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 214453619 50%

ASHWIN PONNA VENUGOPAL 214486554 50%

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 Table of contents
Ⅰ TABLE OF CONTENTS .................................................................................................................. 2

Ⅱ EXECUTIVE SUMMARY ................................................................................................................ 3

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

ⅱ. PROBLEM ANALYSIS ......................................................................................................................... 4
ⅲ. PROPOSED SOLUTION ...................................................................................................................... 8
ⅳ. SOLUTION CONSIDERATION ......................................................................................................... 10
ⅴ. RECOMMENDATIONS........................................................................................................................ 10

Ⅳ REFERENCES ............................................................................................................................. 11

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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.

Ⅲ.

ⅰ. 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 organization’s 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 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.
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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 firm’s 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 company’s overall profit.

ⅱ. 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 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 Keith’s 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 Keith’s company has no different

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 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
Customers invoice

Sales
Receives the order

from
Checks physical stock
Production Yes
Pack, label
&write stock
Order received details

1 week
No

Shipping
and Notation Shipping
Logistics Receive Making Packi Shipping approved
order ng

Accounts Sales, shipping,

Copy of sales order
payment order &
invoice received Payment
Received

Couple of days
Purchase Request purchase
Receive dispatch &
order
invoice

5 to 6 weeks
Supplier Receive the purchase order Payment
through surface mail
Dispatch Received

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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:

Keith’s 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 out-dated
programming & equipment that diminish the effectiveness of operations in Keith's Technobuild
Pty Ltd.

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Projecting Scoping Diagram

Poor Decision making. Increasing

O customer
Order received
Lack of coordination among staff complaints
U
Stock check T
P
Scheduling order
U
Manual Delivery of order T
record S Customer
keeping orders not
(paper De fulfilled in
based CONTROLS time.
records) CONTROLS
I Order received
O
N U Less sales
Stock check
P T and decrease
U Scheduling order P
in profit.
Communica T U
Delivery of order T
tion using S S
surface
mail.
ENABLERS
De

No proper infrastructure.

No IT team.

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ⅲ. 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 Keith’s 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
company’s 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 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, company’s 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.

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To-Be Process Diagram

Customers
Places
CRM
Order

Sales
Receive the order and
create sales order

Production Receiving order for sales, check for

Receive materials
stock and update database.

In stock
Prepare
goods
Send purchase
request and
for pack
Out of stock
update database &label.

Logistics
ERP Shipping goods
Updating database

Accounts
Prepare and Send invoices

Receiving invoices

Purchase
Receive purchase
request

Organize purchase
Suppliers order
Purchase order is
SCM and
received
RSM
Materials & invoices sent

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ⅳ. 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.

ⅴ. 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 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 company’s
performance

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Ⅳ. 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 developer’s 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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