CHINESEJOURNALOFMECHANICALENGINEERINGVo117，No4，2004565TangHongtaoTangRenzhongInstituteofManufacturingEngineering，ZhejiangUniversity,Hangzhou310027ChinaOINTRoDUCTIoNPERFORMANCEDRIVENBUSINESSPROCESSMANAGEMENTMETHOD-OLOGYFORSMALLANDMEDIUMSIZEDENTERPRISES水Abstract：Basedontheanalysisofthecommonlimitationsofbusinessprocessmanagement(BPM)methodologiesandtherequirementsofsmallandmediumsizedenterprises(SMEs)theimportanceofaperformanceconstruct”ofBPMmethodologiesisidentifiedasix-phaseperformancedrivenBPMmethodologyfortheproductionandoperationprocessesofChineseSMEsisdevelopedAcasestudyontheprocessmanagementofamediumsizedenterpriseshowsasuccessfu1exampleofrunningthemethodologyKeywords：BusinessprocessmanagementProcessmanagementmethodologyProcessperformancePerformance-drivenSmallandmediumsizedenterprisesManycompaniestodayhavecometorealizethatbusinessprocessmanagemerit(BPM)isancitectiveandcomprehensivemeanstoimprovetheperformanceofbusinessprocessesLBPMisacustomerfocusedapproachItstressessystematicanalysis，optimization，control，measurement，andmanagementofallcompanyprocessestoimprovethecompanyperformancethroughcrossfunctionalteamworkandemployeeempowermentBPMisabroadtermthatcoversavastarrayofdifferentorganizationalstrategiesfrommcremenmlcontinuousimprovement(CI)totheradicalreengineeringofthebusinessprocessescharacterizedbybusinessprocessreengineering(BPR1However,thereisagrowingbOdyofevidencethatindicatesthatneitheroftheseapproachesoffersahighdegreeofsuccessPartofthereasonisthelackofanoperablemethodologytonavigatetheimplementationAreviewoftheliteraturewouldfindsignificantamountofbusinessprocessmanagementm，ethodologieshavebeenproposedForexampleKettinger,etalLproposeda6stageBPRmethodology,Poveyproposeda14step“bestpracticeBPImethodology”，Melnyk，etal【，proposedallstepvaluedrivenprocessmanagementprocess，Elzinga，etalproposeda6stepbusinessprocessmanagementmethodology,Harringtonojproposeda“processbreakthroughmethodology”DavenportLproposeda“processiunovationmethodology”etcButananalysisofthesemethodologiessuggeststhatmostofthempursueasimilarpathandexhibitcommonalitiesinkeyareasAlmostalloftheabovemethodologiesarenonsystematicTheiremphasisstresseshandsonexperienceandcasestudiesratherthancomprehensivere-searchThelimitationsofexistingmethodologiescanbesumma-riz酣asfoliows8-10一(1)ExclusionofaperformancemeasurementMostofthemethodologiesstopattheimplementationphaseManagersdontknowwhether,andtowhatextent，thenewprocessesarebetterthantheoldones(2)“Universal”natureItisextremelydifficult，ifnotimpossible。toproduceageneralmethodologyforallkindsofprocessesinallkindsofcompaniesButmanyproposedmethodologiesdojustthatThcyarenothingmorethangeneralguidelinesattemptingtocovertheneedsofallorganizations(3)SpecialistsorientedManymethodologiesarespecia1istsdrivenHowever,thepeoplewhowanttoCalTyoutBPMinThisprojectissupportedbyNona1NaturalScienceFoundationofChins(No70071029)andProvincialScienceandTechn0logyPlanofZhejiang,ChinaOqoO11106241)ReceivedAugust26，20o3；receivedinre-visedformJune15，2004；acceptedJune23，2004theircompanyarethetruecustomers(4)Large-company-orientedMethodologiestodayassumealargecompanysettingwithlargescaleresourcesdedicatedtobnngingaboutlarge。scalereengmeenngchangesThisPaperthen，proposesaperformancedrivenBPMmethodologywitllfoellsontheproductionandoperationprocessesofsmallandmediumsizedenterprises(SMEs)ThisnewfoCHSwillalleviatemanyoftheaforementionedlimitations1CHARACTEIUSTICSoFSMES、)I，ITHTHENEWMETHoDoLoGY11CharacteristicsofSMEsTherearespecialcharacteristicsinproductionandoperationprocessesofChineseSMEswhichmayresultinsomeproblemsatleastinthefollowingfivedifierentareaswhenatraditionalBPMisappliedtoSMEs(1)ManagementperspectiveTherearebothsupportiveandunsupportivemanagementpracticesforBPMimplementationManagementpracticeswhichsupporttheapplicationofBPMincludeshortmanagementradius，highcohesion，timelydecision-making，rapidimplementationofdecisionsandchangeintheenterprise，etcThepracticesthatdonotsupportBPMareunscientitlemanagementmethod，nonstandardmanagementsystem，randomicityineverydaymanagementissues，etcTheseunsupportivemanagementpracticespreventtheacceptanceandimple-mentationofBPMinSMEs(2)OrganizationalstructureperspectiveOrganizationalgridsofSMEsaregenerallysimpleandwithlessadministrativelevelsTherefore，managerscancarryouttheirdailyactivitieswithfewerinterruptionwhichmakestheBPMimplementationmoreconvenientL“JHowever,theunstabledepartmentrelationsandambiguPUSdivisionofpowerinSMEsarenegativetotheimplementationofBPM(3)LeadershipperspectiveTheleadersofSMEsusuallykeepabsolutecontroloftheenterprisetJThatmeansleadersusuallyrejectanychangethatendangertheirsovereigntyButthissovereigntyisahugepowersupportneededtopropeltheimple-mentationofBPM(4)ResourceperspectiveSMEscannotaffordalargenumberofpeople，onafulltimebasis，toworkonaBPMprojectItwouldhindertheSMEsabilitytooperateThereforeaconsultantisneededHowever，alargeconsultancyfeecanalsobeagreatburdenforSMEsAddedtoaconsultantsfeeisITfeesBPMprojectsusuallyuseadvancedITtofacilitateoptimizationandimprovementofbusinessprocessThesehugeITfeesareusuallydifficultformanyoftheSMEs(5)BPMresultperspectiveComparedtolargeenterprises，566TangH。ngtao，etal：performance-drivenbusinessprocessmanagementmethodologyforsmallandmediumsized-enterprisesSMEsusuallyseekmoreshorttermprofitsthanlongtermproitsHowever,therealesomelongtermprofitexpectationsTheretbre，thenewmethodologywillneedtobalanteshorttermandlongtermprofitobjectivesAlloftheselimitationsandproblemsshowthatcurrentBPMmethodologiesarenotsuitableforSMEsSMEsneedadifferentspeciallydesignedBPMmethodology12SuggestedBPMmethodologyAreviewandstudyoftheliteraturesofbusinessprocessmanagementmethodologiesalongwiththeaboveanalysisofcharacteristicsofSMEssuggeststhataBPMmethodologyforSMEshouldbeasfollowsf1)PursuepracticabilityandmaneuverabilityBedevelopedformanagersandpeoplewhowanttocarryoutBPMprojectsthemselvesintheircompany(2)EmphasizetheimportanceofperformancemeasurementThemethodology,ononehand,shouldembodyenterprisesstrategy(throughperformancemeasures)to“dotherightthing”，andontheotherhand,tomonitorandcontrol(throughfeedback)thebusinessprocesses(3)Balanceshorttermandlongtermrewardsofaproject(4)BesupportedbyanintegratedsoRwaresupportsystemthatcannavigatetheBPMprojectimplementationandprovidenecessarytools13Whvperformance-drivenEnterpriseschangetheirbusinessprocessesforsurvivalandsustainingcompetitivenessAfirmnotonlyneedstosatisfytheircustomers，butalsoneedstosatisfytheirshareholders，theiremployees，governmentandthesocietyExcellentperformanceisasyntheticalembodimentbyallcustomersandstakeholdersInthisnewproposedmethodology，perf0rmaIlcedrivenisemphasizedforthefollowingreasons(1)BPMisdefinedas“astructuredapproachtoperformanceimprovement【andan“initiativetoimproveand(re)designbusinessprocessestoachievecompetitiveadvantageinperformanceLThereforepursuingperformanceisthepurposeofBPMandthemissionofaBPMprogram(2)PerformanceistheultimatedriverforBPMArmistead，eta1arguesthatthedriversforadoptingBPMale：globalization；technologychange；regulation；血eactionofstakeholders；andtheerodingofbusinessboundariestlSAcommoncorethoughtunderlyingthesedriversisthattheorganizationsabilitytoattractandmaintainexcellentperformanceisthreatenedTlisthreattherefore，motivatestheenterprisestotakestepstoinsureexcellentperformance(3)BPMshouldbeali鯛edwithstrategyconsensusBusinessprocessperformancemeasUleSafeaneffectivemediumtotranslateenterprisestrategyintoprocessactions(4)FallingtorecognizetheimportanceofperformancemeasurementisamaJ,nreasonforthehighfailurerateofBPRproject2PERFoRMANCEDRENBPMMETHoDoLoGYIngeneral，thetaskssuchasmapping，analyzing，redesign,andimplementingareinchdedinBPMmethodologicsIntheproposedperformancedrivenmethodology,threenewtaskswithconcernsofperformancemeasurementareaddedTheyareasfollows：(1)Stakeholderexpectationandenterprisestrategywhicharetrailslatedintoasetofdetailedperformancemeasuresandtheirtargetvalues(tasks7。8，16inTable1)(Currentperformanceofthetargetprocessismeasuredasthebaselineoftheimprovement(task9m1le1)Thenewprocessismeasured(task19inTable1)Newprocessperformanceisthecriteriontoiudgewhethertheob-iectivesoftheprojecthavebeenachieved21PrepareThereareanumberofpreparationtasksthatareneededtohelptheBPMprojectSsuccessThemostimportanttaskistoinsuretopmanagementssupportThecommitmentandsupportfromtopmanagersisparticularlyneededwhenacompanyisin-stallingmorecomplexprocessinnovationmodelsThatis，theTable1Performance-drivenBPMmethodologyanditstechniquesBuildabusin(7IdentifyprocessstakehoIdersStakehoIdersidentify-essprocessofthetargetprocessand也eiringandclassifyingperformancerequirementstechniques，surveymeasurement，(8)EsmbfishprocessProcessperformancesystemperformancemeasuresmcasurlelicitingtec_andsettargetvalueshniques，benchmarking(9)MeasurethetargetprocessProcessperformancecurrentperformancemeasurementtechniq-UesRedesignthe(12)Tfanslatethes切eb0lderstargetprocessrequirementsintoprocessdesignoptionsQFD(13)DesigntheprocessIDEFo，IDEF3alternatives(14)AnalyzethecostbenefitriskSimulation；Costbene-ofthealternativesfitriskanalysis(15)SelectonealternativeasIDEFo，IDEF3prototypeofnewprocessanddesignitindetail(16)Reviscprocessperformancemeasuresand也eirtargetvaluesProcessperformancemeasureselicitingtechniques，benchmar-kingenterpriseisbeingreengineeredwithneworganizationstructures，newcomputersystems，andnewbusinessprocessesThevision，mission，andstrategYshouldbediscussedandclarifiedwithtopmanagementAdditionally,theprojectscopeshouldbeclarifiedNextanumberofpreparationtasksshouldbeperformedunderthecommitmentoftopmanagers，includingbuildingandtrainingtheBPMteam，identifyingtargetprocess，anddevelopingascheduleforshortandlong-termactivitiesTheBPMteamisagroupselectedbytopmanagerswhotakesresponsibilityforthewholeimprovementprogramTheteamshouldincludeadiversityofpeopleandskillsForexamplethepeoplewhounderstandandactivelyusethecurrentprocesses，andthosewhoworkcloselywithcustomersThebestsizeteamrangesfrom3-12memberstThefirsttaskoftheteamistoclarifytheobjectivesoftheBPM，andbasedontheseobjectivesidentifyonetargetprocessOneprocessisselectedbecausefewSMEshavetheresourcesavailabletodeployananalysisanddoanimprovementOfaI】OftheirbusinessprocessesatthesarlletimeEachprocessintheenterpriseneedstobeassessedseparatelytodecidewhichofthemneedsimprovement，andinwhatsequence也eymustbeaddressedAsimplemethodofidentifyingprocesseswhichmaybeinneedofimprovementistodoaperformanceimportancematrixanalY568TangHongtao,etal：Performance-drivenbusinessprocessmanagementmethodologyforsmallandmediumsized-enterprisesHNisprofitablebutconfrontedbjtvyaanndumberofcomplaintsm。feamsueredsi衢T(mén)cuheltyreasonthatonlytwomn1eaesyuresareusedfuismbellcmauesnefrtombothcustomersaboutpoorqualny舞longdedmelanivdseryIttimhaes,：wmgatnenngaata”aretvaorulgurl-eandtheovertimeofemployeetomeetproratiootcostoydamagetarget曲仰。蚰n竺。叫0-1qctiv一Tl1evaluesofthemeasures。triedseveralwaystoncreaseproductioncapacitydecreasecostaaysan(1vorespeety171i，u?“establishtheBPMteam，anddeveloptheprojectplanandobjec。anddisorderedprocessoftransferringproductordenItisthetivesTheBPMteamwillconsistof6membersTheyare：thepoorabilityof“quickchangingproductdesign”thatresultsinmanagerofQCdepartmentHolleyGoup；tl1eQcdepart。mentClerkHolleyGroup；meQcManagerHNDivision；theQcClerkHNDivisionandtwowritersofthisPaperThentheBPMteamistobetrainedfortheperformancedrivenBPMmethodologyHNBPMobjectivesTheobjectivesestabllishedarc：toimprovecurrentproductionandoperationprocessessoastoim。provecustomersatisfaction；toreduceemployeecomplaints；andtodecreasecostsNowthattheobjectivesaredefined，thenexttaskistoorganizeateammeetingtoreviewandbrainstormrelatedobjectiverelevantprocessesandprioritizeaccordingtotheirperformanceandimportance，asaconsequence，aperformanceimportancematrix(Fig2)isestablishedThematrixrevealsthattheorderacceptanceprocessisindeedthehargetprocessoftheprojectFollowingthesetasks，theteamneedstofocusonthetargetprocessstakeholdersandtheirrequirementinthestudy+1+6+2+3+4+5+8+7Low1Order&cceptanceprocess2Newproductdevelopmentprocess3Newproducttrial-productprocess4Manufacturingprocess5Purchaseprocess6Aftersaleserviceprocess7Manufacturingequipmentspurchaseprocess8ManufacturingequipmentsmaintenanceprocessPerformanceHighFig2Pefformanceimpoancematrix322BuildabusinessprocessperformancemeasurementsystemTargetprocessstakeholdersTheBPMteamidentifiescriticalstakeholdersforthetargetprocessTheidentificationprocesscallforthefollowingactivities：(1)Listallthestakeholders(12)ClassifYstakeholdersaccordingtopower,legitimacyandurgencyThreecriticalstakeholdersareidentifiedandtheirmosturgentrequirementsareinvestigated(Table2、Table2StakeholdersofHNCompanyCfificstakeholdersStakeholdersrequirementsCustomerEmployeeShareholderAccelerateddeliveryHighqualityQuickresponsetorequirementchangeNoworkovertimeProfitProjectcriticalconstruetshowtomeasureInordertomaketheprocessimprovcmcntphasemeasurdbletheBPMteamestab1ishestwoconstructs：Establishtheperformancemeasuresfromenterprisestrategyandthestakeholdersrequirementstomeasuretheorderacceptanceprocess(2)Conductabenchmarkingstudytosetperformancetargetvaluewhichuncoversonlytwoslowresponsetocustomerrequirementswhichultimatelypro。1ongstheorderfulfillmenttimeThedisorderedprocessof“trans-ferringproductorderlcadstonotonlytimewastedbutalsoinformationlost324RedesignthetargetprocessOurhostHolleyGroupdidnotapproveofthestudyof“quickchangingproductdesign”forreasonsunknownThereforetheteamandthestudycanonlylookatoneitemtheprocessof“transferringproductorderTheBPMteammembersorganizetheirideasandpresenttwosolutionsasshowninFig4andFig5Infirstsolution(Fig4)，theprocessisradicallyredesignedHSisdeprivedofthecontrolabilityoftheordorsFurthermorethissolutionrequiresthatboththepro