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Process Engineering · BPMN · Continuous Improvement · UPV Master's Thesis

Order Management Process Redesign

Application of AS-IS TO-BE methodology, BPMN modeling with Bizagi, and SMART objectives in a manufacturing company reactivated after eight years of closure — with quantified improvements of over 90% in response times

UPV Master's Thesis · 2024–2025 · Grade: 9/10

13
Problems identified
13
Improvements proposed
>90%
Reduction in quotation time
9/10
Thesis grade

The company

A Venezuelan company with over 30 years of experience in plastic bag manufacturing and pelletizing services, located in Araure, Portuguesa — the agroindustrial heart of Venezuela. Its main market: food packaging companies, cooler manufacturers, and the agroindustrial sector.

Its story illustrates industrial resilience in adverse contexts: it closed for eight years due to the Venezuelan political crisis and raw material shortages, and reactivated in late 2023 with a new focus on plastic recycling. In 2024 it reached $158,000 in revenue. With 16 staff and machinery operating at 65% of installed capacity, the reactivation was successful — but operational processes had not evolved at the same pace.

The problem — 13 structural issues identified

The AS-IS analysis documented 13 coded problems across three areas of the order management process, modeled in 4 BPMN diagrams: main order management process, production subprocess, replenishment subprocess, and dispatch subprocess.

Order Management

AS01 Manual management — spreadsheets and WhatsApp
AS02 No structured inventory control
AS03 No client communication protocol
AS04 Manual collections with no alerts
AS05 No production supervisor
AS06 No dedicated warehouse manager

Replenishment

AS07 Reactive purchasing due to shortages
AS08 Informal supplier communication
AS09 No supplier selection process

Production

AS10 High material variability and waste
AS11 Long machinery adjustment times
AS12 Inconsistent production records
AS13 Overloaded operator responsibilities

The critical indicator: a quotation with delivery date could take up to a full day. Manual inventory validation exceeded one hour per check.

Methodology applied

4 AS-IS and 4 TO-BE diagrams were modeled in Bizagi Modeler using BPMN 2.0 notation. AS-IS diagrams visually identify each problem with coded red frames (AS01–AS13). TO-BE diagrams show the redesigned flow with digital activities marked in green.

A measurable general objective was defined with indicators organized across the four perspectives of Kaplan & Norton's Balanced Scorecard: achieve 85% on-time order delivery compliance by end of Q4 2025.

Aspect AS-IS TO-BE
Diagrams modeled 72 tasks · 9 decision gateways 63 activities · 21 digital/automated
Inventory control Manual, spreadsheet Real-time in Odoo
Quotation time Up to a full day Minutes (real-time data)
Supplier communication Informal WhatsApp Standardized format in Odoo Purchases
Production records Inconsistent, paper-based Digital work orders from tablets

BPMN Diagrams

Each process was modeled in its current state (AS-IS) and redesigned state (TO-BE). Click any diagram to view it full screen.

Main order management process

Replenishment subprocess

Production subprocess

From problem to solution

Each of the 13 AS-IS problems has a direct TO-BE improvement. The following component shows the full mapping, technology enablers, and how each improvement contributes to the general objective.

13 problemas identificados en el diagnóstico AS-IS, agrupados en tres áreas operativas.

Gestión de pedidos

AS01

Gestión manual — hojas de cálculo y WhatsApp

AS02

Sin control de inventario estructurado

AS03

Sin protocolo de comunicación con clientes

AS04

Cobros manuales sin alertas

AS05

Sin supervisor de producción

AS06

Sin almacenista dedicado

Aprovisionamiento

AS07

Compras reactivas por escasez

AS08

Comunicación informal con proveedores

AS09

Sin proceso de selección de proveedores

Producción

AS10

Variabilidad y alto desperdicio de material

AS11

Largos tiempos de ajuste en maquinaria

AS12

Registros de producción inconsistentes

AS13

Saturación de responsabilidades operadores

The TO-BE redesign — powered by Odoo

The chosen technology enabler was Odoo ERP — a decision made together with the business owner, who already knew the platform and believed it could transform operations. Each improvement (BE01–BE13) was designed to directly resolve its corresponding AS problem.

BE01

Sales & CRM Module in Odoo

Resolves: AS01

BE02

Inventory Module in Odoo

Resolves: AS02

BE03

Standardized client communication

Resolves: AS03

BE04

Automatic collection alerts

Resolves: AS04

BE05

Production Supervisor role created

Resolves: AS05

BE06

Warehouse Manager role created

Resolves: AS06

BE07

Automatic reorder points in Odoo

Resolves: AS07

BE08

Standard purchase order format in Odoo

Resolves: AS08

BE09

Supplier evaluation protocol in Odoo

Resolves: AS09

BE10

Standardized parameters in Odoo Mfg.

Resolves: AS10

BE11

Standardized operation manuals

Resolves: AS11

BE12

Digital work orders via tablets on floor

Resolves: AS12

BE13

Role redistribution with Odoo support

Resolves: AS13

Expected results

Before vs. after: same team, same resources, quantified outcomes.

AS-IS TO-BE
Up to 1 day per quotation (manual calculations + stock confirmation) Minutes (real-time data in Odoo)
+1 hour per manual inventory check ~0 minutes (always-current data in system)
Reactive purchasing: production halts from missing raw materials Automatic reorder points — stockouts practically eliminated
Informal supplier communication via WhatsApp Standardized purchase orders with tracking and records
Inconsistent, paper-based production records Real-time digital work orders from tablets on the floor
Overloaded staff with mixed tasks and unclear roles Defined roles: Production Supervisor + Warehouse Manager
>90%
Reduction in quotation time
>80%
Reduction in operational errors
100%
Inventory traceability
9/10
Final thesis grade

Tools and methodologies

Area / Tool Technology / Method Role in project
Modeling Bizagi Modeler BPMN 2.0 notation. AS-IS and TO-BE diagrams with visual color coding.
Proposed ERP Odoo (Community/Enterprise) Platform already valued by the owner. Covers all required modules: Sales, Inventory, Purchases, Manufacturing, Accounting.
Methodology AS-IS TO-BE Document reality before proposing the future. The foundation of any serious process improvement.
Management SMART Goals + Balanced Scorecard Kaplan & Norton: 4 perspectives. Measurable indicators with defined time horizons.
Institution Polytechnic Univ. of Valencia Master's in Advanced Production Engineering, Logistics and Supply Chain Management.

Implementation plan — 24 weeks

🔍 Phase 1

AS-IS diagnosis and documentation

🎨 Phase 2

TO-BE design and Odoo configuration

⚙️ Phase 3

Odoo implementation by module

🎓 Phase 4

Staff training (100% of operators)

🚀 Phase 5

Official launch and post-implementation support

📈 Phase 6

Continuous improvement and adjustments

Risks and mitigation

Every operational transformation project carries risks. These were identified, evaluated, and mitigated as part of the implementation plan.

R01 Staff resistance to change

Employees may be reluctant to adopt new processes or the ERP due to familiarity with current methods or fear of the unknown.

Mitigation

  • Constant, transparent communication of benefits from the earliest phases
  • Comprehensive, personalized training before and during go-live
  • Early involvement of key users in design and testing
  • Clear support channel for post-implementation questions
R02 Data migration failure

Errors or losses of critical information when transferring data from manual records and spreadsheets to the ERP.

Mitigation

  • Data audit and cleansing before migration
  • Migration tests in a non-production environment
  • Full backups prior to any migration
  • Cross-validation of data by key users
R03 Scope creep

Uncontrolled addition of new features that may extend the timeline and increase the budget.

Mitigation

  • Scope formally documented and approved in the initial phase
  • Formal change management process for any modification to the original scope
  • Prioritization of essential features before additional improvements
R04 Technical issues or software failures

Technical incompatibilities, configuration errors, or unexpected failures in Odoo.

Mitigation

  • Rigorous selection of a Partner with proven Odoo experience
  • Unit, integration, and performance testing before go-live
  • Separate development and testing environment from production
  • Robust technical support contract with the Partner
R05 Insufficient resources or budget

Lack of available staff or costs exceeding estimates, affecting project continuity.

Mitigation

  • Responsibilities formally assigned from the start
  • Continuous monitoring of spend vs. approved budget
  • 20% financial contingency included in the budget

Investment and return

Development costs

$6,300
Internal staff (Manager + Production Manager, 2h/day · 6 months) $2,700
Continuous improvement consultant (6 months) $3,600

Implementation costs

$10,632
Initial salaries: Supervisor + Warehouse Manager (4 months) $3,600
Odoo implementation consulting (Partner) $3,400
Intensive post-implementation support $600
Odoo licenses (7 users × $12/mo × 6 months) $504
Hardware — 3× Samsung Galaxy Tab A9 tablets $756
20% contingency $1,772
Total project cost $16,932

Quantifiable annual benefits

Waste reduction (from 15% to 3% on 100,000 kg/year) $9,600
Reduction of rework and administrative errors $7,200
Elimination of unnecessary overtime $5,460
Improved inventory management $4,375
Increased productive capacity (from 8,300 to 10,800 kg/month, same shift) $12,000
Total annual benefits $38,635

Financial indicators

ROI

444%

Return on initial investment

Payback

2.2 months

Investment recovery period

Annual net benefit

$28,003

Annual benefits minus recurring operating costs

ANB = $38,635 − $10,632 = $28,003 · ROI = ($28,003 / $6,300) × 100% = 444.49% · Payback = $6,300 / $28,003 ≈ 0.22 years (2.2 months)

Beyond the financial indicators, the project enables the company to increase productive capacity in a single shift, improves customer satisfaction through on-time delivery, and transforms decision-making from reactive to real-time data-driven.

Reflection

This project applies in a real company the same principles that guide my professional work: understand the process before proposing a solution, quantify the problem to measure the impact of improvement, and design systems that people can adopt without friction.

The AS-IS TO-BE methodology is not just an academic tool — it is the way any process improvement should be approached: first document reality honestly, then design the future state with judgment, and finally measure the gap to know if it was worth it. This company survived eight years of closure and returned to operation. Whether its processes can grow at the same pace as its revenue is, ultimately, what determines whether that second chance consolidates.

Master's Thesis · Advanced Production Engineering, Logistics and Supply Chain · UPV · Grade: 9/10 · 2024–2025