Business Process Management Journal

Avoiding quality fade in Chinese global supply chains: Designing appropriate governance structures : Table of Contents

Peter Enderwick — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – China's increasing importance as a major global supplier has coincided in recent years with a number of disturbing cases of quality fade (sudden unexpected deteriorations in agreed quality levels) adversely impacting consumer safety, welfare and brand equity. The most effective responses to the problem of quality fade when sourcing from China are firm-based. However, the efficacy of such responses assumes the existence of efficient markets and market-supporting institutions. In the face of widespread market failure overseas, buyers need to carefully structure the global sourcing relationship to minimise the risk of quality fade. This paper seeks to address this issue. Design/methodology/approach – The paper adopts a comparative discussion approach to explore the three key global sourcing governance structures: contracts, internal organisation, and trust, and assesses their effectiveness in attenuating quality issues under both the general contracting problems of uncertainty and opportunism and the challenges unique to the Chinese business environment. Findings – The comparative discussion suggests no clear superiority of any one structure and a need to carefully monitor quality performance on an ongoing basis. This suggests that the appropriate structure is contextual and depends on specific needs for information and compliance. Originality/value – Highlighting the strengths and weaknesses of the three major governance structures emphasises trade-offs that firms sourcing from China may need to make. Increased costs but assured quality may be an acceptable trade-off when firms are sourcing high-risk products (foodstuffs, pharmaceutical and vehicle tyres) or serving vulnerable market segments such as children.

House of risk: a model for proactive supply chain risk management : Table of Contents

I. Nyoman Pujawan, Laudine H. Geraldin — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – Increasingly, companies need to be vigilant with the risks that can harm the short-term operations as well as the long-term sustainability of their supply chain (SC). The purpose of this paper is to provide a framework to proactively manage SC risks. The framework will enable the company to select a set of risk agents to be treated and then to prioritize the proactive actions, in order to reduce the aggregate impacts of the risk events induced by those risk agents. Design/methodology/approach – A framework called house of risk (HOR) is developed, which combines the basic ideas of two well-known tools: the house of quality of the quality function deployment and the failure mode and effect analysis. The framework consists of two deployment stages. HOR1 is used to rank each risk agent based on their aggregate risk potentials. HOR2 is intended to prioritize the proactive actions that the company should pursue to maximize the cost-effectiveness of the effort in dealing with the selected risk agents in HOR1. For illustrative purposes, a case study is presented. Findings – The paper shows that the innovative model presented here is simple but useful to use. Research limitations/implications – In the proposed framework, the correlations between risk events are ignored, something that future studies should consider including. Practical implications – The framework is intended to be useful in practice. For the calculation processes, a simple spreadsheet application would be sufficient. However, most of the entries needed in the model are based on subjective judgment and hence cross-functional involvement is needed. Originality/value – The paper adds to the SC management literature, a novel practical approach of managing SC risks, in particular to select a set of proactive actions deemed cost-effective.

A business process outsourcing framework based on business process management and knowledge management : Table of Contents

E. Mahmoodzadeh, Sh. Jalalinia, F. Nekui Yazdi — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – Nowadays, outsourcing has proved to be an enterprise management strategy in the face of globalization and growing competition. The decision to outsource a business process for any organization has far-reaching consequences and risks. The purpose of this paper is to analyse the impact of business process management (BPM) and knowledge management (KM) on reduction of outsourcing risks and pitfalls. Design/methodology/approach – Outsourcing models and frameworks are reviewed to find the main risks in outsourcing. One of the most important groups of risks is emergent KM issues arising from widespread outsourcing. A strategic KM approach can reduce this risk. Communication and coordination difficulties between outsourcing partners is another group of risks that could be decreased by using the BPM approach in organizations. Then the contribution of a business process outsourcing (BPO) framework based on BPM and KM lifecycles is tested. Findings – The paper finds that BPM and KM could reduce risks of outsourcing and enable a BPO lifecycle. Practical implications – A contemporary case of IEI Company's outsourcing practices with one of its subsidiaries, Irancell, is discussed as an illustrative example. Originality/value – The paper demystifies BPM and KM could enable BPO via coordinating BPM, KM, and BPO lifecycles.

Managing requirements in ICT companies : Table of Contents

Matti Mottonen, Pekka Belt, Janne Harkonen, Binshan Lin — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – Requirements management has become a challenge for new product development (NPD) as products are getting increasingly complicated and customer segments more fragmented. The purpose of this paper is to provide new ideas for improving requirements management in the information and communications technology (ICT) sector. Design/methodology/approach – A qualitative interview study is carried out in the ICT sector to clarify the current challenges in requirements management. The results of the interview study are analysed using a benchmark from the automotive industry. This benchmark is chosen, as the automotive industry is a developed business sector that has streamlined its business processes, including its requirements management. Findings – The paper shows how ICT can benefit from the experience of the car industry on issues such as managing customer needs throughout the NPD process, overflow of data and communicating requirements with suppliers. Research limitations/implications – Using another sector as a benchmark is not a straightforward process and results cannot be directly copied. Fresh ideas are, however, obtainable when a well-developed benchmark is used and results are applied flexibly. Deeper analysis on individual areas indentified here might be interesting topics for further study. Practical implications – The paper shows that managers in the ICT sector should pay more attention to their requirements management and serving the needs of internal customers. The requirements management of the Japanese automotive industry is a potential source for improvement initiatives. Originality/value – The paper provides new perspectives for the requirements management of the ICT sector by benchmarking the Japanese automotive industry.

An integrated model for business process measurement : Table of Contents

Vincent C. Yen — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – Research in the evaluation of business processes (BPs) seems to have missed those of BP modeling techniques. Past studies on evaluations have focused in most cases on a single objective or goal of a BP using quantitative performance measures or qualitative surveys. In this paper, an approach that combines all relevant single purpose measures (relevant to the goals of the BP) into one overall measure is proposed. The overall measure will reflect all stakeholders' perspective and preference ratings on the attributes/criterion of the BP in question. The conceptual model is supported by the analytic hierarchy process (AHP) methodology. Design/methodology/approach – A discussion of factors that might be the root cause of difficulties in defining an appropriate evaluation is given along with a review of major measures used. The synthetic combination of single purpose measures basically follows the AHP, with major stake-holders represented in defining the relative priority/ranking matrix between criteria of the BP goal. Findings – The AHP could produce a set of more logical weights for the multiple criteria that are usually associated with a BP goal. These weights are then applied to each single purpose measure in order to come up with the final process score. This process score should represent a fairer rating viewed collectively by all concerned parties of the company. The procedure is practical and easy to apply. Research limitations/implications – The paper has not been implemented in real world applications; therefore a future work direction is to conduct an actual application and evaluate the feedback from actual implementations. Practical implications – The procedure utilizes different key criteria measures and stakeholders' preferences to come up with a composite measure. Final measurement outcome obtained in this manner is expected to be more acceptable to all stakeholders. Originality/value – The paper proposes a new approach to creating a measure of BP based on all relevant single measures derived from the BP goal. The score from the new process measure has a more balanced meaning and therefore may be more valuable than by just relying on a single criterion measure.

Role of process knowledge in business process improvement methodology: a case study : Table of Contents

Ravi Seethamraju, Olivera Marjanovic — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to analyse the importance and role of process knowledge in the business process (BP) improvement methodology with the help of a case study. Design/methodology/approach – The approach takes the form of a literature review that highlights the challenges and issues in the existing BP improvement methodologies. An in-depth case study that has embarked on a major BP improvement initiative that emphasizes individual and collective process knowledge in a real-life complex organization is presented. Findings – The paper confirms that BP improvement is, in fact, a complex, knowledge-intensive, collaborative process that consists of a set of coordinated, contextualized knowledge management processes. The design of the “to-be” process in this study is a knowledge co-creation process that uses collaborative exploration of different scenarios and contexts. Compared with the traditional BP improvement methodologies where the main emphasis is on the design of a new process model, the focus of the methodology employed in this case study is on the process of knowledge co-creation and transfer. Research limitations/implications – The paper leads to increased recognition of the knowledge and experience people develop, use and share while modeling, executing, and improving their BPs. It offers anecdotal evidence and general case study research limitations apply. Practical implications – Practitioners should focus more on key knowledge processes rather than BP models that often obscure the role of individual and collective process knowledge. Rather than investing limited resources in the mapping and modeling of existing processes, practitioners will be able to better serve their organizations if they concentrate on the improvement of the process by tapping the contextualized process knowledge possessed by the individual actors. Originality/value – In the expanding field of BP management, the study explores the increasing importance of individual and collective process knowledge in process improvement methodologies and provides guidance to user organizations on ways to exploit the value of process knowledge in designing new processes as well as collaborative knowledge sharing and creation process.

Process view and cost management of a new surgery technique in hospital : Table of Contents

Lino Cinquini, Paola Miolo Vitali, Arianna Pitzalis, Cristina Campanale — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to analyze the potentiality in the application of process analysis and activity-based costing (ABC) in a healthcare setting to produce usable, useful and correct information on resource consumption and processes. The paper aims to analyze changes applied to the traditional costing model in order to represent the work flow of the organization and the related additional information usable by decision makers at different levels. In particular, the paper is focused on economic analysis related to the introduction of a new surgical technique in healthcare. Design/methodology/approach – An empirical case study is developed in a Tuscan hospital from September 2005 to March 2006, data being collected through interviews to employees and direct observations. Findings – Several factors are found to be critical in such a process analysis and in an ABC implementation in healthcare. First, the need to ground the development of the model structure on the specific characteristics of the organizational setting and the clinical work performed. Second, a problem of culture and language, because professionals have difficulties in understanding the language of activities, and they cannot accept a model designed to measure their work; therefore, some resistances may occur. Third, the constraint of information; in fact more precise estimation may be limited by the information available, as in this case. Research limitations/implications – The paper provides a framework for future research. The replication of the methodology in other hospitals, in order to test the validity of the model and to compare results, can be interesting and another can be the analysis of benefits that the application of the system can provide (in terms of improved efficiency) through a longitudinal analysis. Originality/value – The paper contributes to the field study of ABC and process analysis in healthcare. The original contribution of the model lies in the classification of activities in a hierarchy across the organization, which allows a more precise identification of cost driver; and in the “hybrid” nature (a combination of cost centres and activities) of the model. The latter allows one to identify a “full cost” of the patient.

Challenges of business processes management in healthcare: Experience in the Irish healthcare sector : Table of Contents

Markus Helfert — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to outline a framework for analyzing healthcare process management projects. By using this framework, it seeks to analyze a system implementation in Ireland. The system aims to standardize healthcare human resource and payroll for the Irish healthcare sector. Design/methodology/approach – A popular system and business process implementation is analyzed in Ireland. The research intends to use this case scenario to identify success and failure, which in turn forms the basis to propose a conceptual reference method for introducing healthcare process management. Findings – The healthcare sector has shown that it has, compared with other sectors, a relatively underdeveloped information system structure. In this context, the importance of reducing healthcare costs and streamlining workflows, processes, and care pathways is ever more seriously recognized. However, despite the importance of process management, currently, internationally very few guidelines are provided for introducing healthcare process management in hospitals. Practical implications – The paper provides a good example of a large-scale, nation-wide business process management (BPM) project; shows the different facets of BPM success factors; and helps to raise awareness for both managerial factors and domain-inherent, structural, and content factors. Originality/value – The analysis revealed some interesting results. The reasons for failure in healthcare are rather more content and structural in nature than solely project management issues.