and prioritize the critical failure modes that result in disservice of quality, and take the required remedial actions before the service is delivered to customers. The purpose of this paper is to propose an approach to enhance perceived service quality by incorporating disservice analysis with failure modes and effects analysis (FMEA). Design/methodology/approach – The approach, first, identifies the potential failure modes that might have explicit effects on the service quality. Subsequently, the risk priority number (RPN) is computed to identify the risk priority for each potential failure mode. Furthermore, a disservice index that represents the extent of composite adverse effect of service failures on quality perceptions is computed to recognize the disservice priority for each quality dimension. Based on which, vital quality dimensions are determined as those quality dimensions that have higher disservice indices. The critical failure modes are, then, confirmed as those failure modes that have higher RPNs in the vital quality dimensions. Finally, the effects and root‐causes of the critical failure modes are determined by thoroughly exploiting the service infrastructure, service design, and service encounter for the company to take effective remedial actions to enhance perceived service quality. A practical case regarding a hypermarket service was used to demonstrate the proposed approach. Managerial implications and suggestions are provided to the case company, the hypermarket industry, and other service industries. Possibilities for future research are also addressed. Findings – The vital quality dimensions are determined as responsiveness and reliability for the hypermarket case. Six critical failure modes are confirmed, by the order of criticality, as “unstable supply of goods/merchandise,” “no goods/merchandise on designated shelf of the sales floor,” “slowness of cashier speed,” “tardiness of warranty/repair goods/merchandise,” “nonconforming quality of goods/merchandise,” and “unable to find first‐line server in the sales floor.” These critical failure modes should be eliminated or reduced in top priority to enhance perceived service quality. Note that the determination of vital quality dimensions and the confirmation of critical failure modes depend on the applicable company resources. Originality/value – The proposed approach improves both the academic and the practical developments of service quality in five aspects: explicitly identifying potential mistakes or failures of the service system that might result in disservice of quality. Arousing notices and focuses on those failure modes that have higher risk priorities by performing FMEA. Identifying how seriously the service failures adversely affect each of the quality dimensions and determining what the vital quality dimensions are by carrying out disservice analysis. Confirming the critical failure modes as those failure modes that have higher risk priorities in the vital quality dimensions with higher disservice indices. Knowing what actions need to be taken in advance to enhance perceived service quality by identifying the root‐causes that result in those critical failure modes.
Article
Introduction1. The Crisis That Will Not Go Away2. Reengineering-The Path to Change3. Rethinking Business Processes4. The New World of Work5. The Enabling Role of Information Technology6. Who Will Reengineer?7. The Hunt for Reengineering Opportunities8. The Experience of Process Redesign9. Embarking on Reengineering10. One Company's Experience-Hallmark11. One Company's Experience-Taco Bell12. One Company's Experience-Capital Holding13. One Company's Experience-Bell Atlantic14. Succeeding at Reengineering15. Questions that Readers Ask the MostEpilogueIndex