Business Process Management Architectures: Importance, Risks, And Resources Essay.

Background

Discuss About The Business Process Management Architectures.

Main purpose of starting a new dental care service clinic it to provide these services at reasonable costs. People do not go for regular dental checkups because dental care is generally not covered by their insurance policy and the cost such checkups is very high. Providing these services at lower prices will encourage more people to come and give equal important to dental care as other health care processes. Care centers specific to provide dental care are very limited in the city and it is expected that “City dental care center” will be an addition to local health department. It is expected that local health department will provide financial and operational help to this dental health care center as there are limited dental care centers in the area (Burke, 2013). This dental care center will provide all basic dental care services to its patients in addition to advanced services through on call doctors of reputed hospitals.

Dental care is as much important as any other form of heath care. This is a very important aspect of health care that is usually ignored by people as its cost is very high and there is a lack of awareness among people. People do not understand that in long term this could result in serious repercussions for them if oral health is not maintained by them (Kerzner & Kerzner, 2013).

There is a lack of dental care centers in the area in which the “City dental care center” is proposed to be established. It is expected that it will provide at least the basic dental care services to the people residing in this area. It is true that main purpose of this center would be to provide quality services at reasonable prices by profit making is also one of the important objectives of this clinic. Without proper profits, it would be very difficult for the clinic to survive top operate in that area. The costs of equipment and hiring doctors would be very high and it is essential that clinic at least reaches it break even sales so that it could continue providing dental care services to public. That is the reason financial planning is of vital importance in this case as its survival is based on availability of funds and profits.

Initial funding of the clinic will be done with the help of financial help from local health department, donations and some private investors. But it is not essential that these investors will provide finance to the clinic every time it is in need of . Hence clinic should have enough profits to finance their basic operation for foreseeable future through reinvesting its profits in clinic (Sbaraini, Carter, Evans & Blinkhorn, 2012).

Proposal

There have been various survey in the word that has focused on the deficiency of people in respect of awareness of dental health care. In a survey conducted by American Dental Association (ADA), researchers concluded that majority of the people are not aware of the basics information in relation to dental care. It is also very important to get a regular dental checkup but this research also revealed that only 44% of people take professional help on regular basis to deal with this situation. There are various precautionary products available in market that could help in chances of serious oral diseases like plaque, gingivitis, and tartar (Wall, Vujicic, & Nasseh, 2012). People do not give importance to these products and they have to incur huge amount on their cure which could have been done with investing little time and attention towards preventive products.   

The proposal here is to start a single clinic in the local area and over the period of time increase dental care centers in areas whether there are no such preexisting clinic. This will help in increasing the number of dental clinics in whole Australia and improve the quality of dental care services. It is also an essential task to keep this clinic running along with providing dental care services at reasonable prices (Meredith, Mantel Jr, and Shafer, 2013).

1. People in locality will be able to get access to heat clinic that is specifically designed to provide dental care services as prices lower than other hospitals and clinics. This would also help in spreading information in relation to preventive actions that could be taken by people and awareness in relation to dental health care (Hatten, 2015).
2. This would also help in spreading dental care services in whole Australia which is limited in certain remote areas of Australia. This would improve the level and diversity of health care services provided in the country.
3. It would provide employment opportunities to nurses, doctors and other staff members that would be employed in the clinic.
4. This plan will for a base for various other clinic that will be opened after the successful implementation of first clinic (Schaper, Volery, Weber & Gibson, 2014).
5. Other main purpose of this plan is to evaluate whether proposed dental clinic will be able to continue its operations in foreseeable future. Tools like, financial projection, budgeting and break even analysis would be used for such evaluation.

Following are some of the risk factors that can affect operations of the clinic before and after its incorporation.

Process of planning and execution of prepared plan in effective manner will require some resources that are explained as follows-

Financial resources- At initial level, main financial resource that is required for proper execution of plan is initial investment amount. This is very essential resource as planning process is of no use if such amount is not secured. In this plan the initial investment amount has been secured with some government and private investors (Hilton & Platt, 2013).

Financial expert- Financial planning is also very important part of this plan as it will determine its future operational capabilities. Hence it is important that help of financial expert is taken to analyze the break-even point, expected cost and revenue sources for the clinic with certain level of accuracy.          

Human resources- human resource is very essential requirement for any project especially when it proposes to provide services to general public. Human resources will be required for both the phases i.e. before implementation of plan and after implementation of plan. At initial level volunteers will be invited from management universities to initiate the process of planning including financial planning (Maher, Stickney & Weil, 2013). Once the plan is prepared then recruitment and selection process will be initiated for doctors and other staff members. For recruitment and selection process, outside agency will be hired so that most effective and efficient resources can be hired in clinic.

Risks

A manager will be appointed for overseeing the function of planning and execution of the plan. A weekly report will be prepared by this manager that will be distributed to all interested parties such as investors, proposed employees, local health department and other team members that are involved in development process. This will help in getting an overview of the planning and execution process. In addition to that a personal meeting will be arranged between manager and all above mentioned interested stakeholders on monthly basis.

This is one of the most important function of this project plan as financial consideration is always considered as one of the most important aspect of large scale project. Regular availability of financial resources is important for continuous operation of any business. A clinic is not different from any other business and it requires financial resources to continue its operations. On the other hand important of financial resources increases in a medical service providing business as services provided in this case are very essential (Harrison & Lock, 2017).

Main objective of preparation of a budget is to analyze the expected profitability of a particular financial project that is under consideration. It is very important to prepare budgets for a new venture as it helps in determining financial viability of a project and additional resources that are required for successful execution of proposed plan. ZERO budget is a type of budget in which all expenses and income are analyze for each accounting period separately and past year budgets are not considered as a base. Zero based budget would be perfect in this situation as clinic will initiate its operation for the first time. Budget has been prepared for the first year of operation and fixed & variable expenses are disclosed separately for ease in break-even analysis.

Break even analysis is a management tool that is used by management to determine the level of sales whether company will incur no loss and no profit from its business operations. This is an important tool for the clinic in consideration as objective of the clinic is to provide dental health care services to the people in local area. This will help management to decide a certain level of target that will they have to achieve that that they do not have to shut down their operations (Weske, 2012).

The comparison of the two break even analysis had shown that the profit for the normal cost was $91,120.00. However, after optimizing cost by 10%, the overall profit rose to $159,168.00. Hence, the profit almost changed to 170%. The optimization of the cost was done by decreasing the cost of each of the expense of the project utilities and infrastructure by 10%. The analysis also helped in forming the decreasing cost of the dental care cost by a significant amount. The comparison of the expenses was based by considering the normal formula for the break even analysis. The sum of the direct expenses has been taken and summed for the calculation of the total expenses. The sum of the direct incomes has been taken and summed for the calculation of the total incomes. The difference between the total expenses and total incomes would show the break even value for the company.

There is always a contingency plan that is prepare in the planning phase along with the original plan. This plan is prepared for the situation where desired initial investment could not be acquired by the management of the proposed project (Mariotti, S., & Glackin, 2014). Although in case of “City Dental care center” proper plan have been made for acquisition of finances but still a contingence plan is prepared if funds available are less than 10% of the budget that is actually desired. In this case all the expenses will be cut down by 10%.  

References

Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.

Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.

Hatten, T. S. (2015). Small business management: Entrepreneurship and beyond. Nelson Education.

Hilton, R. W., & Platt, D. E. (2013). Managerial accounting: creating value in a dynamic business environment. McGraw-Hill Education.

Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Maher, M. W., Stickney, C. P., & Weil, R. L. (2012). Managerial accounting: An introduction to concepts, methods and uses. Cengage Learning.

Mariotti, S., & Glackin, C. (2014). Entrepreneurship and small business management. Pearson Higher Ed.

Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2013. Project management in practice. Wiley Global Education.

Sbaraini, A., Carter, S. M., Evans, R. W., & Blinkhorn, A. (2012). Experiences of dental care: what do patients value?. BMC health services research, 12(1), 177.

Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small Business.

Wall, T. P., Vujicic, M., & Nasseh, K. (2012). Recent trends in the utilization of dental care in the United States. Journal of dental education, 76(8), 1020-1027.

Weske, M. (2012). Business process management architectures. In Business Process Management (pp. 333-371). Springer, Berlin, Heidelberg. 

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting. John Wiley & Sons.