Chapter 3.8, Problem 3.5ARQ

Explanation of Solution

Business Process:

Business process is a series of events for achieving organization goals. It has a group tasks which are related to one another.

Cost:

Cost of the business process is the cost required for input and the cost required to complete the activities.

Margin:

It provides difference in seller cost to acquire product and selling price and it is expressed in percentage for net sales income.

Purpose of activity:

An activity is a business process which receives inputs and the generated output. It can be performed by human, or by a computer or with the coordination of both.

Repository:

Repository is the collection of something. In business process management, activities and the resources are generally used. But, repository is a key term which is broadly used in the business process management.

Types of repository involved in business process:

• Physical repository
  • Inventory is an example of physical repository
• Data repository
  • Database is an example of data repository

Business process redesign:

Business process redesign is the complete service of a key business process. Their objective is to achieve hike in performance measures such as return on investment, cost reduction and quality of service. It act as key enabler to supply highest quality of service.

Importance of Business process redesign:

• It helps in improving the performance level of the company.
• It moves the company out of the critical process by implementing new technology in terms of services.
• Rather than following old technology, modifying the service and methodology which helps to improve the production of the company...