Study on Business Processes Re-engineering Based on Value Chain of Construction Enterprise

Transcription

1 Study on Processes Re-engineering Based on Value Chain of Construction Enterprise Liu Jun e Liu Jingyan School of Management Hebei University of Engineering,Handan, P.R.China Abstract The traditional management mode of the construction is being impacted by the full speed development of the information technology, which made the competition of the building market fiercer and fiercer. The Value chain (VC) and Processes Re-engineering (BPR) has been given more and more attention by the administrator of enterprise because the Value Chain is the embodiment of enterprise's competitiveness and Processes Re-engineering is an important way of improvement for management. They both have close relation to competitiveness improvement. The thought of the value chain and Processes Re-engineering are combined to form VC-BPR and applied to the management of construction enterprise in this text. Based on the analyses of the construction enterprise characteristic, This text propose the method of Processes Re-engineering combined with Value chain for construction enterprise. The whole course includes processes describe, processes analyze, processes design, processes implement and processes maintain. The key step of VC-BPR is Processes analyze whose task is to choose the processes, which need to be re-engineered. The procedure and method of procedure chosen is been discussed especially. The study on VC-BPR in this text will make contribute to the construction enterprise in the procedure optimizing and activity value promote. Construction enterprise can make the administration informationization, scientific and modernization so as to fully adapt to the environment of modern competition by implement VC-BPR. Key words Construction Enterprise; Value chain; Processes Re-engineering 1 Introduction Construction is developing towards industrialization and informational, the modern environment of Customer, Competition and Change for enterprise is calling management to improve. In the 1990s, Process Reengineering (BPR) attracted the attention of administrators of a lot of enterprises' in the whole world. Through the business procedure reengineering, a lot of enterprises have improved benefit and earned the competitiveness for enterprise. In the informational process, the construction enterprise can use the information technology, recombined the procedure to make enterprise s activity appreciation and strengthen enterprise's competitiveness. 2 Value chain and Processes Re-engineering Michacl Porter, Professor of Harvard University, first put forward the Value Chain in Every enterprise is the activity set of design, produce, market, deliver, all these activities can be shown with the value chain [1]. Every activity of value chain has influence to final value enterprise can realize. In terms of enterprise's value, the value chain can be defined as a sets of series activity which can make value for such interest groups as customer, shareholder, enterprise staff, etc. Hammer and Champy put forward the Processes Re-engineering(BPR) for the first time in Reengineering the corporation-a Manifesto For Revolution, it is to carrying on fundamental thinking again to enterprise s existing business procedure, change and design the new business procedure completely, expect to obtain remarkable improvement on the achievement. [2] BPR is a complicated project; it involves a lot of questions of disciplines and fields, including sociology, information system, project management, strategically planning and manpower resources management. Michael Porter, Professor of Harvard School, depicted the business procedure of enterprises as a value chain, The competition is not to take place between enterprise and enterprise, but 454

2 happen among enterprise's one's own value chains, so by implementing effective management to each link (business procedure) in value chain, the enterprise can obtain competition advantage of market really probably. [3] The method of value chain has offered the way for looking for the key link of enterprise's value appreciation.the description targets of value chain and business procedure are both the management course of enterprises; it is different levels and different respects of the same thing.the value chain, proceed with angle of value, is abstract expressions of various kinds of activity supporting to realizing the value goal, its focal points studied are value goal and appreciation way. And the business procedure is reflecting enterprise's actual operation course from the objective angle. So there are natural connections in value chain and business procedure, the combination of the two has certainty. The value chain theory has offered strong support to the further development of the theory of business procedure Application of BPR makes procedure value as standard, through optimize the link, to make enterprise activity appreciation and promote the competitiveness of current price on market. 3 Processes Re-engineering Based on Value Chain of Construction Enterprise The production and operating activities of the construction enterprise is mainly obtaining the project task through submitting a tender and forming the building products through constructing, thus to obtain incomes. The construction enterprise is a special industrial enterprise, possess the characteristic of industrial enterprise, but different from the general production of industrial enterprise, mainly showing in the following aspects: Building product are regular, command in the strange land, personnel and tool flow, products uniqueness, can not be produce in enormous quantities, produce in open air, impacted by environment, the homework rigorously, enforce the procedure, production cycle long etc. Processes Re-engineering Based on Value Chain (VC-BPR) has five steps: Process Describing, Process Analysis, process Redesign, process Implement and process Safeguarding. Process Describing Process Analysis process Redesign process Implement process Safeguarding 3.1 process describing of construction enterprise process describing is the foundation of business process analysis and business process redesign. In order to find the characteristic and existing problem of the business procedure, comb structurally and describe objectively and scientifically to the business procedure through the figure method is important. Describe the business procedure of construction enterprise must based on the project procedure. Its procedure is mainly as follows: Returning to begins the new project Confirmatio Project information Bid Budget and Offering Win a bid Yes Sign a contract Construction No No Purchase Figure1 Project flow chart of construction enterprise 455

3 process describing is to subdivide to and name the business procedure; for example, the bid procedure is from receiving the information of calling for bid to signing the project contract. Including project information obtaining, pre-qualification plan, reconnoitre live, conceptual design, offer tactics choose, the tender made etc. The construction procedure refers to the whole course of the contract fulfilled, including marching into the arena and prepare, making construct organize and design, confiding a technological secret, materials procurement, quality progress control, construct cost accounting, final acceptance of construction etc. It involves a lot of departments and organize, including the department having direct relation to the project, such as construction department, budget department, technology department, ministry of materials, ensuring department. There is also some supporting department, such as finance department, business department, manpower department etc. The construction enterprise should describe activity and department involved in the whole project in detail, so as to get ready to analyze for the procedure. 3.2 process analysis of construction enterprise process analysis is the key link of the business procedure reengineering. Its task is to discern the value chain by comparing to a series of key factors of procedure value and analyze the competence for added value of the activity. The goal of the procedure reengineering is to improve the procedure value, so design the new procedure must based on analyze of competence for added value of the procedure. The competence for added value can be considered from two degree: value contribution degree and relative value. (1) Analysis of value contribution degree The value contribution degree means the position of the procedure in the course of realization of value goal, it is can be decided with the procedure prior choice matrix law. Analyzed personnel confirm the key value factor and basic procedure (express with E in matrix ) and auxiliary procedure (express with A in matrix), which realize the value factor.among the matrix, competent P i express procedure, arrange C i means the key factor of value. [4] Then differentiate assignment to E and A, the total value S i of each procedure Pi has reflected this procedure value, Si is the value contribution degree. Σ Si Table1 Value contribution degree C 1 C 2 C 3 Cn Value sum Value contribution degree P 1 E S 1 P 2 E S 2 P 3 A S 3 A Pn E S n In the value contribution degree analyze, the more important thing is to confirm the score of basic procedure and auxiliary procedure. For example, in the bid procedure, the value factors are mainly technological advance, offers the appropriate, quality ensuring in rationality, time limit for a project. The basic procedures are conceptual design and tactics of offering, the auxiliary procedure are the tender bought, the pre-qualification prepared, examines live, the tender text made. Give each procedure a mark and calculate the value contribution degree separately. (2)Analysis of relative value Relative value is the result that this enterprise s procedure value compares with basic enterprises. Confirm relative value can adopt the benchmarking method [5]. Utilize the benchmarking method to analyze the procedure is to trade the most outstanding enterprise procedure as study and compare target so as to find out the very crux of this enterprise procedure. Set up the model enterprises Collect relevant procedure information Contrast with this enterprise procedure Analyze insufficient reason For example, construction procedure compared with model enterprise can be shown in tabulate, the and 456

4 such as table 2. Model enterprises Preparation construction Table 2 table of benchmarking for Quality Cost control accounting Material supply Time phasing Safety management Enterprises There are two kinds of method to confirm procedure relative value, natures determine method and Quantitative method, and you had better combine the two. The qualitative judgment is mainly to carry on qualitative analysis through expert's actual investigation and interview of the business procedure Quantitative judgment can follow the value Engineering: V = F, Among them, V value, F C function, C cost, [6] carry on value compartment between this enterprise and model enterprise. F1 C1 Vi = V1 V =, V 1 - this enterprise value V 2 - the model enterprise's procedure value 2 F2 C2 Vi -coefficient of procedure value. The compare course is mainly to investigate the ability of value realizes. Analyze the reason for procedure insufficient, can adopt cause-result analysis chart (fish bone analysis chart) [7]. To numerous reasons that will cause the procedure to be insufficient, carry on the diagram in a systematic way. Great direction is expressed with " big bone ", the factor one layer deeper is expressed with " medium bone " and" small bone ", big, medium and small bone from little to heavy linked with arrow point. For example, analyzing the reason of the poor efficiency of cost accounting can draw the following fish bone pictures, (Figure. 2). (3) Choose the procedure needed to be reengineering. According to value contribution degree and relative value, choose the procedure need to be reengineering. Regard value contribution degree and relative value as coordinates draw the matrix picture consult the growth share matrix of Boston [8]. (Figure.3). constructing department count The material count inaccurate by ministry of The project change has not been registered Cost accounting personnel can't be Cost counting in poor High value contribution degree low First Third Second Fourth Low relative value high Figure2 Fish bone analysis chart Figure 3 The matrix of relative value and value contribution degree The first quadrant has the highest value contribution degree and lowest relative value, this procedure is a focal point transformed. The second quadrant has relatively high relative value and relatively high value contribution degree; 457

5 it is needed to keep the state at present. The third quadrant has low value contribution degree and low relative value; it should be given up, kept or improved. The fourth quadrant has high relative value and the low value contribution degree, expand its function or give up. 3.3 process redesign of construction enterprise process redesign is the realization way to the business procedure reengineering. According to the analysis result to the original procedure, find out the question countermeasure and consult the value goal to design the new procedure. Through constructing and designing to the business procedure, improve the value of the business procedure fundamentally and strengthen the key competitive power of enterprises. Procedure analysis The goal improved Judgment for change The chance for improvement The new value chain designed Information technology Relevant procedure designed Not feasible Appraisal Feasible The scheme to the process reengineering Figure 4 Design the operation chart in procedure based on value chain Procedure redesign must use information technology creatively to meet demand of computer information processing and computerization-working way, not only the simulation craft business treatment rules briefly. There are various application software comes into operation in the construction, the management information system of project under construction of the armored concrete structure, the management information system under steel construction project, network plan software, project amount calculate software, bid offer software, construct detail drawing draw software, etc., so the application of these information technologies must be fully considered in the procedure redesign. Difficulty of implement must be fully considered when redesign procedure. The caring out of new procedure involves every relevant specialty personal. They need to master the new technology and new standard adapted to the procedure. The effective communicative channel of department and personnel must be considered to make them cooperate closely and guarantee the smooth implementation of the procedure. All departments in construction enterprise, owners, managing and supplier, have influence to the implementation of the procedure. Such as redesign procedure of purchase of goods and materials, adopt the purchase subsystem of ERP to purchase managing, the activities of persons who among them 458

6 involve supplier, purchasing agent, goods and materials storekeeper, budgeter, quality testing, etc., then the communicative channel will be designed between them. 3.4 process implement of construction enterprise process implement is the essence step of processes reengineering. Before BPR is implemented in an all-round way, emulation and pilot project appraise can be carried on. According to the result, propose improving measure to the new procedure. Emulation and pilot project adopt suitable artificial tool emulation to implementation or go on sure test nature development among a small circle promptly. It will help to improve the success rate of project implementation. There are a lot of artificial tools, the more famous are: SIMPROCESS of CACL company, Powersim Products for Corporate User of Powersim company, Visio of Microsoft Corporation, Corporate Modeler2000 of Casewise company, FirstSTEP of Interfacing Technologies company, igrafx Process of Micrografx company, ProVision Workbench of Proforma company, Scitor Process of Scitor Process company, WizdomWorks of Wizdom Systems company, Workflow Analyzer of Meta Software company, System Architect 2001 of Popkin Software company, ProcessModel of Process Mode company [9]. Appraising can adopt the Data Envelopment Analysis (DEA) etc. Obtain the key index data according to the artificial pilot project, set up DEA model, appraise validity and provide the direction of improving. Popularize implementation in an all-round way will begin after the artificial pilot project succeeds. The implementation of the new procedure requires the whole from top to bottom understand and grasp the new procedure. Such questions as the establishment of personnel's corresponding duty, authority and communicate way of the involved persons, including budget personnel, technical staff, material, management, will be considered when adopt the information system to manage. 3.5 process Safeguarding of construction enterprise process Safeguarding is the supplementary link in Processes Re-engineering. BPR is the dynamic course, the system of managing in procedure and mechanism need establishing after the procedure reengineering, so as to help to consolidate the achievement and further explore the opportunity to reengineering and optimizes the procedure. Carry on imitating experiment to integrated survey and appraise to new procedure, personnel and technology. The experience obtained from test must be put into new design of procedure. Repeat it many times like this, until the procedure can run smoothly to meet enterprise's demand. The activity of construction enterprise changes with project; carry out the new procedure strictly in project. The procedure value embodiment of different project may be different to some extent, optimize adjusting to the procedure according to procedure value. 4 Conclusions Building enterprise BPR should fully use the information technology to improve the procedure value of construction enterprise, thus to improve enterprise's competitiveness. The business procedure reengineering of construction enterprise needs overall planning, step by step implement, continuously improvement. The redesign of the procedure should have abundant perspective, so as to make lasting improvement and information construction of enterprises go on smoothly. BPR is the activities of a high risk and high investment; it concerns the vital interests of enterprise and the staff directly. The key of implementing BPR depends on the person in enterprises; whole staff of enterprises upper and lower must have high understanding quality and must cooperate. Acknowledgement This text has got the Subsidy of doctor's fund project of Hebei scientific and technological office: Study on development and application of intelligent geographical information system( d) References 1.Song Jianqi. Research enterprise s competitive strength based on analysis of the value chain. Master's academic dissertation of Changchun University of Science and Technology , p: 1~3 2.Li Jikun, Zhang Qun. Material Management Process Reengineering Based on BPR. Logistics technology , p.66~69 3.Wang Jianhui. Study on BPR and It s Application in the Real Estate Company. Master's academic 459

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