Business Process Analysis - Assignment Solution

• Introduction (Background)

In this case study assessment current business process will be analysed that what are its inefficiencies and strengths. Furthermore, new business re-engineered process and process flow chart will be suggested in the assessment to make the business process highly competitive and potentially effective with the appliance of an effective IT solution in the business process. As IT solutions can make business processes highly more competitive against rivals and effective. GAAM is an international organization which manufactures primarily metal products building systems as well as hydraulic systems. Concretely, it makes and produce hydraulic equipment such as motors, gear pumps, telescopic cylinders, as well as control valves. Used in heavy-duty vehicles for instance cranes, these products are sold out locally (United States of America) as well as overseas original equipment manufacturers. The organization’s headquarters are situated in the South Australia. Employing approximately 3,800 personnel around the globe, it operates 27 amenities in 7 countries.

• Participants, Inputs and Outputs to the current system

Various tooling, supplemental essentials as well as materials such as foundry sand, varieties of ingredients which are used for pouring castings, as well as any other non-production associated products and services.

The department consists of a purchasing manager, two buyers alongside one secretary/clerk

The purchasing department receives requests for MRO supplies from 36 various individuals within the firm. These requests can take the form of either an MRO card or it could be a purchase requisition. Cards are used for items purchased regular basis while purchase requisitions are used for new items purchases. 

In addition, many purchases are for old or outdated replacement parts. This research represents a majority of the MRO buyer’s total work time.

1. Process Flow or Activity Descriptions 

The department is comprised of a purchasing manager, two buyers and one secretary/clerk. This is the primary or most common path through the business process.

Activities in the current business process includes, the purchasing department receives requests for MRO supplies from various individuals within the firm. These requests can take the form of either an MRO card or a purchase requisition. Cards are used for items purchased on daily basis while purchase requisitions are used for newly purchased brand-new items. Each of these individuals has limitations, up to which they are authorized to obtain a purchase. The limits usually range from AU$500 to AU$1,000. If this limit is accelerated than the limits, the card/requisition form must be endorsed by the individual who is at higher ranking position in terms of purchase power authority. Therefore, there is a long “chain of command” that must be followed for authorization of all the MRO purchases.

Moreover, once the card/ requisition reaches the purchasing department, it is revised as well as signed by the MRO buyers. A P/O is then created for the item(s) which has been purchased. If the item is requested by using a card, the card is returned back to the particular department which makes request for the purchase after the purchase has been placed. Recently, approximately 8,000 cards are preserved in many departments. If the item was requested using a purchase requisition, the form is filed in the purchasing department. Distribution of these P/Os is the same as for inventory purchases. These P/Os are also kept in the P/O program. In certain instances, individuals other than the MRO buyer will make purchases. If there is a critical situation in which an item is needed as soon as possible, the department will entail a purchase a specific number that is different from the sequentially normal usuals based numbers used on the normal P/Os. Once this number is ready the purchase is ready to take place. The purchasing department will then complete the P/O as well as will be distributing it on normalized basis.  The purchasing department will on a daily basis get MRO requisitions for new items. Furthermore, many purchases are for old as well as outdated replacement parts. This requires the MRO buyer to demeanour significant vendor as well as the pricing research. Thus, this research represents a vast majority of the MRO buyer’s total work time processes.