ERP-systems Assignment RFC Case 1 Payment Processing System at RFC The payment processing system at RFC is modeled using Bizagi Software according to the case described in the textbook. Next fgure shows the process model for the payment processing system: the payment processing system of RFC? First of all a re-engineering of the payment processing system is necessary because of the many problems described in the case. The most important principle of business process re-engineering is to eliminate outdated procedures. The major problem here at RFC is that they don’t have a central IT-system.

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The use of a central server to store their data would be a great improvement. Now they have to rip off vouchers in a client file, collect them all and use them to update the outstanding loans file. Every afternoon, these vouchers are bundled to one payment that is deposited. For this deposit, a receipt has to be made and a copy is send by post mail to the head office. A proper IT-system allows e-mail for communication between the ocal and head office, avoiding the risk of a receipt getting lost and speeds up the process a lot.

A server would also allow the usage of integrated databases. For example the outstanding loans file is updated in the local office and the head office separately. By saving the file on a server it should be possible that both the local and head office can save and share their information in a central database. Other benefits are that there would be less redundant data, the data will be more consistent, less dependent and integrity of data will improve. By using these integrated databases, parts of the payment process system will be redundant.

For example: the mailing by post of receipts and using the receipts to update their outstanding loans file. This also eliminates the risk that a receipt is being send to the wrong local office and this contributes on reducing the workload of administrative employees. Less workload will also make sure the all data will become up to date so that problems with remindersbeing send to clients that have already paid. Subprocesses like updating the outstanding loans file that happen every evening can also be eliminated by the use of integrated databases.

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The implementation or a part of an ERP-software can also simplify and speed up the process of payment processing. Subprocesses likebundling payments every evening to deposit can be automated in an ERP-system. This also reduces the workload of employees and reduces the risk of errors being made. In the ERP-software a calculation for early redemptions can be implemented, allowing the managers of the local office to ommunicate the amount directly to clients instead of waiting overnight.

This ERP- software allows decisions to be made on the lowest hierarchical level. Also the analysis for arrears can be automated in the ERP-software and allows reminders to be send immediately when passing a specific number of days. Taking into account that RFC wants to expand from 187 to 400 offices and after to 1000, they definitely have to re-engineer their processes to allow best practices and speed up their processes. 3 Re-engineerd payment processing system

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