EEI Final Project Business Process Re-Modeling: A Case ...ebc.ie.nthu.edu.tw/StudentProject/eifinal/2014_eiProject/ppt/carol.pdf · A CASE STUDY OF HAIER GROUP . PROFESSOR: AMY TRAPPEY
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EEI FINAL PROJECT BUSINESS PROCESS RE-ENGINEERING: A CASE STUDY OF HAIER GROUP PROFESSOR: AMY TRAPPEY STUDENT: CAROL DENG 103034531
EEI FINAL PROJECT BUSINESS PROCESS RE-ENGINEERING: A CASE STUDY OF HAIER GROUP
P R O F E S S O R : A M Y T R A P P E Y
S T U D E N T : C A R O L D E N G 1 0 3 0 3 4 5 3 1
OUTLINE • Background • Original model built by Income
• Organization model • Behavior model & Object model
• Improved model built by Income • BPR Implement • Organization model • Behavior model & Object model
• Performance comparison
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簡報者
簡報註解
This is the outline of my presentation, I’ll briefly introduce the Haier Group Company, then talk about the original and the business process reengineering which simulated by INCOME.
BACKGROUND
About Haier In the last 30 years, Haier has transformed itself from an insolvent collectively-owned factory on the brink of bankruptcy into the number one global home appliance brand. In 2013, Haier’s global revenue reached USD 29.5 billion.
How could Haier successfully transformed itself within 30 years?
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1987 1998 2008
OEC management
Total Quality
management
Business Process
Re-engineering
Key Implementing BPR and disruptive innovation in its management model Core objectives to implement BPR • Organization structure • Business, logistic and order process
簡報者
簡報註解
In the 1980s, Haier is just a refrigerator factory which had millions of debt and suffered from old infrastructure, poor management, and lack of quality controls. However, Haier has transformed itself into one of the biggest home appliances brands in the world. Haier successfully changed is due to conducting several improvements which are shown as the graph, As you can see, in 2008, Haier applied business process reengineering for their management model, And the core objective to implement BPR is changing the organization structure and coordinate with the new business process
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BACKGROUND
Project process
The project would apply INCOME to built simulation model, then compares performance of before / after implementing business process re-engineering.
Literature Review
Data Collection
Original Organization
Model Construction
Improved Organization
Model Construction
Original Behavior
Model Construction
Improved Behavior
Model Construction
Performance Comparison
Original Object Model
Construction
Improved Object Model
Construction
簡報者
簡報註解
This is the flow chart of my final project. Constructing organization and behavior model by income, and compare the performance between original and improved model after implementing business process re-engineering.
ORIGINAL MODEL BUILT BY INCOME
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Disadvantages 1. The order information transmit to slowly , which would spend too much time. 2. The separately functional department couldn’t corporate efficiently due to lack of integration.
簡報者
簡報註解
As you can see, the original organization is a pyramid structure, lower hierarchy needed to manage functional work be responsible to the higher hierarchy, which let the functional team lack of integration and work with an inefficient way. Take Refrigerator Manufacturing for example, they have to not only manufacture products but manage the finance and distribution. Also, because of the pyramid structure, when there’s an order received, the order needed to go through from top hierarchy to complete some non-value added procedures steps by steps, After procedures had done, then the low hierarchy could finally receive the order detail to do the production, which would spend too much time due to the complicated procedures.�
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ORIGINAL MODEL BUILT BY INCOME
簡報者
簡報註解
This is the original process drawn by INCOME, the process starts from receiving order, end at the delivery completed. And here are some drill-down process I ‘ve listed, in the “purchase material "part , Since the activity and information are controlled by different organization structure, the procurement need to wait for the warehouse checking the inventory, then decided whether to order material or not, it’s actually could be more simplified. And fro the “shipping” part, you could find out that logistics is also a problem, since Haier didn’t have the efficient logistics system, so there would be lots of materials or products stock in warehouse, wait for logistics to allocate them. For the information flow is shown in object model, each block of object model managed by different department, the order information couldn’t directly transmit to each department, Furthermore, since some information would not transmit to every department, business process would easily be interrupted by some unexpected problems which cause by lack of information. � . 供貨公司把定單先傳到集團的市場部，經過事業部、企划處、到生產分廠，分廠做一個計划，再發到車間。現在沒有了這些中轉站，工人和市場需求的距離一下子被拉近了，每個部門每個員工直接對市場負責。 Because lack of information integration, the order information have to wait until the previous part finished than pass to the next part
IMPROVED MODEL BUILT BY INCOME
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BPR Implement • Just-in-time information exchanging system
→ VMI: Cooperation with vendors
• Three zero to build fast response business process • Inventory-level = 0 • Zero distance with costumers • Operational cost = 0 → Built distribution center and logistics company
Order
Information Flow
Intra-enterprise
Connection system
Vendors Connection system
Customers Connection system
簡報者
簡報註解
Hence, the BPR implement is going to figure out the better ideas and weather the storm. Here is the major concepts for Haier to implement the BPR, first is the just-in-time information exchanging system, it would connect with world-wide vendors, customer and also the intra-enaterprise, which means that the detail information would be transmitted via the connection system once the order has been built. To coordinate with the information exchanging system, the product transportation is also improved, the distribution center and logistics company had been built to achieve the three zero listed here to cost down the inventory and operational cost. With this efficient information exchanging system and logistics, the business process could response faster to customers’ need. “一流三網”，“一流”即為訂單信息流；“三網”分別是：計算機信息網絡、全球供應商網絡和全球客戶資源網絡。“三個零”指的是：零庫存、與客戶的零距離和零資本運營。通過“一流三網”的構建，通過對生產線的改造和看板管理等實現了生產的柔性化，並在供應鏈方面實施三個JIT（Just?in?time）管理，即：JIT採購、JIT原材料配送、JIT成品分撥物流。全面提高相應客戶需求的速度。通過流程改造，企業實施了全面的扁平化管理，減少了企業與用戶之間的層級，信息的交流變得日益暢通和透明
IMPROVED MODEL BUILT BY INCOME
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Advantage Every department divided by specific function, so organization is no longer operated by the commands of top hierarchy, but operated with a market mechanism.
簡報者
簡報註解
In order to proceed the new policies smoothly, Haier changed their organization into a functional structure to coordinate with the new business process. There are less hierarchy, and every department divided by specific function, such as the marketing, procurement and logistics departments are now isolated from each original department, re-organized them as an individual corporation-wide departments,. In a nutshell, the organization is no longer operated by the commands of top hierarchy, it’s operated like a market inside Haier, So every department has to face their own customers(could be real customer or the downstream departments) directly. 按照设计，业务流程分为主流程、支持流程和流程基础三个部分。 海尔市场链的主流程：就是把原来各事业部的财务、采购、销售业务全部分离出来，同时建立海外推进本部、商流推进本部、物流推进本部、资金流推进本部，再将企业 内部原先分散、各自对外的各种资源整合为全集团统一创品牌服务的营销(商流)、采购（物流)、结算(资金流) 体系，使整个企业变成一个环环相扣、运行有序的链条。目的就是通过整合，使海尔同步业务流程中各产品本部从原来分散的 负责采购、制造、销售过程转变为统一面向市场客户的生产、开发产品过程，通过生产、开发出能满足消费者即时与潜在的需求的商品，创造有价值的定单。 通俗讲，海尔的业务流程模型图就是“三个大圈(主流程)六个小圈(支持流程)两块基石(流程基础)”。旋转之间，将全球用户资源、全球供应网络、全球人 才“网络”进来，输入用户的需求，输出让用户满意的服务与产品。最重要的一点，再造后推动企业整个流程运转的主动力已不再是过去的行政指令， 而是相互间平等的买卖关系、服务关系和契约关系，通过这些关系把外部市场定单转变成一系列内部的市场定单，形成以定单为中心、上下工序和岗位之间相互咬合、 自行调节运行的业务链。每个流程、每个工序、每个人的收入来自于自己服务的市场和对象。服务有效，按合同索酬；服务无效或效果不好，对方可以索赔。这样 做的结果，就使企业的每一个人都有了自己的顾客，每一个人都与市场保持零距 离。用海尔职工自己的话来说，就是人人都有一个市场，人人都面对一个市场。
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IMPROVED MODEL BUILT BY INCOME
簡報者
簡報註解
And the order business process has changed as you can see on the improved behavior model. Since the vendors would get the order detail once Haier updated the information on the vendors exchanging system, the vendors would know the exactly time when Haier needed to replenishment, so the Procurement could speed up and save. Furthermore, Haier established the Haier Logistics Company to achieve the JIT distribution by building the automatic stereoscopic warehouse and distribution canters, which would speed up the whole ‘shipping’ process. And for the objective model, the information are totally transparency to each department because of the intra-enterprise information exchanging system, so the probability of unexpected problems which caused by lack of information is much lower than before. http://wiki.mbalib.com/zh-tw/%E6%B5%B7%E5%B0%94%E7%89%A9%E6%B5%81 一个经销商下完要货订单后，海尔的工作人员将要货信息从商流工贸公司的信息系统终端输进海尔信息系统，完成对订单的上传。订单信息同时在相关部门的电脑终端上同时响应。订单就是各部门同时操作的命令，订单信息在物流推进本部的电脑终端上立即转化为生产订单，海尔物流立体仓库的中央控制中心随即将产品分解成配件需求，自动统计并排查配件库存，将海尔国际物流中心配件立体仓库已有的和待采购的配件分类进行操作。对库存紧缺的配件，系统自动生成采购订单，并显示在采购JIT工作人员的电脑终端上。根据采购订单实施网上JIT采购。这个信息同时将出现在原材料分供方的电脑终端上，分供方依托海尔的BBP系统（原材料网上采购系统），确认供货需求信息，并按要求配送到海尔物流立体仓库。立体仓库的配件备齐的信息随即转化为生产申请，得到获准之后，信息即刻在海尔国际物流中心，即海尔物流中心的配件立体仓库的电脑终端上显现出来，通过JIT原材料配送操作，分别将配件送到预定的生产线的工位上，柔性化的生产线在运转中根据系统指令实现生产自动切换，即可生产出满足客户订单需求的产品。产成品一下生产线，随即转运进入海尔国际物流中心成品立体仓库，全国主干线JIT成品分拨配送在平均2天时间将产品发运到42个遍布全国的海尔物流配送中心。各地的配送中心对经销商需求的产品配送到客户指定的地点。这些配送操作在物流中心城市8小时到位，区域配送24小时到位。客户订单的响应完成。� 上述过程中响应的是经销商需求，这和对终端客户需求响应的过程基本类似。终端客户的需求响应时间在10左右基本可以完成。以前在没有信息系统的时候，客户订单从传递到供应商响应则需要10天以上时间，等下排产计划直到客户收到货时间则会更长，而且准确性低、效率差。现在通过ERP之后从客户下订单到供应商对配件的响应完全可以在1天内准确完成。 国际物流中心（海尔配件立体仓库）货区面积7200平方米，但它的吞吐量却相当于普通平面仓库的30万平方米。同样的工作，海尔物流中心只有10个叉车司机，而一般仓库完成这样的工作量至少需要上百人。因此，在海尔仓库不再是储存物资的水库，而是一条流动的河。河中流动的是按订单采购生产所需的物资，也就是按订单来进行采购、制造等活动。这样，从根本上消除了呆滞物资、消灭了库存。海尔打破了过去仓库的概念，把仓库变成一个只是为下一站配送而暂停的站，所以把它称作是“过站式物流”；从根本上解决了竞争中多数企业最头痛的库存问题，少了这个后顾之忧，使得海尔能轻松面对瞬息万变的市场，并在竞争中处于优势地位。
Simulation results: A case of refrigerator order
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PERFORMANCE COMPARISON
Original Process Improved Process with BPR
Activity Time(Day)
Activity Time(Day)
Order Receive 0.20 Order Receive 0.20
Build Production Plan 0.50 Build Production Plan 0.30
Purchase Material 7.80 Purchase Material 3.30
Produce 5.00 Produce 5.00
Shipping 16.00 Shipping 4.67
Sum 29.50 Sum 13.47
The new business process is more efficient and spends less time to complete an order after several improvements implemented.
