Seminar on Management Accounting

Reaction Paper Assignment

Muhammad Agung Zandra (1710533029)

Muhammad Iqbal (1710531024)

ACCOUNTING FOR TIME: REENGINEERING BUSINESS PROCESS TO IMPROVE

RESPONSIVENESS

In our opinion, we support the implementation of business process engineering concerning with
the fact that time used in a cycle is now considered as the key element of competition among businesses.
From the definition of Business Process Reengineering as a fundamental rethinking and radical redesign
of business processes, resulting from the organization's available resources, we believe that such re-
engineering need to be implemented in order to find those time spent with no contributions to the cycle,
which is important to meet the response of customers. Business process reengineering uses an approach to
redesign the way things work in supporting the organization's mission and reducing costs. The redesign
starts with a high level assessment of the organization's mission, strategic objectives, and customer
requirements. Business process reengineering began as a private sector technique to support
organizations to fundamentally rethink how they do business that can improve services to customers, cut
operational costs and become world class competitors. The main key in redesigning is the development
of information systems and networks. Large organizations are increasingly using this technology to better
support innovative business processes rather than improving work methods at the same time. We argue
that companies need to be properly considering which time classified as non contributing time, and also
contributing time. Because it is may be short in time concerns, but somehow will possibly decrease the
quality itself. So, it’s important to a company to determine and eliminate non contributing time but also
maintaining the quality in order to meet the response from customers.