Benchmarking for Air Export Procedure in Thailand - Literature review Example

?Running head: Benchmarking for Air Export Procedure in Thailand: Business Process Improvement [Insert Sur [College] [25th February, 2011] Business Process Improvement Context: I. Introduction II. Advantages of BPI in terms of supply chain and logistics performance III. Business process improvement Tools i. Risk assessment analysis a. Advantage of risk assessment analysis b. Disadvantages of risk assessment analysis ii. Lean manufacturing a. Advantages of lean manufacturing strategy b. Disadvantages of lean manufacturing iii. Six sigma a. Advantages of Six Sigma b. Disadvantages of six Sigma iv. Benchmarking a. Advantages of benchmarking b. Disadvantages of benchmarking v. conclusion Introduction Air transport is one of the most advanced and heavily relied means of transport not only by the developing but also the developed countries. An efficient air transport will smooth the progress of both economic growth and development of any country. In order to promote the export trade and consequently improve the rate of economic growth, Thailand will have to perform the expected duties in improving the statures of its infrastructures in order to be in the same standard as other developed economies or meet the international standard. Through business process improvement, Thailand will be able to approach its fundamental progression more analytically in order to accomplish more proficient results in air export. This article will look at some of the business process improvement tools, that Thailand can incorporate in it air export in order to realize the best results. Advantages of BPI in terms of supply chain and logistics performance Business process improvement is a methodology that allows business to approach its processes more analytically in order to achieve more dexterous results. According to Frazelle (2002, P.234) the strategy is applicable not only to the manufacturing companies but also to the service offering corporations. Among the positive consequences that can ensue as a result of incorporating the BPI with both supply chain and logistic performance as articulated by Christopher (2005, P.67) is the fact that BPI will to a big deal enhance the system of association by the stakeholders involved in moving products or services from the supplier to customers to be approached more systematically in order to realize more exemplary results. Lambert (2008,P.345) echoes similar sentiments to those of Christopher by claiming that through BPI, some logistic services could be outsourced and in the process leads to increased and better performance. Literature review Business process improvement Tools Business process improvement (BPI) tools are methodologies that permit people to develop into being more proficient in their processes. Through employing BPI tools in its undertaking, a business can recognize its weak points and recover its operational effectiveness. Among the BPI tools that are commonly utilized by many business organization include; 1) .Risk assessment analysis This particular tool entails identifying and at the same time trying to reduce or mitigate risk or chances of a risk taking place in the process (Harrington, 1991p.176). According to the same author, this particular tool is a proactive methodology that endeavors to avoid chances of risk being created from the process. Harrington (1991p.176) further remarks that the tool goes a long way in enabling the process to be perfected by doing things right rather than seeking to the right thing. In his argument Harrington observes that risk assessment analysis do not only act as way of warning the management of an impending risk but also try to reduce the chances of such a risk hindering the improvement process of the business process. Advantage of risk assessment analysis I. Through this tool the company or organization is relieved inconveniences that could have accrued as a result of the risk being created I the process. This cost could have been associated with means of eradicating them, which to a great extent may entail unwarranted financial expenses (Harrington, 1991). II. Similarly the analysis enhances consistency in the process, as no break up will be experienced resulting from any risk being created from the process. Disadvantages of risk assessment analysis I. The tool requires experienced workforce, which will be able to monitor the progress of the process and identify the risk at the right time. Failure to identify the risk appropriately by the workforce may lead to heavy losses that the company or organization may have hardship in meeting. II. The fact that the tool demand experienced or competent staff implies that the organization will be forced to dig deep into their pockets in order to meet the financial requirements (Harrington ,1991). 2) .Lean manufacturing This is another business process improvement tool that deals with reducing the expenses incurred in business process for example in manufacturing industries. According to Andersen (2007, P.276), this strategy attempts to generate high echelon of throughput with the smallest amount of inventory. Rather than relying on a centralized stockroom, lean manufacturing strategy is centered on producing small stock piles positioned in tactical places (Page 2010 P.130). Page ( 2010,P.135) in addition notes that apart from minimizing the waste through inventory, lean manufacturing also builds on producing top quality products through insisting on checking the product immediately its completed. By this, the strategy usually tries to avoid products with defects from being produced and in case such defect products are detected, the production line is stopped to avoid exacerbating the loss that may incur as a result of the defect. Advantages of lean manufacturing strategy There are a number of benefits that ensue from the utilization of the lean manufacturing strategy. Among the most common benefit as noted by Wilson (2009, P.73) includes a) Customers perceive quicker comeback to extraordinary requirements for personalized products or expedited liberation. The fact that the strategy emphasizes on small stock pile enhance prompt feedback on request from customers. This is particularly on customized products that demand special attention and usually a short notice before completion. In addition to customers being treated on prompt feedbacks, the strategy equally offer quality product to the customers, as there is emphasize on checking the state of the product before completion to avoid chances of producing products with defects. b) Delivery of products at the agreed time To avoid instances where the customers may be forced to postpone commencement of a process as a result of a the manufacturer delaying in delivering the product, lean manufacturing make sure that it does not only provide fast means of delivery but reliable means as well. This means that if for instance the product to be manufactured was a transformer, the manufacturing company will enable the customer to have the product in time when it promised to deliver it. Disadvantages of lean manufacturing Though the tool is credited to have quite a positive effect, there are a number of shortcomings associated with it. Among the short comings as observed by Koch (2008, P.358) comprise of; a) Need for full support For the strategy to be successful, full support from all the stakeholders in the manufacturing process is paramount and more so from its leaders. The strategy which entails reduction of cost incurred in production by eliminating inventory usually pertain digression to a totally different production ways. These changes according to Koch (2008, P.358) may not auger well with everybody and especially the workers who may resist the changes fearing losing their jobs. Unless the strategy is thus provided with the necessary requirement, lean manufacturing is bound to fail. b) Additional training In order to bring workers at per with the required skills, most or to some extent all of them will be required will be required to undergo extra training which may compel them to work extra time or even at night in order to learn the new tricks. Koch (2008, P.358) observes that this will equally be an added cost to the company. Similarly, there is a high probability that the production will hugely be affected during the training time noting that the expertise of performing the obligation required may take time and hence in the process more time per worker to perform his duty may be required. c) Need for team leader After the new strategy is introduced, implementing the strategy will definitely require dedicated workforce. There may however be frustration of some kind from the staff and mostly those who were competent with the old technique of operation. The need for a team leader will ultimately may required. Taking this responsibility may prove quite a hectic thing to many. Among the companies that have put into use this business process improvement tool includes the Gillette Company, while those which have failed in utilizing the tool include the Ford Company. 3). Six sigma Six Sigma is a business improvement style that entails quality production of defect less products. The methodology was original discovered and put into use by the Motorola Company in early 80s, and it major objective is to provide quality, value and reliability to the end user. Advantages of Six Sigma a) Improving the quality of production. This tool of production has to a great extent helped many companies to produce products that are defect less and in the process enhanced customer loyalty. The loyalty from esteemed customer has consequently led to improved sales which in the process has ultimately enhanced better revenue to such a corporation. b) Improving product design This achievement has been realized following the necessity of not only coming up with a product design but also optimizing on the design of the product. c) Improving communication between the customers’ shareholders and employees. In order to achieve success in this business process improvement tool, there must be total consent on all the fronts involved. There is therefore a need for improved communication between the above named stakeholders. Disadvantages of six Sigma Though the style of production has been reputed to a lot of success and benefits, there are some few downsides associated with the tool, as noted by Thomsett (2005, P.84.) a) Lack of quantifying measures There has been a notion that the successfulness of using the Six sigma has for a long time lacked quantifiable measure to either accept or refute the fact whether Six Sigma is successful as depicted or not. b) Need of full support Just like many other strategies Six Sigma equally require that it receive an interrupted support from all the stakeholders involved. This is to facilitate the success of the strategy. 4. Benchmarking According to Camp (2006,P.234) benchmarking is a business process improvement tool that works through comparing the performance of competitors and seek to outdo them through being more competitive in terms of reduced cost and quality production. Advantages of benchmarking a) Among the strong points of this tool is that it set the foundation for performance development hence enabling the firm to outdo its competitors. b) Another benefit is that the strategy provides the business with a platform of identifying the positive practices of its competitors and try to incorporate them in it own operations. Disadvantages of benchmarking The greatness weakness of this strategy according to Camp (2006, P.244) is the tendency of a company to develop complacency after realizing that it has outdone the competitors. Such company usually realizes later that the strategy was meant to open more hidden chances that could have enabled it to do even better in future. Conclusion In order to radically boost its air export, the government of Thailand will be forced to carry out an analysis of Business process improvement tools and settle with the one that promises to be more applicable according to its need. Through the use of business process improvement Thailand will be in a position to realize the dream of promoting its air exports as this methodology will provide analytical approach towards achieve conclusive results. From the literature review on the business process improvement tools highlighted above, Thailand can either opt to adopt lean manufacturing, six sigma or benchmarking as a measure of realizing efficiency in the air export process. Reference list Andersen, B 2007, Business Process Improvement Toolbox, Quality press publishers: Milwaukee. Camp, R 2006, Benchmarking: the Search for Industry Best Practices That Lead to Superior Performance, Taylor and Francis publishers, London. Christopher, S 2005, Logistics and supply chain management: creating value-added networks, Financial Times Prentice Hall publisher, California. Frazelle, W 2002, Supply chain strategy: the logistics of supply chain management, McGraw-Hill Professional, New York. Harrington, JM 1991, Business process improvement: the breakthrough strategy for total quality, McGraw-Hill Professional, London. Lambert, D 2008, Supply chain management: processes, partnerships, performance, Supply Chain Management Inst, New York. Page, S 2010, the power of business process improvement: 10 simple steps to increase effectiveness, efficiency, and adaptability, AMACOM Div American Mgmt Assn, New York. Thomsett, M 2005, Getting started in Six Sigma, John Wiley and Son’s publisher, New York. Wilson, L 2009, How to Implement Lean Manufacturing, McGraw Hill Professional, New York. Read More