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CHINESEJOURNALOFMECHANICALENGINEERINGVo1.17,No.4,2004565TangHongtaoTangRenzhongInstituteofManufacturingEngineering,ZhejiangUniversity,Hangzhou310027.ChinaOINTRoDUCTIoNPERFORMANCE.DRIVENBUSINESSPROCESSMANAGEMENTMETHODOLOGYFORSMALLANDMEDIUMSIZED.ENTERPRISES水AbstractBasedontheanalysisofthecommonlimitationsofbusinessprocessmanagementBPMmethodologiesandtherequirementsofsmallandmediumsized.enterprisesSMEs.theimportanceofaperformanceconstructofBPMmethodologiesisidentified.asixphaseperformance.drivenBPMmethodologyfortheproductionandoperationprocessesofChineseSMEsisdeveloped.Acasestudyontheprocessmanagementofamedium.sizedenterpriseshowsasuccessfu1exampleofrunningthemethodology.KeywordsBusinessprocessmanagementProcessmanagementmethodologyProcessperformancePerformancedrivenSmallandmediumsizedenterprisesManycompaniestodayhavecometorealizethatbusinessprocessmanagemeritBPMisancitectiveandcomprehensivemeanstoimprovetheperformanceofbusinessprocessesL.BPMisacustomerfocusedapproach.Itstressessystematicanalysis,optimization,control,measurement,andmanagementofallcompanyprocessestoimprovethecompanyperformancethroughcrossfunctionalteamworkandemployeeempowerment.BPMisabroadtermthatcoversavastarrayofdifferentorganizationalstrategiesfrommcremenmlcontinuousimprovementCItotheradicalreengineeringofthebusinessprocesses.characterizedbybusinessprocessreengineeringBPR1.However,thereisagrow.ingbOdyofevidencethatindicatesthatneitheroftheseap.proachesoffersahighdegreeofsuccess.Partofthereasonisthelackofanoperablemethodologytonavigatetheimplementation.Areviewoftheliteraturewouldfindsignificantamountofbusinessprocessmanagementm,ethodologieshavebeenproposed.Forexample.Kettinger,etalL.proposeda6stageBPRmethod.ology,Poveyproposeda14stepbestpracticeBPImethodology,Melnyk,etal【,proposedallstepvaluedrivenprocessmanagementprocess,Elzinga,etalproposeda.6stepbusinessprocessmanagementmethodology,Harringtonojproposedaprocessbreakthroughmethodology.DavenportLproposedaprocessiunovationmethodology.etc.Butananalysisofthesemethodologiessuggeststhatmostofthempursueasimilarpathandexhibitcommonalitiesinkeyareas.Almostalloftheabovemethodologiesarenonsystematic.Theiremphasisstresseshandsonexperienceandcasestudiesratherthancomprehensiveresearch.Thelimitationsofexistingmethodologiescanbesummariz酣asfoliows810.一1Exclusionofaperformancemeasurement.Mostofthemethodologiesstopattheimplementationphase.Managersdontknowwhether,andtowhatextent,thenewprocessesarebetterthantheoldones.2Universalnature.Itisextremelydifficult,ifnotimpos.sible。toproduceageneralmethodologyforallkindsofprocessesinallkindsofcompanies.Butmanyproposedmethodologiesdojustthat.Thcyarenothingmorethangeneralguidelinesattemptingtocovertheneedsofallorganizations.3Specialistsoriented.Manymethodologiesarespecia1.istsdriven.However,thepeoplewhowanttoCalTyoutBPMinThisprojectissupportedbyNona1NaturalScienceFoundationofChinsNo.70071029andProvincialScienceandTechn0logyPlanofZhejiang,ChinaOqo.O11106241.ReceivedAugust26,20o3receivedinrevisedformJune15,2004acceptedJune23,2004theircompanyarethetruecustomers.4Largecompanyoriented.Methodologiestodayassumealargecompanysettingwithlarge.scaleresourcesdedicatedtobnngingaboutlarge。scalereengmeenngchanges.ThisPaperthen,proposesaperformance.drivenBPMmeth.odologywitllfoellsontheproductionandoperationprocessesofsmallandmediumsizedenterprisesSMEs.ThisnewfoCHSwillalleviatemanyoftheaforementionedlimitations.1CHARACTEIUSTICSoFSMES、I,ITHTHENEWMETHoDoLoGY1.1CharacteristicsofSMEsTherearespecialcharacteristicsinproductionandoperationprocessesofChineseSMEswhichmayresultinsomeproblemsatleastinthefollowingfivedifierentareaswhenatraditionalBPMisappliedtoSMEs.1Managementperspective.TherearebothsupportiveandunsupportivemanagementpracticesforBPMimplementation.ManagementpracticeswhichsupporttheapplicationofBPMincludeshortmanagementradius,highcohesion,timelydeci.sionmaking,rapidimplementationofdecisionsandchangeintheenterprise,etc.ThepracticesthatdonotsupportBPMareunsci.entitlemanagementmethod,nonstandardmanagementsystem,randomicityineverydaymanagementissues,etc.TheseunsupportivemanagementpracticespreventtheacceptanceandimplementationofBPMinSMEs.2Organizationalstructureperspective.OrganizationalgridsofSMEsaregenerallysimple.andwithlessadministrativelevels.Therefore,managerscancarryouttheirdailyactivitieswithfewerinterruptionwhichmakestheBPMimplementationmoreconven.ientLJ.However,theunstabledepartmentrelationsandambigu.PUSdivisionofpowerinSMEsarenegativetotheimplementationofBPM.3Leadershipperspective.TheleadersofSMEsusuallykeepabsolutecontroloftheenterprisetJ.Thatmeansleadersusuallyrejectanychangethatendangertheirsovereignty.ButthissovereigntyisahugepowersupportneededtopropeltheimplementationofBPM.4Resourceperspective.SMEscannotaffordalargenumberofpeople,onafulltimebasis,toworkonaBPMproject.ItwouldhindertheSMEsabilitytooperate.Thereforeaconsultantisneeded.However,alargeconsultancyfeecanalsobeagreatburdenforSMEs.AddedtoaconsultantsfeeisITfees.BPMprojectsusuallyuseadvancedITtofacilitateoptimizationandimprovementofbusinessprocess.ThesehugeITfeesareusuallydifficultformanyoftheSMEs.5BPMresultperspective.Comparedtolargeenterprises,.566TangH。ngtao,etalperformancedrivenbusinessprocessmanagementmethodologyforsmallandmediumsizedenterprisesSMEsusuallyseekmoreshorttermprofitsthanlongtermpro/itsHowever,therealesomelongtermprofitexpectations.Theretbre,thenewmethodologywillneedtobalanteshorttermandlongtermprofitobjectives.AlloftheselimitationsandproblemsshowthatcurrentBPMmethodologiesarenotsuitableforSMEs.SMEsneedadifferentspeciallydesignedBPMmethodology.1.2SuggestedBPMmethodologyAreviewandstudyoftheliteraturesofbusinessprocessmanagementmethodologiesalongwiththeaboveanalysisofcharacteristicsofSMEssuggeststhataBPMmethodologyforSMEshouldbeasfollows.f1Pursuepracticabilityandmaneuverability.BedevelopedformanagersandpeoplewhowanttocarryoutBPMprojectsthemselvesintheircompany.2Emphasizetheimportanceofperformancemeasurement.Themethodology,ononehand,shouldembodyenterprisesstrategythroughperformancemeasurestodotherightthing,andontheotherhand,tomonitorandcontrolthroughfeedbackthebusinessprocesses3Balanceshorttermandlongtermrewardsofaproject.4BesupportedbyanintegratedsoRwaresupportsystemthatcannavigatetheBPMprojectimplementationandprovidenecessarytools.13WhvperformancedrivenEnterpriseschangetheirbusinessprocessesforsurvivalandsustainingcompetitiveness.Afirmnotonlyneedstosatisfytheircustomers,butalsoneedstosatisfytheirshareholders,theiremployees,governmentandthesociety.Excellentperformanceisasyntheticalembodimentbyallcustomersandstakeholders.Inthisnewproposedmethodology,perf0rmaIlcedrivenisemphasizedforthefollowingreasons.1BPMisdefinedasastructuredapproachtoperformanceimprovement【andaninitiativetoimproveandredesignbusinessprocessestoachievecompetitiveadvantageinperformanceL.Therefore.pursuingperformanceisthepurposeofBPMandthemissionofaBPMprogram.2PerformanceistheultimatedriverforBPM.Armistead,eta1.arguesthatthedriversforadoptingBPMaleglobalizationtechnologychangeregulation血eactionofstakeholdersandtheerodingofbusinessboundariestlS.Acommoncorethoughtunderlyingthesedriversisthattheorganizationsabilitytoattractandmaintainexcellentperformanceisthreatened.T}listhreat.therefore,motivatestheenterprisestotakestepstoinsureexcellentperformance.3BPMshouldbeali鲷edwithstrategyconsensus.BusinessprocessperformancemeasUleSafeaneffectivemediumtotranslateenterprisestrategyintoprocessactions.4FallingtorecognizetheimportanceofperformancemeasurementisamaJ,nreasonforthehighfailurerateofBPRproject.2PERFoRMANCE.DRⅣENBPMMETHoDoL.oGYIngeneral,thetaskssuchasmapping,analyzing,redesign,andimplementingareinchdedinBPMmethodologics.Intheproposedperformancedrivenmethodology,threenewtaskswithconcernsofperformancemeasurementareadded.Theyareasfollows1Stakeholderexpectationandenterprisestrategywhicharetrailslatedintoasetofdetailedperformancemeasuresandtheirtargetvaluestasks7。8,16inTable1.Currentperformanceofthetargetprocessismeasuredasthebaselineoftheimprovementtask9.m1le1.Thenewprocessismeasuredtask19inTable1.Newprocessperformanceisthecriteriontoiudgewhethertheobiectivesoftheprojecthavebeenachieved.2.1PrepareThereareanumberofpreparationtasksthatareneededtohelptheBPMprojectSsuccess.Themostimportanttaskistoinsuretopmanagementssupport.Thecommitmentandsupportfromtopmanagersisparticularlyneededwhenacompanyisinstallingmorecomplexprocessinnovationmodels.Thatis,theTable1PerformancedrivenBPMmethodologyanditstechniquesBuildabusin.7IdentifyprocessstakehoIdersStakehoIdersidentifyessprocessofthetargetprocessand也eiringandclassifyingperformancerequirementstechniques,surveymeasurement,8EsmbfishprocessProcessperformancesystemperformancemeasuresmcasurlelicitingtec_andsettargetvalueshniques,benchmarking9MeasurethetargetprocessProcessperformancecurrentperformancemeasurementtechniqUesRedesignthe12Tfanslatethes切eb0lderstargetprocessrequirementsintoprocessdesignoptionsQFD13DesigntheprocessIDEFo,IDEF3alternatives14Analyzethecost/benefit/riskSimulationCost/beneofthealternativesfit/riskanalysis15SelectonealternativeasIDEFo,IDEF3prototypeofnewprocessanddesignitindetail16Reviscprocessperformancemeasuresand也eirtargetvaluesProcessperformancemeasureselicitingtechniques,benchmarkingenterpriseisbeingreengineeredwithneworganizationstructures,newcomputersystems,andnewbusinessprocesses.Thevision,mission,andstrategYshouldbediscussedandclarifiedwithtopmanagement.Additionally,theprojectscopeshouldbeclarified.Nextanumberofpreparationtasksshouldbeperformedunderthecommitmentoftopmanagers,includingbuildingandtrainingtheBPMteam,identifyingtargetprocess,anddevelopingascheduleforshortandlongtermactivities.TheBPMteamisagroupselectedbytopmanagerswhotakesresponsibilityforthewholeimprovementprogram.Theteamshouldincludeadiversityofpeopleandskills.Forexample.thepeoplewhounderstandandactivelyusethecurrentprocesses,andthosewhoworkcloselywithcustomers.Thebestsizeteamrangesfrom312memberst.ThefirsttaskoftheteamistoclarifytheobjectivesoftheBPM,andbasedontheseobjectives.identifyonetargetprocess.OneprocessisselectedbecausefewSMEs.havetheresourcesavailabletodeployananalysisanddoanimprovementOfaI】Oftheirbusinessprocessesatthesarlletime.Eachprocessintheenterpriseneedstobeassessedseparatelytodecidewhichofthemneedsimprovement,andinwhatsequence也eymustbeaddressed.Asimplemethodofidentifyingprocesseswhichmaybeinneedofimprovementistodoaperformance/importancematrixanalY568TangHongtao,etalPerformancedrivenbusinessprocessmanagementmethodologyforsmallandmediumsizedenterprisesHNisprofitablebutconfrontedbjtvyaanndumberofcomplaintsm。feamsueredsi.衢Tcuheltyrea.sonth.ato.nly..two.mn1eaesyuresareusedfuismbellcmauesnefrtombothcustomersaboutpoorqualny舞longdedmelanivds.eryIttimhaes,wmgatn..enngaata.aretvaorulgurleandtheovertimeofemployeetomeetproratiootcostoydamagetarget曲仰。蚰n№竺。叫.01qctiv一..Tl1evaluesofthemeasures。triedseveralwaystoncreaseproductioncapacitydecreasecost/aaysan1v/orespeety171i,u.establishtheBPMteam,anddeveloptheprojectplanandobjec。and②disorderedprocessoftransferringproductordenItisthetives.TheBPMteamwillconsistof6members.TheyarethepoorabilityofquickchangingproductdesignthatresultsinmanagerofQ.C.department.HolleyGoup②tl1eQ.c.depart。mentClerk.HolleyGroup③meQ.c.ManagerHNDivisiontheQ.c.ClerkHNDivisionand⑨twowritersofthisPaper.Then.theBPMteamistobetrainedfortheperformancedrivenBPMmethodology.HNBPMobjectives.Theobjectivesestabllishedarctoimprovecurrentproductionandoperationprocessessoastoim。provecustomersatisfaction②toreduceemployeecomplaintsand⑧todecreasecosts.Nowthattheobjectivesaredefined,thenexttaskistoorganizeateammeetingtoreviewandbrainstormrelatedobjectiverelevantprocessesandprioritizeaccordingtotheirperformanceandimportance,asaconsequence,aperformance/importancematrixFig.2isestablished.Thematrixrevealsthattheorderacceptanceprocessisindeedthehargetprocessoftheproject.Followingthesetasks,theteamneedstofocusonthetargetprocessstakeholdersandtheirrequirementinthestudy.16234587Low1.Ordercceptanceprocess2.Newproductdevelopmentprocess3.Newproducttrialproductprocess4.Manufacturingprocess5.Purchaseprocess6.Aftersaleserviceprocess7.Manufacturingequipmentspurchaseprocess8.ManufacturingequipmentsmaintenanceprocessPerformanceHighFig.2Pefformance/impo.ancematrix3.2.2BuildabusinessprocessperformancemeasurementsystemTargetprocessstakeholders.TheBPMteamidentifiescriticalstakeholdersforthetargetprocess.Theidentificationprocesscallforthefollowingactivities1Listallthestakeholders.12Clas.sifYstakeholdersaccordingtopower,legitimacyandurgency.ThreecriticalstakeholdersareidentifiedandtheirmosturgentrequirementsareinvestigatedTable2、Table2StakeholdersofHNCompanyCfificstakeholdersStakeholdersrequirementsCustomerEmployeeShareholderAccelerateddeliveryHighqualityQuickresponsetorequirementchangeNoworkovertimeProfitProjectcriticalconstruetshowtomeasure.Inordertomaketheprocessimprovcmcntphasemeasurdble.theBPMteamestab.1ishestwoconstructsEstablishtheperformancemeasuresfromenterprisestrategyandthestakeholdersrequirementstomeasuretheorderacceptanceprocess.2Conductabenchmark.ingstudytosetperformancetargetvaluewhichuncoversonlytwoslowresponsetocustomerrequirementswhichultimatelypro。1ongstheorderfulfillmenttime.Thedisorderedprocessoftransferringproductorderlcadstonotonlytimewastedbutalsoinformationlost.3.2.4RedesignthetargetprocessOurhostHolleyGroupdidnotapproveofthestudyofquickchangingproductdesignforreasonsunknown.Thereforetheteamandthestudycanonlylookatoneitemtheprocessoftransferringproductorder.TheBPMteammembersorganizetheirideasandpresenttwosolutionsasshowninFig.4andFig.5.InfirstsolutionFig.4,theprocessisradicallyredesigned.HSisdeprivedofthecontrolabilityoftheordors.Furthermore.thissolutionrequiresthatboththeproductdesignabilityandtheproductdesignprocessaregreatlyimproved,buttheserequiremcntsareextremelydi衔cultforHEtomeetinashorttime.InthesecondsolutionFig.5,theprocessisonlychangedslightly,buttheprocessisstandardizedbytwoformswhicharccreatedasthecarrierforstandardizingtheinformationtransferandastherecordfordefiningrcsponsibility.Thefirstformistechnicalfeasibilityconfirmationform.whichisusedinstep2.ThesecondforilliSorderfoITI1ofHS.whichisusedinstep6.Consideringthedifficultyofimplementingthefirstsolutioninthecustomerssituation.thesecondsolutionFig.5isadopted.ButthefirstsolutionFig4、iskeptasasparesolutionandwillbeimplementedoncethedi衔cultyofimplementationisdecreased.thatis.theproductdesignabilityandtheproductdesignprocessofHEareimproved.32.5ImplementthetargetprocessHolleyGroupestablishesaforcibleindustrialstandardwhichnotonlystandardizestheorderacceptanceprocessindetailbutalsoexplaiashowtocarryoutthenewprocess.Thisstandardisforciblyimplementedinthewholegrouptoensurefunimplementationofthenewprocess.32.6MeasurethetargetprocessTheDrojectteamandhostagreeto12111atestforthreemonthstoseeiftheperforrflancehasbeenimproved.TheresultsshowninTable3arerecordedbeforeandafterthenewprocessimplementation.Table3ImplementingresultofthenewprocessFromtheaboveevaluationresults,theoperationperformancehasbeenobviouslyimprovedintwodifferentperformancemeasures.But.itisfoundthatthefax/telexpensesbetwccnsalesn眦HSandHNincreasesbyalargeamount.Inordertodealwiththisproblem,awebbasedordertransfersystemissuggested.This1I暑1墨譬等om1事o,l
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