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Table 2
Averaged importance for each process
Member #1 Member #2 Member #3 Member #4 Member #5 Average
Customer relationship management 11.02 14.60 8.19 11.39 8.6 10.76
Customer service management 11.02 14.60 17.47 12.90 14.67 14.13
Demand management 16.07 16.07 18.08 15.20 11.86 15.46
Order fulfillment 15.27 16.07 18.08 11.81 11.86 14.62
Manufacturing flow management 14.93 12.64 6.34 14.86 18.41 13.44
Procurement 17.97 10.43 16.23 17.29 18.41 16.07
Product development 13.73 15.58 15.61 16.56 16.20 15.54
Fig. 5. The MADs for current process and a number of forecasting methods.
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 353
Fig. 8 shows membership functions for the uni-
verse of discourse. The summary of ve multi-
attribute methods by Triantaphyllou and Lin [28],
leads to the basic operations on fuzzy triangular
numbers and a ranking method by Zhu and Lee
along with the evaluations provided by a middle
manager for selecting the new procurement process.
Fig. 9 displays the membership functions of the
nal results, and specically, a new process that
shortens the purchasing and productionmarketing
cycle time to 2 weeks is selected for implementa-
tion.
5.6. The next BPR cycle focusing on strategic
alliance
Repeated implementation of the seven-step proce-
dure is required for continuous improvement. During
the rst cycle, two major processes (forecasting and
order procurement) were investigated and new pro-
cesses were suggested. According to the future plan of
BPR and strategic planning of the rm, new strategies
of collaboration in SCM have long been under con-
sideration by most of the manufacturers, including the
rm being studied.
To increase the utilization of capacity, share the
costs and risk, mutually benet from core competen-
cies, and satisfy customers, a number of order sharing
policies were presented. The order sharing policies for
a virtual organization imply:
1. All orders are allocated to companies on the basis
of equal capacity utilization (policy 1).
2. All orders are allocated to companies on the basis
of predened percentages (policy 2).
3. Each order is rst allocated to the company that
originally received the order. If that company's
capacity is inadequate, the excess portion is
reallocated to a company that has the least current
capacity utilization (policy 3).
Fig. 6. Simulation data with exponential smoothing forecasting and real market demand (normal distribution) per month during 5 years.
354 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358
Fig. 7. Cost impacts for current procurement process and two new policies at current safety stock level.
Fig. 8. Membership function for universe of discourse in this study.
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 355
4. If a company capacity is inadequate, the excess
portion of the order is reallocated to a company
that has the least current accumulated capacity
utilization (policy 4).
For each policy of the above, assume that the lost
orders were entirely reallocated by the virtual orga-
nization to alliances. Any particular company is not
responsible for the lost order.
Fig. 9. Membership functions of the two alternatives of the new procurement processes according to the fuzzy approach.
Table 3
Comparisons of capacity utilization for strategic alliance policies
Capacity Mean Deviation Utilization
Policy 0 Policy1 Policy 2 Policy 3
Case 1 Manu. 1 40 50 20 0.949 0.930 0.949 0.955
Manu. 2 60 60 10 0.959 0.930 0.941 0.949
Manu. 3 80 60 5 0.756 0.930 0.910 0.881
Case 2 Manu. 1 80 70 20 0.853 0.848 0.856 0.854
Manu. 2 60 50 10 0.840 0.848 0.861 0.858
Manu. 3 40 30 5 0.761 0.848 0.806 0.822
Case 3 Manu. 1 80 70 20 0.853 0.847 0.856 0.853
Manu. 2 60 50 5 0.837 0.847 0.861 0.863
Manu. 3 40 30 3 0.757 0.847 0.805 0.808
Case 4 Manu. 1 80 85 5 1.000 0.973 0.981 1.000
Manu. 2 60 60 3 0.987 0.973 0.984 0.994
Manu. 3 40 30 3 0.757 0.973 0.926 0.886
Case 5 Manu. 1 80 85 20 0.953 0.950 0.957 0.956
Manu. 2 60 60 5 0.979 0.950 0.961 0.990
Manu. 3 40 30 3 0.756 0.950 0.917 0.878
Case 6 Manu. 1 80 85 20 0.953 0.947 0.955 0.959
Manu. 2 60 60 10 0.959 0.947 0.959 0.977
Manu. 3 40 30 3 0.757 0.947 0.913 0.879
356 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358
Each of the three policies 1, 2, and 3 was employed
to process orders for a number of periods in the case
study. The simulation results are presented in Tables 3
and 4. Compared with the case without strategic
alliance (policy 0), the results show that better capa-
city utilization, less lost orders, and better due date
satisfaction are achieved, as well as possible reduced
marketing and other related costs under a variety of
scenarios.
6. Discussions and conclusions
A BPR framework and its associated implementing
methods are proposed here and applied to the supply
chain reengineering of a motorcycle manufacturer. A
CPAM and the proposed OOS schema are integrated
into the BPR framework. Once rms have decided on
their business vision and objectives, they can identify
the core business processes to be redesigned through
the CPAM. Using the proposed object-oriented world-
view simulation framework, rms can analyze and
compare the probable inuence of reengineering prior
to its implementation to reduce high risks.
It is very important that good communication exists
between the business personnel collecting the data and
the decision makers. Interaction is required in each
step of the proposed framework.
In conclusion, through the proposed BPR frame-
work and associated implementing methods, we pro-
vide a systematic approach for industrial practice.
Most importantly, the BPR framework takes advan-
tages of the OOS, which can evaluate the reengineer-
ing in advance of the implementation, and this is
expected to reduce the high failure rate of BPR
projects.
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Table 4
Comparisons of lost quantities for strategic alliance policies
Capacity Mean Deviation Lost quantity
Policy 0 Policy1 Policy 2 Policy 3
Case 1 Manu. 1 40 50 20 458 51 69 197
Manu. 2 60 60 10 87 77 91 33
Manu. 3 80 60 5 0 102 76 0
Case 2 Manu. 1 80 70 20 179 32 39 71
Manu. 2 60 50 10 8 24 32 20
Manu. 3 40 30 5 0 16 10 0
Case 3 Manu. 1 80 70 20 179 31 35 69
Manu. 2 60 50 5 0 23 28 0
Manu. 3 40 30 3 0 15 8 0
Case 4 Manu. 1 80 85 5 182 19 29 35
Manu. 2 60 60 3 26 14 27 7
Manu. 3 40 30 3 0 9 1 0
Case 5 Manu. 1 80 85 20 389 115 128 138
Manu. 2 60 60 5 43 86 103 21
Manu. 3 40 30 3 0 57 31 0
Case 6 Manu. 1 80 85 20 389 125 137 236
Manu. 2 60 60 10 87 94 109 45
Manu. 3 40 30 3 0 62 37 0
S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358 357
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S. Wesley Changchien is an Associate
Professor with the Department of In-
formation Management at Chaoyang
University of Technology, Taiwan,
ROC. He received a BS degree in
Mechanical Engineering (1989) and
completed his MS (1993) and PhD
(1996) degrees in Industrial Engineering
at State University of New York at
Buffalo. His current research interests
include knowledge management, knowledge discovery, data
mining, bio-informatics, agent technology, intelligent systems,
genetic algorithms.
Hsiao-Yun Shen is a candidate for doctorate
degree in National Chiao Tung University in
Taiwan. She received her MBA degree in
1999 with major in information manage-
ment from Chaoyang University of Tech-
nology. Currently, she is doing research on
the subject of information security manage-
ment in electronic commerce.
358 S.W. Changchien, H.-Y. Shen / Information & Management 39 (2002) 345358