Business Process Change Plan At Maple Leaf Food Inc Busuyi Afe
BUSINESS PROCESS
CHANGE PLAN
Designing, Improving and Implementing
Processes
Maple Leaf Food Inc, Canada
Busuyi Afe
Octomber 9, 2012
Table of Content
1.1 Abstract……………………………………………………………………………………3
1.2 Mission
statement…………………………………………………………………………..4
1.3 Introduction…………………………………………………………………………………4
2.1 The impact
of a single Business Process …………………………………………………...5
3.1 The
Utilization of Capability Maturity Model (CMM)……………………………………..6
4.1 Company Strategy and Economic
Performance Using Porters Three-Phase Process………7
4.2 Business Flow Chart Shown Below…………………………………………………………8
5.1 Production
Process………………………………………………………………………….9
5.2 Requirement
Analysis……………………………………………………………………….11
6.1 The
Adaptability Process Diagram…………………………………………………………..11
6.2 The Benefits
of Business Process Management ………………………………………….....12
6.3
Recommendation to Business Process………………………………………………………13
7.1 The Impact
of Production Process…………………………………………………………..15
7.2 The
Functional Role of Process Analyst at Maple Leaf Food Inc…………………………..15
7.3 The
Management of Production Process……………………………………………………15
7.4 Evaluation
and Measurement of Task Completed…………………………………………16
8.1 The
difference between Measuring Human Performance and Task Completion………….16
9.1 The Impact
of Six Sigma…………………………………………………………………...17
9.2. Fishbone
Diagram that illustrates low or bad production at Maple Leaf Food Inc………..18
10.1 The Value of Fishbone Diagram at Maple Leaf
Food Inc……………………………….19 11.1 Three
Key Performance Indicator(KPI)……………………………………………………20
12 The
similarities among Six Sigma,Balanced Scorecard and ISO 9000 /9001………………..22
12.2 Differences
among Six Sigma,Balanced Scorecard and ISO 9000/9001…………………..24
12.3 ISO 9000/9001…………………………………………………………………………….26
13.1 Balanced Scorecard Impact on Change
Process………………………………………….26
14.0 Flowchart Illustrating the entire Change
Management Plan at Maple Leaf Food Inc……27
15.0 Conclusion …………………………… ………………………………………………
….28
References………………………………………………………………………………..............29
Abstract
Maple Leaf Foods Inc has been a
leader in food industry in the world. Research on Maple Leaf Foods Inc has
helped to investigate the business
process of the company using annual
report for year 2011.Maple Leaf is Canada’s largest fresh company in terms of
retail branded sales and only behind P&G,Kraft,Pepsi/Frito Lay and Saputo
when international companies are included”(Mapleleaf Annual Report,2011).Maple
Leaf is known to provide fresh and quality food produce ranging from Branded
Bread,Fresh Pasta,Bacon,Bagels,Sliced Meat and Sausages.
This paper further elaborates the
impact of business process change using different business methodology that
includes Balanced Scoredcard,Six Sigma,CMMi and SAP.The paper also investigate
human and economic performance indicator(KPI).The issue of change management,
SWOT(Strength,Weakness,Opportunity and Threat) using unified modeling
language(UML) will be discussed and the benefit to the business process of
Maple Leaf Food Inc
1.2 Mission statement
Maple Leaf Food Inc has strived
very hard to serve consumers with high quality food products at an affordable
price. The company has maintained a good reputation and that made them a leader
in food industry in the world. The company has over 19,500 employees in all his
global operation.
Maple Leaf Food Inc is a major food
producer and a leader in food production in Canada and other parts of the
world. Some of the company products include Meat, Meals and bakery. The company
headquarters is in Toronto, Canada and other operational plant in United
States, Europe and Asia.
1.3 Introduction
Maple Leaf Foods Incorporation
started operation over 100 years. The company started operation in Toronto .In
1991 Maple Leaf Mills and Canada Packers merged together to expand their
operation in North America and that actually increases production and maximizes
profits. Maple Leaf Food Inc Acquires 90 percent of Canada Bread Company
Limited which was founded in 1911.Canada Bread Company is a Subsidiary of Maple
Leaf Foods Inc; it represents the bakery division of Maple Leaf Food Inc.
Maple Leaf Food Inc business operations
are categorized into three major groups - meat products group, Bakery products
group and Agribusiness products. There has been an increase in profit margin in
meat Product Group in year 2011.
2.1 The impact of a single Business
Process
The importance of supporting process
improvement at Maple Leaf Foods Inc also to find a way to improve relationship
with strategic customers, Suppliers, employees and stakeholders. The business
process that will be proposed for future plan of Maple Leaf Food Inc will
mainly focus on how to increase customer satisfaction and company productivity.
Maple Leaf Food has used both six
sigma and SAP to improve business process. The only change I will suggest for
future business process at Maple Leaf Food Inc will be the consolidation of
various ERP systems by using SAP (System Application Products). It is German
software that is used for ERP (Enterprise Resource Planning) projects.”The
Canadian packaged foods giant is working on a five year business plan to turn
itself around. Jeff Hutchinson explains how moving from 30 ERP systems to one
instance of SAP will contribute to the transformation. (Schick, 2011.p1).It is
a great fact that the organization understands the importance of SAP to
business process.
The implementation of SAP will
increase productivity, quality of products and maximize profits. Maple Food Inc
used SAP technologies to streamline their process from one department to
another. It will be a great transformation to actually implement SAP that will
improve communication across the board and that will be a great performance
dashboard for the management.
3.1 The Utilization of Capability
Maturity Model (CMM)
The process areas that support CMMi
levels 1 to level 5 from initial stage, repeatable stage, defined stage, managed
stage and optimizing stage.”The best known of all maturity models is the
software engineering institutes capability maturity model integrated (CMMI)” (Hamons,
2011.p127). The CMMI methodology has helped organization to develop customized
system that will help improve existing system to deliver great efficiency and
productivity. The CMMI methodology has helped organization to develop
customized system to deliver great efficiency and productivity.
The stage one is the initial level of
CMMI at this current business process at Maple Leaf Food Inc is analyzed
because the current business process is facing a lot of problem ranging from
poor performance, poor delivery, waste of revenues and inefficient business
communication among departments at the company.
The second level of CMMI is the
repeatable stage which is the gathering of information. At start of project
management stage, business process is defined and requirement is defined to
support the business design.
The third level of CMMI is the effort
of the organizations to understand the business process being implemented and
they also pay close attention to information gathered by business analyst and
requirement analyst. The company will also focus their efforts on how to
integrate all the SAP modules to meet business process requirement.
The fourth level of CMMI is the
managerial stage, this is the stage management executives’ monitors and control
the SAP application implemented and the management is able to take full control
of the SAP systems.
The fifth level of CMMI is the
optimizing stage at which the organization focuses on the improvement of the
new SAP application been implemented and the management will be expecting a
great profit return on investment.
The implementation of CMMI has heledp
Maple Leaf Food Inc to improve business process at all level of organization ”The
capability maturity(CMM) summarizes the best practices for software development
and represents the mainstream in software engineering”(Zhiying,2003.p16).Maple
Leaf Food Inc has made it possible to execute 15 SAP implementation.
4.1 Company Strategy and Economic
Performance Using Porters Three-Phase Process
Business strategy is the process
of how to plan and manage business to achieve a great result that will generate
profit.”A business strategy defines how a company will compete, what its goal
will be, and what policies it will support to achieve those
goals”(Harmon,2011.p31).For a company to survive, there must be efficient plan
that drives the company to success.
4.2 Business Flow Chart Shown Below
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FUTURE PLAN OF MAPLE LEAF FOOD INC
·
The company strategy is important to add more values to the company
and to generate more revenues.
·
Find a way to reduce expenditure and maximize profit at level of
company operation.
·
The best alternatives is to implement application that is efficient
to save money and increase productivity.
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CURRENT STAGE OF MAPLE LEAF FOOD INC
·
Implementation of Business process methodology such as six sigma and
other ERP tools such as SAP.
·
Identification of business process problem due to inefficiency of
the existing process.
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ENVIRONMENTAL FACTORS
·
Ability to offer unique product to the market and fear of new
competitor.
·
Competitors can be a threat to their innovation, new products and
patent registration of products.
·
Sanction from government due to outbreak of food contamination and
that affect the company reputation.
·
Good product, good price and customer trust has been the company
strength, while lost of profit has been weakness.
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5A: Production
Process
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Inventory
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Procurement
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Production Swim lane
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Production
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Inspection & Certification
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Warehouse
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IT Support
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Record and Maintain financial
Transaction
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Finance Corporate
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Section 5B
Production
Process
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Inventory
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Procurement
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Production Swim lane
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Production
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Inspection
& Certification
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Warehouse
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IT
Support
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Finance Corporate
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Record and Maintain financial Transaction
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Data Integration
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5.2 Requirement Analysis at Maple Leaf
Food Inc
The automation of existing and future
business processes has greatly helped Maple Leaf Food Inc to maximize
ROI(Return on Investment),Quality and Service provided to customers.
Business Process
Management includes the following activities such as Data Mapping, Modeling, Automating,
Monitoring, Investigating and improving the business process that will help
Maple Leaf Food Inc maximize profits at a shorter time. The business process
diagram helps an organization to visualize the business process from the
inventory level, production, quality control to finance all these process flows
actually help the management to see the prototype of the business process
before actual “Go-Live”. At this point, the paper focuses on how to improve
production process that will enhance quality of product and services and that will
lead to increase in profit. A business process is simply how an organization
does its work-the set of activities it pursues to accomplish a particular
customer, either internal or external(Davenport,2005).The current stage of
production process at Maple Leaf Food Inc in the process diagram is actually
initiated by sale order and that leads to production, inspection and
certification and there is an automation system that controls all the business
process at all level or that make cross-functional possible at level of the
organization.
6.1 The Adaptability Process Diagram
The adaptability to the business
process step is another form of business process that enhances the performance
of the current process. The adaptation is the process by which organization
will be able to handle risk facing the current process and future process. The
current business flow in the diagram above describes the business process modeling,
process flow diagram and business activities. The business requirement is
really important because it helps Maple Leaf Food Inc to really determine the
part of business process that needs improvement.
6.2 The Benefits of Business Process
Management
The Implementation of Business
Process Management (BPM) has greatly benefitted Maple Leaf Food Inc in major
ways that include the following:
Increase Accountability: It helps
the organization to monitor all their daily expenditures therefore reducing
fraud, financial mistakes or duplication of information. SAP System made it
possible that all departments can easily share information across the platform.
Reduction in Company Waste: The
optimization of Business Process using automation tools such as SAP has greatly
helped Maple Leaf Food Inc to streamline their business process in a
centralized database that will be easy for business users and executives to
quickly track cost of production, number of stocks in the inventory and
maintaining quality control of goods and service.
Finally the automation of business
process at Maple Leaf has really improved reliability and efficiency of the
production process by producing quality products of Meats, Poultry and Bakery
to Customers. Every finished product at Maple Leaf Food Inc undergoes
inspection and certification before actual sale to customer in order to
maintain customer satisfaction.
6.3 Recommendation to Business Process
There must be good implementation of
business process by using the human resource management in an effective manner
that will empower employees to gain new skills that will support new
technologies at Maple Leaf Food Inc. There is evidence that new application has
greatly helped the company to be a leader in food industry and also improved
customer relationship.
There must be a way to strengthen supply
chain management at Maple Leaf Food Inc
and that was the reason I recommend way to improve production process in the
diagram figure 5A and 5B and that will help to increase number of goods produced
at Maple Leaf Food Inc and that will definitely increase company revenues.
7.1 The Impact of Production Process
Production is one of the major
departments at Maple Leaf Food Inc and necessary steps must be taken to improve
productivity and performance. There is a great need to increase production of
bakery products such as bread because there is high demand and high consumption
of bread by customers. There are many ways to achieve these goals by improving
the quality of products so that the products taste better and that will make it
a better product among competitors. Reduction
of production time is also necessary; management must find a way to work at a
faster and efficient way to meet customer demand and this can be achieved by
better training and better equipment.
7.2 The Functional Role of Process
Analyst at Maple Leaf Food Inc.
The major responsibility of
Process Analyst at Maple Leaf Food Inc is to ensure that effective business
process is implemented that will benefit the company and the customers. There
are various segments of production department that need improvement. It sounds
easy and logical to take available improvement methods, adapt the process to
changing global requirement and build a permanent and sustainable capability to
improve continuously how are improve. (Burton,2011.p51).Improvement of business
process is important, that is the Process Analyst gathers requirement and
perform business process that will streamline existing process.
7.3 The Management of Production Process
The management of production
process consists the following cost of inventory, cost of labour, raw materials
and delivery cost. An effective production process must be maintained that will
allow access to raw materials and that will facilitate effective production
process.
The cost of
labour and other cost of production must be put into consideration in order to
minimize cost and maximize profit.
7.4 Evaluation and Measurement of Task
Completed
The management must cultivate the
attitudes of evaluating job performance and that will help the organization to
set a bench mark for quality and efficiency. The importance of evaluation and
measurement of task completed will enable management to understand the benefit
of the new application implemented. The evaluation of task completed must be a
continuous process and that will give room for improvement.
8.1 The difference between Measuring
Human Performance and Task Completion
Human performance is the performance
strategy that enables a person to complete task activities in human capital
management, hiring, induction, performance evaluation, and increasingly
compensation (Milanowski, 2011.p19). Human performance is an integral part of
human capital management which measures rate of job completed, duration of job
completion and employee appraisal.
Task completion is basically a work
got done at a specific period of time. Task completion can easily be achieved
by good planning, availability of resources and human performance. Task cannot
be completed without human performance.
The major difference between human
performance and task completion is that human performance is compensated by
salary or job promotion while task completion is the end point of a project or
project closure.
Human
performance is characterized by a single contribution of a person while task
completion is always a group work or project team. Human performance cannot be
quantified but task completion can be measured. Human performance is based on
the quality of work a person performed.
9.1 The Impact of Six Sigma
Six Sigma is a method that focuses
on DMAIC process-Defines, Measure, Analyze, Improve and Control. The importance
of Six Sigma process is to create improvement and efficiency on business
process. The Six Sigma team- Six Sigma project is usually chosen by steering
committee that oversees all Six Sigma efforts or by the process sponsor or team
sponsor (Harmon, 2011.p324). Six Sigma team have the purpose to implement
business process successfully. Some of the functions of Six Sigma are to
measure performance of the existing production process at Maple Leaf Food Inc,
analyzing the existing process and Control and maintain the system
9.2.
Fishbone Diagram that illustrates low or bad production at Maple Leaf
Food Inc.
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Poor Quality
Control
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Bad Source of
Raw Materials
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Uncleaniness
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Bad Raw
Materials
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Shortage of Raw
Material
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Poor Water
Source
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Low or Bad
Production
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Laziness
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Lack of
Experience
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Lack of
Coordination
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Problem of new
Technology
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Longer
Production Time
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Inadequate
Employee Training
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10.1
The Value of Fishbone Diagram at Maple
Leaf Food Inc
Fishbone Diagram is used in problem
analysis; the problem identified at Maple Leaf is the low or bad production
most especially at bakery section of the company. Fishbone Diagram is the cause
effect that affects the production process that includes poor quality control,
bad source raw materials, inadequate employee training and longer production
time.
The
importance of Fishbone Diagram helps an organization to identify problems
facing their company and that actually helps the organization to really utilize
their resources in an effective way that will increase company revenue and
reduce company waste.
Maple Leaf Food Inc needs to
improve the quality control to ensure good quality of finished products that
will benefit company image and customers taste. Training of employees is
important to strengthen human skill and also give employees the opportunity to
learn new technology that will help the company to increase their production
and also help employees to work effectively.
Bad source of raw materials is
another major factor that affects the production process, contamination of
wheat and other ingredients can affect the taste of finished products. Longer
production time is another factor that affects production process due to lack
of coordination by the supervisor not meeting daily deadlines of production
schedules and some employees are lazy or not showing interest in working
hard.
11.1 Three Key Performance Indicator (KPI)
The
importance of Key Performance Indicator
(KPI) has greatly helped Maple Leaf Food Inc in the following areas:
1. Improve the production department by
increasing product output.
2. Key Performance Indicator has helped in
decision making on how to invest and reduce annual expenditure.
3. Key
Performance Indicator has helped Maple Leaf Food Inc on how to keep track of
customer’s database and best utilization of Data Mining.
Often,KPI
are viewed within the framework of
balanced scorecard which is an
evaluation method that includes both financial and non financial
information.(Lamont,2012).Key Performance Indicator has been implemented at the
production level by improving the quality control department to check for good
quality and increase productivity. The source of raw materials to Maple Leaf
Food Inc has been greatly improve using KPI,company can easily source for
materials in an easy and fast way.
The production time has been
reduced to a minimal level. The Key Performance Indicators focus on
non-financial and financial measures and that create balanced scorecard.
Organization always made decision in planning,analyzing and implementation.
Key Performance Indicator as been a
great tool on how company plan to invest resources and reduce annual
expenditures.Maple Leaf Food Inc always monitor economic performance by
reviewing quarter financial statement and that serve as a benchmark of economic
performance.
Key Performance Indicator has a
great impact on customer relationship management at Maple Leaf Food Inc. KPI
has been use to maintain customers database and set priority priviledge
customers in their database.All the business transaction data are store in SAP
servers using SAP Business Warehouse and SAP Sales and Distribution has greatly
utilized easy access to customers information.The level of information sharing
at management level has greatly improve.
12 The
similarities among Six Sigma,Balanced Scorecard and ISO 9000 /9001
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Six
Sigma
|
Balanced
Scorecard
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ISO
9000/9001
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It
reduces wastes and
Defects.
|
It
reduces waste and defects at all levels of organization
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It
reduces wastes and increase productivity.
|
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It
save money because of business process
been streamlined.
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Organization
save a lot of money on the four
factors such as finance,customers,learning and internal business.
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Company
save a lot of money by producing high quality products.
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It
is widely recognized and acceptable
|
It
is widely recognized and implemented by most organization in the world.
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It
is widely acceptable and a product of international standard
organization(ISO).
|
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It can be easily integrated to any new application
to boost company productivity
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It
can be integrated to other new application to make organization work
effectively.
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It
can be integrated to other application to ensure quality of goods and
services.
|
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It
is easy to learn and Implement.
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Easy
Implementation and employees can easily adapt to change.
|
It
is easy to read the quality control
regulations that guides employees and suppliers.
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12.2
Differences among Six Sigma,Balanced Scorecard and ISO 9000/9001
|
Six
Sigma
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Balanced
Scorecard
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ISO
9000/9001
|
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It
focuses on the integral part of business process.
|
It
focuses on all aspect of organization that includes
Financial,customers,internal business and learning.
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It
focuses on the improvement of quality management system to produce effective
result.
|
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It
is not a member of International stardard organization.It is widely
acceptable by few companies
|
It
is not a member of International standard organization not really focus on
quality management but about business process.
|
ISO
9000/9001 is a product of International standard organization(ISO).Widely
acceptable for quality control standard.
|
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Highly
skilled professional always implement Six Sigma.
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Every
Employees in an organization are involve in the implementation of Balanced
scorecard.
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Only
employees that are involve in the quality
management system are trained in the set of regulation of quality
management.
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12.3 ISO 9000/9001
Quality of product and service is
very important to the image of Maple Leaf Food inc.Quality products attracts
more customers and increase company revenues. ISO 9000/9001 was created by
International Standard Organization(ISO).The ISO 9000/9001 is greatly
recognized around the world for better quality of products. The main purpose of
ISO 9000/9001 is to integrate it as a quality management system within a
company to increase efficiency and reduce cost of production.
The best known example is the ISO
9000 series of quality standards developed by the International organization
for standardization in 1987.These standards define quality management system
practices for supplies of goods and services.(Calisir et al.2001.p429).The
quality management system has helped managers to chose the right suppliers of
raw materials.
13.1 Balanced Scorecard Impact on Change Process
Balanced Scorecard is a great tool I will recommend to the business change
process at Maple Leaf Food Inc because of the great benefit to the
organization. Balanced scorecard has great vision and economic performance that
has four functions that includes financial, Customers, Internal Business and
Learning and growth. Balanced scorecard has a great advantage against all the
business process methodologies the reason is based its power of integration
across all organization departments.
Financial Measures has been a great
factor been implemented at Maple leaf Food Inc,it has been used to evaluate
annual financial statement and that has given the organization the opportunity
to really measures the profitability of the company. Furthermore financial
measures help organization to monitor and set company stock price that will
benefit shareholders.
Customer Measures should be a priority
at Maple Leaf Food Inc. Company must
find a way to maintain good customers relationship to retain customers. Maple
Leaf Food Inc must always offer competitive price that is affordable to
customers. Company must find a way to increase the volume of product sale.
Internal Business Process actually
focus on day to day business transaction. It measures the rate of production
cost per unit cost.Time and Materials Management is a great concern at Maple
Leaf Food Inc. They must find a way to get raw materials at a cheaper rate and
also to utilized time management effectively.
Innovation and Learning that allow
company to remain competive by training employees with new skills and
technology.Maple leaf Food Inc must continuosly
engaged in training of employees in order to be self independent.
14.0
Flowchart Illustrating the entire Change Management Plan at Maple Leaf
Food Inc.
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Change
Management Process
|
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Implement
Change
3.1
|
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Measure Change
Results
4.0
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Coordinate and
Implement Business change 3.0
3
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Review Change Process
2.0
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Define Scope of Business Process
1.1
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Perform Post
Implementation Strategy 4.1
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Identify a Change process
1.0
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Perform Production Process
2.1
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Capability
Maturity Model CMM
1.2
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Generate Change
Metric Using 3 KPI 4.2
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Review
Implementation Plan
3.2
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Verify Change to business process
2.2
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Evaluate
Problem Facing the process
2.3
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Verify Change
Success
3.3
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Audit Process
of Six Sigma,Balanced Scoredcard and ISO9000 4.3
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Submit Change
Request for Approval
1.3
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Determine Cause
and Effect of the ¨Problem
3.4
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Recommendation
and Submission of Report
4.4
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Conclusion
Maple leaf Foods Inc has continued
to be leader in food industry in the world.I wholeheartedly believed that the
research conducted on the change management process has greatly boost the
financial stability of this organization.
The main purpose of implementing change
management process at Maple Leaf Food Inc is to focus on how to increase
customer satisfaction and company productivity.In the past Maple leaf Food Inc
has used both Six Sigma and System Application Program(SAP) to improve
business. Maple Leaf Food Inc utilized Capability Maturity Model(CMM) from
level 1 to level 5 from initial stage, repeatable stage,managed stage and
optimizing stage.The CMM technique has helped the company to develop customized
system to deliver great efficiency and productivity.
It is really significance the use of company
strategy and economic performance using Porters Three-Phase process,it is
mainly focus on current stage,environmental factors and future plan of Maple
Leaf Food Inc.The business strategy is the process of how to design and monitor
business to be more profitable and productive.
The requirement analysis and process
diagram has greatly help the company to maximize profits at a shorter
time.Business process change plan has a great impact on the production
department at Maple Leaf Food Inc because it has improve productivity and
performance.
It is necessary
to consider the difference between human performance and task completion
because of their role in business process.Human performance measures rate of
job completed and employee appraisal while task completion is a work got done
at a specific period of time.
The impact of Six Sigma, balanced
Scorecard and ISO 9001 has greatly helped Maple Leaf Food Inc to reduce waste
and increase productivity. The three key performance indicator has been a
benchmark for measuring economic performance at Maple Leaf Food Inc.
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