The supply chain has major impact on the company's business strategy directly affecting its operational costs. Supply chain performances within the organization have a significant impact on the company's ability to provide services to their customers and create added value. Internal audit of the supply chain is one of the most powerful and fastest ways to reduce operational costs and provide the company competitive advantages in the global market in times of economic crisis. The aim of this paper is to present the key areas of internal audit activities in assessing risk and analyzing the functioning of the supply chain. The aim of internal audit is to make recommendations for improving the efficiency and effectiveness of operations and to help management in achieving the projected business goals. The subject of this paper is the analysis of various fields of internal audit of the supply chain as well as evaluating the characteristics of individual elements of the chain with consideration to appropriateness and integration of those elements. Moreover, this paper will give an answer to the question to what extent the operations within the supply chain contribute to the fulfilling of the development strategy of the company.

Production systems that are by their structure designed according to principles of group technology must, despite their perfection, rapidly adapt to changes in surroundings and engage in a battle with their market rivals. First of all, they must get closer to customers and suppliers, representing one of first principles of lean philosophy. It is one of the ways to successfully valorise comparative values with competition, despite its internal restructuring. This paper presents the influence of certain lean tools as well as application of statistical analyses, simulation and graphics tools for achieving greater effectiveness and efficiency of production systems. Application or integration of these tools enables shortening of the production cycle, reduces the degree of complexity of material flows, reduces the supplies and expenditure of energy resources while it creates an increased degree of functionality of the organisation, utilization of workspace etc. Combination of different tools presented in this paper can valorise new technological, organisational and informational achievements in production that will secure an even better position on the market for industrial systems.

The whole business of an organization is carried out through business processes. The process is a set of interconnected activities with interactions, which are transforming the object (as its input) into a result (as its output), where employees are adding a certain procedural values, using the resources of the organization There are permanent requirements for the changes in performances, innovations, increasing flexibility and improving the economic performance of the company trough the process orientation. The main objective of this paper was to explore possibilities for improvement of important business processes, such as human resource management, in petroleum industry with the technique of business process reengineering and business process improvement. In this paper the authors presented the improvement process of one of the most important function in each organization-human resources function, by using management tools of BPR supported with the lean tools such as value stream mapping VSM. Methodology used in this paper included step approach in line with the Harvard Business School Business (HBS, 2010) process improvement supported with value stream mapping (VSM) lean tools. In the first part of the paper, the authors presented a theoretical review of the literature of business process reengineering and human resource management (HRM), with a special focus on the function of human resources in large companies where the research was done. After the theoretical review, business process improvement (BPI) of HRM in specific company was presented trough comparison of the state of HR function before restructuring and the state of the performances of the HR function after the BPI implementation with all the characteristics and efficiency indicators. Based on the obtained results, it can be concluded that the combination of HBS methodology and VSM tools can contribute to the improvement in the form of the reductions of hierarchical levels in organization within the company and in the form of advancement of work processes within the company. This was primarily reflected in the increase of the effectiveness and efficiency, in reducing of the time required for the execution of the processes, and saving resources. This paper presents one year case study, where the research was made to point out the significance of BPR of HR function in large companies. The authors tried to explain the main areas of HR process in a large production companies so as the improvements could be achieved by using BPR techniques supported by VSM lean tools. business process reengineering, human resource management, VSM tool, process improvement. Conclusion References

Compensations and benefits have always been very sensitive and complex activity of HRM process in production systems. Model of compensations presents financial and non-financial rewards linked to efforts and performances of employees and executives. Since this activity is understood as very important due to two main reasons, that compensations are motivation factor for employees and operational costs are for the company, there is a demand of making rewarding process highly effective and efficient for reaching employees and shareholders satisfaction. Besides this, many frauds, risks and problems related to amounts of executive compensations in the past initiate the need of appropriate management and control of this process. One possible way of reaching the effectiveness and efficiency of compensation process in terms of appropriate governance, risk management and control is the internal audit. Internal audit can be defined as method of independent and objective validation that increases the value and improves the operation and performance of organization and also facilitates the effects of related processes to achieve organization's goals and objectives. The main objective of this paper was to explore the reasons for, the processes involved in and risks of internal audit in HRM area of compensation and benefits. In the paper a desk research method has been used. First, the authors made a review of literature available on internal audit, with significant analysis of internal audit standards. In continuation, the rewarding process and compensations and benefits structure has been analyzed according to the practices of organizations systems and literature of HRM. After theoretical analysis, the authors integrated appropriate aspects and steps of internal audit in compensation process, where they emphasized the role of internal audit in compensation and benefit structures and amount of compensation's expenditures (related to the executive compensations). Findings of this paper are that the main reason for implementing internal audit through planned system of steps (gathering information, evaluation, analysis and action planning) and approaches (mainly by surveys) is to obtain information that would be helpful for the organization as a whole in terms of improvement of business processes related to compensation and benefit. Also, internal audit of compensation and benefit package can minimize risks that are linked to HR compensation process (employment market risk, reputation risk, compliance risk, external partnership risk, operation risk, financial reporting risk, etc.) where reputation risk is one of the most common reasons for performing internal audit. Areas where internal audit can be done are human resources strategic management, workforce planning and selection; training and development; compensation and benefit system; employee and labor relations; human resources information systems, etc. As the most important areas of HR compensation internal audit there are emphasized overall plan design, cash and stock-ba...

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