Re-Engineering Design of a Purchasing System by BPS and PCA

Abstract

This paper introduces a framework for re- engineering design and assessment of a purchasing management system by business process simulation (BPS) and principal component analysis (PCA). The users of the purchasing management verified that the goals of a re-engineering model are to create a process-oriented approach in order to reduce purchasing process cycle time, faster customer response time and lower cost. The conceptual model of the business process was developed by integrated definition for function modeling (IDEFO). The process times were collected by standard time study and analyzed by statistical analysis and the computer simulation model of the process was developed by Visual SLAM. The current system was then compared with three business process re-engineering (BPR) models through PCA. The first BPR utilizes Davenport approach as process designing and using organizational, human resource and IT enablers. The second and third alternatives use electronic data interchange (EDI) technology and deletion of expense accounts in the current purchasing system. The approach of this study may be used for re-engineering design and assessment of other Purchasing management systems.