BPM Logics (I.T. Group) has completed the first stage for streamlining key business processes at JSC Kedentransservice. A processes landscape was formed at the top level, the company's key business processes were described in detail, streamlined and regulated as part of the project.
JSC Kedentransservice logistical company (a subsidiary of OJSC TransContainer and JSC NC Kazakhstan Temir Zholy) has been at the stage of intensive development and expansion of business, both due to the emergence of new types of services and an increase in geographical outreach. This has made the company a provider of comprehensive carrier and logistics services and a key player on the markets of Kazakhstan and the Central Asia. Based on these conditions, the company's top management and stockholders were challenged to increase operational efficiency by streamlining the processes and precisely assigning responsibilities within them.
The project-related works encompassed JSC Kedentransservice's central office in Astana and two key branches (Almaty, Dostyk). The ARIS method and software platform, which uses a modern approach of structured description for organizations' activities, has been chosen to implement the project.
Advisors conducting process diagnostics developed a top-level processes chart, which determined the structure of the enterprise's activities and areas of responsibilities for top managers (heads of functional blocks). Elaborate "as is" models were produced for a group of key processes related to sales and production blocks. The resulting descriptions may be used as an example for similar steps for other company's processes in the future. Also, "bottlenecks" were analyzed and recommendations for improving the described processes were developed, with the chief purpose to streamline data interchange and improve the level of coordination between participants in the processes. "As should be" models were developed and process procedures were developed for two selected key processes.
The key business processes that were described:
- "Management of Freight's Terminal Handling"
- "Sales of Services and Order Fulfillment"
- "Container Loading Management (when rail tracks are changed)"
- "Carriage Management"
During a series of training sessions, consultants educated JSC Kedentransservice's top managers and the project team on the basics of process-based management. Business analysts received specialized training on basic modeling using ARIS toolkit.
"Streamlining business processes is a key factor in increasing performance in logistics," said Jacob Korobko, Director of Business Development in Central Asia, BPM Logics. "All activities performed by process-related personnel have to be coordinated and proceduralized. Every person must know what he or she must do and when. The methodology we use in projects and the ARIS toolkit ensure this is done in the best way possible."
"We are pleased with the project's early results and we see great potential for streamlining our activities by using the process-based approach in managing the company," said Kaysar Makan, Managing Director for Strategic Development, JSC Kedentransservice. "In particular, we already understand that one of the project's main goals - to increase operational interaction between the branches and the company's executive body - will be reached."
The optimization project started in June 2013, aiming to lay the foundation for a process-based culture in the company by teaching the top managers and specialists of JSC Kedentransservice the key competencies in business process management, and by building a methodological foundation for the systematic identification, description and improvement of business processes.
The management of JSC Kedentransservice plans to develop process management in the company, including the following areas:
- Description and streamlining of the highest priority groups of processes
- Development of KPI structure based on the chosen top-level processes
- Improvement of staff competencies in process management (training events)