Business Process Re Engineering

BUSINESS PROCESS REENGINEERING
By: Garip nder zen
DEFINITION
Hammer
and Champy (1993) define BPR as "... the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed."
DEFINITION
Thomas
Davenport (1993), another wellknown BPR theorist, uses the term process innovation, which he says encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions.
DEFINITION
Finally, Johansson et al. (1993) provide a description of BPR relative to other process-oriented views, such as Total Quality Management (TQM) and Just-in-time (JIT), and state: "Business Process Reengineering, although a close relative, seeks radical rather than merely continuous improvement. It escalates the efforts of JIT and TQM to make process orientation a strategic tool and a core competence of the organization. BPR concentrates on core business processes, and uses the specific techniques within the JIT and TQM toolboxes as enablers, while broadening the process vision."
DEFINITION
BPR
derives its existence from different disciplines, and four major areas can be identified as being subjected to change in BPR
organization technology strategy people
WHY REENGINEERING?
Customers
Demanding Sophistication Changing
Needs
Competition
Local Global
WHY REENGINEERING?
Change
Technology Customer
Preferences
WHY REENGINEERING?
Complacency Resistance New Fear
Developments of Failure
WHAT DOES IT SEEK?

BPR
seeks
Cost Quality Service Speed,
improvements
The role of information technology

Information
technology (IT) plays an important role in the reengineering concept It is considered as a major enabler for new forms of working and collaborating within an organization and across organizational borders.
The role of information technology

Shared databases, making information available at many places Expert systems, allowing generalists to perform specialist tasks Telecommunication networks, allowing organizations to be centralized and decentralized at the same time Decision-support tools, allowing decision-making to be a part of everybody's job Wirelss data communication and portable computers, allowing field personnel to work office independent Interactive videodisk, to get in immediate contact with potential buyers Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found High performance computing, allowing on-the-fly planning and revisioning
Key Steps
Select The Process & Appoint Process Team Understand The Current Process Develop & Communicate Vision Of Improved Process Identify Action Plan Execute Plan
Select the Process & Appoint Team

Two
Important Tasks
the process to be reengineered a process team
Select
Appoint
Select the Process

Review
business strategy and customer requirements core processes customer needs
Select
Understand No
assumption
Select the Process

Select
correct path for change
Ask
- questionnaires, meetings, focus
Appoint the Process Team

Identify
process owners executive improvement team
Develop Provide
training to executive team
Core Skills Required

Capacity Ability Ability
to view the organization as a whole
to focus on end-customers to challenge fundamental assumptions to deliver into unknown areas
Courage
Core Skills Required

Ability
to assume individual and collective responsibility
Understand the Current Process

Develop
a process overview Clearly define the process

Mission Scope Boundaries
Set
business and customer measurements Understand customers expectations from the process
Understand the Current Process

Identify
Improvement Opportunities
Quality Rework
Document
Cost Time Value
the Process
Data
Develop & Communicate Vision of Improved Process

Communicate
with all employees so that they are aware of the vision of the future provide information on the progress of the BPR initiative - good and bad. assurance that the BPR initiative is both necessary and properly managed
Always
Demonstrate
Develop & Communicate Vision of Improved Process

Promote
individual development by indicating options that are available actions required and those responsible
Indicate
Identify Action Plan

Develop Appoint Simplify
an improvement plan
process owners the process to reduce process
time
Identify Action Plan

Remove
no-value-added activities process and automate where
Standardize
possible
Up-grade
equipment the changes
Plan/schedule
Execute Plan
Qualify/certify
the process Perform periodic qualification reviews Define and eliminate process problems Evaluate the change impact on the business and on customers Benchmark the process Provide advanced team training
Benefits From IT
Assists
the Implementation of Business Processes

Enables
Product & Service Innovations Improve Operational Efficiency Coordinate Vendors & Customers in the Process Chain
Common Problems
Process
simplification is common - true BPR is not Desire to change not strong Commitment to existing processes too strong
Common Problems with BPR

Process
under review too big or too small Reliance on existing process too strong The Costs of the change seem large Allocation of resources Poor timing and planning Keeping the team and organization on target
THANK
YOU...

Business Process Re Engineering

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BUSINESS PROCESS REENGINEERING

By: Garip nder zen

WHAT DOES IT SEEK?

Cost Quality Service Speed,

The role of information technology

The role of information technology

Select the Process & Appoint Team

Select the Process

business strategy and customer requirements core processes customer needs

Select the Process

correct path for change

- questionnaires, meetings, focus

Appoint the Process Team

process owners executive improvement team

training to executive team

Core Skills Required

to view the organization as a whole

to focus on end-customers to challenge fundamental assumptions to deliver into unknown areas

Core Skills Required

to assume individual and collective responsibility

Understand the Current Process

a process overview Clearly define the process

Understand the Current Process

Develop & Communicate Vision of Improved Process

Develop & Communicate Vision of Improved Process

Identify Action Plan

process owners the process to reduce process

Identify Action Plan

no-value-added activities process and automate where

equipment the changes

the Implementation of Business Processes

Common Problems with BPR

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