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CHINESEJOURNALOFMECHANICALENGINEERINGVo117,No4,2004565TangHongtaoTangRenzhongInstituteofManufacturingEngineering,ZhejiangUniversity,Hangzhou310027ChinaOINTRoDUCTIoNPERFORMANCEDRIVENBUSINESSPROCESSMANAGEMENTMETHOD-OLOGYFORSMALLANDMEDIUMSIZEDENTERPRISES水Abstract:Basedontheanalysisofthecommonlimitationsofbusinessprocessmanagement(BPM)methodologiesandtherequirementsofsmallandmediumsizedenterprises(SMEs)theimportanceofaperformanceconstruct”ofBPMmethodologiesisidentifiedasix-phaseperformancedrivenBPMmethodologyfortheproductionandoperationprocessesofChineseSMEsisdevelopedAcasestudyontheprocessmanagementofamediumsizedenterpriseshowsasuccessfu1exampleofrunningthemethodologyKeywords:BusinessprocessmanagementProcessmanagementmethodologyProcessperformancePerformance-drivenSmallandmediumsizedenterprisesManycompaniestodayhavecometorealizethatbusinessprocessmanagemerit(BPM)isancitectiveandcomprehensivemeanstoimprovetheperformanceofbusinessprocessesLBPMisacustomerfocusedapproachItstressessystematicanalysis,optimization,control,measurement,andmanagementofallcompanyprocessestoimprovethecompanyperformancethroughcrossfunctionalteamworkandemployeeempowermentBPMisabroadtermthatcoversavastarrayofdifferentorganizationalstrategiesfrommcremenmlcontinuousimprovement(CI)totheradicalreengineeringofthebusinessprocessescharacterizedbybusinessprocessreengineering(BPR1However,thereisagrowingbOdyofevidencethatindicatesthatneitheroftheseapproachesoffersahighdegreeofsuccessPartofthereasonisthelackofanoperablemethodologytonavigatetheimplementationAreviewoftheliteraturewouldfindsignificantamountofbusinessprocessmanagementm,ethodologieshavebeenproposedForexampleKettinger,etalLproposeda6stageBPRmethodology,Poveyproposeda14step“bestpracticeBPImethodology”,Melnyk,etal【,proposedallstepvaluedrivenprocessmanagementprocess,Elzinga,etalproposeda6stepbusinessprocessmanagementmethodology,Harringtonojproposeda“processbreakthroughmethodology”DavenportLproposeda“processiunovationmethodology”etcButananalysisofthesemethodologiessuggeststhatmostofthempursueasimilarpathandexhibitcommonalitiesinkeyareasAlmostalloftheabovemethodologiesarenonsystematicTheiremphasisstresseshandsonexperienceandcasestudiesratherthancomprehensivere-searchThelimitationsofexistingmethodologiescanbesumma-riz酣asfoliows8-10一(1)ExclusionofaperformancemeasurementMostofthemethodologiesstopattheimplementationphaseManagersdontknowwhether,andtowhatextent,thenewprocessesarebetterthantheoldones(2)“Universal”natureItisextremelydifficult,ifnotimpossible。toproduceageneralmethodologyforallkindsofprocessesinallkindsofcompaniesButmanyproposedmethodologiesdojustthatThcyarenothingmorethangeneralguidelinesattemptingtocovertheneedsofallorganizations(3)SpecialistsorientedManymethodologiesarespecia1istsdrivenHowever,thepeoplewhowanttoCalTyoutBPMinThisprojectissupportedbyNona1NaturalScienceFoundationofChins(No70071029)andProvincialScienceandTechn0logyPlanofZhejiang,ChinaOqoO11106241)ReceivedAugust26,20o3;receivedinre-visedformJune15,2004;acceptedJune23,2004theircompanyarethetruecustomers(4)Large-company-orientedMethodologiestodayassumealargecompanysettingwithlargescaleresourcesdedicatedtobnngingaboutlarge。scalereengmeenngchangesThisPaperthen,proposesaperformancedrivenBPMmethodologywitllfoellsontheproductionandoperationprocessesofsmallandmediumsizedenterprises(SMEs)ThisnewfoCHSwillalleviatemanyoftheaforementionedlimitations1CHARACTEIUSTICSoFSMES、)I,ITHTHENEWMETHoDoLoGY11CharacteristicsofSMEsTherearespecialcharacteristicsinproductionandoperationprocessesofChineseSMEswhichmayresultinsomeproblemsatleastinthefollowingfivedifierentareaswhenatraditionalBPMisappliedtoSMEs(1)ManagementperspectiveTherearebothsupportiveandunsupportivemanagementpracticesforBPMimplementationManagementpracticeswhichsupporttheapplicationofBPMincludeshortmanagementradius,highcohesion,timelydecision-making,rapidimplementationofdecisionsandchangeintheenterprise,etcThepracticesthatdonotsupportBPMareunscientitlemanagementmethod,nonstandardmanagementsystem,randomicityineverydaymanagementissues,etcTheseunsupportivemanagementpracticespreventtheacceptanceandimple-mentationofBPMinSMEs(2)OrganizationalstructureperspectiveOrganizationalgridsofSMEsaregenerallysimpleandwithlessadministrativelevelsTherefore,managerscancarryouttheirdailyactivitieswithfewerinterruptionwhichmakestheBPMimplementationmoreconvenientL“JHowever,theunstabledepartmentrelationsandambiguPUSdivisionofpowerinSMEsarenegativetotheimplementationofBPM(3)LeadershipperspectiveTheleadersofSMEsusuallykeepabsolutecontroloftheenterprisetJThatmeansleadersusuallyrejectanychangethatendangertheirsovereigntyButthissovereigntyisahugepowersupportneededtopropeltheimple-mentationofBPM(4)ResourceperspectiveSMEscannotaffordalargenumberofpeople,onafulltimebasis,toworkonaBPMprojectItwouldhindertheSMEsabilitytooperateThereforeaconsultantisneededHowever,alargeconsultancyfeecanalsobeagreatburdenforSMEsAddedtoaconsultantsfeeisITfeesBPMprojectsusuallyuseadvancedITtofacilitateoptimizationandimprovementofbusinessprocessThesehugeITfeesareusuallydifficultformanyoftheSMEs(5)BPMresultperspectiveComparedtolargeenterprises,566TangH。ngtao,etal:performance-drivenbusinessprocessmanagementmethodologyforsmallandmediumsized-enterprisesSMEsusuallyseekmoreshorttermprofitsthanlongtermproitsHowever,therealesomelongtermprofitexpectationsTheretbre,thenewmethodologywillneedtobalanteshorttermandlongtermprofitobjectivesAlloftheselimitationsandproblemsshowthatcurrentBPMmethodologiesarenotsuitableforSMEsSMEsneedadifferentspeciallydesignedBPMmethodology12SuggestedBPMmethodologyAreviewandstudyoftheliteraturesofbusinessprocessmanagementmethodologiesalongwiththeaboveanalysisofcharacteristicsofSMEssuggeststhataBPMmethodologyforSMEshouldbeasfollowsf1)PursuepracticabilityandmaneuverabilityBedevelopedformanagersandpeoplewhowanttocarryoutBPMprojectsthemselvesintheircompany(2)EmphasizetheimportanceofperformancemeasurementThemethodology,ononehand,shouldembodyenterprisesstrategy(throughperformancemeasures)to“dotherightthing”,andontheotherhand,tomonitorandcontrol(throughfeedback)thebusinessprocesses(3)Balanceshorttermandlongtermrewardsofaproject(4)BesupportedbyanintegratedsoRwaresupportsystemthatcannavigatetheBPMprojectimplementationandprovidenecessarytools13Whvperformance-drivenEnterpriseschangetheirbusinessprocessesforsurvivalandsustainingcompetitivenessAfirmnotonlyneedstosatisfytheircustomers,butalsoneedstosatisfytheirshareholders,theiremployees,governmentandthesocietyExcellentperformanceisasyntheticalembodimentbyallcustomersandstakeholdersInthisnewproposedmethodology,perf0rmaIlcedrivenisemphasizedforthefollowingreasons(1)BPMisdefinedas“astructuredapproachtoperformanceimprovement【andan“initiativetoimproveand(re)designbusinessprocessestoachievecompetitiveadvantageinperformanceLThereforepursuingperformanceisthepurposeofBPMandthemissionofaBPMprogram(2)PerformanceistheultimatedriverforBPMArmistead,eta1arguesthatthedriversforadoptingBPMale:globalization;technologychange;regulation;血eactionofstakeholders;andtheerodingofbusinessboundariestlSAcommoncorethoughtunderlyingthesedriversisthattheorganizationsabilitytoattractandmaintainexcellentperformanceisthreatenedTlisthreattherefore,motivatestheenterprisestotakestepstoinsureexcellentperformance(3)BPMshouldbeali鲷edwithstrategyconsensusBusinessprocessperformancemeasUleSafeaneffectivemediumtotranslateenterprisestrategyintoprocessactions(4)FallingtorecognizetheimportanceofperformancemeasurementisamaJ,nreasonforthehighfailurerateofBPRproject2PERFoRMANCEDRENBPMMETHoDoLoGYIngeneral,thetaskssuchasmapping,analyzing,redesign,andimplementingareinchdedinBPMmethodologicsIntheproposedperformancedrivenmethodology,threenewtaskswithconcernsofperformancemeasurementareaddedTheyareasfollows:(1)Stakeholderexpectationandenterprisestrategywhicharetrailslatedintoasetofdetailedperformancemeasuresandtheirtargetvalues(tasks7。8,16inTable1)(Currentperformanceofthetargetprocessismeasuredasthebaselineoftheimprovement(task9m1le1)Thenewprocessismeasured(task19inTable1)Newprocessperformanceisthecriteriontoiudgewhethertheob-iectivesoftheprojecthavebeenachieved21PrepareThereareanumberofpreparationtasksthatareneededtohelptheBPMprojectSsuccessThemostimportanttaskistoinsuretopmanagementssupportThecommitmentandsupportfromtopmanagersisparticularlyneededwhenacompanyisin-stallingmorecomplexprocessinnovationmodelsThatis,theTable1Performance-drivenBPMmethodologyanditstechniquesBuildabusin(7IdentifyprocessstakehoIdersStakehoIdersidentify-essprocessofthetargetprocessand也eiringandclassifyingperformancerequirementstechniques,surveymeasurement,(8)EsmbfishprocessProcessperformancesystemperformancemeasuresmcasurlelicitingtec_andsettargetvalueshniques,benchmarking(9)MeasurethetargetprocessProcessperformancecurrentperformancemeasurementtechniq-UesRedesignthe(12)Tfanslatethes切eb0lderstargetprocessrequirementsintoprocessdesignoptionsQFD(13)DesigntheprocessIDEFo,IDEF3alternatives(14)AnalyzethecostbenefitriskSimulation;Costbene-ofthealternativesfitriskanalysis(15)SelectonealternativeasIDEFo,IDEF3prototypeofnewprocessanddesignitindetail(16)Reviscprocessperformancemeasuresand也eirtargetvaluesProcessperformancemeasureselicitingtechniques,benchmar-kingenterpriseisbeingreengineeredwithneworganizationstructures,newcomputersystems,andnewbusinessprocessesThevision,mission,andstrategYshouldbediscussedandclarifiedwithtopmanagementAdditionally,theprojectscopeshouldbeclarifiedNextanumberofpreparationtasksshouldbeperformedunderthecommitmentoftopmanagers,includingbuildingandtrainingtheBPMteam,identifyingtargetprocess,anddevelopingascheduleforshortandlong-termactivitiesTheBPMteamisagroupselectedbytopmanagerswhotakesresponsibilityforthewholeimprovementprogramTheteamshouldincludeadiversityofpeopleandskillsForexamplethepeoplewhounderstandandactivelyusethecurrentprocesses,andthosewhoworkcloselywithcustomersThebestsizeteamrangesfrom3-12memberstThefirsttaskoftheteamistoclarifytheobjectivesoftheBPM,andbasedontheseobjectivesidentifyonetargetprocessOneprocessisselectedbecausefewSMEshavetheresourcesavailabletodeployananalysisanddoanimprovementOfaI】OftheirbusinessprocessesatthesarlletimeEachprocessintheenterpriseneedstobeassessedseparatelytodecidewhichofthemneedsimprovement,andinwhatsequence也eymustbeaddressedAsimplemethodofidentifyingprocesseswhichmaybeinneedofimprovementistodoaperformanceimportancematrixanalY568TangHongtao,etal:Performance-drivenbusinessprocessmanagementmethodologyforsmallandmediumsized-enterprisesHNisprofitablebutconfrontedbjtvyaanndumberofcomplaintsm。feamsueredsi衢Tcuheltyreasonthatonlytwomn1eaesyuresareusedfuismbellcmauesnefrtombothcustomersaboutpoorqualny舞longdedmelanivdseryIttimhaes,:wmgatnenngaata”aretvaorulgurl-eandtheovertimeofemployeetomeetproratiootcostoydamagetarget曲仰。蚰n竺。叫0-1qctiv一Tl1evaluesofthemeasures。triedseveralwaystoncreaseproductioncapacitydecreasecostaaysan(1vorespeety171i,u?“establishtheBPMteam,anddeveloptheprojectplanandobjec。anddisorderedprocessoftransferringproductordenItisthetivesTheBPMteamwillconsistof6membersTheyare:thepoorabilityof“quickchangingproductdesign”thatresultsinmanagerofQCdepartmentHolleyGoup;tl1eQcdepart。mentClerkHolleyGroup;meQcManagerHNDivision;theQcClerkHNDivisionandtwowritersofthisPaperThentheBPMteamistobetrainedfortheperformancedrivenBPMmethodologyHNBPMobjectivesTheobjectivesestabllishedarc:toimprovecurrentproductionandoperationprocessessoastoim。provecustomersatisfaction;toreduceemployeecomplaints;andtodecreasecostsNowthattheobjectivesaredefined,thenexttaskistoorganizeateammeetingtoreviewandbrainstormrelatedobjectiverelevantprocessesandprioritizeaccordingtotheirperformanceandimportance,asaconsequence,aperformanceimportancematrix(Fig2)isestablishedThematrixrevealsthattheorderacceptanceprocessisindeedthehargetprocessoftheprojectFollowingthesetasks,theteamneedstofocusonthetargetprocessstakeholdersandtheirrequirementinthestudy+1+6+2+3+4+5+8+7Low1Order&cceptanceprocess2Newproductdevelopmentprocess3Newproducttrial-productprocess4Manufacturingprocess5Purchaseprocess6Aftersaleserviceprocess7Manufacturingequipmentspurchaseprocess8ManufacturingequipmentsmaintenanceprocessPerformanceHighFig2Pefformanceimpoancematrix322BuildabusinessprocessperformancemeasurementsystemTargetprocessstakeholdersTheBPMteamidentifiescriticalstakeholdersforthetargetprocessTheidentificationprocesscallforthefollowingactivities:(1)Listallthestakeholders(12)ClassifYstakeholdersaccordingtopower,legitimacyandurgencyThreecriticalstakeholdersareidentifiedandtheirmosturgentrequirementsareinvestigated(Table2、Table2StakeholdersofHNCompanyCfificstakeholdersStakeholdersrequirementsCustomerEmployeeShareholderAccelerateddeliveryHighqualityQuickresponsetorequirementchangeNoworkovertimeProfitProjectcriticalconstruetshowtomeasureInordertomaketheprocessimprovcmcntphasemeasurdbletheBPMteamestab1ishestwoconstructs:Establishtheperformancemeasuresfromenterprisestrategyandthestakeholdersrequirementstomeasuretheorderacceptanceprocess(2)Conductabenchmarkingstudytosetperformancetargetvaluewhichuncoversonlytwoslowresponsetocustomerrequirementswhichultimatelypro。1ongstheorderfulfillmenttimeThedisorderedprocessof“trans-ferringproductorderlcadstonotonlytimewastedbutalsoinformationlost324RedesignthetargetprocessOurhostHolleyGroupdidnotapproveofthestudyof“quickchangingproductdesign”forreasonsunknownThereforetheteamandthestudycanonlylookatoneitemtheprocessof“transferringproductorderTheBPMteammembersorganizetheirideasandpresenttwosolutionsasshowninFig4andFig5Infirstsolution(Fig4),theprocessisradicallyredesignedHSisdeprivedofthecontrolabilityoftheordorsFurthermorethissolutionrequiresthatboththepro
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