Business Process Re-Engineering of Engineering

Procurement Construction (EPC) Project in Oil and Gas Industry

What is a Business Process?

A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of

the organization's objectives

Business Process Reengineering is a methodology and technique with which organizations radically change their

business processes with the aim of becoming more efficient and more modern. The far-reaching measures that are

taken after the decision to restructure a process not only concern formal procedures or other existing processes

but can also bring about radical changes in management style and corporate culture.

The idea behind business process reengineering is to make your company more flexible, responsive, efficient and

effective for all stakeholders, including customers, employees and owners. In order for BPR to work, your business

must be willing to make the following changes:

 Change from a management focus to a customer focus - the boss is not the boss, the customer is the boss.

 Empower your workers that are involved in each process to have decision-making and ownership in the process.

 Change your emphasis from managing activities to focusing on results.

 Get away from 'score keeping' and focus on leading and teaching so employees can measure their own results.

 Change the company's orientation from a functional orientation to a process or cross-functional orientation.

This allows for an increase in organizational knowledge among its members and a greater degree of flexibility

in accomplishing tasks.

 Move from serial operations to concurrent operations. In other words, multitask instead of just doing one thing

at a time.

 Get rid of overly complex and convoluted processes in favor of simple, streamlined processes. Use the KISS

Principle - keep it simple, stupid.

 Stop trying to build an empire and protect the status quo. Instead, invent new systems and processes that look

towards the future.

 Introduction:

 The project management can be defined as the attainment of the objectives of the project is completed by the

time the project was planned, according to budget costs, the desired results, the use resources effectively and

efficiently, and accepted by consumers

 Business Process Re-Engineering -Objectives

To decrease cost

To achieve accuracy in the process

Coordination at real time

Integration of team work

Effective and Efficient system

To make the system user friendly

 Business Process Re-Engineering – Areas to be Re-Engineered or analysed.

Finance

Procurement

Invoicing / Billing

Estimation

Projects

Operations (on going production activities)

Maintenance

Quality

Costing

Employee, Health & Safety

Human Resources

Project Management

Asset Management -Own Assets

Asset Management -Own Assets

Asset Management – Leased Assets

Employee – On Boarding

Employee – S

Public Relations Management

Employee Imprest Accounts Management

Petty Cash Management System

Master Data Management

Project Sales Enquiry

Bid Proposal Management

Document Management System

Scaffolding Department

Equipment Management

Project Billing Management

Project Reworks Management

Project Pre-bidding / Estimation

Project Structuring & Scheduling

Project Planning & Budgeting

Project Execution & Progress Monitoring

Project Period End Activities

Project Closure & Settlements

Mobilization – Cash

Administrative Expenses

Telephone

Travel Cost

Taxtion
Employee – Visa Processing Charges VISA EXP-OTHERS

VISA EXP-ARRIVAL

VISA EXP-PENALTY

VISA EXP-CIVIL ID

VISA EXP-FAMILY

VISA EXP- P C C

VISA EXP- MEDICAL

VISA EXP-RESIDENCE

VISA EXP-WORK PERMIT

VISA EXP-STAMP

WAGES & ALL TO WORKM

VISA EXP-INSURANCE

VISA EXP-APPLICATION

Intangible Assets

Patents and Trademarks

Preoperative, Research and Development Costs

Goodwill

Patents and Trade Marks

Investments

Land

Buildings

Plant and Equipment

Investment in Associates
Inventory Accounting

Retention Accounting Management

Progress Billings Accounting

Net investment in a foreign operation

Revenue Recognition (IFRS for SMEs)

Sale of Goods

Rendering of Services

Contract Revenue

Rental Income

Dividend Income

Borrowing Cost (Section 25 - IFRS for SMEs)

Working Capital Management

Inventories

FINANCING ACTIVITIES