Reengineering of production processes and its impact on the financial situation and business performance of the company

• Autorzy: Sujová Andrea , Simanová Ľubica , Marcineková Katarína

Identyfikatory

DOI

10.2478/emj-2019-0025

• Języki publikacji: EN

Abstrakty

EN

The current competitive environment is only favourable to those companies that can cope with changes and use them to their advantage. The innovation of business processes is required to improve financial performance. Scientific works have not yet offered an effective solution to the monitoring of the impact made by process reengineering on corporate financial results. This work presents the case of a business process reengineering in a particular company to improve its performance. The results of implemented reengineering are analysed from the point of view of the impact made on the financial situation of the company. The paper aims to demonstrate the implementation of reengineering and evaluate its impact on the financial standing of a company and its performance. The practical application of reengineering was made according to Hammer and Champy methodology, which is based on the analysis of production processes in the company, the implementation of selected reengineered production processes and the evaluation of the reengineering impact on the corporate financial situation and performance. During the evaluation, the selected indicators of financial performance, activity indicators, the indebtedness indicator, business performance indicators as a cash flow to measure financial flows and the economic value-added (indicator EVA) were calculated and analysed. Subsequent to financial analyses and based on the selected indicators, the authors concluded that the implemented reengineering of the production process increased the performance and value of the company, which had a positive impact on the company’s financial situation. The funds spent on the proper implementation of the reengineering steps were effectively used, and the reengineering process was also timed. This contribution to the body of theoretic knowledge links the implementation of reengineering and the part of the financial analysis, which is related to the preparation, implementation and reengineering results.

Słowa kluczowe

EN

process; process management; reengineering; business performance; business performance indicator

PL

proces; zarządzanie procesem; przeprojektowanie; wynik biznesowy; wskaźnik wydajności biznesowej

• Wydawca: Oficyna Wydawnicza Politechniki Białostockiej
• Czasopismo: Engineering Management in Production and Services
• Rocznik: 2019
• Tom: Vol. 11, no. 3
• Strony: 106--116
• Opis fizyczny: Bibliogr. 33 poz., rys., tab.

Twórcy

autor

Sujová Andrea

• Mendel University in Brno, Czech Republic

autor

Simanová Ľubica

• Technical University in Zvolen, Slovakia

autor

Marcineková Katarína

• Technical University in Zvolen, Slovakia

Bibliografia

• Berg, M., Mrrewijk, Ch., & Tamminen, S. (2018). Trade, productivity and profitability. On profit levels and profit margins. World Economy, 41(1), 52-64. doi: 10.1111/twec.12630
• Brealey, R.A., & Myers, S.C. (2000). Theory and practice of corporate finance. Prague, Czech Republic: Viktoria publishing.
• Cienciala, J. (2011). Process-managed organization: proces creation, development and measurability. Prague, Czech Republic: Professional Publishing.
• Davenport, T.H. (1993). Process Innovation: Reengineering Work through Information technology. I. Boston, United States: Harvard Business School Press.
• Dubovicka, L. (2007). Model Approaches to Measuring Strategic Performance: Organization Performance. Approaches to its measurement and evaluation. Košice, Slovakia: PHF.
• Evans, O. (2018). Improved financial performance without improved operational efficiency: the case of Nigerian firms. Forum Scientiae Oeconomia, 6(3), 25-39. doi: 10.23762/FSO_VOL6_NO3_2
• Gejdoš, P. (2006). Six Sigma – a flexible system for improving business performance. Acta Facultatis Xylologiae, 68(2), 103-111.
• Grasseova, M., Dubec, R., & Horak, R. (2008). Process management in the public sector: theoretical background and practical examples. Brno, Czech Republic: Computer Press.
• Hajduchova, I. (2000). Financial analysis of the company. Zvolen, Slovakia: Technical University in Zvolen.
• Hajduchova, I. (2011). Financial stability of the company. Zvolen, Slovakia: Technical University in Zvolen.
• Hammer, M., & Champy, J. (2000). Reengineering - a radical transformation of the company: a manifestation of a revolution in business. Prague, Czech Republic: Management Press.
• Homzova, E. (2012). Process management as a tool to increase business competitiveness. Proceedings of International Scientific Conference MERKUR 2012, OF EU, Bratislava: Publishing EKONOM.
• Kiseľakova, D., Šofrankova, B., Čabinova, V., & Šoltesova, J. (2018). Analysis of enterprise performance and competitiveness to streamline managerial decisions. Polish Journal of Management Studies, 17(2), 101-111. doi: 10.17512/pjms.2018.17.2.09
• Knapkova, A., Pavelkova, D., & Šteker, K. (2013). Financial analysis. Prague, Czech Republic: Grada Publishing.
• Kotulič, R., Kiraly, P., & Rajčaniova, M. (2010). Business Financial Analysis 2. Prague, Czech Republic: GRADA Publishing.
• Kovaľova, M. (2010). Design of a Model for Managing Strategic and Operational Performance of Business Processes: Business Economics and Management Banska Bystrica, Slovakia: Matej Bel University.
• Kovař, F., Kožiškova, H., & Hrazdilova Bočkova, K. (2004). Theory of Industrial Business Systems II. Zlin Czech Republic: Tomas Bata University in Zlin.
• Manganelli, R.L., & Klein, M.M. (1994). The Reeingineering Handbook. A Step-by-Step Guide to Business Transformation. I. New York, United States: Amacom.
• Marcinekova, K., & Sujova, A. (2015). The influence of the process control level on the enterprises’ ROE. Procedia Economics and Finance, 34, 290-295. doi: 10.1016/S2212-5671(15)01632-9
• Mařik, M., & Mařikova, P. (2005). Modern methods of business evaluation and valuation (EVA, MVA, CF ROI). II. Prague, Czech Republic: Ekopress.
• Neumaierova, I., & Neumaier, I. (2002). Company Performance and Market. Prague, Czech Republic: Grada Publishing.
• Papulova, Z., Papula, J., & Oborilova, A. (2014). Process Management. A comprehensive view of the proces management concept. Bratislava, Slovakia: Kartprint.
• Rašner, J., & Rajnoha, R. (2006). Business Process Efficiency Management Tools. Zvolen, Slovakia: TU in Zvolen.
• Řepa, V. (2007). Business processes: process management and modeling. Prague, Czech Republic: Grada.
• Ručkova, P. (2010). Financial analysis: methods, indicators, use in practice. Bratislava, Slovakia: Iura Edition.
• Suchanek, P., Bucki, R., & Korjenic, A. (2015). Implementation of optimization methods in the selected areas of production logistics. Forum Scientiae Oeconomia, 3(2), 65-79.
• Sujova, A., Simanova, Ľ., & Marcinekova, K. (2016). Sustainable Process Performance by Application of Six Sigma Concepts: The Research Study of Two Industrial Cases. Sustainability, 8(3), 260. doi: 10.3390/su8030260
• Sujova, E., & Čierna, H. (2018). Optimization and improvement of test processes on a production line. Management Systems in Production Engineering, 26, 88-92.
• Svozilova. A. (2011). Improving business processes. Prague, Czech Republic: Grada.
• Tothova, A., Nagy, L., & Škriniar, P. (2012). Financial and economic analysis of the company. Bratislava, Slovakia: Sprint.
• Varcholova, T. et al. (2007). Business Performance Measurement. Bratislava, Slovakia: Ekonom.
• Zalai, K. et al. (2010). Financial and economic analysis of the company. Bratislava, Slovakia: Sprint.
• Zavadsky, J., & Kovaľova, M. (2011). Operational and strategic performance of business processes. Bratislava, Slovakia: Slovak Committee for Scientific Management ZSVTS.