Customer order process modeling and redesign

Abstract

The purpose of this thesis is to model better customer order process for industrial customers and oil and LPG service station customers of the case company. Such process is modeled with respect to reengineering methodology, and the cost and benefit statement is defined with respect to the Activity Based Costing (ABC) concept. The tool used to model, simulation, and analyse the process is the FirstSTEP program. By following the reengineering methodology, information needed in creating customer order process is gathered by literature survey, interviews, and personal communication. This information includes industrial, oil and LPG customer requirements, the customer order processes of competitors and non-competitors, and the appropriate technology. The new model of customer order process is then created. By eliminating the no value added activities, combining several jobs in the existing customer order process into one and let those jobs be performed by authorized people, and installing decision points up front to the new customer order process, the result of this study when comparing the new customer order process to the existing one shows that the new model customer order process can reduce cost by 31.8 percent, reduce average processing time by 27.5 percent, reduce average elapsed time by 3.5 percent, and increase resource utilization.