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8/7/2019 Quality Assurance Institute 1

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QUALITY AND PRODUCTIVITY INSTITUTE

Case Study Of

Business ProcessReengineering

Mid Term Research

Presented By

El Shaymaa Mohamed Nassar

Magda Hassan Heshmat

Under Supervision of

Dr. Mohammad Mansour

February 2011


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This research studies the effect of using IT tools with different approach onBPR outcomes through existing cases. The research assumes replacement ofa series of managerial blocks with online supply. It simulates benchmarkingof New application versus the old one.


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Contents

Introduction ..................................................................... Error: Reference source not found

Background & Literature Review ................................... Error: Reference source not found

Contents...............................................................................................................................3

Introduction ..........................................................................................................................4

Background & Literature Review ........................................................................................6

Problem Statement ..............................................................................................................9

Planning ............................................................................................................................. 12

Design and Implementation ...............................................................................................15

Conclusion ......................................................................................................................... 22

References ..........................................................................................................................22

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Introduction

The modern business tendency is TQM Total Quality Management application to

get competitive position within national or international market. Also, non-profitable

firms tend to reduce costs and improve products and services.

Taking TQM as a target of organization, a comprehension of TQM terminology must be

considered as a policy of top management. The TQM can be an integration of different

managerial departments to realize high qualified product or service in order to increase

customer satisfaction, reduce costs of serial processes and consequently increase incomes

of firm. Such a target is followed by identifying eight essential clauses refer to ISO9000

even if firm does not intent to get certificate, which are:

1- Detecting scope

2- Normative reference

3- Quality policy

4- Documentation

5- Purchasing

6- Internal Auditing

7- Product calibration

8- Measurement and improvement

These clauses assure quality realization. However, application may suffer many

implications if they are applied using traditional managerial methods. SCADA systems

offer solutions for documentation as each event is monitored and recorded within spread

sheets and databases. Then auditing is simply driven on data collected from actual

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activity. Upon monitored data machines can be calibrated once information is sent. The

resultant action is continuous measurement of product quality and continual improvement

using appropriate preventive and corrective actions.

Also, SCADA system can introduce collection of warehouses storage units and required

procurements. Usage of iSCADA allows online connection with suppliers, so a quality

assured outsources is realized. The quality policy is realized and communicated to low

managerial level. The research assumes that SCADA enhances integrative virtual cross

functional teams due to the following factors:

1- Complementary between the different departments

2- Data sharing and information availability

3- Self-managed and self-dependent team

4- Involvement of top management within circular managerial structure modeling

5- Effectiveness of lateral and vertical internal communications

6- Disappearance of intermediate managerial levels

7- Empowerment and involvement of workers

8- Realization of using managerial processing approach

This means the realization of the eight quality management principles. The score of

realization of each factor defines success level of SCADA application. However, this

success may depend on degree of communication infrastructure and computer-aided

technology in use. Security techniques define the trust level and decrease resistance of

top management to SCADA application.

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Background & Literature Review

Business Process Reengineering (BPR) is not just a slight improvement, however it is

rebuilding of managerial system of an organization in order to add value to this

organization according to SMART Simple Measurable Accurate Reliable Target. A

consultant office or top management can initiate a new model of a managerial system.

The following figure shows a replacement of series of blocks by online connection [1].

Figure 1: Procurement Process Reengineering diagram

The process reengineering diagram declares the reduction of in between time

consumption plus just in time JIT feedback. This image can be photocopied in each serial

of process in SCADA system. The BPR is applied upon predefined mapping of

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regulations and rules until realizing success of new system. The following figure shows

the principal concept of BPR procedure [2]

Figure 2: BPR Successful Procedure

The literature researches introduced three approaches of involving IT in BPR

implantation which are Modular, Incremental and Combinable [3].

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Figure 3: Modular Approach of IT Support

Figure 4: increment approach of IT support

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Figure 5: Combinable approach h for IT support in BPR

The figures 3, 4 and 5 declare different approaches of planning, designing and

implementing BPR using IT support. In figure 3 the BPR is implemented by process as in

figure 1, and designed for next process and so on.

Problem Statement

The existing business suffers a lot from long queues of managerial blocks. This

managerial model belongs to centralized management system. It is supposed that series of

blocks increase time consumption, reduce communication effectiveness, and reduce

accuracy of transmitted data reception. This assumption is applied to industrial,

accountant, service systems. Many general software packages were built to reengineer

systems but they could not succeed. The main reason of failure or low effect of

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reengineering as assumed is the ignorance of current state of organization, or the careless

of attempting reengineering before slight improvement.

Therefore, this research aims to study the application of SCADA Supervisory Control

And Data Acquisition on Waste Water Treatment Plant in South-West of Port Said,

where Management system exists on 10 km far from lift pump station.

The SCADA depends on remote pump monitoring so a decision making is maintained at

a time, and so a requirement of workers at shift is eliminated.

The following chapters introduce the managerial structure of WWTP and initial sequence

diagram of data transmission. This idea is applicable for CRM software where customer

satisfaction metrics are remotely collected and monitored, statistically analyzed and

appropriate control decision is taken

Waste Water Treatment Plant (WWTP) is an integrative system unit. It owns an ideal

managerial structure formed by 250 employees within different departments. The

organization structure is designed as in the following figure, considering internal

communication.

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figure 6: WWTP Organizational Chart

This figure shows the distribution of authorities an responsibilities, so top manager has

the final decision of any procedure done within the firm. Managers of departments are

authorized and responsible to follow the instructures of the top manager and to perform

operational duties. As an ideal structure working orders are documented and formaly

transmitted.

SCADA system aims to reengineer communications and so it may eliminate intermediate

departments as in figure 1 following modular approach in figure 5. This may realize the

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objective of TQM. SCADA may add value, reduce inventory, and transportations,

consequently reduce waste time, which are Lean 5S principles.

Planning

To correctly plan WWTP system, research begin by operational and maintenance

relationship. Traditional process is implemented as in the following continual block

diagrams in figures 6, 7 and 8. Considering arrows represent upward reports and

downward instructions, also lateral communications can exist between similar managerial

levels. This firm is considered ideal, well-structured; it owns complemented and well-

defined skills of members. The interaction with customer is indirect. The effect of

response rate appears in spent time of water proliferation and stopping duration. Really,

the WWTP was considered one of the high-technological units, which applies remote-

automation using central control panels and owns restrictive Management Information

System. Therefore, communications are transferred in their definitive pathways.

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Figure 6: Data Transmission From Control Panel To TOP Manager

Figure 7: Data Transmission From TOP Manager To Excutive Workers

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Figure 8: Data Transmission From Excutive Workers To Maintenance Manager and Material Supply

figure 9: Initial internal information transaction to solve industrial problem

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S ta u s lis t S ta u s lis t

W o r k e r

O bs e r v a t i on 01

F o r m a n

T ra in in g D o c u m e n ta tio n 0 2 S ta u s lis t

Ope rat ion Staus l is t

Q u a lity M a n a g e r F in a n c ia l fu n d s

M a n u a l Ev a la tio n 0 3

T o p M a n a g e r

M ac h ineDec i s i on 04

M a n u a l

perform opera t i on moni to r i ng and in format ion t ransact i on

v endor ' s

a 0 m a n a g e r m a n u a l warehouse sparepar t re

s uppor t 011

elec t r ica l /mecanical

f inanc ia leng inee r i ng ana l y s i s 012

Staus l ist

s torage

m a c h in e fo rm a n in s tru c tio nSta u s lis t

o rig in a l e x e c u tiv e m e n a tin a n c ee le c tric a l/e n g in e e rin g M a n u a l in s tru c tio n s 0 1 3 tim in g

s p a re p a rt re q u e s t o rig in wo rke r

M ac h ineex ec u t i on 014

fo rm a n \ M a n u a lre q u ire m e n t in s p e c tio n

w o rk e r re p o rt e x is tin g to o lsre p o rt

repor ts

a 0 1 p e r fo rm d e c i s i o n m a k i n g a n d i n te rn a l m a i n te n an c e e x e c u t i o n

Low lev e l s to r age un i t s v endor ' s

a 0 1 w a re h o u s e m a n u a l P u rc h a s e o rd e r

C h e c k a 0 2 1S upp ly

elec t r ica l /mecanical

f inanc ia leng inee r i ng i ns pec t ion 022

Staus l ist

s torage

m a c h in e fo rm a n in s tru c tio nSta u s lis t

o rig in a l e x e c u tiv e m e n a tin a n c e

e le c tric a l/e n g in e e rin g M a n u a l D e s tr ib u tio n 0 2 3 tim in g

s p a re p a rt re q u e s t o rig in wo rke r

M ac h ineex ec u t i on 014

fo rm a n \ M a n u a lre q u ire m e n t in s p e c tio n

w o rk e r re p o rt e x is tin g to o lsre p o rtrepor ts

Perform in terna l spare par t de l i very fo r main ta inance

Con t r o lp a n e l


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The transmission of data is considered smooth and applied upon self-dependent and self-

managed employees. Transmission rate is considered higher than the other in another

organization.

However, it is also followed by warehouse system, where spare part storage is examined

and order for new parts is applied. A list of purchases is implemented and request of

purchase is directed to manager. So, even if and only if everything acts as required,

without delay of drivers and inexistence of ready cars in garage, the minimum time

required is at least 5 hours before problem can be repaired. Therefore, a SCADA system

can be implemented to reengineer communication process, considering warehouse system

as an expansion if SCADA system succeeds.

Design and Implementation

SCADA system depends on applying new model eliminating intermediate levels

of communications, assuring availability and accessibility of information. SCADA

system allows monitoring of PLC system existing in workstation, so existence of worker

for 24 hours is decreased. The three block diagrams shown in the previous section will be

modified to suite new tendencies and reduce response time. Figure 9 will show new block

diagram combining the three previous stages, allowing circular data transmission.

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Figure 10: The New Approach Of SCADA Process

figure 11: the Business Process Management Reengineering

16

S upp l i e r s

OperationProblem

Interface

O p e r a tio n M a n a g e r

Executiveworkers

E le c t r ic a l M a n a g e r

W a r e h o u s e M a n a g e r

M a i n te n a n c e M a n a g e r

T o p M a n a g e r

M a c h i n e / Q u a l i t y / V e n d o rs

M a n u a l s


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This figure clarifies reduction in time consumption and internal data sequence diagram as

data share and data access and so appropriate decision making within each managerial

level.

The TOP manager is involved within alike circular model, he has graphical a written

reports from Operation and Maintenance managers. An empowerment of employments is

found where everyone has its tool to access data and to evaluate state. This development

allows analytical statistics and warehouse storage prediction. It allows high qualified

supply chain.

The virtual team work breaks face to face defects. However, the success of this

system depends on:

1- Infrastructure Communication Medium

2- Communication Effectiveness

3- Development of SCADA software

4- Development of Familiar Graphic Interface

5- Development of Database

According to BPMR guidance and Relationship of mission and workprocesses to

information technology diagram in figure 12

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figure 12: Reeingineering guidance and Relationship of Mission and Workprocess to Information

Technology

BPR Comprises a sequence of successive, integrated Activities

1- Develop the vision:

which clarifies the mission of Business Process Reengineering, defining goals of BPR

and realizing customer needs, detecting schedules for BPR Acheiving

2- Map or Model Existing Processes:

definining existing work processes and map to new required work processes, in order to

mininize non value processes and inefficient practices

3- Redesign New Process:

throug, mission and vision and strength and weakness found in existing models, team

work perform decision of new design:

identify all inputs of each process

define infrastructure database and communication systems

define required skills, staff, raw materials, and IT support

4- IT support systems

- support all required processes

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Mission

Defines Accomplish

Work processes

Execute Guide

DecisionsConsider Supports

Informatipn

Employs Processes

Technology


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- involvement of owners and end users in team work

- make new work understood by by end users

5- establish Performance indicator

BPR Benefits:

cost reduction

waste time minimzation

paper transaction minimzation

6- plan implementation

meetings detection

schedule time estimation

process mapping

training designing

7- review and maintenance

review of benefit and performance acheivement for each step

work breakdown to maintain feadback for acheived process

8- the human element

maintain periodical information report to teammembers

maintain redundant manual control for new systems, without affecting BPR policy

maintain confidence and loyalty to new project

table 1: activities break down dependency structure (days)

Time

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No Activities Est TimeO M P

1 Develop vision 2 4 6 4.00

2 Map or Model existing Process 3 5 9 5.33

3 Redesign New Process 4 5 10 5.67

4 IT Support System 5 8 10 7.83

5 Establish Performance Indicator 2 5 7 4.83

6 Plan Implementation 6 8 11 8.17

7 Review and Maintenance 2 5 7 4.83

8 Meetings and training 3 8 15 8.83

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Detecting Team Members:

1- team leader: IT Manager

Team Members:

1- Development Engineering

2- Top Manager

3- Electrical Engineering

4- Maintenance Engineering

5- Warehouses Employees

6- Operation Maneger

Discussion

The rate of transmission will provide trust in SCADA system. The preference exists

between Fiber Optics, Twisted Pair Cables, and Co-axial Cables. In a complete research

transmission rate comparison versus cost of communication media installation will be

maintained. Probability of noises and disturbances that can affect data accuracy can be

simulated. Mean time between failures for serial connected nodes, including PLCs, Local

Control Panel, Client and Server, Switches, HDSL and Modems will be observed. The

project depends completely on Virtual Private Network VPN. The Service Provider has

no relation in this state. The other probability is the difference between IP address of

PLCs Local Network and PCs Local Area Network, so a bridge may be needed and add

overload on SCADA system.

Through, such a discussion, network intrusion may be avoided using the features of

Operating System, therefore security can be realized. The study of system upon these

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parameters can encourage applying SCADA system, to improve activities in WWTP

system and modify traditional organization structure.

Conclusion

The TQM application within organization recommends the implementation of modular or

pilot ERP, eliminating intermediate blocks within structure or communication processes

of organization. This process reengineering can be considered as cross-functional

modification. The reengineering affects all sections. It adapts life of work, financial,

human and material resources.

A business process is a sequence of related tasks which make up a business activity:

- Functions are managerial control units with responsibility for and authority over

a series of related activities

- Functions are executed through business processes

- Activities involve one or more entities and are performed to directly or indirectly

fulfill one of the objectives of the organization

- Public agencies should be organized to optimally carry out its functions

(Structure follows function)

References

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1. BUSINESS PROCESS REENGINEERING: A CONSOLIDATED

METHODOLOGY: Subramanian Muthu, Larry Whitman, and S.

Hossein Cheraghi Dept. of Industrial and Manufacturing Engineering

pg.3

2. PLC SCADA Water Industry this paper follows authors currently with

Electrical Engineering Department at Bechtel Water Technology Ltd.

3. IEEE - PLC and SCADA - A Water Industry Experience pg 6

4. Introduction to SCADA

5. Berman, Saul, Strategic Direction: Don't Reengineer Without It;

Scanning the Horizon for Turbulence, Planning Review, November 1994;

Pg. 18.

6. Brown, Tom, De-engineering the Corporation, Industry Week, April 18,

1994; Pg. 18.

7. Cafasso, Rosemary, Rethinking Reengineering, Computerworld, March

15, 1993; Pg. 102.

8. Caldwell, Bruce, Missteps, Miscues -- Business Reengineering Failures,

InformationWeek, June 20, 1994; Pg. 50.

9. Chew, Angie, How Insurance Firms Can Reengineer for Success,

Business Times, June 20, 1994; Pg.11

10.Cone, Edward, Technology Chief of the Year; All the Right Moves

Tom Trainer of Reebok International Successfully Teamed Business

Reengineering with Information Technology, InformationWeek,

December 26, 1994; Pg. 35.

11.Davenport, Thomas H., Will Participative Makeovers of BusinessProcesses Succeed Where Reengineering Failed? Planning Review,

January 1995; Pg. 24.

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