Development of project cash flow forecasting process

Process management refers to improving the key functions of a company. The main functions of the case company - project management, procurement, finance, and human resource - use their own separate systems. The case company is in the process of changing its software. Different functions will use the same system in the future. This software change causes changes in some of the company’s processes. Project cash flow forecasting process is one of the changing processes. Cash flow forecasting ensures the sufficiency of money and prepares for possible changes in the future. This will help to ensure the company’s viability. The purpose of the research is to describe a new project cash flow forecasting process. In addition, the aim is to analyze the impacts of the process change, with regard to the project control department’s workload and resources through the process measurement, and how the impacts take the department’s future operations into account. The research is based on process management. Processes, their descriptions, and the way the process management uses the information, are discussed in the theory part of this research. The theory part is based on literature and articles. Project cash flow and forecasting-related benefits are also discussed. After this, the project cash flow forecasting as-is and to-be processes are described by utilizing information, obtained from the theoretical part, as well as the know-how of the project control department’s personnel. Written descriptions and cross-functional flowcharts are used for descriptions. Process measurement is based on interviews with the personnel – mainly cost controllers and department managers. The process change and the integration of two processes will allow work time for other things, for example, analysis of costs. In addition to the quality of the cash flow information will improve compared to the as-is process. Analyzing the department’s other main processes, department’s roles, and their responsibilities should be checked and redesigned. This way, there will be an opportunity to achieve the best possible efficiency and cost savings.

Improving reporting and internal control with process thinking - case study in a multinational corporation

The aim of this Master’s Thesis is to find applicable methods from process management literature for improving reporting and internal control in a multinational corporation. The method of analysis is qualitative and the research is conducted as a case study. Empirical data collection is carried out through interviews and participating observation. The theoretical framework is built around reporting and guidance between parent company and subsidiary, searching for means to improve them from process thinking and applicable frameworks. In the thesis, the process of intercompany reporting in the case company is modelled, and its weak points, risks, and development targets are identified. The framework of critical success factors in process improvement is utilized in assessing the development targets. Also internal control is analyzed with the tools of process thinking. As a result of this thesis, suggestions for actions improving the reporting process and internal control are made to the case company, the most essential of which are ensuring top management’s awareness and commitment to improvement, creating guidelines and tools for internal control and creating and implementing improved intercompany reporting process.

Foreign exchange exposure management in a fuel procurement company operating in the commodity markets

Fluctuating commodity prices, foreign exchange rates and interest rates are causing changes in cash flows, market value and the companies’ profit. Most of the commodities are quoted in US dollar. Companies with non-dollar accounting face a double risk in the form of the commodity price risk and foreign exchange risk. The objective of this Master’s thesis is to find out how companies under commodity should manage foreign exchange exposure. The theoretical literature is based on foreign exchange risk, commodity risk and foreign exchange exposure management. The empirical research is done by using constructive modelling of a case company in the oil industry. The exposure is model with foreign exchange net cash flow and net working capital. First, the factors affecting foreign exchange exposure in case company are analyzed, then a model of foreign exchange exposure is created. Finally, the models are compared and the most suitable method is defined. According to the literature, foreign exchange exposure is the foreign exchange net cash flow. However, the results of the study show that foreign exchange risk can be managed also with net working capital. When the purchases, sales and storage are under foreign exchange risk, the best way to manage foreign exchange exposure is with combined net cash flow and net working capital method. The foreign exchange risk policy of the company defines the appropriate way to manage foreign exchange risk.

Business process re-engineering -menetelmät myyntiprosessin tehokkuuden parantamisessa (Case-yritys)

Tämän Pro Gradu-tutkielman tavoite on tutkia Business Process Re-engineering menetelmiä myyntiprosessien tehostamisessa. Tutkimuksen teoreettinen viiteke-hys rakentuu myynninjohtamisen, myyntiprosessien ja Business Process Mana-gementin ja Business Process Re-enineeringin ympärille. IT-järjestelmät ovat myös oleellinen osa-alue tutkimuksen kannalta ja niiden osuutta kuvataan niin myyntiprosesseissa kuin Business Process Re-engineering -menetelmien yhtey-dessä. Tutkielmassa perehdytään aikaisempaan tutkimusmateriaaliin ja akateemiseen kirjallisuuteen yllämainituilla osa-alueilla. Tavoitteena on löytää aikaisempia tutki-muksia myyntiprosessien tehostamisesta ja BPR:n roolista näissä tapauksissa. Myös myynninjohtamisen vaikutusta tehokkaaseen myyntiprosessiin tutkitaan, kuten myös IT-järjestelmien erilaisia rooleja tehokkaissa myyntiprosesseissa. Tutkielman empiirinen osio on kvalitatiivinen Case-tutkimus eräässä rahoitusalan yrityksessä. Tutkimus tehdään haastattelemalla myyntihenkilöstöä ja esimiehiä. Lisäksi analysoidaan yrityksen myyntiprosessiin liittyvää muuta materiaalia. Case-tutkimuksen tuloksia peilataan aiempaan akateemiseen tutkimukseen ja tuloksista pyritään löytämään ratkaisuja, miten BPR -menetelmillä voidaan tehostaa yrityksen myyntiprosessia.

Increased profitability and efficiency by improving the Meetings & Events Category S2P-process – Case Company

The purpose of this research was to examine the most optimal way to arrange meetings and events management and source to pay –process in a global company. The research is a qualitative multi-method case study and is a commission from a global company. The theoretical framework of this research structures around two approaches. First approach focus on a purchasing strategy and management that shows the current role of procure-ment and introduce different ways to organize purchasing functions. Second approach focus on purchasing process management and improvement methods. Annual spend analyze, external and internal interviews and internal survey were done to gain compre-hensive knowledge about the current state of operations and possible solutions. Gathered data were then combined to theoretical framework in order to create optimal solution for the case company. Based on the research a source to pay –process and global policy for meeting and event category was created. The solution includes all relevant matters that are needed in order to secure efficient and profitable operations. The results show that optimal way to arrange meetings and events structures around standardized source to pay –processes, central-ized procurement, preferred supplier and clearly defined roles and responsibilities be-tween different stakeholders.

Évaluation et amélioration du rendement de la formation en entreprise : vers une démarche basée sur la gestion des processus d’affaires.

La formation est une stratégie clé pour le développement des compétences. Les entreprises continuent à investir dans la formation et le développement, mais elles possèdent rarement des données pour évaluer les résultats de cet investissement. La plupart des entreprises utilisent le modèle Kirkpatrick/Phillips pour évaluer la formation en entreprise. Cependant, il ressort de la littérature que les entreprises ont des difficultés à utiliser ce modèle. Les principales barrières sont la difficulté d’isoler l’apprentissage comme un facteur qui a une incidence sur les résultats, l’absence d’un système d’évaluation utile avec le système de gestion de l’apprentissage (Learning Management System - LMS) et le manque de données standardisées pour pouvoir comparer différentes fonctions d’apprentissage. Dans cette thèse, nous proposons un modèle (Analyse, Modélisation, Monitoring et Optimisation - AM2O) de gestion de projets de formation en entreprise, basée sur la gestion des processus d’affaires (Business Process Management - BPM). Un tel scénario suppose que les activités de formation en entreprise doivent être considérées comme des processus d’affaires. Notre modèle est inspiré de cette méthode (BPM), à travers la définition et le suivi des indicateurs de performance pour gérer les projets de formation dans les organisations. Elle est basée sur l’analyse et la modélisation des besoins de formation pour assurer l’alignement entre les activités de formation et les objectifs d’affaires de l’entreprise. Elle permet le suivi des projets de formation ainsi que le calcul des avantages tangibles et intangibles de la formation (sans coût supplémentaire). En outre, elle permet la production d’une classification des projets de formation en fonction de critères relatifs à l’entreprise. Ainsi, avec assez de données, notre approche peut être utilisée pour optimiser le rendement de la formation par une série de simulations utilisant des algorithmes d’apprentissage machine : régression logistique, réseau de neurones, co-apprentissage. Enfin, nous avons conçu un système informatique, Enterprise TRaining programs Evaluation and Optimization System - ETREOSys, pour la gestion des programmes de formation en entreprise et l’aide à la décision. ETREOSys est une plateforme Web utilisant des services en nuage (cloud services) et les bases de données NoSQL. A travers AM2O et ETREOSys nous résolvons les principaux problèmes liés à la gestion et l’évaluation de la formation en entreprise à savoir : la difficulté d’isoler les effets de la formation dans les résultats de l’entreprise et le manque de systèmes informatiques.

Understanding construction competitiveness: the contribution of system dynamics

Purpose – Construction sector competitiveness has been a subject of interest for many years. Research too often focuses on the means of overcoming the “barriers to change” as if such barriers were static entities. There has been little attempt to understand the dynamic inter-relationship between the differing factors which impinge upon construction sector competitiveness. The purpose of this paper is to outline the benefits of taking a systems approach to construction competitiveness research. Design/methodology/approach – The system dynamics (SD) modelling methodology is described. This can provide practitioners with “microworlds” within which they can explore the dynamic effects of different policy decisions. The data underpinning the use of SD was provided by interviews and case study research which allowed an understanding of the context within which practitioners operate. Findings – The over-riding conclusion is that the SD methodology has been shown to be capable of providing a means to assess the forces which shape the sustained competitiveness of construction firms. As such, it takes the assessment of strategic policy analysis in the construction sector onto a higher plane. The need to collect data and make retrospective assessments of competitiveness and strategic performance at the statistical level is not now the only modus operandi available. Originality/value – The paper describes a novel research methodology which points towards an alternative research agenda for construction competitiveness research.

Business process in supply chain integration in sugar and ethanol industry

This article presents the application of a diagnosis method in a Brazilian company from the sugar and ethanol industry to identify the level of supply chain integration. The diagnosis method is based on Cooper, Lambert and Pagh reference model for SCM. The method involves nine referential axes established from the eighth key business processes of the reference model.

Goals Software Construction Process

Generalized hyper competitiveness in the world markets has determined the need to offer better products to potential and actual clients in order to mark an advantagefrom other competitors. To ensure the production of an adequate product, enterprises need to work on the efficiency and efficacy of their business processes (BPs) by means of the construction of Interactive Information Systems (IISs, including Interactive Multimedia Documents) so that they are processed more fluidly and correctly.The construction of the correct IIS is a major task that can only be successful if the needs from every intervenient are taken into account. Their requirements must bedefined with precision, extensively analyzed and consequently the system must be accurately designed in order to minimize implementation problems so that the IIS isproduced on schedule and with the fewer mistakes as possible. The main contribution of this thesis is the proposal of Goals, a software (engineering) construction process which aims at defining the tasks to be carried out in order to develop software. This process defines the stakeholders, the artifacts, and the techniques that should be applied to achieve correctness of the IIS. Complementarily, this process suggests two methodologies to be applied in the initial phases of the lifecycle of the Software Engineering process: Process Use Cases for the phase of requirements, and; MultiGoals for the phases of analysis and design. Process Use Cases is a UML-based (Unified Modeling Language), goal-driven and use case oriented methodology for the definition of functional requirements. It uses an information oriented strategy in order to identify BPs while constructing the enterprise’s information structure, and finalizes with the identification of use cases within the design of these BPs. This approach provides a useful tool for both activities of Business Process Management and Software Engineering. MultiGoals is a UML-based, use case-driven and architectural centric methodology for the analysis and design of IISs with support for Multimedia. It proposes the analysis of user tasks as the basis of the design of the: (i) user interface; (ii) the system behaviour that is modeled by means of patterns which can combine Multimedia and standard information, and; (iii) the database and media contents. This thesis makes the theoretic presentation of these approaches accompanied with examples from a real project which provide the necessary support for the understanding of the used techniques.

Flexibility and modeling in business processes: a multi-dimensional relationship

Over the last few years, Business Process Management (BPM) has achieved increasing popularity and dissemination. An analysis of the underlying assumptions of BPM shows that it pursues two apparently contradicting goals: on the one hand it aims at formalising work practices into business process models; on the other hand, it intends to confer flexibility to the organization - i.e. to maintain its ability to respond to new and unforeseen situations. This paper analyses the relationship between formalisation and flexibility in business process modelling by means of an empirical case study of a BPM project in an aircraft maintenance company. A qualitative approach is adopted based on the Actor-Network Theory. The paper offers two major contributions: (a) it illustrates the sociotechnical complexity involved in BPM initiatives; (b) it points towards a multidimensional understanding of the relation between formalization and flexibility in BPM projects.

Beitrag zur Prozessstandardisierung in der Intralogistik

Ein dynamisches Umfeld erforderte die permanente Anpassung (intra-)logistischer Prozesse zur Aufrechterhaltung der Leistungs- und Wettbewerbsfähigkeit von Unternehmen. In der Standardisierung von Prozessen und in unternehmensübergreifenden Prozessmodellen wurden Schlüsselfaktoren für ein effizientes Geschäftsprozessmanagement gesehen, insbesondere in Netzwerken. In der Praxis fehlten wissenschaftlich fundierte und detaillierte Referenzprozessmodelle für die (Intra-)Logistik. Mit der Erforschung und Entwicklung eines Referenzprozessmodells und der prototypischen Realisierung einer Prozess-Workbench zur generischen Erstellung wandelbarer Prozessketten wurde ein Beitrag zur Prozessstandardisierung in der Logistik geleistet. Im Folgenden wird der beschrittene Lösungsweg dargestellt, der erstens aus der Entwicklung eines Metamodells für die Referenzmodellierung, zweitens aus dem empirischen Nachweis der Generierung eines Referenzprozessmodells aus „atomaren“ Elementen und drittens aus der Modellevaluation bestand.

Efficient algorithms for dynamic probabilistic safety assessment. An application to convex damage domain.

The design of nuclear power plant has to follow a number of regulations aimed at limiting the risks inherent in this type of installation. The goal is to prevent and to limit the consequences of any possible incident that might threaten the public or the environment. To verify that the safety requirements are met a safety assessment process is followed. Safety analysis is as key component of a safety assessment, which incorporates both probabilistic and deterministic approaches. The deterministic approach attempts to ensure that the various situations, and in particular accidents, that are considered to be plausible, have been taken into account, and that the monitoring systems and engineered safety and safeguard systems will be capable of ensuring the safety goals. On the other hand, probabilistic safety analysis tries to demonstrate that the safety requirements are met for potential accidents both within and beyond the design basis, thus identifying vulnerabilities not necessarily accessible through deterministic safety analysis alone. Probabilistic safety assessment (PSA) methodology is widely used in the nuclear industry and is especially effective in comprehensive assessment of the measures needed to prevent accidents with small probability but severe consequences. Still, the trend towards a risk informed regulation (RIR) demanded a more extended use of risk assessment techniques with a significant need to further extend PSA’s scope and quality. Here is where the theory of stimulated dynamics (TSD) intervenes, as it is the mathematical foundation of the integrated safety assessment (ISA) methodology developed by the CSN(Consejo de Seguridad Nuclear) branch of Modelling and Simulation (MOSI). Such methodology attempts to extend classical PSA including accident dynamic analysis, an assessment of the damage associated to the transients and a computation of the damage frequency. The application of this ISA methodology requires a computational framework called SCAIS (Simulation Code System for Integrated Safety Assessment). SCAIS provides accident dynamic analysis support through simulation of nuclear accident sequences and operating procedures. Furthermore, it includes probabilistic quantification of fault trees and sequences; and integration and statistic treatment of risk metrics. SCAIS comprehensively implies an intensive use of code coupling techniques to join typical thermal hydraulic analysis, severe accident and probability calculation codes. The integration of accident simulation in the risk assessment process and thus requiring the use of complex nuclear plant models is what makes it so powerful, yet at the cost of an enormous increase in complexity. As the complexity of the process is primarily focused on such accident simulation codes, the question of whether it is possible to reduce the number of required simulation arises, which will be the focus of the present work. This document presents the work done on the investigation of more efficient techniques applied to the process of risk assessment inside the mentioned ISA methodology. Therefore such techniques will have the primary goal of decreasing the number of simulation needed for an adequate estimation of the damage probability. As the methodology and tools are relatively recent, there is not much work done inside this line of investigation, making it a quite difficult but necessary task, and because of time limitations the scope of the work had to be reduced. Therefore, some assumptions were made to work in simplified scenarios best suited for an initial approximation to the problem. The following section tries to explain in detail the process followed to design and test the developed techniques. Then, the next section introduces the general concepts and formulae of the TSD theory which are at the core of the risk assessment process. Afterwards a description of the simulation framework requirements and design is given. Followed by an introduction to the developed techniques, giving full detail of its mathematical background and its procedures. Later, the test case used is described and result from the application of the techniques is shown. Finally the conclusions are presented and future lines of work are exposed.

Gestão de processos de negócio em organizações desportivas: um estudo de caso no Comitée Européen de Rink-Hockey

A Gestão de Processos de Negócio (BPM – Business Process Management) é uma abordagem que tem como objetivo melhorar a eficiência nas organizações, através da gestão dos processos, em que se realiza a sua modelação, organização e otimização de uma forma iterativa e contínua. O BPM permite suportar os processos de negócio, através da utilização de métodos, técnicas e software para projetar, representar e analisar processos organizacionais que envolvem, pessoas, organizações, aplicações, documentos e outras fontes de informação (Aalst, Hofstede, & Weske, 2003). Neste estudo é utilizado um Business Process Management System (BPMS) para realizar a modelação dos processos do Comité Européen de Rink-Hockey (CERH), para a inscrição de equipas e atletas, nos eventos realizados sob a responsabilidade deste comité. A modelação é realizada através da utilização do Business Process Model and Notation (BPMN). A utilização do BPMS foi realizada considerando as seguintes etapas: (1) desenho do processo; (2) definição do processo; (3) desenvolvimento do processo e (4) administração e utilização de processos. Pretendeu-se, demonstrar a viabilidade e operacionalidade na utilização de uma ferramenta BPMS open-source, numa abordagem BPM, na modelação e implementação de processos, em detrimento de soluções proprietárias de custo elevado. O critério adotado para a seleção da ferramenta baseia-se na análise de relatórios sobre BPMS, que nos permitiu identificar e sustentar a solução adotada (Hill, Cantara, & Kerremans, 2009; Ovum, 2010; Richardson, Moore, Clair, & Vitti, 2010; Sinur & Hill, 2010). O resultado foi o desenvolvimento dos processos na organização, com a sua modelação em BPMN e implementação num BPMS, onde podemos comprovar a abordagem BPM numa organização desportiva.

Business process orientated holonic (PrOH) modeling

Purpose: The purpose of this paper is to describe how the application of systems thinking to designing, managing and improving business processes has resulted in a new and unique holonic-based process modeling methodology know as process orientated holonic modeling. Design/methodology/approach: The paper describes key systems thinking axioms that are built upon in an overview of the methodology; the techniques are described using an example taken from a large organization designing and manufacturing capital goods equipment operating within a complex and dynamic environment. These were produced in an 18 month project, using an action research approach, to improve quality and process efficiency. Findings: The findings of this research show that this new methodology can support process depiction and improvement in industrial sectors which are characterized by environments of high variety and low volume (e.g. projects; such as the design and manufacture of a radar system or a hybrid production process) which do not provide repetitive learning opportunities. In such circumstances, the methodology has not only been able to deliver holonic-based process diagrams but also been able to transfer strategic vision from top management to middle and operational levels without being reductionistic. Originality/value: This paper will be of interest to organizational analysts looking at large complex projects whom require a methodology that does not confine them to thinking reductionistically in "task-breakdown" based approaches. The novel ideas in this paper have great impact on the way analysts should perceive organizational processes. Future research is applying the methodology in similar environments in other industries. © Emerald Group Publishing Limited.

Increasing the use of simulation in business

The nature of Discrete-Event Simulation (DES) and the use of DES in organisations is changing. Two important developments are the use of Visual Interactive Modelling systems and the use of DES in Business Process Management (BPM) projects. Survey research is presented that shows that despite these developments usage of DES remains relatively low due to a lack of knowledge of the benefits of the technique. This paper considers two factors that could lead to a greater achievement and appreciation of the full benefit of DES and thus lead to greater usage. Firstly in relation to using DES to investigate social systems, both in the process of undertaking a simulation project and in the interpretation of the findings a 'soft' approach may generate more knowledge from the DES intervention and thus increase its benefit to businesses. Secondly in order to assess the full range of outcomes of DES the technique could be considered from the perspective of an information processing tool within the organisation. This will allow outcomes to be considered under the three modes of organisational information use of sense making, knowledge creating and decision making which relate to the theoretical areas of knowledge management, organisational learning and decision making respectively. The association of DES with these popular techniques could further increase its usage in business.