DEAKIN UNIVERSITY

FACULTY OF BUSINESS AND LAW

MPM-701 BUSINESS PROCESS
MANAGEMENT

Technobuild Pty Ltd

Business Report
SUBMITTED BY
NAME

STUDENT ID:

PERCENTAGE %

ABRAR ASLAM
ASHWIN PONNA
VENUGOPAL

214453619
214486554

50%
50%

Table of contents
TABLE OF CONTENTS .......................................................................2
EXECUTIVE SUMMARY......................................................................3

. BPM AND STRATEGY........................................................................................ 3

. PROBLEM ANALYSIS......................................................................................... 4
. PROPOSED SOLUTION..................................................................................... 8
. SOLUTION CONSIDERATION..........................................................................10
. RECOMMENDATIONS........................................................................................ 10

REFERENCES ..................................................................................11

II. Executive Summary

About the company:
Technobuild Pty Ltd is a company which produces a building device that
measures the amount of moisture in different types of soil and then
computes exactly how much foundation must be laid and how much concrete
is required to provide the optimal support. It is more efficient and practical
when compared to other machines. This company not only produces but also
sells the machine to customers. The name of the machine is Technobuild and
it is extremely familiar and popular with people related to the construction
field.

Issues Faced:
The business methods in Technobuild Pty Ltd are predominantly in light of
advancement and separation. The business had a profit to start with,
however the business and profit as of late was diminished. This is distinctly
realized from the table that is given by Keith. The outline about the
organization likewise demonstrates that Technobuild Pty Ltd is following
paper based work and manual exercises which are very customary. Due to
increase in the delay process it is clear that the organization's profit has
lessened.

Recommended Solution:
The organization can increase its turnover by executing the enterprise
system. This will in turn helps company to attain greater heights. The
company should implement Enterprise Resource Planning (ERP) system,
Supply Chain Management (SCM) system, Supplier Relationship Management
(SRM) system and Customer Relationship Management (CRM) for the
improvement in the delivering process of the machine. The organization
needs to execute all these system in each and every department, by doing
this, the problems identified with the supplier, between each department and
with the customer can be resolved.

.
. BPM and Strategy
Technobuild is a construction tool which is produced by Technobuild Pty Ltd.
Sufficient information was gathered by the company to serve the customers.
Business Process Management can be defined as a management discipline
focused on using business processes as a significant contributor to achieving
an organizations objective through the improvement, ongoing performance
management and governance of essential business processes.(John and
Johan 2014, p.03). It can even be considered as business optimization
process. In brief, BPM includes a group of activities or processes to achieve a
desired goal in an organization. The BPM method in Technobuild Pty. Ltd will
invent new processes to be carried out which will help them to recover the
losses. With the help of BPM, the company can perform work more easily and
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provide all the data accurately which will help them to perform faster. If we
apply BPM in Technobuild Pty. Ltd, it will expand the business profit and take
the business to the next level.

BPM is more than just a software, more than just improving or reengineering
your process- it also deals with managerial issues. (John and Johan 2014,
p.08)
One of the main purpose of using business process management is to reduce
cost and time. The quality of all the work done in the organization should be
enhanced which will automatically increase the quality of the product that is
developed. The assessment of an enterprise depends on business process
management. Business process management helps in improving the sales
turnover of the company. With the help of BPM, a company can have a
competitive advantage over its competitors. For example, a company making
more profit by selling its goods and service to the customer than its rival or
the competitors in the same filed. Strategic planning consists mainly of two
characteristics. Firstly, the industry structure view, which focuses on the
outward looking observation, from a firm to the environment. The second
feature is resource-based views, which mainly focuses on a firms resource
and capability. A value chain is a set of all process included from time of
production to the delivery of goods. Value chain means from one process to
another process to achieve the desired goal. The idea of the value chain is
that every activity in the chain or sequence adds value to the final product
(Harmon, 2007,p.41) Implementation of value chain in Technobuild Pty Ltd
enables in the cost reduction and improvisation in the speed of the delivery
of the product which will lead to the increase in market share and maximize
the companys overall profit.

. Problem Analysis
Keith's Technobuild Pty Ltd organization has confronted abatement in sales
and profit for as far back as three years. In extremely late years business has
been globalized which has prompted an exceptional increment in
competition. This naturally has an effect in the business, despite the fact that
organizations are universally battling. This effect influenced Keith's
Technobuild and there were numerous different issues too in the organization
which influenced the business and benefit.
A standout amongst the most vital and particular issue in Keith's
organization is the time delay. The time delay in the organization is
investigated utilizing the 'As-Is' procedure chart [Fig (i)]. There is a great deal
of time wasted in the whole process right from getting the sales order to
conveying requests to the suppliers and receiving the confirmation for the
goods dispatched. For example, it takes one entire week for production to
check for the inventories and five to six weeks of time to get the supplier's
affirmation. Moreover, every single department in the organization
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concentrate only on their work which makes a separation and lack of

communication in between departments which makes the work less
productive. There is no automation of records since the company is using a
manual method for maintaining archives. The delay is also caused due to
delay in decision making between the people in the organization. It therefore
results in postponement of delivery of the product to the clients. Likewise
Keiths company has no team for marketing or a division which is solely
concerned in marketing the product. Innovation in the product is the only
advantage which differentiate the company with the other competitors in the
market and since Keiths company has no different department for marketing
maximizing sales and developing the strategy has become cumbersome
process. This has costed the sales turnover of the company.

Fig (i): Current As-Is process diagram

Places the order

Generation of
the invoice

Custom
ers
Sales
Receives the
order

Producti
on

Checks physical
stock
Order
received
1
week

Shipping
and
Logistics

Account
s

Purchas
e

Receive
order

Pack, label
&write stock
details

N
o

Notation
Making

Copy of sales
order

Couple of
days
Request
purchase

order

Ye
s

Packi
ng

Shippin
g

Sales, shipping,
payment order &
invoice received

Shipping
approved

Paymen
t
Receive
d

Receive
dispatch &
invoice

Supplie
r

Receive the purchase

order through surface
mail

5 to 6
weeks
Dispat
ch

Payment
Received

Flow in Process, Management Problems on daily basis:

One fundamental issue in Keith's organization is that there is nobody for
observing the organization's polices and guidelines to develop a business
process. The absence of observing in the whole process for long time is not
present according to which promises can't be made on whether there is
sufficient stock or not. The organization does not have any managers who
can overlook with the whole process. This identifies with no "Administrator
Accountability" in the organization. There is no responsible manager to deal
with the procedure and to accomplish the methodology objectives or to
check if the data is sufficient, which prompts the separated methods.
Fundamental centre of the Managers in every office is confined to their own
particular errands, which makes the organization loose its efficiency. Since
there is a postponement in the supply of products the clients are troubled
with the service provided. This is because of utilization of surface mail for
sending requests. It takes at least six weeks even before the affirmation and
invoice received and few of the parts are not landed in time.

Problems in Controls & Enablers:

Keiths organization absolutely needs IT framework. All the techniques are
taken after and executed physically, as opposed to utilizing a modernized
framework. Inventories, deals & transportation request are checked
physically prompting delay in whole process. Information is being recorded
by paper work which is a time waster. Organization has one of most outdated programming & equipment that diminish the effectiveness of
operations in Keith's Technobuild Pty Ltd.

Projecting Scoping Diagram

Manual
record
keeping
(paper
based
records)

Communi
cation
using
surface
mail.

Poor Decision making.

O
Order received
Lack of coordination among staff
U
Stock check
T
P
Scheduling order
U
Delivery of order
T
S

CONTROLS
Order
received
infrastructure.
INo proper
N
check
NoStock
IT team.
P
Scheduling order
U
T
Delivery of order
S

O
U
T
P
U
T
S

Increasing
customer
complaints

Customer
orders not
fulfilled in
time.

Less sales
and
decrease
in profit.

ENABLERS

. Proposed Solution
By examining the issue in Technobuild Pty Ltd it unmistakably demonstrates
that business process administration (BPM) framework is lacking in the whole
organization. It's about time Keith solved the existing issues by applying the
appropriate BPM framework and reorganize the company's management
system. BPA (Business Process Architecture) lays the blueprint for operating
and transforming the enterprise .Business architecture includes various
models that define business goals, objectives, initiatives and metrics
(Acharya 2012, p.8). BPA is a group of linked functional activities which are
meant to fulfil the objectives and demands of the organization. If BPA is
formed in Keiths company then the lower level and the upper level staff will
have the clear idea of the work and what is expected from them. This will
help in reducing the lack of discipline amongst the staff and improve their
relationship with each other.
If a company has a good information system, it will help them to work faster
and secure a better position in the market. A better information system will
enable a company to give tough competition in the market. If Keith
improvises the enterprise system of his company then it will help him to
reduce the delays in the work. In simple words, the manual work process has
to be eliminated in order to deliver the goods demanded on time.
Enterprise Resource Planning System or Enterprise System are software
systems for business management encompassing modules supporting
functional areas such as planning, manufacturing, sales, marketing,
distribution, accounting, financial, human resource management, project
management, inventory management, service and management,
transportation and e-business (Rashid, Hossain & Patrick, 2002, p.36)
To-Be Process Diagram explains how ERP system can help each department
in the company to work efficiently. Now when Production Department
receives the current data about the inventory and the purchase request can
be sent in a lesser time than before. This is possible because the ERP is
providing the easy method for the generation of the purchase request even
though the raw materials are less. The request that is generated is stored in
the database of the companys system. Automatic generation of purchase
orders and for the suppliers it is electronically dispatched using the Supplier
Relations Management system. A copy of the purchase order saved in the
system. As for as the fulfilment process, as soon as a purchase order is
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placed by a customer, the system automatically checks for the product and
customer in the database. In the sales department, if the product is shown
available, sales order is generated by the sales system and data is refreshed
in the ERP system. Then the order list for delivery is determined. After the
selection of order, the system uses the relevant data to create the picking up
of document and packing list. Based on two documents the production
department will prepare an updates for loading the relevant data. Once the
loading order is received, the accounts department will work on preparing an
invoice and it will be sent to the customer. Therefore by implementing ERP
system in Technobuild Pty Ltd, companys business and performance of the
overall company will be efficient and there will be proper communication
between the departments .There will be systematic flow in the process and
the delay will also be reduced to the maximum.

To-Be Process Diagram

Customer
s

Places
Order

Sales

CRM

Receive the order and

create sales order

Productio
n

Receiving order for sales, check for

stock and update database.
In stock

Send purchase
request and
update database

Logistics

ERP

Out of stock

Prepare
goods
for pack
&label.

Re
cei
ve
ma
teri
als

Shipping goods
Updating database

Accounts

Prepare and Send invoices

Receiving
invoices
9

Purchase
Receive purchase
request
Organize purchase

Suppliers
SCM and
RSM

Purchase order is
received
Materials & invoices

. Solution Considerations

The first step requires the establishment of IT department. The IT department

will take look over all the issues related to the new system. This will ensure
the long term maintenance of the new Enterprise System. Therefore, the
company will have to recruit few IT professionals. Moreover, the new
enterprise system will reduce the manual work and so not many employees
will be required as before.

The next step Keith need to take is to implement ERP system. So he will have
to ask his finance department to see if the firm has sufficient fund to invest in
the software. Moreover, the training cost also has to be considered.
Employees should be given training so that they get familiar to the ERP
system.

In the next stage, the infrastructure cost has to be determined. The company
is using out dated and low level computers with customary configuration.
Therefore, an additional expenditure in buying high level computers and
printers with better configuration is required so that ERP System can be
implemented on it.

The SRM AND SCM have to be established as it will eliminate the surface mail
for the communication between the supplier and buyer. The SRM and SCM
have to be adopted as the delay occurred in receiving the materials will be
reduced.

. Recommendation

A manual work process should be replaced by computerized enterprise

system.
The employees should be provided training on ERP, SCM, SRM and CRM
by a team of specialists in that field.
Keith should adopt BPA so that every department will have a certain
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objective or targets to achieve the desired goal of an organization.

The new IT department has to be set up to solve the issues related to
the new Enterprise system.
The efficiency of the new process has to be maintained so that it does
not affect the quality of the products and services.
Employees should build good relationship among themselves as it will
raise the companys performance

. References
Harmon, Paul, 2007, Business Process Change: A Guide for
Business Managers and BPM and Six Sigma Professionals, Morgan
Kaufmann, USA, p. 41
Hossain, Rashid & Patricks, 2002, Enterprise Resource Planning:
Global opportunities and challenges, Hershey PA, Idea Group
Publishing.
Acharya V., 2012, Oracle BPM suite 11g developers cookbook
over 80 advanced recipes to develop rich interactive business
process using Oracle Business Process Management suite.
Birmingham, Packt Publishings.
Jeston john, Nelis Johan, 2014 ; Business Process Management ,
Routledge Taylor & Francis group , PP 03-08.
Harmon, Paul , 2014, Business Process Change : A Business
Process Management Guide For Managers and Process
Professionals, Morgan Kaufmann Publications .
Khan, Rashid N.,2004, Business Process Management : A pratical
guide, Meghan-Kiffer Press, Tampa

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