Research On Business Process Optimization Based On Value Engineering

Process optimization was evolved from process reengineering, which emphasized fundamental rethinking and radical redesign of business processes. Integrated with process improvement which advocates progressive and gentler redesign, process optimization made decisions according to Internal-external environment. In 21 century, more and more research sprang up on implementation, guideline, modeling, and analysis tools. But the essence of process was rarely discussed, not to mention redesigning and optimizing processes from the angle of its essence.The essence of process is function. Process is indeed the approach by which organizations offer products and service to customers. Demand of customer determines goals of process design and direction of process optimization. Among existing research, function played a role of view more than essence contributing to process description which aiming at the method of describing process but not redesigning process functions. While on function analysis and function evaluation, value engineering had proved its uniqueness and effectiveness. This paper tried to introduce value engineering into process optimization, through which a new system was built.Considering the process of process optimization itself, this system was divided into three phases:launch of process optimization, analysis of status quo, redesign of process, each of which was re-divided into two from the angle of function and cost, on launch of process optimization, function was planned through market search, technology/management thought search, constraints search. On analysis of status quo, ABC (activity-based costing) was applied to cost analysis. Function was described referring to FAST (Function Analysis System Technique). Function analysis included value rate analysis from the perspective of time and two-criterion value engineering analysis including value coefficient and efficiency improvement range, which helped to select appropriate object. On redesign of process, creative technique and Artificial Intelligence Logical Reasoning Methods was introduced into from angle of function system and cost activity. After, new project was evaluated and selected with value engineering principles.This paper was divided into 8 chapters. Chapter 1 was introduction, which proposed this topic through analysis on research status. Chapter 2 summarized relevant theory on process optimization and valued analysis. Chapter 3 defined relevant concepts, and proposed process optimization system based on value engineering. Chapter 4,5 and 6 elaborated how to launch, analyze and redesign processes on function and cost respectively. Chapter 7 demonstrated this system with a case of process optimization practice of a system supporting station. Chapter 8 was conclusion and outlook for future research.