Hello.. Develop a process map for the accounts payable process at Frizz Master Hair Product Manufacturer, as described in the word document page. I've attached 2 documents Ass 11.1 is the assignment,

❑ Business Process Reengineering (BPR) ❑ Business Process modelling ❑ Various types of process models and their components ◼ Develop process improvement suggestions ◼ Use basic flowcharting techniques to map a business process 5 Business Process Reengineering ◼ Defined as: ❑ “A quality improvement philosophy that recommends radical change to achieve radical improvements” ◼ Purpose:

❑ Achieve significant levels of improvement in quality, time management, and cost ▪ Source: searchcio.techtarget.com . 6 Business Process Reengineering ◼ Made popular Michael Hammer and James Champy when they published their best - selling book, " Reengineering the Corporation “ in the early 1990’s. ◼ Promoted the idea that sometimes, radical redesign and reorganization of an enterprise was necessary to lower costs and increase quality ◼ Hammer and Champy argued that information technology was the key enabler for that radical change in BPR. 7 Hammer and Champy’s 7 Steps to BPR 1. Organize around outcomes , not tasks. 2. Identify all the processes in an organization and prioritize them in order of redesign urgency . 3. Integrate information processing work into the real work that produces the information.

4. Treat geographically dispersed resources as though they were centralized . 5. Link parallel activities in the workflow instead of just integrating their results.

6. Put the decision point where the work is performed and build control into the process.

7. Capture information once and at the source. 8 What is Business Process Modelling?

◼ An activity used to generate documentation of business processes from beginning to end ❑ Visual representation ( e.g. a “map”) ❑ Written documentation ( e.g. “instructions”/details) ◼ Often used to analyze:

❑ The existing “As Is” state ❑ Potential future “To Be” states ◼ “Successive Refinement/drill down” concept ❑ Models can be viewed at several levels of detail 9 Purpose ◼ Document and understand current processes ◼ Analyze potential processes ❑ Compare and contrast ◼ Identify weaknesses and opportunities for improvement ◼ Support in:

❑ Redesigning processes ❑ Implementing software systems ( e.g. SAP) 10 Process Modelling ◼ Business processes can be quite complex ◼ Process model : ❑ Any abstract representation of a process ◼ Process -modelling tools provide a way to describe a business process so that all participants can understand the process 11 Process Modelling (cont’d.) ◼ Advantages of process models ❑ Graphical representations are usually easier to understand than written descriptions ❑ Provide a good starting point for analyzing a process ◼ Participants can design and implement improvements ❑ Document the business process ◼ Easier to train employees to support the business process 12 Flowcharting Process Models ◼ Flowchart ❑ Any graphical representation of the movement or flow of concrete or abstract items ❑ Clear, graphical representation of a process from beginning to end ❑ Uses a standardized set of symbols ◼ Process mapping ❑ Often used interchangeably with flowcharting ❑ Specifically refers to activities occurring within an existing business process 13 Flowcharting Process Models (cont’d.) 14 Figure 7 -1 Basic flowcharting symbols Flowcharting Process Symbols (cont’d.) ◼ Process Boundaries (oblong shape) define which activities:

❑ are to be included in the process ❑ are considered part of environment, and therefore external to the process (and/or out of scope) ◼ All processes should have only one beginning point but could have one or more ending points (eg . if decisions are used) 15 Flowcharting Process Symbols (cont’d.) ◼ Operations (rectangle shape) define the tasks or steps required to execute the process ◼ Decisions (diamond shape) ask a question that can be answered with “yes” or “no” ❑ If you find you have choices between 2 options, you almost always need a decision box ❑ One decision can be followed by another ❑ Keep it simple – more than 2 outcome choices may make it confusing for reader to follow. 16 Flowcharting Process Symbols (cont’d.) ◼ Direction of Logic (arrow) define which direction to follow for the next process step ◼ Connectors (# in a circle) provide a way to continue process maps from one page to another, and can ❑ be used to simplify the map even if it is a single page ❑ eliminate long winding arrows that might otherwise criss -cross over operation steps ❑ Make the map visually easier to follow 17 Flowcharting Process Symbols (cont’d.) ◼ To use a Connector : ◼ Each connector would be a circled number ( eg . at the bottom of page 1) ◼ a matching connector of the same number placed elsewhere in the flowchart is where you should start reading again (eg . top of page 2 or middle of page 3, etc.) ❑ See the example in figure 7.2; page 186 of textbook ❑ Connectors could also be used to loop back within the process on a single page, or multiple pages to reduce creating redundant Operation steps 18 Standardization ◼ Why is it necessary?

❑ Consistency in documentation/communication ❑ Collaborative processes that span many organizations ❑ Software tools exist for implementing business processes in software 19 Process Modelling Example Fitter Snacker Expense Reporting Process 20 FS Expense Report Process ◼ Maria, Fitter Snacker salesperson ❑ Completes a paper expense report after travel ❑ Makes a copy for her records ❑ Attaches receipts for any expenses over $25 ❑ Mails it to her zone manager at the branch office 21 FS Expense Report Process ◼ Kevin, zone manager ❑ Reviews expense report ❑ Approves report or mails it back to Maria asking for explanation, verification, or modification ❑ After approval, mails it to corporate office ◼ Process at corporate office ❑ Accounts payable (A/P) clerk 22 Figure 7 -2 Partial process map for Fitter Snacker expense -reporting process 23 Extensions of Process Mapping ◼ Hierarchical modelling : ❑ Ability to flexibly describe a business process in greater or less detail , depending on the task at hand ◼ modelling software that supports hierarchical modelling ❑ Provides user the flexibility to move easily from higher -level, less detailed views to the lower -level, more detailed views 24 Figure 7 -3 Hierarchical modelling 25 Extensions of Process Mapping (cont’d.) ◼ Deployment flowcharting ❑ Swimlane flowchart ❑ Depicts team members across the top ❑ Each step is aligned vertically under the appropriate employee or team ❑ Clearly identifies each person’s tasks in the process 26 Figure 7 -4 Deployment, or swimlane, flowcharting of the FS expense report process 27 Process Improvement - Value Analysis Value Analysis ◼ Each activity in the process is analyzed for the value it adds to the product or service ◼ Value added is determined from the perspective of customer ❑ Real value : value for which the customer is willing to pay ❑ Business value : value that helps the company run its business ❑ No value : an activity that should be eliminated 28 Coil Movement 29 Coil Storage 30 Uncoiler & Small Press 31 Value Analysis of Coil Steel Process No. Step Description Time (hrs) Space (M Sq) Distance (M) VA/NVA 1 Unload coil of steel from truck into receiving area with inspection status 0.50 3.00 15.00 2 Verify steel type and weight 0.25 0.00 0.00 3 Perform SAP Purchase receipt transaction 0.13 0.00 0.00 4 Request crane to move the coil to inspection 0.13 0.00 0.00 5 Crane moves the coil to incoming inspection laydown area 0.25 3.00 20.00 6 Perform Quality inspection 1.00 3.00 0.00 7 Create inspection tag and attach it to the coil 0.13 0.00 0.00 8 Request crane to move the coil to putaway laydown area 0.13 0.00 0.00 9 Crane moves the coil to putaway laydown area 0.25 3.00 20.00 10 Location is selected and crane is requested to move the coil to selected storage location 0.13 0.00 50.00 11 Material waits until it is scheduled to a press line 36.00 3.00 0.00 12 Request crane to move the coil to scheduled press line storage area 0.13 0.00 0.00 13 Material waits until it is required for use on the press line 12.00 3.00 0.00 14 Request crane to load the coil onto the uncoiler on the press line 0.13 0.00 0.00 15 Load coil onto the uncoiler feed into press 0.25 3.00 10.00 16 Make Parts as scheduled 2.00 0.00 10.00 53.38 21.00 125.00 32 Evaluating Process Improvement ◼ Disrupting the current process to make changes can be costly and time consuming ◼ Dynamic process modelling takes a basic process flowchart and puts it into motion ❑ Uses computer simulation techniques to facilitate the evaluation of proposed process changes ◼ Computer simulation ❑ Uses repeated generation of random variables that interact with a logical model of the process ❑ Predict performance of the actual system 33 Lucidchart Demo ◼ How Lucidchart can help you visualize your business processes - YouTube 34 SAP Plan to Manufacture Process Example Demand Management Production Order Execution Vendor Customer Fin.Goods Inventory Supply Planning (MPS/MRP) ATPPlan Capacity Eval. Customer Sales Orders Exception Monitoring Pur. Req. → Pur. Orders to Vendors Raw Materials Inventory Dispatching Sales & Operations Planning Long Term (“what if”) planning Non -Operative Planning Planned Orders ATPCRTD ATPREL 1 2 3 4 5 6 7 8 35 Cross Reference With Testing Scripts Index Number Script Number and Description 50 EXEC101 -1 Convert Planned Orders to Production Orders using COHV EXEC101 -2 Release Production Orders using COHV EXEC101 -3 Confirm Production Order Header for a quantity smaller than planned EXEC101 -4 Close out the Production Order using TECO 51 EXEC201 -1 Create Ref Op Set and Trial R&D Production Order EXEC201 -2 Execute and Confirm the Trail R&D Production Order 52 EXEC301 -1 Set up Phantom Assembly; produce F and use up some W stock; G/R some W stock with 531 movement 53 EXEC401 -1 Create and Process a Repack Prod Order in DC1010 or 1015 55 EXEC501 -0 Set up settings per user one time setup EXEC501 -1 Run the Production Schedule report for a single work center; print it EXEC501 -2 Run the Production Schedule report for several work centers EXEC501 -3 Run the Production Schedule report for a Capacity Planner Group Cross Reference With SAP Tcodes Production Execution Process Summary ◼ Business processes ❑ Process modelling : fundamental tool in understanding and analyzing business processes ◼ Technology ❑ ERP systems are designed to provide the information, analysis tools, and communication abilities to support efficient and effective business processes ❑ Most challenges to ERP implementation involve managing personnel and their reactions to the change , rather than managing technical issues 39 Summary (cont’d.) ◼ Process mapping:

❑ Process -modelling tool that uses graphical symbols to document business processes ❑ Other methodologies: hierarchical modelling, deployment flowcharting, event process chain diagramming, value analysis, and business process improvement 40 In - Class Assignment ◼ Complete assignment 12.1 using Excel, Word or Visio to map the process ❑ Note: if using Visio you must save as a .PDF file ! I do not have Visio on my home computer so any . vsd submissions will be unreadable and therefore receive a mark of zero! ◼ Assignments can be completed in groups of no more than 3 people or individually ◼ Be sure to include the name(s) of all students who participated in the 12.1 file name as well as in the submission comments area of BB. ▪ File name example: “12.1 Thomas_Angelo_David ” 41