PROJ6009 Business Process Management and Systems

Introduction 

The paper entails the working process that is adopted by the chosen organization “Fonterra Cooperation” and highlights the auditing process that must be implemented for identifying the various loopholes in the company. The paper further seeks to provide the justification on using the Business Project management that may help the cooperation to overcome the identified loopholes of the company and enhance its working process. 

Description of Audit process and improvement methods 

Audit process

An audit process is essential in identifying and analyzing the working process system of an organization and industry. The auditing process can help analyze the working mechanism that is carried out by the company Fonterra Cooperative. Furthermore, the process of integrating the Business Project Management (BPM) for enhancing the cost reducing measures and effectively enhancing the productivity of the dairy products will also be covered (Brocke et al., 2014). Moreover, Fonterra cooperative helps in providing for its stakeholders by enhancing the sales of the products produced by the company. The company maintains a proper structured framework for the running of the company with a presence of a strong governing framework.

The framework is designed so as to provide for the consumers with the highest quality dairy products (Stringer, Tamásy, Le Heron &Gray, 2008). Therefore, the audit process must be designed that it helps to identify the various loopholes in the cooperation and considers various aspects such as the human resource, management framework, financial aspect and the interaction with stakeholders are taken into consideration. Henceforth, the auditing process must ensure to identify the failings in the considered attributes and further provide a management strategy that helps the company to overcome the shortcomings. 

Improvement methods

Business management process (BPM) will be able to assist the Fonterra cooperation in enhancing their working abilities regarding the production and distribution of the products. By implementing the BPM in the cooperation, effective formulation of the working framework and management system may be enhanced within the organization that helps the firm to improve their production scales and significantly reduce the cost of production. Moreover, the BMP may help the company in formulating such a framework that is designed to enhance the working capacity of the cooperation and reduce the risk of fraudulent incidents. There are certain steps that must be taken into consideration when applying the BMP in organization (Brocke et al., 2014).   

Step1: Planning and strategizing the process

Step2: Analyzing the process of business

Step3: Designing and modeling the process according to the need of the organization

Step4: Implementation of the designed process

Step5: Monitoring the process and controlling it

Step6: Modification in the process for improvement

As identified, Fonterra cooperation has a number of loopholes in the company that must be overcome effectively (Stringer, Tamásy, Le Heron &Gray, 2008). The first and the foremost failing of the organization is the stocking and management of the raw materials that when failed to preserve accordingly impacts a major loss in the company. The cooperation being a dairy based has a limited longevity of the products; therefore effective distribution of the products is important (Pearlson, Saunders &Galletta, 2019). Moreover, there was a financial management issue that had been noted in the management system. The inputs or investments were not giving a marked profit in the sales revenue. Moreover, the financial records were not maintained which created a blunder in the management system. 

Should be process

To be process and should be process flow chart 
Figure 1: Flow chart of the tobe process and should be process

(Source: Author’s creation)

Value analysis of to be process and should be process 

As depicted in the flowchart compiling of both to be and should be process of the auditing system for the Fonterra Cooperation. The to be process can be considered in the value analyzing of the working scenario of the Fonterra cooperation and help the management system to understand the various changes that must be taken into account for increasing the efficiency of the organization and the management system by incorporating the Business Project management (Stringer, Tamásy, Le Heron &Gray, 2008). The process emphasizes with the initiation of the audit conduction process in Fonterra Cooperation that would help the management team to understand the functionality of the cooperation and take into consideration the various attributes of the organization and determine the working process and identify the drawbacks that they have in their way of approach.

Then, the second process is taken into account that is the documentation process. The documentation process is the data that is to be collected during the auditing process to take into account every minimal aspect that regards to the working mechanism attained by the organization (Peisl, Blaese&Kaczmarek, 2008). After the documentation process the suiting moves further to be able to identify the loopholes in the working process of the cooperation and mark the areas that require special attention for improving the efficiency of the cooperation. The auditing process then moves further in designing a new reformed business process by the aid of BPM that would help the company to overcome its shortcomings and enhance the productivity of the company effectively (Brocke et al., 2014). The new process adopted must be by explained and shared with the stakeholders of the company to ensure their opinions regarding the reform. Therefore, after the proper engagement of the stakeholders in the structural reform the conduction of the business reform will be done. Lastly, after the conduction of the business reform the steps will be evaluated for overcoming the loopholes identified in the company and help Fonterra cooperation to enhance its working efficiency and reduce the cost of productivity.    

Justification on governance processes for BPM change to ensure stakeholders by considering technological change

Considering the loopholes detected in the cooperation, a well formulated framework must be implemented to enhance the effectiveness of the firm. Involvement of technological tools must be incorporated such as the database sheets used that would help the company in maintaining financial whereabouts of the company. Since, there may be certain employees that would not be able to grasp the new knowledge of dealing with the technological tools, therefore proper training sessions must be provided to them for them to understand the working mechanism of the software and be able to make use of the software effectively and enhance the working capacity of the system by the use of the software (Pearlson, Saunders &Galletta, 2019). The financial records therefore will be maintained in a systematic and organized manner and limit the mishaps of the financial working of the organization. 

Application of business process management

A BPM change must be implemented as such that it would help Fonterra cooperation to work efficiently with its stakeholders and also increases the productivity of the company by significantly reducing the cost of production (Stringer, Tamásy, Le Heron &Gray, 2008). BMP may be regarded as a strategic enhancement in the business sector that would significantly influence the performance of the business and ensure sustainability while also satisfying its stakeholders (Brocke et al., 2014). Fonterra cooperation being a dairy cooperation and having a chain of dairy startups therefore must ensure that both the consumer as well as the internal stakeholders of the cooperation may be pleased with the reform of the structure. The BPM will ensure the following attributes in the cooperation on implementation (Idevnews 2010).

• Reducing the cost of the work

• Driving the shares higher and increasing the revenue sales.

• Be able to drive products faster and longer in the market.

• Enhance the performance of the cooperation and significantly improve the performance scales.

• Adoption and development of suitable strategies for improving work efficacy.

• Involving the human resource management that would ensure the satisfaction level of the consumers as well as the investors by maintaining the quality of products and increasing the revenue sales. 

By ensuring to mitigate these functional changes in the cooperation the company will be able to ensure the satisfaction level to be increased of the stakeholders of the company with the technological changes (Jeston&Nelis, 2006). Implementation of technical tools to maintain the records of sales, investments and revenue sales profits will not only improve the efficacy of work but also maintain a transparency between the company and the stakeholders that would drive them towards the cooperation. 

Alternative management approach for risk mitigation 

There are certain approaches that the company Fonterra Cooperation can take into account for mitigating the risks identified during the auditing process (Stringer, Tamásy, Le Heron &Gray, 2008). Therefore, considering the technological changes that the company must implement technological up gradation such as increasing the promotions of the brand products in order to engage their external stakeholders and increase the demand of the products that would further influence the sales of the company (KPMG,2013). Furthermore, the three strategic types such as the operational, business and corporate strategy must be implemented for mitigating the risks identified in the mechanism of the cooperation during the audit process.

The factors such as cost dependability, quality and flexibility of the approaches towards the restructuring of the management system in the Fonterra cooperation will enhance the capability of the organization in mitigating the risks (DuHadway, Carnovale& Hazen, 2019). Moreover, the bargaining power of the company must be enhanced as the higher the bargaining capability of the company with the consumers and the suppliers will ensure the performance level of the involved stakeholders will be significantly increased. Therefore, by developing certain management skills in the structural reform of the organization by implementing an auditing process will help the company to enhance its skills in the market and be able to significantly mar and maintain its position in the consumer market, thereby impressing the stakeholders.     

Conclusion

The paper provides an outline of the framework carried out by the company Fonterra cooperation and provides suggestions on the auditing process that would prove to be most suitable for the firm. The method would help in mitigating the sales target and adopting the technological changes in the betterment of the company by enhancing the working process. 

References

Brocke, J. v., Schmiedel, T., Recker, J., Trkman, P., Mertens, W., &Viaene, S. (2014). Ten principles of good business process management. Business Process Management Journal, 20(4), 530-548.

DuHadway, S., Carnovale, S., & Hazen, B. (2019). Understanding risk management for intentional supply chain disruptions: Risk detection, risk mitigation, and risk recovery. Annals of Operations Research, 283(1), 179-198.

Idevnews (2010). Business Process Management Best Practices – IBM.[Video file]. Retrieved from https://youtu.be/7qj_2mFUDXE

Jeston, J., &Nelis, J. (2006). Why should you do BPM - what are the main drivers and triggers? Business Process Management (pp. 16-19). Jordan Hill, GB: Routledge.

KPMG (2013). Business Process Management. Retrieved from https://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Documents/business-process-management.pdf

Pearlson, K. E., Saunders, C. S., &Galletta, D. F. (2019). Managing and using information systems: A strategic approach. John Wiley & Sons.

Peisl, R., Blaese, E., &Kaczmarek, J. (2008). Driving strategic value with process automation. USA: IBM.

Stringer, C., Tamásy, C., Le Heron, R., & Gray, S. (2008). Growing a global resource-based company from New Zealand: The case of dairy giant Fonterra.Agri-food commodity chains and globalizing networks, 189-199.