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MPM701 – Business Process Management
Trimester 1, 2021
DUE DATE AND TIME: Friday 30th April 2021, 8:00 pm
PERCENTAGE OF FINAL GRADE: 40%
WORD COUNT: 2000 words
HURDLE DETAILS: Not Applicable
Learning Outcome Details
Unit Learning Outcome (ULO)
Graduate Learning Outcome (GLO)
ULO 1: Relate the principles and frameworks of BPM to the achievement of organisational strategies and goals.
GLO1: Discipline-specific knowledge and capabilities
ULO 2: Generate solutions to organisational problems using the tools and methodologies of BPM.
GLO1: Discipline-specific knowledge and capabilities
GLO5: Problem solving
ULO 3: Critically evaluate the appropriateness of enterprise systems to enable BPM and change.
GLO1: Discipline-specific knowledge and capabilities
GLO4: Critical thinking
ULO 4: Design and deliver informed recommendations about process change to a variety of organisational audiences.
GLO1: Discipline-specific knowledge and capabilities
GLO2: Communication GLO3: Digital literacy GLO5: Problem solving
Students who submit their work by the due date will receive their marks and feedback on CloudDeakin approximately three weeks after the due date.
Deakin’s Bachelor of Commerce and MBA are internationally
Deakin Business School is accredited by AACSB and EQUIS
Deakin’s Bachelor of Commerce and MBA are internationally
EPAS accreditedDeakin Business School is accredited by AACSB
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Description / Requirements
Business processes permeate all aspects of business and it is arguable that if a business is not adopting a business process management approach to realise its strategies, and its subsequent objectives and goals, then it may reduce its chances for success – even its very survival. By taking a business process management approach, organisations can improve their chances of succeeding in their quests for sustained competitive advantages through greater efficiencies, quality, innovation and customer responsiveness. In, what is now, a
highly competitive, global, interconnected and uncertain business environment, there has never been a better time to draw on the advantages offered by applying the BPM discipline to any business or organisation anywhere.
Upon successfully completing this assignment you will have demonstrated that you can provide clear written advice, and recommendations for change, to a business owner, in relation to business process management (BPM). Your advice will offer the business owner several reasons for adopting a business process management approach including:
▪ an explanation as to what the current business processes are and why they should be re-designed
▪ a proposed redesign solution
▪ any special considerations that need to be taken into account to deliver the proposed solution successfully
▪ succinct recommendations
In providing your advice to the business owner you will take into account various perspectives and circumstances encompassing the business.
Overview of Compostwizard Pty Ltd
Darlene Daylight is the inventor of the Compostwizard. The Compostwizard is a solar driven digging device approximately 1.5 metres in length, containing a carbide tipped, stainless steel retractable probe 200 millimetres long. The Compostwizard utilises a miniature micro-computer combined with nano-technology to instantly analyse and calculate soil composition and provide precise instructions for transforming unusable, useless soil into luscious, nutrient rich compost/top soil capable of growing most plants and vegetables. Details of soil composition are wirelessly transferred by the device to a secure cloud based data repository developed and maintained by Darlene.
The Compostwizard is made entirely of carbon fibre rendering it extremely light and therefore easy to use by people of all ages. It has attracted enormous popularity amongst a range of users including home and market gardeners, commercial nurseries and farmers both private and commercial and demand has always exceeded supply.
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Coming from a farming background, Darlene was always looking for ways to improve soil condition as this has an enormous impact on a farm’s productive capacity. After leaving home, she decided to purchase a hobby farm and after meeting her husband (a former graduate of Deakin University’s engineering faculty) she spent the next decade developing the Compostwizard. Their greatest challenge was ensuring that the stainless steel probe could operate effectively in all soil types and under all temperatures. After years of testing, Darlene eventually launched the Compostwizard under a new business venture in 2016.
Darlene’s new business is a private company called Compostwizard Pty. Ltd. The business manufactures and distributes the Compostwizard but the two most important components (the carbon casing and the stainless steel probe) are obtained from external suppliers located in Canada and Spain respectively. The supplier in Spain is the only company in the world capable of making the probe.
Compostwizard Pty. Ltd. comprises a number of standard functional areas in line with most small to medium enterprises. The company’s organisational chart is shown below:
The departmental directors are named in their respective function boxes in the chart. The number of employees working under each director is shown in each of the function boxes respectively (numbers of employees in each department include the directors of those departments). The sales function is also charged with marketing and service responsibilities; service requests though are usually referred to the logistics department. The accounting function is also charged with finance responsibilities.
The production function manufactures the Compostwizard and manages the warehouse. The firm has a
centralised IT function which provides some of the firm’s IT needs. Compostwizard Pty Ltd currently employs 50 individuals, including Darlene.
Darlene DaylightDaylight CharlieCharlie WatersWaters
Production Mike Nutrient Mike Nutrient (12 (12 employees)employees)
Julie Weedy (8 employees)(8 employees)
Logistics Greg Mulch Greg Mulch (6 employees)(6 employees)
Purchasing Jake SupplementJake Supplement
Sales Bette Biopic Bette Biopic (7 employees)(7 employees)
Accounting John John Compost Compost (6 employees)(6 employees)
R&D PaulPaul Hoseman Hoseman (2(2 employees)employees)
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The business experienced strong growth in its first few years and this enabled it to grow quickly. In 2020 things started to change. Sales were down and profits reduced (see profit table below). This decline continued through 2021. The impact of COVID-19 has had a devastating and destabilising impact on the global economy resulting in extreme volatility. Innovation and client responsiveness are now seen as more important than ever to ensure long term sustainability.
2016 2017 2018 2019 2020 2021 Revenue $m 1.5 2.5 5 6 4 3.2
1.5 Profit $m 1 1.7 3 3.5 2 1.7
Sales of the Compostwizard essentially relied upon word of mouth communication and thereore, a solid marketing strategy had never been developed. Worse still, Darlene had never put much time or effort into developing streamlined and computer based business processes and rather, resorted to many paper based manual methods to get things done, including purchasing material, controlling production, satisfying customer orders and managing all the accounts.
Darlene’s business strategy has always centred on innovation and up to this point, nobody had been able to produce a comparable device that could compete with the Compostwizard thus giving her a sizeable competitive advantage.
Darlene underpins this strategy with a focus on quality and customer responsiveness. She also realises that, given a recent rise in customer complaints about delays in receiving orders, her firm’s customer responsiveness is waning and needs urgent attention. Darlene wishes to maintain her strategic stance but knows that organisational change must occur urgently if it is to work as intended.
Darlene decided to hold a meeting with her directors. They assembled during the morning around the board room table where Darlene asked “What happens when a customer places an order for a Compostwizard?” (Darlene’s question assumed that the group would understand that a customer might be a wholesale or retail customer or an individual purchasing directly from the company either online (via eBay) or via phone or fax. Compostwizard Pty Ltd does not have a retail store front).
Bette spoke up and said, “well, we write up a sales order form and send it to production.” Mike said, “when we get to the sales order form, usually within three days, we physically check to see if there is a Compostwizard (or number of Compostwizards) in stock that suits the configuration required and if there is, we pack it, label it and write stock details onto the sales form and send it over to Greg’s guys to ship it out and we also send a duplicate copy to John so he can organise the accounts. We keep a triplicate in a box in my office – one day I will sort through these and complete a reconciliation. I also keep ‘post it’ notes of sales orders on my office whiteboard – these usually match the triplicates in the box so I don’t need to fiddle with the papers in the box.” When the box is full, we send it to John in Accounting.
Then Greg said, “well, when we get the sales order from Bette, we sign it and make notations of the date and time, then, when we pack the order onto one of the trucks for local delivery or get Fedex to collect it for interstate or international delivery, we forward the sales order along with a shipping note to John in accounting. We don’t know what he does with it but we’ve always done this. We keep a photocopy of the shipping note in a ring binder in the warehouse office.
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When the photocopier is broken we just slap a ‘post it’ note on the order in the folder. This seems to work well because we don’t lose the details for many orders”.
Then John spoke up and said, “when we receive the sales order from Bette we file it and wait for the shipping order to come in from Greg. We usually cross check all sales orders and shipping orders that are sitting on our desks every day to ascertain whether an invoice action can be taken. When we see a sales order and a shipping order for the same sale (which we ascertain by looking at the name of the customer on the order), we send the customer an invoice to the customer’s address, either their shipping or head office address – it doesn’t really matter, we just choose whichever address appears first on the order. Payment terms are net 14 days and the majority of our customers pay within this time which means that there is very little action required in following up debtors.”
Darlene sighed quietly to herself and then asked, “well, what happens if we haven’t got any suitable Compostwizards in stock?” Mike said, “well, when we get the sales order from Bette and check for suitable stock, if we find that we’ve run out, we organise a purchase request and send it to Jake so that we can get the necessary materials to make more. It only takes us a few days to get the purchase request organised and sent.” Jake then spoke up and said, “when we get the purchase request from Mike, we file it for action so
that purchase requests are tended to in order of date received. That’s how we prioritise things in my department!
When we finally find time to get to the request, we study it and then organise purchase order forms which we complete and send to our respective suppliers. We send these in the surface mail. It usually takes about four and a half weeks before we receive dispatch confirmations and invoices from our suppliers indicating that our orders have been filled and sent. Then we send the original invoices from our suppliers, with a payment order, to John so that he can organise payment for the materials. Our job is done!”
John then said, “when we receive the invoices and payment orders from Jake, we pay these immediately. We’d hate to ruin our relationships with our suppliers.”
Darlene sensed tensions between members of the group. She particularly noticed a strong three way tension between Mike, Jake and John. Bette seemed to be the most positive member of the group, even though sales were down, and whenever she spoke, Darlene noticed that all other members of the group became anxious.
Darlene was beginning to see the consequences of her neglect of the firm’s business processes and sensed that if all of this were to continue, she could be out of business within a couple of years or even sooner. She is confident that the Compostwizard can adapt to changing times and will remain very popular for many years to come but she knows that she must match this fantastic product with excellent business processes.
Darlene engages your BPM consulting firm to help make sense of the current organisational approach and to provide some preliminary advice about redesigning processes so that the current downward trend in performance can be reversed. She gives you the transcript of her meeting with her directors (as seen above). She also provides you with some other basic information that she quickly gathered together for you including some Balance Sheet items (to help you to form a view of the firm’s position to invest in change) and some other miscellaneous information which might help you to determine the extent of change necessary. No other information is available to you to develop a solution. Darlene states that she has at least been conscious of accumulating some cash reserves for the firm’s development and that it seems the day has come to use some (or possibly all) of these! All of this is revealed in the tables shown below.
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Balance Sheet Items (summarised as at June 2020) $ Cash at Bank (based on latest statement found on floor) 800,000
600,000 Percentage of debtors outstanding more than 2 months 30%
255,000 Stock on Hand (based on rough estimate count in warehouse) 85,400
Other Assets (including land, buildings, equipment and vehicles (straight line depreciation), investments, patents, trademarks and goodwill.
2,700,000 Other Liabilities (including bank loans, venture capital) 800,000
Loan expiry and review date
30 April, 2021
Other information (based on Darlene’s investigations only; no other information is available) Item Units/Info Organisational Personal Computers (Quad Core, basic peripherals) 11
Laser Printers (Hewlett Packard, 4 years old)
3 Local Area Network 6 PCs connected
7 PCs connected Software – Microsoft Office 2016, Microsoft Vista 12 Licences only
Telecommunication Networks – Cable available to whole business
Cable Telecommunications provider Telstra
Some client data are currently held on spreadsheets
Excel and Open Office Three MS Access databases hold some data on employees Name, Address, Employee Number and Title only.
A company intranet has not been established
Computer literate staff (basic and intermediate levels; no power users) 22
Total product lines
3 approx. Suppliers (one in Canada, one in Spain, both have Internet access 2 approx.
Customers (i.e. retail stores and some distributors)
27 approx. Retail Price for a Compostwizard $2,500
Cost of producing a Compostwizard unit
$639 Individual Directors’ salaries p.a. $60,000
Staff average annual income
$55,000 Production time for one Compostwizard 8 hours
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Task: Business Report (40 marks)
This assignment will be completed by teams of 3 individuals.
Your task is to prepare a preliminary business report for the CEO. The main body of your report must be structured using the following headings. A brief about what each section of the report must address is also provided.
BPM and Strategy
▪ State in plain terms what Business Process Management is and how it can help ’Compostwizard Pty Ltd’
▪ In describing the benefits of BPM, ensure that you briefly explain how BPM connects to:
o business strategy from internal and external perspectives,
o structure and
o value propositions.
▪ Briefly describe the meaning of value chains and how using BPM, in conjunction with this concept, can assist ‘Compostwizard Pty Ltd’ to improve its financial position.
▪ While there are a number of problems within ‘Compostwizard Pty Ltd’, you are required to concentrate your efforts on the problem which you determine to be the most urgent. Failure to clearly identify what you consider to be the most urgent problem, will result in the loss of five marks. In relation to this problem, you are required to identify the causes and the consequences of the problem. Think carefully about the problem that you identify as the most urgent. You must be able to ‘model’ the problem as part of your As-Is and To-Be diagram and the problem must not be the same as the solution. For example, it is not acceptable to identify a “lack of I.T.” as the most
urgent problem, only to then provide an I.T. based solution (i.e. the problem cannot be the same as the solution!).
▪ Identify the capabilities gap and the performance gap.
▪ Show the current ‘As Is’ process using Bizagi Modeler software. If you cannot use the Bizagi modelling software, you may present your diagrams on any other software provided it is BPMN compliant (ie. Lucidchart)
▪ Identify any process flow problems and/or day to day management problems; output and input problems; and problems with controls and enablers; develop a project scoping diagram to illustrate the problem which you have identified
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▪ Explain what it means to develop a ‘business process architecture’ and, particularly, how valuable this can be to ‘Compostwizard’ and its success
▪ Describe a ‘To Be’ process and explain how the process will address the most urgent problem identified in the previous section; what will the ‘To Be’ process do, or not do, when the change project is rolled out
▪ Support your ‘To Be’ process with a BPMN process flow diagram using Bizagi Modeler software (or other graphical software (BPMN complaint) if you are unable to use Bizagi)).
▪ Are there any key aspects in your proposed solution that you should clearly describe to Darlene for example: SOA; ERP; Master Data; Core, Support and Management processes; alignment issues; etc?
▪ Based on the information provided in your proposed solution, you must also include a fully annotated organisational structure chart.
• Large BPM driven organisational changes can be extremely valuable, they are also complex undertakings impacting the organisation, its people and its use of modern technologies.
▪ Identify and briefly describe significant considerations that might impact ‘Compostwizard Pty Ltd’, both during the redesign development stage and upon the implementation of your proposed solution. Some considerations might pertain to the costs of bridging the gap (time, effort, money, etc.), risks, opportunity costs, internal politics, etc.
▪ Specifically address any upstream or downstream implications (within or outside the organisation) of the solution you have proposed, stating why these implications are important.
▪ Provide a succinct list of recommendations to conclude your report. Your recommendations should leave the CEO in no doubt as to what must happen next.
Written Assignment Administrative Details
You should include a brief executive summary, table of contents and brief appendices. Do not include extensive appendices – this is a preliminary report – extensive appendices may result in a reduction of marks. Use the section headings above to structure the main body of your report (you should not need sub- headings). The CEO will not read the report if it does not use the above headings in the body of your report.
The CEO wants to see a reasonable use of references. While textbook references can be used, the CEO would prefer that you use industry research reports, case studies and any other industry-based evidence which can justify why the organisation should implement your proposed BPM solution.
You do not need to specify a particular commercial solution (such as SAP or another enterprise system), although you may specify commercial solutions to help you to clarify and support your proposed solution recommendations.
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The report must be no longer than 2,000 words (approximately 4 to 5 pages of words, but by including diagrams and any other graphics or figures it will be considerably longer. Words in diagrams such as the Gap Model, Project Scoping Diagram and As-Is and To-Be process diagrams will not be included in the word count provided they are used to explain necessary steps and highlight critical information. If paragraphs of text are included in these diagrams, they will be included in the word count. Words in tables are included in the word count of the main body of your report.
Note that the 2000-word count does not include your cover page, your executive summary, your reference list or your appendices.
Note also that 10% of the total available marks for the assignment may be deducted from your final assignment mark for every 100 words that exceed the 2000-word limit. For example, assignments of 2300 words (not including descriptors in diagrams, cover page, executive summary, reference list or appendices) may receive a penalty deduction of 30% of the total available marks for the assignment. Please do not exceed the word limit for the assignment.
It is strongly recommended that the process to produce your report be an iterative one, with interim reports and drafts produced early so that you and your group partners can reflect on progress and refine the work as necessary. You might be asked in your seminars to present a brief update about the progress of your report. This is a major unit assignment, get started early as the trimester moves very quickly.
Preliminary Business Report (40 marks)
Your report will be assessed using the marking criteria shown below:
Marking Criteria Mark BPM and Strategy 15
20 Proposed Solution 20
15 Recommendations 10
Overall Quality of the Report
▪ Spelling and Grammar
▪ Quality and use of References
20 Total 100 (will be converted to a mark out of 40)
It is expected that you and your partners will contribute significantly and equally to the group’s efforts and will therefore receive 100% of the final assignment mark out of 40. However, if you do not make a significant contribution you will receive less than 100% of the assignment mark. In particular, in the past, some members of some groups have only made a contribution in the last few days before submission – they are usually awarded a very low percentage of the assignment mark, sometimes 0%.
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Also note that it is not sufficient to simply research aspects of the solution that your team proposes without also contributing to the overall final report. You must normally make regular, at least weekly, contributions to the work; if you are unable to do so you must make necessary arrangements with your partners. Other team-working skills may be discussed in seminars and online in Cloud Deakin.
The first page of the business report must contain the names of all team members with the proportional contribution of each team member agreed to by all team members. The total proportion must sum to (or round up to – see below) 100%. For example:
In case of dispute, your seminar facilitator will be able to provide advice on determining each team
member’s contribution, and may in certain instances intervene to determine the allocations. Individuals will be awarded a percentage of the final team mark based on the proportions reported, with the student(s) receiving the highest proportion obtaining 100% of the team marks and all other team members receiving a proportional allocation. For example, if the team above obtained a team mark of 32/40, all team members would receive the full 32 marks (they contributed equally).
Online areas and getting help
A ‘Written Assignment’ link is in the ‘Unit Assessment’ area in the MPM701 Cloud Deakin site (in the Unit Resources folder) and it accessible to all students enrolled in MPM701. The written assignment area contains resources to support your work for this assignment.
The Written Assignment area contains a Written Assignment Discussion area for questions and discussions of a general nature about the assignment. It is open to all students so that all students can benefit.
(Up to 5 marks may be lost if these instructions are not followed correctly)
Your work must be submitted in accordance with the instructions shown below.
1. You lodge your assignment via the ‘Drop Box’ which is accessible in the Written Assignment area of the MPM701 Cloud Deakin site.
2. Your assignment must be submitted in Word format. The Word document you submit must be named using the Deakin user ID of the student who is to do the actual submission in Cloud Deakin. The format is:
For example, if Clint Eastwood is going to submit an assignment via Cloud Deakin and his Deakin user ID is ‘clinte’, then the Word document would be named
3. Submit the Word document (preliminary business report) via the Written Assignment Submission link. Only ONE member of the team completes this step – that is, there must be only one submission from the group.
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Important to note:
▪ If you submit your assignment after 11:59pm on the due date it will be considered late. If you need to, you can look up your local time at http://www.whitepages.com.au/wp/search/time.html.
▪ No extensions will be considered for assignment submission due dates, unless a written request is submitted well prior to the due date and approved by the unit chair or the off-campus coordinator.
▪ See below for penalties pertaining to late submissions.
You must keep a backup copy of every assignment you submit, until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy.
Any work you submit may be checked by electronic or other means for the purposes of detecting collusion and/or plagiarism.
When you are required to submit an assignment through your CloudDeakin unit site, you will receive an email to your Deakin email address confirming that it has been submitted. You should check that you can see your assignment in the Submissions view of the Assignment ‘dropbox’ folder after upload, and check for, and keep, the email receipt for the submission.
▪ Penalties for late submission: The following marking penalties will apply if you submit an assessment task after the due date without an approved extension: 5% will be deducted from available marks for each day up to five days, and work that is submitted more than five days after the due date will not be marked. You will receive 0% for the task. ‘Day’ means working day for paper submissions and calendar day for electronic submissions. The Unit Chair may refuse to accept a late submission where it is unreasonable or impracticable to assess the task after the due date.
▪ For more information about academic misconduct, special consideration, extensions, and assessment feedback, please refer to the document Your rights and responsibilities as a student in this Unit in the first folder next to the Unit Guide of the Resources area in the CloudDeakin unit site.
Building evidence of your experiences, skills and knowledge (Portfolio) – Building a portfolio that evidences your skills, knowledge and experience will provide you with a valuable tool to help you prepare for interviews and to showcase to potential employers. There are a number of tools that you can use to build a portfolio. You are provided with cloud space through OneDrive, or through the Portfolio tool in the Cloud Unit Site, but you can use any storage repository system that you like. Remember that a Portfolio is YOUR tool. You should be able to store your assessment work, reflections, achievements and artefacts in YOUR Portfolio. Once you have completed this assessment piece, add it to your personal Portfolio to use and showcase your learning later, when applying for jobs, or further studies. Curate your work by adding meaningful tags to your artefacts that describe what the artefact represents.
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