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Product Life Cycle Management

Product Life Cycle Management

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Published by: Dennis Onchieku Onyando on Mar 07, 2013
Copyright:Attribution Non-commercial

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10/09/2013

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A hypothetical government agency charges $10 per employee paycheck issued due to layers upon
layers of bureaucracy. By comparison a private sector commercial services agency with the same
number of employees charges only $1,5. The government agency management decided to bring the
$10 figure down to the one of the private sector agency by reengineering its payroll processes. To
accomplish this, management asked all employees to write down workflow diagrams that showed
who does what, how and when. When these diagrams were entered into a computer for data
analysis, it became apparent that the charges were that high because the paycheck had to go through
typically, the controller, then the personnel department, then the regional processing center and
then the auditors.

Next the management made out a diagram showing how much money would have been saved if say
the controller or the regional processing center or the personnel department were removed from the
chain. By removing one of them and by reengineering the actual business practices that ordinarily
take place in the remaining elements of the chain, so that to be more effective, the charges were
reduced to those of the private sector agency.

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