Question 8-17 Hammaker Manufacturing Ii (Business Process Reengineering or Outsource)

1374 Words Sep 15th, 2011 6 Pages
1. Identify tools that would help Denise and Rowland map HMC's business processes. Which processes do you think they should work on first? Why those processes?

Hammaker Manufacturing (HMC) has had its AIS in place for the past 15 years, and is interested in reevaluating its business processes to identify any potential areas for improvement. The current system has worked well for the company so far, however with the increasing pace of modern technological advances, HMC is weighing its options between business process reengineering and the potential to outsource. Denise Charbonet, the CEO, is currently working with Lloyd Rowland, a software consultant, to evaluate the feasibility of outsourcing jobs.

Some tools that they could use to
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The sales process is also key to look in to because getting the products to the customers and keeping them satisfied is how HMC has been able to grow over the past 15 years. The possibility of updating the sales order process could really take the company's operations to the next level. Overall, the ultimate objective of Charbonet and Rowland's evaluation of HMC should determine what will be in the best interest of the company as a whole.

2.Identify at least six reasons why companies choose to outsource or offshore a business process. Which of these reasons might Dick use to make his decision to outsource or to attempt BMR?

Reasons why Companies Choose to Outsource or Offshore a Business
1) The cost is significantly lower in the other country.
2) The company can increase its efficiency and focus on other areas of business if it outsources a particular process.
3) The needs of the business cannot be fulfilled locally.
4) The company to which a process is being outsourced is an expert in that particular area.
5) The products or parts made by the offshore company may be more reliable than if they were made in house.
6) The external company has the efficiency to reduce the time that it takes for the product to get to the market.

Based on the information given about HMC, in making his decision to outsource or to attempt BMR, Dick should consider the cost of the external company, the quality and reliablility of the
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