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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
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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.