MANUAL DE CARGOS Y FUNCIONES

Hammer (2010:7) identifies the following benefits of BPM: i) establishing high-performing processes can lower operational costs, speed up processes and increase accuracy and quality; ii) improvement on flexibility, customer satisfaction and service; iii) activities or processes which do not provide quality and satisfaction, are eliminated; iv) businesses are enabled to fulfil promises within their capacity, to identify processes which meet/do not meet customer needs, and to respond better to revolutionary strategies such as globalisation and e-business; and v) integration

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to ERP brings changes, unlike conservative organisations which wait until it is revealed in their financial statements.

Hammer (2010:8) reports that thousands of organisations, large and small, private and public, are benefiting from BPM, for example:

 A consumer goods manufacturer manufactures and delivers goods to its distribution centres; inventory was reduced by 25% while out-of-stock situations declined by 50%

 A computer designer developed a new product development process which reduced time to market by 75%, reduced development costs by 45%, and increased customer satisfaction with new products by 25%

 A capital goods manufacturer increased by 500% the accuracy of the availability dates on new products that it gave to customers and reduced its supply chain costs by up to 50%

 A health insurer created a new process for engaging with its customers and reduced costs by hundreds of millions of dollars while improving customer satisfaction

Jeston and Nelis (2006) insist that BPM enables organisations to be process-centric, more agile, transparent and efficient. The result is that organisations align individual departmental strategies and reduce the implementation time of proposed BPs.

Rohloff (2010b:386) states that BPM, based on the Siemens Process Framework, results in the following paybacks which were pursued with the process improvements:

 Harmonising and improving local, regional and headquarter process innovation creativities

 A common reference outline for supporting and managing all process related projects in the business units and regions created by inventiveness and innovation

 Delivering standard service levels to the global clients

 Presenting a uniform appearance to customers and business partners through Siemens-wide standardised process implementation

 Providing standard service levels to the global customers

 Enabling best practice sharing across all business units and regions

 Providing opportunity for shared services and an improved lean IT landscape through process standardisation

 Facilitating best practice involvement across all business units and regions

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Ko (2009:13) argues that the modelling and analysis of the processes in a business, or even across businesses, can bring about instant problem identification and is an important tool for the simulation of efficiencies of certain processes. Some of the prominent benefits of analysing and modelling BPs are as follows: increased ability to identify bottlenecks, increased identification of potential areas of optimisation, increased visibility and knowledge of the company’s activities, reduced lead-times, better definition of duties and roles in the company, and a good tool for fraud prevention, auditing and assessment of regulation compliance.

Although BPM is beneficial to organisations, it also holds limitations. Toyota identified the following non-value adding wastes of BPM: over-production, waiting, unnecessary transportation or movement, excess inventory, defects and unused employee creativity (Ko, 2009:3).

One of the key scholars in the field, van der Aalst (2013), states that the formal language in process modelling (such as petri-nets and algebra), is clear and allows for the assessment of processes unlike conceptual language (such as event-driven process chains and BPMN which lacks execution facts) and execution language (such as data structure and forms which provide only a sketch idea of the required performance). The conceptual and execution languages necessitate the use of Business Process Execution Language (BPEL) (symbols used which provide an execution guide and do not encapsulate during BP design). More research needs to be done on the topic (Van der Aalst, 2013). Gritzalis et al. (2014) contend that BPMN and Unified Modelling Language (UML) are vital aspects for security enhancement in BPM (at modelling and BP design). As indicated by Rosser (2008) and Jansen (2012), the benefits of BPM for business people are questionable. The complexity of BPM in presenting and documenting its requirements and the business process models makes it difficult for many organisations to achieve the desired benefits of BPs such as the ease of implementation of new or re-engineered BPs.

Helmke (2013a:21) illustrates the effects of BP complexity and argues that complexity means higher costs. Helmke (2013a:21) annotates the effects (Figures 2.13 & 2.14) as “the number of assembly parts increase, controllability and quality decrease”. In addition, “run time, unit costs, and overheads increase as well as a decrease in profits, loss of flexibility while cutting back jobs”.

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Figure 2.13: Effects of BP complexity (Helmke, 2013a:20)

According to Helmke (2013a:20), the consequences of business complexity include

“run time increase, number of repetitive activities decrease, security decrease and demand per part decrease”.

The effects and consequences of business complexity demonstrated in Figures 2.13 and 2.14 are that “the number of assembly parts increase, controllability, safety, parts demand and quality decrease, while run time, complexity, quality defects, capital necessity and general costs increase” (Helmke, 2013a:20).

Figure 2.14: Consequences of BP complexity (Helmke, 2013a:20)

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Table 2.1 summarises the literature review done on the factors affecting the agility and implementation of BPM at an organisation. The table shows the authors, research methods, arguments or findings, and standpoints on agility and BPM implementation in organisations. The majority of scholars indicate that agility and BPM have a positive effect on organisations. A few reveal that agility and neutralises (counter act on the positive effects) and inhibits (constraint) agility and BPM implementation in organisations.

Table 2.1: Summary of factors affecting FETC agility and implementation of BPM Literature

citation and contribution

Method Main argument/finding Standpoint on agility and BPM

Positive Effect

Inhibit Neutralise

Axelsson (2012)

Survey Collaborative processes, IT organisational and sub-processes are some of the most important factors affecting agility.

Rosemann and Brocke (2010)

Case study Six core elements affecting BPM are strategic alignment, governance,

Survey Factors affecting agility include cooperate foresight, capabilities, people and processes, organisational structure, positive IT and agility relation, collaboration, corporate foresight, culture of change and alignment.

Jurisch et al.

(2014)

Case survey Project management, change management and IT have a positive effect on process change (BPM capabilities) and process

Modelling part of BPM should consider BP security at higher education institutions in this competitive environment, with financial difficulties complemented by BPM its pros and cons are inherent.

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citation and contribution

Method Main argument/finding Standpoint on agility and BPM

Positive Effect

Inhibit Neutralise

Van der Aalst (2013)

Survey Process modelling is fundamental in configuring IS, analysing,

understanding, improving processes.

Managerial and technological effects improve productivity, cost savings, and run-time cutbacks.

2.8 GENERAL INFORMATION ON THEORIES RELATED TO AGILITY AND BPM