Bpr Project - Attendance Management System

University of Colombo School of Computing

ICT 2008

Business Process Re-Engineering

SECOND YEAR GROUP ASSIGNMENT II

Lecturer: - Dr. Yamaya Ekanayake

Date of Submission

3rd

of October 2012

Index Numbers of Group Members

H.D.G.B.Chandradasa - 10020071

R.M.S.V.Rathnayaka - 10020438

D.G.T.Mendis - 10020578

L.T.Hettiarachchi - 10020675

P.M.S.K. Palansooriya - 10021108

Business Process Re-Engineering ICT 2008| Page 1 of 20

Table of Contents

1) Introduction and Overview .................................................................................................... 2

2) Background of the Organization............................................................................................ 3

3) Vision..................................................................................................................................... 4

4) Identify a critical process to be reengineered and the importance of the identified process . 5

4.1) Task 01 - Identify the Business Process in Jinasena Group............................................ 5

4.2) Task 02 - Identify a critical process & why it is important to reengineer ...................... 6

5) Identify problems/opportunities/issues critical to the process ............................................... 7

5.1) Problems ......................................................................................................................... 7

5.2) Opportunities................................................................................................................... 7

5.3) Issues ............................................................................................................................... 7

6) Existing process model for the Attendance Management Process ........................................ 9

7) New process vision in the new process redesign and performance objectives ................... 10

7.1) Process Vision ............................................................................................................... 10

7.2) Performance Objectives ................................................................................................ 10

7.2.1) Speed Data Capturing............................................................................................. 10

7.2.2) Standardized Data Format ...................................................................................... 10

7.2.3) Distribute Work Effort ........................................................................................... 10

7.2.4) Real Time Data Availability and minimized time and cost ................................... 10

8) New process model for the Attendance Management Process ............................................ 11

9) How the new process may improve the contacts with customers ....................................... 12

10) Possible change to Organizational structure, Job skills /Reward systems, Information

Technologies, Culture and beliefs............................................................................................ 13

10.1) Organizational Structure ............................................................................................. 13

10.2) Job Skills/Reward systems .......................................................................................... 15

10.3) Information Technologies ........................................................................................... 16

10.4) Organization culture, values and beliefs ..................................................................... 16

11) Conclusion ......................................................................................................................... 18

12) Reference List .................................................................................................................... 19

13) Appendices ........................................................................................................................ 20


1) Introduction and Overview

There is a historic parallel for the current limited success of business process advancement.

The first wide-scale introductions of IT in the business place focused on the improvement of

isolated parts of business operations, for example the generation of invoices. Productivity

increased locally, but generally the overall effect was small. Only during the 80s and 90s,

companies started to see the benefits of considering entire business processes when

implementing information systems, and as a result, huge gains were achieved.

Today, it seems, companies are at the start of this same loop again. Once again, the view on

the entire process is missing, which prevents the new technology to become truly effective.

This paper puts the emphasis on the Business Process Reengineering. It addresses guidelines

to redesign business processes. The purpose of the redesign is to meet business partners'

expectations, while improving the performance of the redesign. The specific business area

under consideration is the Attendance Management of the Jinasena Group of Company. We

will present some support for this redesign in this paper.

The structure of this paper is as follows. First, in Section 2 and 3, we take a brief introduction

to the company. In Section 4, we present our analysis of identifying a critical process to be

re-engineered. And also the importance of the redesign will be stated clearly. Section 5 is

pretty much important as it explains problems in current process, opportunities and issues of

redesigning the process.

Section 6 to 9 state the modeling of the current process, modeling of the re-engineered

process and the way new design will interact with customers. There onwards this paper

discusses the potential changes to the Organizational Structure, Job Skills/Reward systems,

Information Technologies and Organization culture, values and beliefs.


2) Background of the Organization

Jinasena is a group of company that well known for providing well equipped, innovative and

complex machines for the enhanced services of engineering, agriculture, domestic use and

many other areas. The history of company goes to 1905 year which our country known as

Ceylon under British rule, there was a person called Mr. C. Jinasena, the visionary founder

fulfilled his dream of an enterprise with courage, vision and determination in a very short

period of time.

They began as an enterprise of engineering by repairing and servicing machinery used in tea

and rubber manufacture. Today with the achievements of modern technologies and latest data

processing, Jinasena Group becomes one of the largest industrial and trading organizations in

Sri Lanka. Then the group gets the opportunity to widen many avenues and innovative

creations into outside of the engineering sector.

By giving a significant consideration to the quality standards of the products, the company

gained the satisfaction of the customers in domestically as well as internationally. The

modern structure of the organization geared to meet the most demanding deadlines on

schedule and it helps to build a continuous relationship with business partners over the world.

Basically their product range is divided into five categories as follows;

1. Water pumps- This product become forefront of this field and meets the huge

demand of consumers.

2. Agricultural machinery- In 1978 Jinasena introduced Paddy Thresher and Reaper to

the market by doing a meticulously research. With the improvements of research and

development facilities and demand the separate company formed as Jinasena

Agriculture Machinery (Pvt) Limited. There is a range of products other than

agricultural that can be identified as Bush/Weed cutters, „Ground Master‟ playground

mowers, Pepper Threshers, Rotary Tillers, Choppers, Sieverts and Grinders.

3. Water Purifiers- Company successfully achieved the challenge of providing pure

water using filter technologies that removes excess Iron, Manganese, Sculpture and

other harmful organic matter.


4. Electric Motors- Began to manufacture in the early 1970, which comply with

international quality standards, provided starters and protective gear are of approved

manufacture.

5. Drip and sprinkler irrigation systems- offer buyers the highest quality water

management tools.

3) Vision

“Providing quality products at affordable prices” is the concept that is being driven to

achieve the objectives efficiently and effectively. Jinasena Limited ensures that the products

conform to the highest quality standards with the state of the art facilities and consistently

adhering to the Company‟s core values. Here core processes or Primary activities can be

identified as Design, Manufacturing, Distribution chain, Sales and Marketing. These

activities directly related to the external customers according to the Porter‟s value chain.

Administrative, Finance Human resource management and other technical activities are the

back office activities or supporting services of the organization.

The Company mainly focuses to delivery their products with highest quality to gain customer

satisfaction and sustainability of the market. Adequate resources, Job skills of workers and

top management commitment are also vital factors to achieve overall objectives of the

company. Lack of motivation due to reward systems and facilities, unsuitable working

environment and high bargaining power of suppliers indirectly affect to the company to

satisfy their goals.


4) Identify a critical process to be reengineered and the importance of the

identified process

4.1) Task 01 - Identify the Business Process in Jinasena Group

This business process is created with the functional specializations. The following table

describes the business activities.

Functional Area Business Activities

Design Create product design, Analysis of the product materials,

Researching

Production Manufacture the product, Checking for quality, Testing the

products

Distribution Chain Transportation of the product

Customer Relationship Identify the customers and make relationship with them

Supporting Services

Accounting

Marketing

Human Resource

Management

Attendance Management, Creating Financial Statements,

Prepare Wages

Identify the customers, Selling the products

Hiring employees, Evaluating job performances, Conduct

training for the employees.

Note: There are more activities in the business process but in here it only describes the main

activities.

Bussiness Process

Design Production Distribution

Chain Customer

Relationship Supporting

Services

Accounting Marketing Human

Resource Management


The functions cannot be alone when doing some activities.

Ex: - The Production must have the HRM & Design support to manufacture the

product.

4.2) Task 02 - Identify a critical process & why it is important to reengineer

We have identified that there are no major problems with the business process except the

“Attendance Management System (AMS).” All the other business processes have been

reengineered and interconnected through the ERP system, Microsoft Dynamics. The

following facts will show the importance of reengineering the AMS.

Ongoing AMS uses both modern and typical technologies while typical methods

require much human efforts.

The company is empowered with both human and technological resources.

Technology can be further used to enhance the productivity of some identified

processes which are being manually controlled by the human resource.

Currently this company produces profit. This reengineering can be further used for

maximizing the profit while it is assisted by the optimization of the AMS with both

human and technological resources.

Company needs the deviation of the existing process of the AMS. But the employees‟

attitude is bit different to the company point of view. Further it should be fit into their

cost points. Thus this modification should be done with the consideration of all the

considerable aspects.


5) Identify problems/opportunities/issues critical to the process

5.1) Problems

Retrieving attendance from distribution centers – Retrieving attendance is done

through manual telephone calls. This is a huge problem where it can cause many

issues regarding attendance. These data can be wrong as they are delivered by

humans.

Attendance data entry - The company policy is that the punch card data should be

given as text file to the attendance office daily. This method is an outdated technology

which requires more human effort while it causes problems.

Work Load of the attendance officer – Attendance officer have to accept calls from

the distribution centers and at the same time he should accept the attendance details

from the finger print machine. Further he has to correct issues regarding attendance.

Thus the workload of the attendance officer is pretty much high. As a human resource

work load balancing is a critical factor which should be given the consideration.

5.2) Opportunities

New interface can be introduced – Each distribution center can be given an interface

that can connect with the main system. By using that system, corresponding person

can upload attendance details to the system. It reduces the human effort while

increasing the efficiency and the accuracy of the attendance data.

Punch card machine can be replaced by the finger print machine - Punch card

system is completely a manual process. It takes time and effort. Thus punch card

machine can be substituted by the finger print machine.

5.3) Issues

Problem with metal dust in finger – Factory premises is the only place where punch

card is being used. As this factory engaging with heavy metal related productions

metal dust is always in the factory surroundings. Each employee gives the finger print

to the machine daily. If someone had dust on his finger the machine will not accept


that finger. Then there will be problems with employees‟ attendance. Replacing punch

card is a considerable issue when concerning the metal dust.

High cost of the Eye scanner - As company wants to change punch card method,

our group introduced them the eye scanner because it will resolve the metal dust

problem. But the problem is the investment cost of it which should be incurred by the

company. As they expressed there will be a cost of nearly three million rupees for this

project. Fifty employees work in the factory premises approximately. Thus incurring

this much of a cost for the eye scanner won‟t be profitable for the company.


6) Existing process model for the Attendance Management Process

A

B

1 2

3

Notes:

1.Attendance officer collect detail from finger print machine, distribution

centers (via phone) and report from department heads.

2.Check for inconsistencies and faults in the attendance detail.

3.Is leave request can be approved?

Note:

1. Please see Appendix A for sub processes A &B.


7) New process vision in the new process redesign and performance

objectives

7.1) Process Vision

Provide real time employee attendance data to support and improve the core business process

and overall strategic planning in the organization.

7.2) Performance Objectives

7.2.1) Speed Data Capturing

By providing interfaces to each attendance data capturing gateways will speed up the

attendance data capturing of the employees at the places where employees are actually

working rather than gathering all the captured data into single place which decreases the

performance of the process. Especially there are places where thumb scanners cannot be used

to capture due to some cultural and financial constraints. The places such as distribution

centers and production plants will be benefited by those direct interfaces to the organization

ERP system

7.2.2) Standardized Data Format

A standard and compatible employee attendance data format will available since the initial

data capturing points. That will enable more flexible and redundant data manipulations at any

point of the process and will eliminate unnecessary data conversions within the process.

7.2.3) Distribute Work Effort

Distributing attendance capturing work effort into each node in the organization will simplify

and speed up the overall process.

7.2.4) Real Time Data Availability and minimized time and cost

Providing access to real time data about the human resources that currently available in every

node in their organization will help to their strategic planning to gain competitive advantages.

And also this new process redesign will enable to minimize time and cost requirements by

eliminating unnecessary tasks throughout the process cycle.


8) New process model for the Attendance Management Process Note:

1. Sub processes of the existing model will be remained unchanged in the new model.

Notes:

1. New web based system make the task easier.

2. Correct errors only from finger print

machine.

3. Can request upon Dept. Heads preferences.

1

2

C

3

C


9) How the new process may improve the contacts with customers

The whole redesigned process is modeled in order to optimize the business processes with

fully utilized resources. As you can see we have come across three major changes to the

system.

1. Each distribution center will be given web interface to fill their attendance and it

will help to improve the data accuracy and depreciate workload.

This modification is lesser the burden on Attendance Officer. In the existing process

he has to manually retrieve the attendance data from each distribution center. But now

it has been changed. If any person‟s work burden is low he will put his fullest effort to

maximize the business needs. Same as here, Attendance Officer is a much overloaded

employee at Jinasena group of company. Somehow this new vision will depreciate the

work burden on him.

2. Time card data will be fully managed by each Department Head.

In the existing model this activity is done by Attendance Officer. But in the modified

process it will be done by Department Head. One reason for change this process is,

minimize the workload on Attendance Officer. Not only that, Department Head can

easily handle the time card data more than attendance officer. As authority is given

for the employees they will put their best to improve the output.

3. Leave applications/Amendment chits will be controlled under Department Head.

Same as the above point the reason for giving this authority is to spread the workload

balanced. Hence no need to transfer the chits among departments. It will help to

increase the efficiency and productivity.


10) Describe the possible change to Organizational structure, Job skills

/Reward systems, Information technologies, Culture and beliefs

10.1) Organizational Structure

This defined as a framework that organization arranges its lines of authority and allocates

duties. Organization structure determines the extent of employees‟ power, responsibility that

delegated, controlled and coordinated. Here the company formed as a centralized structure

that means the decision making power is concentrated in the top layer of the management and

tight control is applied over departments and divisions.

Briefly Jinasena Group of company main divisions or departments can be structured into

following way.

Division of finance

& Management

Division of Planning &

Engineering

Division of

Operation

Administration

Finance

HR activities

Design

Inventory management

Research & Development

Manufacturing

Assembling

Quality Assurance

Top Management


The main purpose of re-engineering is identified as directly connection of Attendance system

(under HR activities) with the Payroll System (under finance). One of the possible changes

that going to made is give the opportunity to connect with DMS system in the particular

employee (HR) of the distribution centers. By doing this there should be significant change in

delegation of responsibilities, powers, duties and authorities of that person other than normal

worker. Delegation is the process of assigning tasks and granting authority for their

accomplishment to others. By giving authorities some extent to that person, should be reliable

and accountable while carrying out their tasks.

Another significant change would be happen in marking attendance of punch card system.

But there is less opportunity to re-engineer the full attendance procedure to finger print

system due to their working environment. Therefore as the modification, assign a responsible

person to enter the attendance of individuals in the departments of casting, assembling into

the DMS system directly. By doing this it helps to reduce time consuming of entering data

manually and also removes redundant data.

Leave approval procedure also going to modify in the manual system to automated system by

using relevant interfaces through the system. Here also a responsible person from each

department should carry out those tasks completely by getting approval from general

manager. Therefore delegating work would involve Head of attendance department giving his

team members the authority to carry out certain aspects of his job. An important aspect of

delegating is that department head would give his staff the discretion to make decisions within a

certain sphere of influence or carry out tasks. However, remain fully accountable for the

decision or tasks undertaken by his staff.

One of the most important benefits of delegation is that it can have a positive impact on

motivating staff. Hertzberg found that encouraging employees to take on responsibility is a

motivating factor in enhancing job satisfaction and can promote better work. This type of

restructuring could also bring decision making closer to the situations that require them, and

potentially improve the decisions since they are being made by those with most knowledge of

the problems involved.


10.2) Job Skills/Reward systems

Job skills and Reward systems are also vital to consider enhancing employees‟ performance

in effective way. Here the attendance support staff in distribution centers and departments

will require necessary information technology skills and basic knowledge of using computer

systems. These days, employers require employees to accomplish many of their normal, daily

duties by way of computers. Hence, lots of jobs require basic computer user skills. Therefore

he or she would able to carry out this kind of tasks;

Log into the system

Enter information by using relevant interfaces to the system

Communication by e-mail

Download company forms

Preserve(back up) important data

Therefore the company can choose an employee from each distribution center and department

to providing a training session as they required. This is the way of redeployment workers

without recruiting people from outside. This will help to reduce cost, time and other

resources. Therefore reengineering will enable attendance staff to gain experience of any

work problems and to take on responsibility for coming up with solutions to resolve them. It

can be used as a way of assessing the likely performance of an employee at a higher level,

and enhance employees' prospects for advancement. In this sense delegation is a way of

training staff and preparing them for promotion.

There is a direct relationship between rewards and motivation of employees. According to

Herzberg two factor theory insufficient salary and rewards will lead to dissatisfaction and

reduce their performance. Thus, in order to improve business results, there is a need for

managers and leaders to motivate their employees to work harder, and to align their own

interests with that of the customers. Also the company has an option to increase normal salary

to the staff or providing other incentives such as bonus, allowances to get the maximum

contribution.


10.3) Information Technologies

Information technology (IT) benefits the business world by allowing organizations to work

more efficiently and to maximize productivity. Faster communication, electronic storage and

the protection of records are advantages that IT can have on your enterprise. Information

technology has to do with computer applications, on which nearly every work environment is

dependent. Since computerized systems are widely used, it is advantageous to incorporate

information technology into the organizations.

Here Jinasena Group of company uses computer systems such as DMS system to carry out

day today application. By restructuring the attendance procedure will add some modification

to the existing system. Developing relevant web interfaces to make necessary reports,

providing access to the responsible person have to be implemented as new parts of the

system. Not only creating the interfaces, proper training should be given to the people who

are engaging in the new modifications of the system.

In business, people look for ways to do more work in a shorter amount of time. Information

technology improves company's efficiency by developing automated processes to take burden

off staff creates electronic storage systems to protect your company's valuable records.

Communication is essential to the business world, and information technology gives a

company the resources it needs to communicate quickly and effectively. IT has also helped to

bridge the cultural gap by helping people from different cultures to communicate with one

another, and allow for the exchange of views and ideas, thus increasing awareness and

reducing prejudice. IT has also brought about Cost Effectiveness by helping to computerize

business processes thus streamlining business to make them extremely cost effective money

making machines. This in turn increases productivity which ultimately gives rise to profits

that means better pay and less strenuous working conditions.

10.4) Organization culture, values and beliefs

Organizational culture, values and beliefs have a widespread influence on the behaviors and

actions of employees and, as such, will be a powerful force on Jinasena Company‟s future

strategies, structures, systems and ways of working. It affects the way employees respond to


change and ultimately on how well an organization performs. This is because culture involves

the basic assumptions and beliefs that are shared by the members of the organization.

By improving the connection of DMS system with employees would positively or negatively

affect whole organization. For example as a heavy manufacturing organization, large

numbers of workers are recruited long time ago, thus they are not very familiar with use of

computer applications. Sometimes they disagree with the use of these systems and don‟t trust

about that.

This is often referred to as the glue that binds the organization together or more simply, as

Charles Handy suggests, 'it is the way we do things around here'. Because culture is the

taken for granted ways of doing things and routines that develop over time, it contributes

significantly to how employees respond and behave in relation to the issues that they face.

For an example, some employees are resistance or not ready to change for the new working

environment. Because they thought that they are unable to work with new requirements,

information technologies, afraid to lose their jobs and also changes may occur in

organizational goals or values that exist.

Some writers, such as Hofstede suggests that development of organizational culture is

influenced by the nation in which the organization is based. Several factors that might

influence to the culture and values can be identified as follows;

The nature of the business- for instances the type of products and the environment in

which the organization operates.

The ownership status of the organization- such as whether it is owned by a sole

trader/owner manager or by a small number of institutional shareholders or a large

number of small shareholders.

The extent of risk connected with activities of the organization and the speed of

feedback.

.

The positive influences of Jinasena Company‟s strong culture on organizational performance

are facilitating good communication, coordination and cooperation between different parts of

the Company. This is because culture is the invisible bond which ties the people in the

company together.


Also it can provide a framework for social identity providing the employees of Jinasena

Company with a sense of belonging to the company and in that sense helps in retaining talent

within the company and strengthens the dominant values and attitudes of employees in the

Company and can help in regulating the behavior and norms among members of staff.

As negative influences, strong culture can be difficult to change since beliefs which underpin

culture can be deep rooted and this may lead to Company‟s staff having a rigid view which

could reduce the company‟s ability to grow and for them to learn new skills. The culture may

signal inappropriate values as things in the external environment change, which can lead to a

negative impact on organizational performance.

11) Conclusion

The entire gamut of activities under “Attendance Process Re‐ engineering” of Jinasena

Group of company could be classified into the following four heads:

1. Clear assessment of employees‟ needs.

2. Analysis of the existing processes and identification of the weaknesses and

redundancies.

3. Redesigning of processes and the required changes to be made in the processes and

regulations.

4. Bringing out the changes in processes to meet the business ambition.


12) Reference List

Hammer M and Champy J. Reengineering the Corporation; A manifesto for Business

Revolution. New York: Harper Business, 1993.

Wikipedia, 2012, Two-factor theory - Wikipedia, the free encyclopedia, [online], Available:

http://en.wikipedia.org/wiki/Two-factor_theory,[Accessed date: 1st October 2012]

Wikipedia, 2012, Organizational culture - Wikipedia, the free encyclopedia, [online],

Available: http://en.wikipedia.org/wiki/Organizational_culture,[Accessed date: 28th

September 2012]

Unknown, 2012, [E book], Available:

http://www.bizagi.com/docs/BPMN_Quick_Reference_Guide_ENG.pdf, [Accessed date: 28th

September 2012]

Unknown, 2008, Welcome to Jinasena Group of Companies - [ Home ], [online], Available:

http://www.jinasena.com/home.html, [Accessed date: 29th September 2012]


Appendices

Appendix A: Existing sub processes in the process model

Resolve Errors [A]

Check for Approval [B]

Documents

Bpr Project - Attendance Management System