Mt400 -Business Process Management

ABC Tire Company Performance

Jennifer Johnson

MT/400 – Business Process Management

Janice Flegle

March 22, 2012

Introduction

The purpose of this paper is to determine the efficiency of ABC Tire Company after implementing a BPM project. The goal of the project was to decrease manufacturing costs per tire and increase the revenue for each unit sold. The requirements of the problem provide the baseline of how the project should go in 2009. The purpose of the project is to determine whether or not implementing the BPM project is successful.

Calculations

The data is seen in the following table.

| |Baseline |Reality (total) |

|Total Number of Tires Sold |24,594 |27,669 |

|Materials Cost Per Tire |$23.21 |$672,080.32 |

|Labor Cost Per Tire |$11.67 |$303,280.56 |

|Average Retail Price Per Tire |$119 |$121.13 |

|Average Profit Per Tire |$84.12 | |

Before starting with the paper, one should what BPM is. According to Jeston and Nelis (2008), business process management or BPM consists of four important steps: promoters hyping it up to the market through advertising, research, promotions, and sales pitches, disparaging all the old big things that made up the market, creating new and simple processes, and marketing these new concepts. Note the definition is in a very abstract form.

Let us determine how well the company performed.

As it can be seen from the table, the numbers of tires...