Transactional Business Process Redesign of Procurement Planning System using Heuristic Method

Business process redesign is commonly known as the most powerful way to promote better business performance and improve customer satisfaction both in the private and public sectors, which sustains competitive advantage and ensures efficiency. For organization that demand less radical shifts in redesigning their existing business process, transactional redesign through heuristic method provides a powerful basic principles. It provides guidelines that facilitate problem-solving and decision-making in complex situations. The planning procurement system that is managed by the National Public Procurement Agency encounters several issues due to its complexity. This prompted an urge to assess the existing business process and redesign it to ensure its applicability. This study aims to examine how to redesign business processes using the heuristic method principles in the procurement planning system to increase its efficiency. We adapt the business process management lifecycle that comprises five stages ranging from process identification and discovery, process analysis, process redesign, process implementation, and process monitoring. Heuristic approach is used to identify areas for improvement, generate creative solutions, and guide the redesign process. In this study, the heuristic principles are implemented as follows: H6 standardization at the process level, H1 activity elimination together with H3 activity specialization at the activity level, and H4 resequencing at the flow level. The results demonstrate an improving effect through this process redesign as the Cycle Time Efficiency of the proposed process model is 82% which shows a 4% increment from the previous model.