ALFRED NOBEL UNIVERSITY, DNIPROPETROVSK

The world experience in the use of reengineering of business

processesResearcher: 5th year student of International Economics Department

Illia Sukhomlyn

Scientific supervisor: Petrunya Y. Е., Doctor of Economics, Associate Professor

Language consultant: Miasoid G.I., Cand. Sci. (Pedagogy) Associate Professor

DNIPROPETROVSK

2015

SECTION 1. Theoretical and methodological foundations of reengineerin

SECTION 2. Assessment of the position and perspective of the PJSC "Evraz - DMZ named after Petrovsky“

SECTION 3. Recommendations for performance increase in the enterprise of PJSC "Evraz - DMZ named after Petrovsky“ after reengineering conducting

Purpose of the diploma researchAnalysis of international experience in implementing

reengineering and its application in Ukraine, as well as a theoretical justification for its efficiency in metallurgical enterprises of Ukraine.

Object of the researchPJSC "Evraz - DMZ named after Petrovsky“ which has

powerful industrial potential (production of full cycle).

Subject of the researchThe mechanism for implementation of reengineering of

metallurgical enterprises in the highly competitive and difficult economic situation in Ukraine, based on international experience.

Concept of reengineering

Reengineering is fundamental rethinking and radical restructuring of business processes for improvement in the company performance.

Reengineering can be divided into two types:      

Crisis reengineering (business processes redesign)    Reengineering development (business processes

improvement)

PJSC "Evraz - DMZ named after Petrovsky“ - company with a full metallurgical cycle, founded in 1887 as one of the first Ukrainian steel mills producing cast iron, steel and rolled products, today one of the leading companies in the steel industry of Ukraine.

Product Export Destinations are steel plants in Poland, Germany, Israel, Romania, Bulgaria, Egypt, Iran, India, USA, Baltic.

Unstable situation of the world steel market. Increase in competition. Financial and economic crisis. Steady increase in prices for iron, fuel, energy and logistics. Large amounts of obsolete and worn out equipment and

obsolete technologies.

Lean manufacturing (Eng. Lean production) – industrial enterprise management concept, based on a constant quest to eliminate all kinds of losses.

The effect of the implementation of Lean: Improving the safety of employees and the moral situation Reducing positions in inventories Increased productivity Improving the quality of the product Reducing unnecessary human movement and

transportation of materials or products Reducing the time to search and navigate the workshop or

production.

Outsourcing - is a transfer of functions, services or processes for performing by external organizations on a regular basis.

Articles expenditure Together RMC Sett-I. molds

Repair electroengine

Service Centre. e. Equip.

Service Centre. lounge. Equip. CBP KB

Additional costs -128 763 -22 800 -96 195 -2 880 -5 614 -717 -556

TMC -115 721 -19 200 -96 195 -325

services -13 042 -3 600 -2 880 -5 289 -717 -556

Lower costs 56 548 19 288 28 095 2 901 4 690 1 087 487

raw and basic materials 24 286 10 149 14 137

Support costs 2 176 1 131 216 251 464 93 22

energy consumption 8 158 7 652 506

salary 20 417 7 927 5 950 1 754 3 564 769 454

outsourcing organizations 1 405 44 140 359 637 221 4

administrative expenses 27 21 6

social costs 79 37 10 20 4 7

Additional Income 97 561 3 516 89 887 987 84 88

realization of metal 89 887 89 887*

rent 4 674 3 516 987 84 88

Together effect 22 346 3 21 787 21 63 454 18

* Income from the sale of 15 tons of long products vs molds production

By implementing Lean system and outsourcing, reengineering tools we achieve:

Reduction of production costs. Increase in production output. Improvement of product competitiveness. Possible increase of the world metal market share .

CONCLUSION: