Implementation of business process in manufacturing industry

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    Topics to be Covered

    What is Business Process?

    Features of Business Process

    Types of Business Process

    Manufacturing Industry Overview Structure of Consumer Durables Segment

    Key industry dynamics

    Business Process Management implementation in ManufacturingIndustry

    Five Key Areas for BPM Success

    BPM system modules

    How Business Process Management helps an Industry

    Benefits of Implementing BPM in Manufacturing Industry

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    Business Process

    Business process is a series of steps or tasks aimed at

    accomplishing a defined business objective.

    Business Process refers to the set of logically related activities

    for accomplishing a specific business result.

    A business can have hundreds of processes and most processes

    can be broken into smaller and lower- level processes and

    process components that include people and/or information

    system sources.

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    Features of Business Process

    Has a goal

    Has specific inputs

    Has specific outputs

    Uses Resources

    Has a number of activities that are performed in some order

    May affect more than one organizational unit. Horizontal

    organizational impact

    Creates values of some kind for the customer. The customer may be

    internal or external

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    Types of Business Process

    Management Process Strategic Management

    Corporate Governance

    Operational Process Purchasing

    Manufacturing

    Supporting Process Accounting

    Technical Support

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    Manufacturing Industry Overview

    An Industry can be defined as any kind of an economic

    unit producing goods and services.

    All activities relating to manufacturing and distribution of

    electronics and durable consumer goods fall within the

    category of the Electronics & Consumer Durables

    Industry OR the Manufacturing Industry.

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    Structure of Consumer Durables Segment

    White Goods: It is generally a large machine which accomplishes a routine

    housekeeping task, which includes purposes such as cooking, or food preservation,

    washing purposes, and various others. They are also referred to as domestic appliances

    or major appliances.

    Brown Goods: These are portable and semi portable machines generally used on table

    tops, counter tops and other platforms to accomplish a household task. They are usually

    smaller counter parts of their larger versions like a coffee maker is a portable good vis-

    a-vis the espresso coffee machine.

    Consumer Electronics: They are electronic equipment intended for everyday use,

    most often in entertainment, communication and office productivity. They are largely

    based on digital technologies and are increasingly being merged with the computer

    industry in what is known as the Consumerization of Information Technology.

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    WHITE GOODS BROWN GOODS CONSUMERELECTRONICS

    Air conditioners

    Refrigerators

    Washing Machines

    Sewing machines

    Watches and Clocks

    Cleaning Equipment

    Other Domesticappliances

    Microwave ovens

    Cooking Range

    Chimneys

    Mixers

    Grinders

    Electronic fans

    Irons

    Televisions

    Audio and Video

    Systems

    Electronic accessories

    Personal Computers

    Mobile Phones

    Digital Cameras DVDs

    Camcorders

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    Key Industry Dynamics

    Industry Size :Rs 350 Billion

    Key Categories: White goods, Brown Goods and Consumer

    Electronics

    Competitive Landscape: Dominated by Korean majors like LG and

    Samsung in most of the segments. Other players are Bluestar,

    Whirlpool of India, Voltas, Godrej, Bajaj Electricals, Videocon,

    Panasonic, Electrolux, Sony etc.

    Margin Profile: Low margin, largely dependent on volumes of sales

    Growth Opportunities:Low Penetration along with increasing

    consumer disposable incomes.

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    Type I Projects: Functional Level Type II Projects: Cross-functional LevelType III Projects: Enterprise Level

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    Five Key Areas for BPM Success

    1. Value and Performance Management to define goals and evaluate and

    steer progress.

    2. Accelerated Business Analysis to optimize BPM delivery, using GlobalProcess Model for manufacturing.

    3. Leveraging BPM Technology to maximize the use of selected BPM and

    Business Rules Management technology, tools and platforms.

    4. Unified Process Improvement to ensure process-oriented thinking gets

    embedded across the organization.

    5. End-to-End BPM Governance to sustain BPM excellence.

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    BPM System Modules

    Process Modeling

    Process Connectors

    Process Manager

    Process System Server

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    How Business Process Management helps an Industry

    Adding functionality to existing business systems such as CRM, ERP,

    manufacturing execution systems (MES), warehouse management systems

    (WMS), etc

    It is probably less expensive and quicker to extend an older existingapplication using BPM than to install new software or reprogram the existing

    software.

    Design and add new processes as requirements change.

    Link business systems to aggregate data and processes .

    Build new processes between acquired company systems to provide a fullview of inventory information.

    Connect the MES systems within a value chain to support where - to-build

    strategies with real-time information .

    Connect disparate sources of business intelligence within the company or

    across the value chain.

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    Link a number of systems to provide and support new processes.

    Build a process to provide demand driven schedule data across a

    value chain. Connect the manufacturing execution systems to the planning and

    scheduling system .

    Develop a process that allows certain CRM users to view and

    exchange data with the warehouse management and themanufacturing scheduling system s .

    Design, build, simulate, and finalize new stand alone business

    processes using data from any source.

    How Business Process Management helps an Industry

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    Benefits of Implementing BPM in

    Manufacturing Industry

    Helps in automating all the paper-based processes within theprocurement division to shorten the SCM cycle for approval andreceipts of goods.

    BPM helps to increase efficiency and decrease costs with respect to

    document management in marketing function. BPM helps in workflow automation and visibility through greater

    operational control over its sales process. BPM helps in resolving complexities in its warranty management

    process, thereby improving quality and costs in its customer supportservices.

    BPM leverages process modeling, risk management and visibility tools. BPM helps in overcoming the cross-border integration challenge in

    design process by BPM-PLM (Product Lifecycle Management)integration suite.

    Through effective implementation of BPM across the value chain,company can benefit from strong governance and quality control.

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