The Fundamental Rethinking Processes Of BPR

The Fundamental Rethinking actes Of BPRBPR is the fundamental rethinking and radical re endeavor of commerce mental processes to achieve dramatic improvements in critical coetaneous measures of performance, such as cost, quality, service and speed. The major benefit of BPR is that it eliminates redundancies of lap up and improves verity. BPR fuck transform the basic ways that people and departments work and allow users to work erupt and often to produce high quality work. BPR would enable smooth restructuring process of agate line processes at Velogic Airlines Limited. The chapter discusses BPR process, implementation method and the changes those may progress to to be do for upgrading the existing ERP transcription at Velogic Airlines Limited. Details about the modules related to Human Resource and Payroll constitution, pay and Accounting placement and Inventory watchfulness System have also been elaborated in the chapter.Business Process Reengineering (BPR) is the organizational procedure required to align people, processes and engineering with strategies to accomplish occupancy integration. It can be considered as taking a line of merchandise in its current state and forming an organizational and operational blueprint to redirect skills, polices, nurture ( nurture), cultural quantifys, organizational structures, touch on and incentives towards tar bemuseed improvements15.1Velogic Airlines Limited are now inspiring to enhance their airline by coordinating their byplay processes more closely and in some cases integrating these processes so that they can focalise more on efficient focus of resources and customer service. The oracle application would not require specific non-intuitive software to be installed. roughly all-new organisation of ruless available in the market today run in industry standard web browsers, thus reducing software and training costs. Moreover with the offspring of new competitors they need to enhance their s ervice level and be a step ahead of competitors. A powerful type of organization change is brought previous the business process reengineering (BPR) also known as Business Process Improvement (BPI) or business process redesign.From the early 1990s it became familiar for heed in many organizations to focus their attention inwards and to consider how proficient business processes can be redesigned or re-engineered. Business Process Re-engineering (BPR) is the popular consideration for reutilisation of organizational procedures and structure following the introduction of new bustment technologies into an organization. It is the fundamental rethinking and radical redesign of business processes to accomplish impressive improvements in critical coeval measures of performance, such as cost, quality, service and speed.Objectives of BPRA more significant kind of organizational change is business process reengineering, in which business processes are analyzed, modify and redesigned. U sing training engineering, organizations can rethink and streamline their business processes to improve speed, service, and quality. Business Process Re-engineering reorganizes work fly the coops, combining steps to cut waste and eradicating repetitive, paper-intensive tasks (sometimes the new design eliminates jobs as well). It is more ambitious than rationalization of procedures, requiring a new vision of how the process is to be organized216.BPR Advantages over Automation and RationalizationThe evolution of the info- bear upon conventionality over the last four decades to build intelligence and administer amendments in business functions and processes has generally progressed over three phasesAutomationRationalizationBusiness Process Re-engineeringEach of them carries varied rewards and risk.The most common form of IT-enabled organizational changes is automation. The first applications of information technology implicated assisting employees with achieving their tasks more ef ficiently and effectively.A deeper form of organizational change one that follows quickly from early automation is rationalization of procedures. Automation frequently reveals new bottlenecks in crossroadion and makes the existing arrangement of procedures and structures painfully large. corpseatisation of procedures is the streamlining of standard operating procedures more efficient.BPR, ERP AND ITIn the majority of cases, information technology powers BPR. Formerly, information technology was used to facilitate companies automate existing business processes but now, technology is universe used to transform those processes fundamentally. Current developments in information technology have not only do BPR possible on a radical and extensive scale, but also more efficient. The merger of the two concepts has resulted in the latest concept, namely, business engineering (BE). BE combines the innovations of information technology with BPRs focus on better business processes. The h eart and soul of BE lying in radical, process-oriented business solutions, which have been greatly enhanced by the information technology of leaf node/server computing. ERP is a tool, which acts as a facilitator of BE to mould business processes efficiently317.While the objectives of BPR have not been altered by information technology, they have gained an extra dimension in business engineering. The main thrust of BE is the efficient redesign of a participations value-added chains. By definition, value-added chains are the zeal of connected steps running through a business which, when quickly and efficiently completed, add value to both, the friendship and the customer. With the appearance of enterprise software corpses, information technology has become a business-modeling vehicle that can assist in the redesigning of those processes.Method of implementationBefore deciding upon a BE project, the management, IT users, and the IT experts must get together to chart out Velogic Ai rlines Limited goals and identify the key processes that affect its success. Next, those processes should be reengineered to improve their effectiveness. At this point, the BE team must establish how information technology can enhance the reengineered process. Other potential benefits of information technology should be identified, such as its role in developing a business strategy to satisfy customer requirements. The BE team must maximize and streamline business process and access whether they should be changed or perhaps thrown and twisted out, before they apply technology to them.Velogic Airlines Limited has different kinds of information systems that software documentation different functions, organizational levels, and business processes. Most of these systems are built around different functions business units and business processes that do not talk to each other. Because of the challenges mentioned earlier the company has decided to set up an ERP system. seer Application c onsist of a set of interdependent modules for applications such as sales and distribution, financial accounting, investment management, and human resources that allow data to be used by multiple functions and business process for more precise organizational coordination and stamp down. The modules can communicate with each other directly or by sharing a common sedimentation of data. ERP facilitates to support organization-wide process coordination and integration. It creates an integrated organization-wide platform to coordinate key internal processes of the firm. They address the issue of organizational inefficiencies created by isolated islands of information, business processes, and technology.Information that was antecedently split in different applications can seamlessly flow throughout the company so that business processes in finance, accounts human resources, payroll and inventory can persona it. The systems collects data from various key business processes and stores th e data in a single comprehensive data repository where they can be used by other parts of the business. Managers emerge with more precise and timely information for coordinating the daily operations of the business and the company wide view of business processes and information flows.Select the process appoint process team for restructuring the process.Business processes are simply a set of activities that transform a set of inputs into a set of outputs for another person or process using people and tools.The strategic processesAccount due/ReceivableClient RecordEmployee Record procreation plansInventorySeparate systems were built over a long layover of time to support discrete business processes and discreet business functions. The organizations systems rarely include vendors and customers. Managers also required IT support in order to create accounting and inventory reports, a labour- and time-intensive project that complicated the estimation of future inventory levels and prod uct availability. In many cases, these simple reports took days to complete. It was difficult to assemble data to get an overall picture of the organizations operations.Facing increasing accounting and administrative needfully, the company wanted to streamline business uses and provide better visibility into financial information. ERP systems integrate the key business processes of the company into a single software system that allows information to flow seamlessly throughout the organization. These systems focus primarily on internal processes but may include transactions with customers and vendors.The new system proposes to give employees an easy-to-use larboard for creating reports, tracking sales and customers, and searching inventory lists. Prime benefits from BPR arepositive effect on service quality the entire organization can answer more efficiently to customer query and deliver information on timelabor resources (improved employee morale and productivity)Customer satis faction (quicker response to customer requests). ejection of bottlenecks and delays between stepsprovide simultaneous access to documents by multiple departments/peopleallow for quick, simple access to informationelimination of redundancies of work and improves accuracydecreasing defects, errorsBusiness engineering makes companies more customer-focused and responsive to changes in the market. The organisation achieves these results by reshaping merged structures around business processes. BE implements change not by the complete automation of a business but rather by the redefinition of company tasks in holistic or process-oriented terms. Only companies with innovative staff, products, and services as well as short development cycles, leave be able to retain the market or by hope to get a bigger slice of the pie. By maximizing individual and team creativity and emphasizing a process-oriented approach, BE enables a company to realize its goals.Examples of business processesWith the current practice Accounting and pay department was not able to tell what the items available in inventory were and when they were ordered without consulting the inventory department. All entry for invoices, credit notes, accounts receivable and checks had to be continually checked with each department before entering data.Human resource Payrolls had to send report for all payments. Transferred of information was done on paper and then each department made the necessary entry or adjustment. There was no master over data transmitted and on items ordered.The traditional system also affected employee productivity. Staff members struggled to use online resources to complete daily tasks. Sales teams had bother tracking customer history and face difficulty to extract data from the system. It was time consuming to use the traditional system resulting delay in work and customer dissatisfaction, as they could not get the information they requested on time. After reengineering process all departments will be interconnected. Transfer of information will occur more smoothly and on time.The process will be as followsWhen a mental reservation officer enters a customer reservation, the data flows mechanically to others in the company who need to see them. The ERP system stores the reservation information where customer service representatives can track progress and know how many seats are available. Updated sales data automatically flow to the Accounting and Finance department. The system transmits the information to calculate the companys balance sheets, accounts receivable and payable rule books and available cash. Management can view up-to-date minute data on sales and inventory at every step of the process. With the present system Accounting and Finance department get all the information automatically for instance all checks are printed now instead manually prepared. For any information required each department just have to verify on the system and it is automatica lly processed whereas before for all information they have to consult respective departments. Now there will be better control and resource management.After reengineering, staff members can perform customer service-related and inventory-related tasks without having to fan out multiple programs. Role-establish security features keep sensitive information from employees who are not definitive to view it. On the other hand, managers and employees can gain access without having to call IT support to the information that they need to perform their jobs well. Employees have access to company information from a centralised point-of-entry. Through powerful analytics-reporting tools, Velogic Airlines Limited decision makers have a way to better manage operational matters, such as reservation fulfillment and inventory levels and improved management with real-time data, such as accounts receivable.IT RequirementsA commonly disregarded area is the issue of information technology change. Oft en, the IT radical changes required to implement a new ERP visionary are not given high priority, which these technology issues otherwise, deserve. Undoubtedly, business issues should drive implementing ERP Oracle, not technology that improves business processes. Ignoring the preparation and education new information technology requires is asking for trouble. Further, IT personnel often must make the technology handing over quickly. If the technology and infrastructure transition are not done well, the project, at the very least, will be delayed.Oracle TechnologyOracle Applications include the license usage for Oracle 9i RDBMS and Oracle 9iAS Enterprise Edition software418.Oracle 9iOracle Applications run on Oracle technology. Oracle RDBMS 9i is the market leader in reliable and scalable database technology that continuously upgrades its products upgrading to the latest version is made easy with subscription to the Oracle skilful Support Service. Oracle RDBMS is the market leade r with a market share of 33.8% equal to IBM which maintained a steady 30% portion of total database sales. Microsofts SQL Server product cornered 13.9% of the market.Oracle is based on three-tier architecture. This is different from the traditional node server architecture in the way that the application instead of residing on the client now resides on the middle-tier i.e. the Application Server. This enables access of application from the client-end, which just call for to have a web browser. The three tiers of Oracles architecture are as followsPresentation tier (or user interface) This tier interfaces with the user and consists of hardware such as a PC or workstation and a web browser. This may consist of any number of client machines.Functionality /Business Logic tier- This tier provides functionality to the end users and contains the business logic (application). It provides the bridge between the first and the third tiers.Data tier This tier includes the database that con tains all the data of the organization and this is encapsulated from the end users.This three-tier architecture can work on the Intranet as well as over the Internet. A typical diagrammatic representation of the three-tier architecture of Oracle is as followsFigure 4 Oracles 3-Tier computer architectureThe various software components at the three tiers are as followsClient Tier Operating System (Windows XP/7)Java enabled web browser (Internet Explorer 8.0/higher or Mozilla Firefox 4.0 of higher)Middle Tier Platform Windows NT 4.0/Windows 2000/ insolate SolarisOracle IASDeveloper 2000 Server 2.1 (Forms Reports Server required for ERP component)Database Tier Platform Windows NT 4.0/SUN SolarisOracle 9i Workgroup serverTechnical StrengthsOracle product being based on three-tier architecture enables resource intensive components to run on Middle tier thereby moving pot of the processing load away from the client. Oracle Application server has built-in components which deliver high degree of scalability and consist of balancing, logging, automatic failure recovery, security, directory, and transaction components. The ERP based on Oracle is highly scalable and robust to handle volumes of clients requests concurrently. The Java Servlet Engine runs in a multithreaded environment and can process numerous client requests at one go.Hardware InfrastructureServer Sun Fire x4540The Sun Fire x4540 storehouse server delivers 2 to 3 times the storage density of traditional solutions the maximum data throughput at 3 GB/sec from disk to memory, and 30% to 50% power savings at roughly half of the total cost519.The specifications of Sun Fire x4540620SoftwareOracle database will be the relational database management system installed on the server. The actual Oracle 8i will be upgraded to Oracle 9i standard Edition.Operating SystemSolaris 9 Operating SystemsThe Solaris 9 Operating environment is intended to sustain Multiprocessing multithreading. SUN Microsystems servers ar e designed from the ground to have Symmetric Multiprocessing. From Entry level workstation to SUNFire 15k (106 processors), SUN Microsystems employs the same architecture (UltraSparc) and Solaris OS. Also, Solaris OS is less prone to Virus attacks strange other Operating systems721.The Solaris platform supportsOne million simultaneous processes on a single systemUp to 128 CPUs on a single systemMore than four billion network connections32- and 64-bit applicationsTwo-, four-, and eight-node clustersIPv4 and IPv6 network addressesUp to 512 CPUs in a clustered environmentClientHardwareThe client should be cogitate to the server through a local area network and have the following minimum configuration1 processor core 2 bitstock 3.00 GHz1 GB RAM320 GB HDDSoftware and Operating SystemThe client PC should be loaded with Explorer 8.0/higher or Mozilla Firefox 4.0 and should have one of the following OS Windows XP, or Windows 7.CommunicationsComputers and communications equipment can be c onnected in networks for sharing voice, data, images, sound, or even video. It is to be noted that the number of user at the company will be 60 persons. In the existing environment 30 data points are being used and with speed up to 10 mbps (megabits per second), and the proposal is to move to 100 mbps, using 60 data points, assuming that their will be 60 users. The company will need cabling whose speed is up to 100 mbps at an affordable price. Secondly, there are routers device that forwards packets of data from one LAN to another. topical anaesthetic Area Network (LAN) are recommended for applications transmitting high volumes of data and other functions requiring high transmission speeds, including video transmissions and graphics. LANs often are used to connect PCs in an office to shared printers and other resources or to link computers and computer-controlled machines in factories822.Application SoftwareOracle fiscals for Accounting SoftwareOracle Integrated Payroll/HR SystemAp plication supporting BS7799 Information Security StandardInformation is an asset that, like other business assets, has value to an organization and consequently needs to be suitably protected. Information Security protects information from a wide range of threats in order to ensure business continuity, minimize business slander and maximize return on investment and business opportunities.Information can exist in many forms. It can be printed or written on paper, stored electronically, transmitted by post or by using electronic means, shown on films and spoken in conversation. Whatever form the information takes, means by which it is shared or stored, it should always be appropriately protected.Information security is characterized as the preservation ofConfidentiality ensuring that information is accessible only by those authorized to have accessIntegrity safeguarding the accuracy and completeness of information and processing methodsAvailability ensuring that authorized users have access to information and associated assets when required.Figure 5Source BS 7799-2/2002 ISMS Specifications with counsellor for UseIncreasingly, organizations and their information systems and networks are faced with security threats from a wide range of sources, including computer-assisted fraud, espionage, sabotage, vandalism, fire or flood, sources of damage such as computer hacking and defence reaction of service attacks have become more common, more ambitious and increasingly sophisticated.The following diagram suggests a structure for the ten domains of the standard. Each domain deals with a separate topic built around administrative, technical and physical measures and driven from the top down, in other words such that its impact is felt from the management level all the way to the operational level.The 10 main control points of BS 7799 are1. Security Policy To provide management direction and support for information security.2. Organizational Security To manage informat ion security within the company3. Asset Classification and Control To maintain appropriate protection of corporate assets4. Personnel Security To reduce risks of human error and ensure that users are aware of information security threats5. Physical and Environmental Security To prevent unlicenced access to information6. Computer Operations Management To ensure the correct and secure operation of information processing7. System Access Control To control access to information8. System Development and Maintenance to protect the confidentiality, authenticity and integrity of information.9. Business Continuity Planning -To ensure business continue to blend from the effect of a disaster10. Compliance To avoid breaches of any criminal or civil lawTechnical Design RequirementsThe current system runs as three distinct and separate databases (Human Resource Payroll system, Finance Accounts system, and Inventory Management system). Currently, Velogic Airlines Limited has separate, elements in all three systems examples include the definition of departments and divisions, which is handled manually now. While they try to maintain consistency, the systems do not demand it, so they cannot easily pull department costs across the Human Resource Payroll, Finance Accounts, and Inventory databases. Departments should be defined only once and used by all data elements. Similarly, Human Resource data on employees should only be defined once on a master screen and all databases use this same information.The proposed modules for ERP areHuman Resource and Payroll SystemFinance and Accounting SystemInventory Management SystemSystems Interconnection DiagramThe figure below shows the interconnection of the three modules and gives a brief description of the systems that will support Velogic Airlines Limited main activities and their requirements.Payroll SystemHuman Resource and Payroll SystemHuman resource and payroll systems help business develop staffing requirements ident ify potential new employees maintain employee records track employee training, skills, transportation (allowances), salary, overtime and job performance and help managers develop appropriate plans for employee compensation and career development. ERP systems help the company coordinate their staffing levels with sales activities and financial resources.Employee DetailsBasic Information on Surname, Name, Maiden Name, Marital Status, Gender,Date of Birth, Age, NID, Social Security Number, Telephone Number, residential Address.Manage Recruitment process affords managementSick Leaves, Casual Leave, Computation of Annual Leaves, Refund for Contract Officers, Maternity Leave Study Leave, Leave without Pay, Leave with Pay Record and Listing, Miscellaneous Leaves e.g. Injury / SpecialLeaves Record and ListingStaff Development PlanDatabase of qualifications Professional Academic/Vocational possessed by Staff. Record of all training programmes provided to Velogic Airlines Limited staff.Perfor mance ManagementMonitor employee competencies for career planning.Payroll Basic Salary + Gross Salary Allowances paid by Type, e.g. Acting / Responsibility, etc Overtime paid Record of all Staff having received Incremental Credits Record of all Staff eligible to Uniform Allowances Deductions made Car Loan entitlement Staff entitled to Car Loan and Amount Other categories of staff eligible to Car Loan2) Finance and Accounting SystemFinance and accounting systems help firms keep track of their assets and fund flows. ERP systems integrate financial information with productions and sales information so that the impact of transactions can be immediately reflected on the companys balance sheets, accounts receivable and payable ledgers, and reports of cash flows. ERP systems will help to obtain up-to-the-minute reports of the companys overall financial performance. The accounting system should be operated on an integrated standard accounting package incorporating the following modules/func tions 23 full general LedgerPurchasingAccounts PayableAccounts ReceivableFixed Assets cash registerA. General LedgerThe system should also provide forUnlimited number of sets of accounts for as many divisions as required.Balance forward facility creating new year open balancesAll journal entries should automatically balancedCash movement report to show the net in flow/out flow of cashFinancial statements and reports such as the Profit and Loss, Balance Sheet and Sources andSupport for VAT Tax system. Rate of VAT must be more definable.The general ledger system should allow analysis of transactions by cost centres at division as may be appropriate.B. PurchasingThe bribe order processing system should integrate with the general ledger, purchase ledger and stock control systems. The system should provide foridentification of suppliers by name, product, order number, etcmonitoring of purchase orderschecking of purchase invoices against orders and deliveries for quantities and pricerep ort on outstanding orders, purchase and overdue deliverieslink multiple purchase orders or Goods Received Notes to a supplier invoiceC. Accounts PayableThe purchase ledger should integrate with the general ledger and the purchase order processing systems. It should provide forUnlimited number of suppliers accountsRecording and analysis of credit purchases returns and adjustments in accordance with user definedAnalysis codesThe recording of payment due date for each purchase invoice for settlement within credit periodPrinting of checks as per Velogic Airlines Limited formatSupport for VAT Tax system. Rate of VAT must be more definable.D. Accounts ReceivableThe debtors Ledger system should integrate with general ledger system and provide forUnlimited number of customers accountsThe recording and analysis of credit sales in accordance with user-defined analysis codesDebtor classification by categoryAutomatic generation of invoicesSupport for VAT Tax system. Rate of VAT must be more def inable.E. Fixed Assets RegisterIt is desirable that the Fixed Assets register be integrated with the general Ledger but, this is not an essential requirement. The system should provide for the followingUser defined placed assets codes as well as analysis codes for divisions, location, and types of assets, etc.Calculation of depreciation using either straight line or written down value methodsRe-e military rank of assetsMemorandum entries for each asset to keep track of the assets profile from acquisition to disposal in terms of maintenance, repairs, insurance, down-time replacement date, on loan3). Inventory Management SystemSince the inventory system is a perpetual system, all transactions are post at the time of entering, regardless of the transaction date. Therefore, if an inventory valuation is required for month-end, this report must be produced at the last working day after all current month transactions are posted and before any transactions f