1

Streamlining Operations: A BPMN Process Analysis for Top Company

Bhograjprakash Bhograjprakash (11018438)

Department of Supply Chain Management, SRH Rheinland, Leverkusen

LVPE-SCM-M07: Process Design and Management

Prof. Dr. Torsten Becker and Prof. Azadeh Dindarian

26th January 2024

 2

Table of Contents

Introduction ................................................................................................................................ 3

Purpose of the Report: .........................................................................................................................3

Overview of TopCompany's Operations: ............................................................................................3

Detailed Process Descriptions.................................................................................................... 3

Sales and Engineering Processes:........................................................................................................3

Order Management and Production Processes: ...................................................................................4

Process Analysis ........................................................................................................................ 4

Quality Control and Logistics: ............................................................................................................4

Accounting, HR, IT, and Engineering Integration: .............................................................................5

Conclusion and Recommendations ............................................................................................ 5

Process Evaluation: .............................................................................................................................5

Recommendations: ..............................................................................................................................6

Closing Remarks: ................................................................................................................................6

Prospects and Strategies for Future Process Execution.......................................................................6

References: ................................................................................................................................. 6
 3

Streamlining Operations: A BPMN Process Analysis for Top Company

Introduction

Purpose of the Report:

This report aims to provide a solution-focused analysis of TopCompany's operational

challenges as identified in a recent case study. We address critical inefficiencies within the
company's process flow and propose an optimized BPMN model to enhance overall
performance.

Overview of TopCompany's Operations:

TopCompany, despite its status as a market leader, faced significant operational delays
impacting its on-time delivery commitment. The company struggled with multiple internal
bottlenecks, from order management miscommunication, supplier delays affecting inventory,
to systemic issues in production and quality control. These challenges were further
exacerbated by inadequate staffing solutions and inefficient inter-departmental coordination,
leading to dissatisfaction among key customers. The report will dissect these problems and
present a BPMN-based redesign of the company's workflow to streamline operations and
ensure timely fulfillment of orders.

Detailed Process Descriptions

Sales and Engineering Processes:

The Sales process commences with an order being received and a subsequent credit approval
check. This pivotal step determines the trajectory of the order:
• If the payment is not received, the "Notify Customer" task is activated, which leads to
a message being sent to the customer pool, resulting in the cancellation of the order.
• Upon payment confirmation, the process transitions to the Engineering department,
signaling the start of a technical review.
The Engineering department plays a critical role in the initial stages of the process:
• On receiving the message from Sales, Engineering conducts a thorough review of the
customer's purchase order.
 4

• Post-review, they are responsible for developing the Bill of Materials (BOM), which
is a comprehensive list detailing the parts, items, assemblies, and other components
necessary to create a product.

Order Management and Production Processes:

After Engineering has developed the BOM, the process flows into the Order Management
department:
• Order Management is tasked with the crucial role of receiving and further developing
the BOM, ensuring it is accurate and ready for production planning.
• They serve as a nexus point, coordinating between Engineering's technical
specifications and Production's manufacturing requirements.
The Production process is a complex series of tasks that hinge on the readiness of materials
and staff:
• Production awaits the developed BOM from Order Management before initiating the
manufacturing process.
• A parallel gateway opens three simultaneous checks essential for starting production:
1. System readiness is evaluated, and if issues are detected, the IT department is
notified for necessary maintenance and upgrades.
2. Material availability is assessed, and if materials are needed, the Purchasing
department is prompted to create a purchase order.
3. Staff availability is verified, and if staffing is insufficient, the HR department
is alerted to manage staffing levels and address any unplanned leaves.
• These checks are crucial in mitigating delays and ensuring that the production process
starts only when all systems are 'go', directly addressing the operational inefficiencies
highlighted in the case study.
Material procurement, a noted bottleneck in the case study, is streamlined by the Purchasing
department's prompt creation of purchase orders and confirmation of delivery dates, thus
ensuring that the Production department receives materials in a timely fashion to meet
manufacturing schedules.
Process Analysis

Quality Control and Logistics:

The case study highlighted the delays in quality inspections due to new supplier integrations,
which added up to a week's delay, and in some instances, resulted in a backlog in the
 5

incoming goods inspection. The BPMN process introduced addressed this issue by
implementing a more streamlined approach to quality control checks, ensuring quicker
movement of materials from the ramp to the warehouse and processing in the ERP system.
Logistics, on the other hand, faced challenges with on-time delivery due to the late arrival of
products. The improved process ensures that once Quality Control passes the products,
Logistics is promptly informed to arrange for delivery and dispatch, with tasks like "Arrange
Delivery" and "Dispatch Product" followed by optimization tasks "Automate Shipping
Process" and "Optimize Dispatch System" to enhance efficiency.

Accounting, HR, IT, and Engineering Integration:

Accounting processes were hindered by delays in dispatching products, which directly

affected invoice generation and cash flow. The new process allows for immediate notification
to the Finance department upon dispatch to expedite invoicing. HR's role in the new process
addresses staffing issues, with tasks for managing both "Staffing Management" and "Handle
Unplanned Leaves" to mitigate the impact of absenteeism on production. IT's involvement is
crucial in system maintenance and support, with the new process incorporating checks for
system readiness and a direct line to IT for resolving issues, thus preventing delays in
production due to technical failures. Engineering contributes significantly to BOM
development and supplier communication, with the optimized process ensuring that any
adjustments requested by customers are promptly communicated to Engineering, leading to
accurate and timely order management.
Overall, the optimized BPMN process directly addresses the critical issues raised in the case
study, presenting a solution-oriented approach that is poised to enhance operational efficiency
and ensure on-time delivery of orders, as envisioned by the CEO of TopCompany.

Conclusion and Recommendations

Process Evaluation:

The revised BPMN process, addressing TopCompany's operational challenges, showcases

significant strengths in enhancing inter-departmental communication, improving process
efficiency, and reducing order fulfillment delays. Notably, the integration of real-time system
checks in IT and rigorous quality control mechanisms has elevated the process reliability.
However, potential areas for improvement still exist, particularly in adapting to fluctuating
 6

market demands and incorporating customer feedback more dynamically into the operational
workflow.

Recommendations:

1. Agile Response Mechanisms: Implement agile methodologies to quickly adapt to

changing customer needs and market conditions.
2. Continuous Process Monitoring: Establish a system for continuous monitoring and
evaluation of each process step to identify and rectify inefficiencies promptly.
3. Enhanced Customer Integration: Develop a more customer-centric approach by
incorporating direct feedback mechanisms into the Sales and Order Management
processes.
4. Cross-Training Employees: To address staffing issues, cross-train employees in
multiple roles, especially in critical areas like Production and Quality Control.
5. Invest in Advanced Technology: Utilize AI and machine learning for predictive
analytics in inventory management and to anticipate maintenance needs in IT.

Closing Remarks:

The BPMN redesign significantly refines TopCompany’s operational processes, establishing

a more cohesive and efficient workflow. This alignment not only addresses the existing
bottlenecks but also sets a foundation for continuous improvement and adaptability to future
challenges.

Prospects and Strategies for Future Process Execution

Looking forward, the implementation of these optimized processes and the continuous
refinement based on market trends and technological advancements will be crucial. The
commitment to evolving these workflows will ensure TopCompany not only meets its current
objective of 24-hour delivery schedules but also remains a competitive and customer-centric
entity in its industry.

References:

• TopCompany. (2023). Process Management Case Study. [Case study document].