Supply chain reengineering using a core process analysis

matrix and object-oriented simulation

S. Wesley Changchien
*
, Hsiao-Yun Shen
Department of Information Management, Chaoyang University of Technology, 168 GiFeng E. Road, WuFeng, Taichung County, Taiwan, ROC
Received 30 June 1999; received in revised form 13 April 2000; accepted 16 March 2001
Abstract
To satisfy and respond quickly to customers' demand, many companies are now aggressively focusing on supply chain
management in order to strengthen their competitiveness. This paper proposes an integrated business process reengineering
(BPR) framework for improving performance. There are several steps in this framework: creating vision, identifying core
processes to be redesigned, analyzing current core processes, designing for innovation, evaluating the new processes, selecting
the best, and transforming and implementing the resulting design. A core process analysis matrix is proposed for identifying
the critical processes. System simulation is useful in measuring the performance and predicting the effect of change on the
system. To reduce the risk of BPR, an object-oriented simulation framework is developed for evaluating and analyzing the
reengineering proposals. This paper uses a case study to show the value of the method. # 2002 Elsevier Science B.V. All
rights reserved.
Keywords: Supply chain management; Business process reengineering; Strategic alliances; Object-oriented simulation
1. Introduction
Today, companies face severe competitive
challenges. The agility of a company's response to
customer demand has been recognized as a critical
success factor in meeting competition. Supply chain
management (SCM) is an effective way to do this.
The scope of a supply chain depends on the number
of rms involved.
Stronger and more sophisticated customer de-
mands, increasing competitive pressure, and the
ever-changing market environment are forcing com-
panies to rethink the way they perform operations.
One modern management strategy is business process
reengineering (BPR). A number of similarities exist
between BPR and SCM [10]. Both need fundamental
rethinking and consideration of strategies and are
process-based; also they generally reduce the duration
of the processes. Of course, information technology is
used as a catalyst for both. Supply chain reengineering
aims to overcome the uncertainty associated with
various aspects of the chain, including the changing
needs and demands of customers, the quality of the
information, and inherent delays that affect purchas-
ing and ordering decisions.
2. Supply chain management and business
process reengineering
BPR is ``the fundamental rethinking and radi-
cal redesign of an entire business systembusiness
Information & Management 39 (2002) 345358
*
Corresponding author. Tel.: 886-4-23323000x4204;
fax: 886-4-23742337.
E-mail address: swc@cyut.edu.tw (S.W. Changchien).
0378-7206/02/$ see front matter # 2002 Elsevier Science B.V. All rights reserved.
PII: S0 3 7 8 - 7 2 0 6 ( 0 1 ) 0 0 1 0 2 - 1
processes, job denitions, organizational structures,
management and measurement systems, values and
beliefto achieve dramatic improvements in critical
measures of performance (cost, quality, capital, ser-
vice, speed)'' [15]. Davenport and Short [8] regard
business process redesign as ``the analysis and design
of work ows and processes within and between
organizations.''
A great number of BPR methodologies have been
presented [21,29]; most of them involve a series of
procedural stages, including envisioning, identifying
processes, evaluating processes, designing, and imple-
menting, etc. [8,14]. In the context of BPR evolution,
Stephens et al. [25] say that BPR passes through three
stages. Stage 1 is department focused; enterprise-wide
solutions are emphasized at stage 2; and the efforts are
supply chain focused to go outside the organization in
stage 3. Due to the high risk of BPR, Kim and Kim
[20] use a computerized simulation method of BPR
model to estimate changes.
SCM is dened in many ways [3]. The International
Center for Competitive Excellence dened it to be [7]:
``. . . the integration of business processes from end
user through original suppliers that provides pro-
ducts, services and information that add value for
customers.''
The supply chain can be regarded as a business
process to construct enterprise-wide schemes [5].
Hewitt [16] believes that the supply chain is of parti-
cular interest, because it is regarded as `core' or
`strategic' within the overall enterprise process. A
number of researchers have presented methods for
supply chain redesign [4,17]. Stevens [26] addressed a
supply chain integration model, Abrahamsson and
Brege [1] focused on structural changes on supply
chain of a single rm, Towill [27] used systems
dynamics modeling, analysis, and simulation to
develop a methodology for supply chain reengineer-
ing.
3. Inter-organizational relations
Recently, more companies have joined inter-organi-
zational relationships to cooperate by sharing either
market or resources to enhance their competitiveness
and better to service customers. The relationships occur
in several ways such as strategic alliances, partnerships,
joint ventures, cooperative agreement, outsourcing con-
tract, network organizations, and coalitions.
3.1. Virtual organization
In a virtual organization, complementary resources
exist in a number of cooperating companies; they
support a particular product effort for as long as it
is a protable endeavor. Business Week dened a
virtual company or organization as a new model that
uses technology to link people, assets, and ideas
dynamically. It is ideal for cooperation between com-
panies. However, a number of factors must be
addressed to implement a virtual organization: oppor-
tunism, excellence, technology, no borders, and trust.
One of the advantages of forming a virtual organi-
zation (VO) is its exibility [19,22]. The ability to
respond quickly is a critical goal. Goldman et al. [12]
say that a virtual organization provides for three major
needs of agile competition:
1. Creation or assembly of new production resources
very quickly.
2. Creation or assembly of new productive resources
frequently and concurrently.
3. Access to a wider range of world-class compe-
tencies
Williams [30] suggested that there were four types
of inter-organizational relationships: hierarchical,
solar, centreless, and swingle (sic).
Besides the transformation of organization and
management structure, the technology which enables
the realization of VO is IT. The collaborative advan-
tage of VO is based on the performance of complex
activities conducted frequently and concurrently.
Accordingly, the introduction of a VO cannot be
successfully implemented in companies without
advanced information systems and extensive use of
computer networks.
3.2. Strategic alliances
Strategic alliances provide a number of advantages,
including faster market penetration, sharing of nan-
cial risk, possibilities of technology transfer, and
increased production efciencies [24]. Kanter [18]
concluded that the best inter-organizational relation-
ship to promote collaborative advantages tends to
346 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358
meet an eight I's criteria: Individual excellence,
Important, Interdependence, Investment, Information,
Integration, Institutionalization, and Integrity. Appar-
ently, strategic alliances require complementary core
competencies in the individual alliances so that each
can benet from collaboration.
4. Approach
4.1. A BPR framework
A BPR framework based on OOS is depicted in
Fig. 1. Steps should be cyclically performed as a
routine improvement procedure.
1. Vision and objectives creation: Envisioning is the
rst stage. The enterprise should review its current
prole and develop a broad strategic vision. Key
activities include evaluating organizational struc-
ture and the environment, recognizing needs, and
setting reengineering goals.
2. Core process identication: The building blocks of
a business are its processes. However, not all of
them should be reengineered at the same time.
When companies proceed with BPR, only a few
key processes should be selected for the initial
effort. A core process analysis matrix (CPAM) can
help managers identify critical processes by
relating the candidates to the goals.
3. Current processes analysis: Understanding and
analyzing the current processes follows. It is
necessary that the processes are diagnosed and
correctly understood. A proposed OOS framework
can be employed for modeling and analyzing the
new processes, as well as the processes to be
reengineered.
4. Innovative reengineering: The IT has been identi-
ed as an enabler of process redesign. Its diffusion
effects in BPR have been demonstrated by Grover
et al. [13]. Organizational structure is generally
believed to be associated with the rm perfor-
mance. Also, process innovation occurs as a major
aspect of BPR [6,23].
Fig. 1. A proposed business process reengineering framework.
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 347
5. Evaluate new processes: New processes are next
simulated, using the OOS framework. The perfor-
mance of all candidate processes is recorded.
6. New process selection: An appropriate multi-
criteria decision-making method or group decision
making method can be employed to select the
processes for implementation.
7. Transformation and implementation: Finally, man-
agement personnel must be involved in the post
implementation assessment. The new performance
results should be benchmarked and compared
against those of the original process.
The seven-step procedure should be repeated cycli-
cally to provide continuous improvement.
4.2. The core process analysis matrix
A CPAM for identifying the core processes of a
reengineering project is shown in Fig. 2.
4.2.1. WHATs criteria and viewpoints affecting
business vision
WHATs are the list of the concerned criteria of
BPR. In supply chain reengineering, these may in-
clude: the strategic, function, logistics-transportation,
and information management views.
4.2.2. HOWs candidate business processes
HOWs represent the processes that may need to be
reengineered. A set of WHATs can be achieved
through the reengineering of a set of selected HOWs.
The initial business processes of supply chain were
identied as seven processes by the International
Center for Competitive Excellence. These are: custo-
mer relationship, customer service, demand, order
fulllment, manufacturing ow, procurement, and
development and commercialization.
4.2.3. WHYs weighting factors on WHATs
WHYs dene the relative importance of the
WHATs. For each criterion, they take into account
current evaluation of the main competitors and assess-
ment of the company itself. A typical set is a list of
``overall importance'' of concerned business view-
points (the WHATs). The relative importance can
be obtained using the following formulae:
1. The relative evaluation value:
RV =
current evaluation for us
current average evaluation for competitors
2. The adjusted criteria (WHATs) importance:
ACI =
criteria importance
RV
4.2.4. WHATs versus HOWs
To obtain the relationships between business pro-
cesses and concerned business perspectives, a correla-
tion matrix is established by marking relationship
level on each WHAT versus HOW. The relationships
Fig. 2. The structure of core process analysis matrix (CPAM).
348 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358
can be rated at several levels, such as strong, medium,
weak, and none.
4.2.5. Target matrix
An index of importance for each business process
can next be calculated. The formulae for calculating
the target importance are
1. The raw importance index:
RI =
X
column
CI CO
where CI is criteria importance and CO is the
correlation between business processes and per-
spectives.
2. The importance index for business process:
I =
RI
P
row
RI
4.3. Object-oriented simulation framework
An OOS framework consists of a simulation
scheme and OO modeling method. Here, an object-
oriented simulation world-view is used to present the
progress of system advance over time in terms of
objects and their interactions. The simulation is based
on an object list. The object list maintains objects,
each of which represents one of the system members
to be processed as the simulation proceeds. Further-
more, each object contains an attribute `time' which
indicates the system time when the object needs to be
activated in the list. The procedure is:
Step 1 Initialize objects in the system.
Step 2 Put objects into the object list ordered by
their time attribute.
Step 3 Get the most recent object from the object
list.
Step 4 Check its type.
Step 5 Process the object and perform tasks
according to its type.
Step 6 Delete the processed object or add it into
the object list, if necessary.
Step 7 If needed, create newobjects and gotoStep2.
Step 8 Check the condition for termination. If not
termination, go to Step 3.
Step 9 Terminate.
A system consists of objects and processes in
accordance with business rules. The system component
perspective describes the static, structural components
of the system. The system workow perspective
represents the processes during system execution.
The system control perspective describes dynamic
system state changes. Herein the UML [9,11] notation
is used for implementing the simulation modeling
method.
The system components should capture those con-
cepts from the real world that are important to system
simulation. The components are represented graphi-
cally, with class diagrams that showthe static viewof a
system in terms of classes. The System Workow
represents the system process ow. It is represented
graphically through activity and interaction diagrams.
These capture tasks and activities that will be per-
formed and illustrate how objects interact (the inter-
action diagram focuses on how messages are sent and
received among objects). System control represents
dynamic, behavioral, temporal, and control perspec-
tive of a system. The system component is represented
graphically, with state diagrams that describe all the
possible states a particular object can enter and how
the object's state changes.
5. A case study of a motorcycle manufacturer
This studies the supply chain activities of a motor-
cycle manufacturer in Taiwan. The production man-
agement division of the manufacturer is the main
concern here. Thus this example only focuses on Steps
26 of the framework. Figs. 3 and 4 present a portion
of the components and workow using the OOS
modeling method.
5.1. Identify core processes
In conducting the CPAM, the WHATs and HOWs
were stated and the correlation matrix and WHYs
were provided by the top and middle level managers.
Five members of the decision group contribute their
expertise toward identifying the core processes.
Table 1 shows the opinion of one member of the
decision group about the correlation matrix, criteria
weights, evaluation for the rm for the criteria, and
evaluation of competitors. The target matrix contains
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 349
the importance indices for the processes of the supply
chain. Because of the inter-organizational processes, a
group decision making method helped to take into
account the opinions of diverse experts.
The importance of the ve members is averaged in
Table 2, which shows that they tend to consider
Product Development, Procurement and Demand
Management the three core processes.
5.2. Analyze current core processes
We collected data on one specic motorcycle
model. In the forecasting process, the manufacturer
forecasts demand based on its franchisees' forecast
based on retailers' experiences. Since the stable stage
of the product life cycle is the concern of this case
study, only limited data was available for investiga-
tion. Based on the data over a 26-month period, the
mean absolute difference (MAD) between market
sales and manufacturer forecasting is 346 units and
the MAD between manufacturing forecasting and
sales to franchisee is 321 units.
In the procurement process, the manufacturer rst
surveys and forecasts the demand. A decision making
group is then formed of people from the production
and marketing divisions. This takes responsibility for
all aspects of the production schedule.
5.3. Design innovation
New process designs of the forecasting and pro-
curement process were reengineered as dened below.
5.3.1. Forecasting activity
In order to improve the forecasting activity, sys-
tematic forecasting methods were introduced, thereby
abandoning the old multi-stage forecasting process.
Well known moving average, exponential Smoothing,
factors decomposition, and Bayesian methods [2]
were considered to show the value of each. The
Bayesian forecasting method assumed that the past
sales follow a known probability distribution; we used
a goodness test for the past sales data, assuming that
the market demand follows a normal distribution with
a mean of 490 and standard deviation of 85.
5.3.2. Procurement process
In the case study, the original monthly procurement
policy was changed to bi-weekly procurement. Pre-
viously, the manufacturer placed purchasing orders to
Fig. 3. The components of a simulation system of this case study.
350 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358
suppliers according to an agreement resulting from a
productionmarketing joint meeting. Due to uncer-
tainty of sales, the manufacturer frequently faced
addition or cancellation of orders. When that situation
occurred, the manufacturer adjusted purchasing orders
in the next period so that any stock shortage or super-
uity would occur then. Design innovation included
quick response by adjusting purchasing orders or
shortening the cycle time of the joint meeting during
the procurement process.
5.4. Evaluate new processes
Based on the calculated MADs between real market
demand and forecasting, it is possible from computa-
tions using moving average, exponential smoothing,
factor decomposition, and Bayesian methods, to
reduce MADs to at least 50% of the MAD without
forecasting, as Fig. 5. Of all these, the Bayesian
method had the smallest MAD.
Fig. 6 shows the forecasting values using exponen-
tial smoothing versus real market demand per month
during the prior 5-year period. The simulation of new
procurement processes is based on these data. Fig. 7
presents the comparisons of the procurement pro-
cesses. Policies represent: (1) current procurement;
(2) adjusting orders in the current period; and (3)
shortening the cycle time of productionmarketing
joint meeting and purchasing. In this case, the pur-
chase lead times of parts are classied into (a) those
between 15 and 30 days, which can be shortened to 7
15 days and (b) those greater than 30 days. For parts
having shorter lead times, the manufacturer has to
negotiate the adjustment of orders with suppliers in
response to the change of the market. The X-axis
represents purchasing costs items of two types of
parts, nished goods, shortages, and total costs. The
Y-axis shows the purchasing costs.
5.5. Select a new process
The manufacturer next considered the implementa-
tion cost, the applicability of the process, and whether
suppliers could accommodate the new process. An
appropriate multi-criteria decision making method
was required.
Let A = A
1
; A
2
; . . . ; A
n
be a set of alternatives
and C = C
1
; C
2
; . . . ; C
m
be a set of criteria char-
acterizing the decision situation. Moreover, W =
w
1
; w
2
; . . . ; w
m
is a set of weights that indicates
the relative importance of criteria set C. The universe
of discourse, U, is a nite set of fuzzy numbers within
[0, 1]; they are used to express an imprecise concept or
level. They allow the following analysis:
1. Universe of discourse domain
Let
~u
1
= very low(VL)
~u
2
= low(L)
~u
3
= mediumlow(ML)
~u
4
= medium(M)
~u
5
= mediumhigh (MH)
~u
6
= high (H)
~u
7
= very high (VH)
Fig. 4. Process of this case study described with an activity
diagram.
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 351
Table 1
An example of CPAM (by a group member) associated with seven processes and four criteria views
WHATs HOWs WHYs
Customer
relationship
management
Customer
service
management
Demand
management
Order
fulfillment
Manufacturing
flow
management
Procurement Product
development
Criteria
importance
Current
evaluation
for us
Current
evaluation for
competitor
Strategic view Product sales M M M M S S S 9 8 7
Function view Procurement cost M M S S M S M 7 5 6
Manufacturing cost M M S S S S M 6 4 5
Logistics view Transportation cost M M S M M M M 3 5 5
Information
management view
Information process cost M M M M M M M 4 3 3
Raw importance 165 165 240 228 223 269 205
Importance (%) 11.00 11.00 16.08 15.28 14.94 17.95 13.74
Strong, 9; medium, 5; weak, 1.
2. Membership functions for ~u:

i
~u
1
=
0; r < 0 or r >
1
6
1 6r; 0 _ r _
1
6
(
g
7
=
0; r _
5
6
or r > 1
6r 5;
5
6
< r _ 1
(
for k = 2, 3, 4, 5, 6
g
k
=
0; r _
k 2
6
or r _
k
6
6r (k 2);
k 2
6
_ r _
k 1
6
k 6r;
k 1
6
_ r _
k
6
8
>
>
>
>
>
>
<
>
>
>
>
>
>
:
Table 2
Averaged importance for each process
Member #1 Member #2 Member #3 Member #4 Member #5 Average
Customer relationship management 11.02 14.60 8.19 11.39 8.6 10.76
Customer service management 11.02 14.60 17.47 12.90 14.67 14.13
Demand management 16.07 16.07 18.08 15.20 11.86 15.46
Order fulfillment 15.27 16.07 18.08 11.81 11.86 14.62
Manufacturing flow management 14.93 12.64 6.34 14.86 18.41 13.44
Procurement 17.97 10.43 16.23 17.29 18.41 16.07
Product development 13.73 15.58 15.61 16.56 16.20 15.54
Fig. 5. The MADs for current process and a number of forecasting methods.
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 353
Fig. 8 shows membership functions for the uni-
verse of discourse. The summary of ve multi-
attribute methods by Triantaphyllou and Lin [28],
leads to the basic operations on fuzzy triangular
numbers and a ranking method by Zhu and Lee
along with the evaluations provided by a middle
manager for selecting the new procurement process.
Fig. 9 displays the membership functions of the
nal results, and specically, a new process that
shortens the purchasing and productionmarketing
cycle time to 2 weeks is selected for implementa-
tion.
5.6. The next BPR cycle focusing on strategic
alliance
Repeated implementation of the seven-step proce-
dure is required for continuous improvement. During
the rst cycle, two major processes (forecasting and
order procurement) were investigated and new pro-
cesses were suggested. According to the future plan of
BPR and strategic planning of the rm, new strategies
of collaboration in SCM have long been under con-
sideration by most of the manufacturers, including the
rm being studied.
To increase the utilization of capacity, share the
costs and risk, mutually benet from core competen-
cies, and satisfy customers, a number of order sharing
policies were presented. The order sharing policies for
a virtual organization imply:
1. All orders are allocated to companies on the basis
of equal capacity utilization (policy 1).
2. All orders are allocated to companies on the basis
of predened percentages (policy 2).
3. Each order is rst allocated to the company that
originally received the order. If that company's
capacity is inadequate, the excess portion is
reallocated to a company that has the least current
capacity utilization (policy 3).
Fig. 6. Simulation data with exponential smoothing forecasting and real market demand (normal distribution) per month during 5 years.
354 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358
Fig. 7. Cost impacts for current procurement process and two new policies at current safety stock level.
Fig. 8. Membership function for universe of discourse in this study.
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 355
4. If a company capacity is inadequate, the excess
portion of the order is reallocated to a company
that has the least current accumulated capacity
utilization (policy 4).
For each policy of the above, assume that the lost
orders were entirely reallocated by the virtual orga-
nization to alliances. Any particular company is not
responsible for the lost order.
Fig. 9. Membership functions of the two alternatives of the new procurement processes according to the fuzzy approach.
Table 3
Comparisons of capacity utilization for strategic alliance policies
Capacity Mean Deviation Utilization
Policy 0 Policy1 Policy 2 Policy 3
Case 1 Manu. 1 40 50 20 0.949 0.930 0.949 0.955
Manu. 2 60 60 10 0.959 0.930 0.941 0.949
Manu. 3 80 60 5 0.756 0.930 0.910 0.881
Case 2 Manu. 1 80 70 20 0.853 0.848 0.856 0.854
Manu. 2 60 50 10 0.840 0.848 0.861 0.858
Manu. 3 40 30 5 0.761 0.848 0.806 0.822
Case 3 Manu. 1 80 70 20 0.853 0.847 0.856 0.853
Manu. 2 60 50 5 0.837 0.847 0.861 0.863
Manu. 3 40 30 3 0.757 0.847 0.805 0.808
Case 4 Manu. 1 80 85 5 1.000 0.973 0.981 1.000
Manu. 2 60 60 3 0.987 0.973 0.984 0.994
Manu. 3 40 30 3 0.757 0.973 0.926 0.886
Case 5 Manu. 1 80 85 20 0.953 0.950 0.957 0.956
Manu. 2 60 60 5 0.979 0.950 0.961 0.990
Manu. 3 40 30 3 0.756 0.950 0.917 0.878
Case 6 Manu. 1 80 85 20 0.953 0.947 0.955 0.959
Manu. 2 60 60 10 0.959 0.947 0.959 0.977
Manu. 3 40 30 3 0.757 0.947 0.913 0.879
356 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358
Each of the three policies 1, 2, and 3 was employed
to process orders for a number of periods in the case
study. The simulation results are presented in Tables 3
and 4. Compared with the case without strategic
alliance (policy 0), the results show that better capa-
city utilization, less lost orders, and better due date
satisfaction are achieved, as well as possible reduced
marketing and other related costs under a variety of
scenarios.
6. Discussions and conclusions
A BPR framework and its associated implementing
methods are proposed here and applied to the supply
chain reengineering of a motorcycle manufacturer. A
CPAM and the proposed OOS schema are integrated
into the BPR framework. Once rms have decided on
their business vision and objectives, they can identify
the core business processes to be redesigned through
the CPAM. Using the proposed object-oriented world-
view simulation framework, rms can analyze and
compare the probable inuence of reengineering prior
to its implementation to reduce high risks.
It is very important that good communication exists
between the business personnel collecting the data and
the decision makers. Interaction is required in each
step of the proposed framework.
In conclusion, through the proposed BPR frame-
work and associated implementing methods, we pro-
vide a systematic approach for industrial practice.
Most importantly, the BPR framework takes advan-
tages of the OOS, which can evaluate the reengineer-
ing in advance of the implementation, and this is
expected to reduce the high failure rate of BPR
projects.
References
[1] M. Abrahamsson, S. Brege, Structural changes in the supply
chain, The International Journal of Logistics Management 8
(1), 1997, pp. 3544.
[2] J. Banks, J.S. Carson II, B.L. Nelson, Discrete-Event System
Simulation, 2nd Edition, Prentice-Hall, Englewood Cliffs, NJ,
1996.
[3] C. Bechtel, J. Jayaram, Supply chain management: a strategic
perspective, The International Journal of Logistics Manage-
ment 8 (1), 1997, pp. 1534.
Table 4
Comparisons of lost quantities for strategic alliance policies
Capacity Mean Deviation Lost quantity
Policy 0 Policy1 Policy 2 Policy 3
Case 1 Manu. 1 40 50 20 458 51 69 197
Manu. 2 60 60 10 87 77 91 33
Manu. 3 80 60 5 0 102 76 0
Case 2 Manu. 1 80 70 20 179 32 39 71
Manu. 2 60 50 10 8 24 32 20
Manu. 3 40 30 5 0 16 10 0
Case 3 Manu. 1 80 70 20 179 31 35 69
Manu. 2 60 50 5 0 23 28 0
Manu. 3 40 30 3 0 15 8 0
Case 4 Manu. 1 80 85 5 182 19 29 35
Manu. 2 60 60 3 26 14 27 7
Manu. 3 40 30 3 0 9 1 0
Case 5 Manu. 1 80 85 20 389 115 128 138
Manu. 2 60 60 5 43 86 103 21
Manu. 3 40 30 3 0 57 31 0
Case 6 Manu. 1 80 85 20 389 125 137 236
Manu. 2 60 60 10 87 94 109 45
Manu. 3 40 30 3 0 62 37 0
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 357
[4] D. Berry, M.M. Naim, D.R. Towill, Business process re-
engineering an electronic products supply chain, IEE
Proceedings on Science Measurement Technology 142 (5),
1995, pp. 395403.
[5] R. Burgess, Avoiding supply chain management failure:
lessons from business process re-engineering, The Interna-
tional Journal of Logistics Management 9 (1), 1998, pp. 15
23.
[6] T.H. Clark, H.G. Lee, EDI-enabled channel transformation:
extending business process redesign beyond the rm,
International Journal of Electronic Commerce 2 (1), 1997,
pp. 721.
[7] M.C. Cooper, D.M. Lambert, J.D. Pagh, Supply chain
management: more than a new name for logistics, The
International Journal of Logistics Management 8 (1), 1997,
pp. 114.
[8] T.H. Davenport, J.E. Short, The new industrial engineering:
information technology and business process redesign, Sloan
Management Review 31 (4), 1990, pp. 1127.
[9] H.E. Eriksson, M. Penker, UML Toolkit, Wiley, New York,
1998.
[10] G.N. Evans, D.R. Towill, M.M. Naim, Business process re-
engineering the supply chain, Production Planning and
Control 6 (3), 1995, pp. 227237.
[11] M. Fowler, K. Scott, UML Distilled: Applying the Standard
Object Modeling Language, Addison-Wesley, Reading, MA,
1997.
[12] S.L. Goldman, K. Preiss, R.N. Nagel, R. Dove, Principal
Investiators with 15 Industry Executives, in: 21st Century
Industry-Led View, Vol. 2, Iacocca Institue at Lehigh
University, Bethlehem, PA, 1991.
[13] V. Grover, J. Teng, A.H. Segars, K. Fiedler, The inuence of
information technology diffusion and business process change
on perceived productivity: the is executive's perspective,
Information & Management 34 (3), 1998, pp. 141159.
[14] S. Guha, W.J. Kettinger, J.T.C. Tseng, Business Process
Reengineering, Information Systems Management (1993) 13
22.
[15] M. Hammer, J. Champy, Reengineering The Corporation: A
Manifesto for Business Revolution, 1993.
[16] F. Hewitt, Supply chain redesign, The International Journal of
Logistics Management 5 (2), 1994, pp. 19.
[17] C.P. Holland, Cooperative supply chain management:
the impact of interorganizational information systems,
Journal of Strategic Information Systems 4 (2), 1995, pp.
117133.
[18] R.M. Kanter, Collaborative advantage, Harvard Business
Review 72 (4), 1994, pp. 19108.
[19] J.D. Kasada, D.A. Rondinelli, Innovative infrastructure for
agile manufacturers, Sloan Management Review 39 (2), 1998,
pp. 7382.
[20] H.W. Kim, Y.G. Kim, Dynamic process modeling for BPR: a
computerized simulation approach, Information & Manage-
ment 32 (2), 1997, pp. 113.
[21] M.M. Klein, Reengineering methodologies and tools, In-
formation Systems Management 11 (2), 1994, pp. 3035.
[22] S. Liugen, N. Rakesh, Design and implementation of a virtual
information system for agile manufacturing, IIE Transactions
20 (10), 1997, pp. 839857.
[23] P. Matthyssens, C.V.D. Bulte, Getting closer and nicer:
partnerships in the supply chain, Long Range Planning 27 (1),
1994, pp. 7283.
[24] G. Miles, S.G. Preece, M.C. Baetz, Dangers of dependence:
the impact of strategic alliance use by small technology-based
rms, Journal of Small Business Management 37 (2), 1999,
pp. 2029.
[25] S. Stephens, C. Gustin, J. Ayers, Reengineering the supply
chainthe next hurdle, Information Strategy 14 (1), 1997, pp.
1318.
[26] G. Stevens, Integrating the supply chain, International Journal
of Physical Distribution and Material Management 19, 1989,
pp. 38.
[27] D.R. Towill, The seamless supply chainthe predator's
strategic advantage, International Journal of Technology
Management 13 (1), 1997, pp. 3756.
[28] E. Triantaphyllou, C.T. Lin, Development and evaluation of
ve fuzzy multiattribute decision-making methods, Interna-
tional Journal of Approximate Reasoning 14, 1996, pp. 230
281.
[29] D.G. Wastell, P. White, P. Kawalek, A methodology for
business process redesign: experiences and issues, Journal of
Strategic Information Systems 3 (1), 1994, pp. 2340.
[30] T. Williams, Interorganization information systems: issues
affecting interorganizational cooperation, Journal of Strategic
Information Systems 6, 1997, pp. 231250.
S. Wesley Changchien is an Associate
Professor with the Department of In-
formation Management at Chaoyang
University of Technology, Taiwan,
ROC. He received a BS degree in
Mechanical Engineering (1989) and
completed his MS (1993) and PhD
(1996) degrees in Industrial Engineering
at State University of New York at
Buffalo. His current research interests
include knowledge management, knowledge discovery, data
mining, bio-informatics, agent technology, intelligent systems,
genetic algorithms.
Hsiao-Yun Shen is a candidate for doctorate
degree in National Chiao Tung University in
Taiwan. She received her MBA degree in
1999 with major in information manage-
ment from Chaoyang University of Tech-
nology. Currently, she is doing research on
the subject of information security manage-
ment in electronic commerce.
358 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358