Re-engineering the Enterprise: Proceedings of the IFIP TC5/WG5.7 Working Conference on Re-engineering the Enterprise, Galway, Ireland, 1995

344 Pages·1995·18.577 MB·English

by  Dipl.-Kfm. Markus Remme, Prof. Dr. August-Wilhelm Scheer (auth.), Jim Browne, David O’Sullivan (eds.)

Re-engineering
the
Enterprise
IFIP -The International Federation for Information Processing
IFIP was founded in 1960 under the auspices of UNESCO, following the First World
Computer Congress held in Paris the previous year. An umbrella organization for societies
working in information processing, IFIP's aim is two-fold: to support information processing
within its member countries and to encourage technology transfer to developing nations. As
its mission statement clearly states,
IFIP's mission is to be the leading, truly international, apolitical organization which
encourages and assists in the development, exploitation and application of information
technology for the benefit of all people.
IFIP is a non-profitmaking organization, run almost solely by 2500 volunteers. It operates
through a number of technical committees, which organize events and publications. IFIP's
events range from an international congress to local seminars, but the most important are:
• the IFIP World Computer Congress, held every second year;
• open conferences;
• working conferences.
The flagship event is the IFIP World Computer Congress, at which both invited and
contributed papers are presented. Contributed papers are rigorously refereed and the rejection
rate is high.
As with the Congress, participation in the open conferences is open to all and papers may
be invited or submitted. Again, submitted papers are stringently refereed.
The working conferences are structured differently. They are usually run by a working
group and attendance is small and by invitation only. Their purpose is to create an atmosphere
conducive to innovation and development. Refereeing is less rigorous and papers are
subjected to extensive group discussion.
Publications arising from IFIP events vary. The papers presented at the IFIP World
Computer Congress and at open conferences are published as conference proceedings, while
the results of the working conferences are often published as collections of selected and
edited papers.
Any national society whose primary activity is in information may apply to become a full
member of IFIP, although full membership is restricted to one society per country. Full
members are entitled to vote at the annual General Assembly, National societies preferring a
less committed involvement may apply for associate or corresponding membership. Associate
members enjoy the same benefits as full members, but without voting rights. Corresponding
members are not represented in IFIP bodies. Affiliated membership is open to non-national
societies, and individual and honorary membership schemes are also offered.
Re-engineering
the
Enterprise
Proceedings of the IFIP TC5/WG5.7
Working Conference on Re-engineering
the Enterprise, Galway, Ireland, 1995
Edited by
Jim Browne and David O'Sullivan
C/MRU, University College, Galway
Ireland
1
~nl
SPRINGER-SCIENCE+BUSINESS MEDIA. BV
First edition 1995
© 1995 Springer Science+Business Media Dordrecht
Originally published by Chapman & Hali in 1995
ISBN 978-1-4757-6387-4 ISBN 978-0-387-34876-6 (eBook)
DOI 10.1007/978-0-387-34876-6
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CONTENTS
Prefac:e vii
Planning centres - new conception for re-engineering activities in
non-producing areas
M. Remme and A.-W. Scheer
2 Re-engineering through fractal structures
W. Sihn 10
3 Software benchmark design and use
M. Daneva 20
4 Requirements, methods and research issues for modeling the product
realization process
K. W. Lyons and M.R. Duffey 30
5 Application of information technology in the redesign and implementation
of business processes
G. Lyons 42
6 Re-engineering the ~ales department
B.E. Hirsh, M. KriJmker, K.-D. Thoben and A. Wickner 53
7 Re-engineering inter company processes through partnership networks
S. Crom, J. Julian, T. Kuhlmann and B. Hirsch 63
8 How benchmarking supports re-engineering
K. Mertins, S. Kempf and G. Siebert 72
9 The logic of enterprise modelling
M. Gruningerand M.S. Fox 83
1 0 General concepts of a manufacturing system engineering workbench
as tool for the re-engineering of manufacturing systems
M. Garettu and A. Bartolona 99
11 The application of generic process models in business process
re-engineering
S.J. Childe, A.M. Weaver, R.S. Maull, P.A. Smart and I Bennell 110
12 Library based modeling of process chains
G. ZQlch and A.R. Fisher 121
13 High level process modelling: a key feature of any BPR project
A. W. Chan and P. Bradley 131
14 Investment-based analysis of IT-enabled business process re-engineering
T.J. Renkema and T. Dolan 141
15 Simultaneous change
R. Feurer and K Chaharbaghi 155
vi Contents
16 Business process re-engineering for small and medium sized
manufacturing enterprises
J. McSwiney 164
1 7 Self assessment - a tool for business process re-engineering
A. Rolstadas 175
18 A manufacturing business process re-engineering method: design and
redesign of a production control model
J. Strandhagen and T. Skarlo 187
19 Bottleneck-oriented logistics analysis as a basis for business
re-engineering
T. Penz and P. Nyhuis 199
20 Measuring and re-engineering logistics chains in the construction
industry
T. Wegelius-Lehtonen 209
21 Logistics performance measurement - an application to pulp and
paper industry
J. -M. Lehtonen 219
22 A comprehensive methodology for factory modelling
K. Popplewell and R. Bell 228
23 BPR in the production system, methodology and results
C. Martin and R. Encina 238
24 An introduction to a process engineering approach and a case study
illustration of its utility
P. Kawalek 248
25 Design of activities in shop floor management: a holistic
approach to organisation at operational business levels in BPR projects
E. Scherer and M. ZOlch 261
26 The use of the GRAI method in re-engineering
R. Macintosh and A.S. Carrie 273
2 7 GRAI approach: a methodology for re-engineering the manufacturing
enterprise
G. Doumeingts, F. Marcotte and H. Rojas 284
28 Process monitoring for continuous improvement
V.J. Thomson 294
29 Process assessment and simulation games-methods and software
supported tools in business process re-engineering
T. lAakso, J. Hakamllki, K. Forsberg and R. Smeds 302
3 0 Integrated resourse and order monitoring
H.P. Wiendahl, J. Glii.flner and M. Mittendorf 312
3 1 A system solution to concurrent process planning and workshop control
B.C. Schmidt 322
Index or contributors 3 3 3
Keyword index 3 3 5
PREFACE
The business environment throughout the world is currently going through rapid and far
reaching change. Companies are re-structuring the way they do business. They are analysing
their business processes and scrutinising ways to make their systems more streamlined and
competitive. In parallel with this change, developers are putting forward new concepts and
new tools which can facilitate companies in carrying out what has become known as 'business
process re-engineering' (BPR). Together these developments have yielded a tremendous
amount of new knowledge and will continue to offer us new challenges well into the future.
This book brings together a number of leading experts from around the world who have
worked extensively in the area of business process re-engineering. Through individual chapters
in this book, these consultants, analysts, and researchers put their expert views forward on
various aspects of re-engineering the business enterprise. Some authors offer new ideas of the
way processes should be re-engineered. Other authors present new tools and new approaches
for the effective implementation of process re-engineering. Still other authors present the
future issues for change in the business environment and a glimpse of what solutions may be
developed in the future.
The book has been loosely structured to allow chapters which address common themes to be
grouped together. In these chapters, the reader will learn about all of the key issues currently
being addressed in BPR research and practice throughout the world. The reader will discover
new approaches to BPR and learn about new software tools which facilitate BPR change. In
short, this book presents the latest thinking and solutions to BPR implementation from leading
experts around the world.
Each of the chapters in this book are the result of presentations given by the authors at the
international conference 'Re-engineering the Enterprise' held in Galway, Ireland in April of
1995. The conference, which was supported by the International Federation of Information
Processing, attracted experts from around the world who presented and reviewed the
latest thinking and ideas on business process re-engineering. The conference was organised
by Working Group 5.7 from within IFIP and hosted by CIMRU of University College
Galway.
We would like to thank all of our contributors for taking the time and trouble in preparing
and presenting their papers to a very high standard. We would also like to thank members of
IFIP Working Group 5.7 for their support in reviewing and selecting each of the papers.
Special thanks goes to the organising committee of 'Re-engineering the Enterprise' especially
William Kelly, Catherine Hayden, Paul Higgins, Gerry Lyons, Padraic Bradley, Attracta
Brennan, Brian Kelly, and Garry Monaghan for their help in the preparation and
administration of the conference.
Jimmie Browne
David O'Sullivan
Galway, July 1995
1
Planning centres - new conception
for re-engineering activities in
non-producing areas
M. Remme, A.-W. Scheer
Institut fur Wirtschaftsinformatik IWi (Institute for Information
Systems) at the University of the Saarland,
Im Stadtwald, Geb. 14.1, 66123 Saarbriicken, Germany
Tel.: [phone], Fax: [phone]
E-Mail: remi@ iwi.uni-sb.de
Abstract
The definition of tasks and functions as well as their relationships is one of the main tasks of
organising an enterprise. Usually, this is done step by step. This means the complexity of an
enterprise's overall task is broken down. The resulting subtasks must be assigned to individual
task performers. Only if the task is adequately broken down, task performers will be able to
execute it properly. Starting from present-day requirements, this paper explains fundamental
organisational patterns to reduce the complexity in enterprises. As point of departure these
patterns are used to derive the conception of planning centres. Afterwards, the way down to
planning centres-i.e. the enterprise's re-engineering-is lined out and experiences gained in
an industrial project are explained.
Keywords
Planning centre, business process re-engineering, complexity of organisational structures,
functional-, object-oriented and hybrid paradigm for organising enterprises, networked decen
tralisation, Architecture of Integrated Information Systems (ARIS), re-usability of organisa
tional knowledge.
1 INTRODUCTION
Over the last decades major improvements in technology and personnel's qualification have
effected that those who take advantage of this development in re-designing their organisa-
2 Re-engineering the Enterprise
tiona! structures meet the competition of the market. Catchwords like lean production, decen
tralisation, business process re-engineering etc. represent paradigms of how to adapt the en
terprises to these new challenges.
Four industrial companies assisted by five research institutes and consultancies are investi
gating the conception of the planning centres which represent the missing component to
complete current decentralised and process-oriented approaches to an overall flexible and
customer-oriented enterprise organisation called networked decentralisation (Scheer 1994,
p.585). Figure I illustrates the structure of the project "Funktionsintegration in Planungsin
seln" (Integration of functions in planning centres) which is funded by the German Ministry
for Education, Science, Research and Technology (BMBF). It defines an architecture of
decentralised organisational units in non-producing areas of enterprises and how this architec
ture is applied. There are four autonomous partial projects which in each case consist of one
industrial company and one or two supporting partners. All the partial projects have to imple
ment a pilot planning centre but they differ in the main functionality of the planning centre
and in the enterprise-specific preconditions. While e.g. fischerwerke manufactures dowels in
mass production Fortschritt manufactures machines for harvesting in small serials. The project
is co-ordinated by the Institut fiir Wirtschaftsinformatik IWi (Institute for Information Sys
tems), which thus, has a double-function beside being a supporting partner.
Figure 1 Structure of project referred to.
2 BREAKING DOWN THE COMPLEXITY OF ORGAN
ISATIONAL STRUCTURES
In industrial organisations, when a problem's complexity is defined by the effort a human
being has to expend in order to solve it, this complexity is the result of the multitude of func
tions to be processed and the large number of goods and services to be scheduled (materials,