The Case Study On The Purchasing Process Reengineering Of ZNP Company

It is globalization that changed the enterprise competitive strategy. At the same time, theoperation mode has been changed by informatization, and the mass production method hasbeen changed by demand difference. So, if an enterprise wants to keep its existence anddevelopment, it has to constantly adjust its operation strategy and operation in order toenhance its flexibility in a changed marketing, such as business process innovation.As a beginning of production, purchasing process is one of the important businessprocesses to a company. Purchasing activity involved in the entire business process fromsuppliers to end users, including cargo logistics, capital flow and information flow, which hada direct effect on enterprise’s cost and the profit. It can avoid unnecessary loss and wasteduring production, reduce cost, enhance efficiency and promote management level byimproving management of purchasing process.In this thesis, BPR in purchasing field has been studied based on the practices of ZNPCompany producing controller, according to the theories of modern purchasing managementand the methods of BPR/BPI.The result of the ASME analysis shows that only less then46.8percent of operating timeis value-added. All the operating activities include value-added activities, non-value addedactivities, inspection, transportation, delays and storage etc. And, most of the operating time iswasted in the communication, check and waiting for approval as well as a variety ofnon-value added activities. The innovative house of quality tools is used setting thecompany’s BPR goal in this thesis. The company’s strategic goal and the purchasing processreengineering also are closely related.The purchasing process redesigned in three parts: the supplier development andmanagement process, purchasing fulfillment process and the technology and qualitycertification process. Finally, the core of purchasing process of ZNP Company is summarized.This thesis tries to provide an inspiration for the ZNP Company and the relevantdomestic enterprises in purchasing management and some valuable references for the BPRpractice to help enterprises to change, and then enhance their competitiveness.