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    Business Process Re Engineering 2

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    Pravah Shukla
    Reengineering is the fundamental rethinking and redesign of business processes. It aims to achieve dramatic improvements in critical, contemporary measures of performance. Fw taylor, j. R. Sullivan, and d. S. Mcgraw-hill are some of the pioneers in this field.

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    Business Process Re Engineering 2

    Uploaded by

    Pravah Shukla
    98 views51 pages
    Reengineering is the fundamental rethinking and redesign of business processes. It aims to achieve dramatic improvements in critical, contemporary measures of performance. Fw taylor, j. R. Sullivan, and d. S. Mcgraw-hill are some of the pioneers in this field.

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    Reengineering is the fundamental rethinking and redesign of business processes. It aims to achieve dramatic improvements in critical, contemporary measures of performance. Fw taylor, j. R. Sullivan, and d. S. Mcgraw-hill are some of the pioneers in this field.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    98 views51 pages

    Business Process Re Engineering 2

    Uploaded by

    Pravah Shukla
    Reengineering is the fundamental rethinking and redesign of business processes. It aims to achieve dramatic improvements in critical, contemporary measures of performance. Fw taylor, j. R. Sullivan, and d. S. Mcgraw-hill are some of the pioneers in this field.

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     Reengineering is the fundamental rethinking

    and redesign of business processes to


    achieve dramatic improvements in critical,
    contemporary measures of performance,
    such as cost, quality, service and speed.
    (Hammer & Champy, 1993)
     Automation
     Downsizing
     Outsourcing
    Process Simplification Process Reengineering

    Incremental Change Radical Transformation


    Process-Led Vision-Led
    Assume Attitudes & Behaviors Change Attitudes & Behaviors
    Management-Led Director-Led
    Various Simultaneous Projects Limited Number of Initiatives

    (Source Coulson-Thomas, 1992)


    Continuous Improvement
    Process Reengineering

    Incremental Change Radical Transformation


    People Focus People & Technology Focus
    Low Investment High Investment
    Improve Existing Rebuild
    Champion Driven
    Work Unit Driven
     A specific ordering of work activities across
    time and space, with a beginning, an end,
    and clearly identified inputs and outputs: a
    structure for action.
    (Davenport, 1993)
     A group of logically related tasks that use
    the firm's resources to provide customer-
    oriented results in support of the
    organization's objectives
     Customers
    ◦ Demanding
    ◦ Sophistication
    ◦ Changing Needs

     Competition
    ◦ Local
    ◦ Global
     Change
    ◦ Technology
    ◦ Customer Preferences
     Complacency

     Political Resistance

     New Developments

     Fear of Unknown and Failure


     BPR seeks improvements of

    ◦ Cost
    ◦ Quality
    ◦ Service
    ◦ Speed
     Scientific Management. FW Taylor (1856-
    1915).
     Frederick Herzberg - Job Enrichment
     Deming et al - Total Quality Management

    and Kaizen
     In Search of Excellence (Peters and

    Waterman)
     Value-Added Analysis (Porter).
     Systems Philosophy
     Global Perspective on Business Processes
     Radical Improvement
     Integrated Change
     People Centred
     Focus on End-Customers
     Process-Based
     Added Value
    ◦ BPR Initiatives must add-value over and above
    the existing process

     Customer-Led
    ◦ BPR Initiatives must meet the needs of the
    customer
     Sustainable
    ◦ Process improvements need to become firmly
    rooted within the organization

     Stepped Approach
    ◦ Process improvements will not happen over night
    they need to be gradually introduced
    ◦ Also assists the acceptance by staff of the change
     Viable Solutions
    ◦ Process improvements must be viable and
    practical

     Balanced Improvements
    ◦ Process improvements must be realistic
     Business Understanding
     Empowerment & Participation
     Organizational Culture
     Process improvements must relate to the
    needs of the organization and be relevant to
    the end-customers to which they are
    designed to serve
     For different versions of a business process
    or data flow some mandatory information
    must be on the flowchart.
    ◦ Name of the business process
    ◦ Unique number of the business process
    ◦ Revision number
    ◦ Date of last change
    ◦ Author
    ◦ Page number with total pages
    Organizational
    Structure
    General
    Remove barriers
    Principles
    Support business
    Simplicity
    processes
    Empowerment
    Customer Interfaces
    Process Design
    Work from the
    Think
    customer perspective
    horizontally
    Automation
    Automate to
    advantage
    Avoid Over-engineering
    Work hard to simplify
    Eliminate multiple points of
    contact with & for the customer
    Eliminate errors resulting from
    multiple contacts
    Eliminate need to reconcile
    differing information
    Reduce delays resulting from
    reconciliation

    REMEMBER: Simple Processes


    Less Costly
    More Flexible
    Vertical Compression
    Process decision-making is
    not strictly a management task
    Workers are empowered
    Decision-making becomes
    part of work
    Advantages
    Fewer Communication Delays
    Lower Management Overhead
    Better Customer Response
     Accessibility
    ◦ Be available when the
    customer wants to interact

     Information
    ◦ Require only the data which
    cannot be captured
    elsewhere

     Wants and Needs


    ◦ What are the customers
    goals, objectives - wants
    and needs?
    ◦ Are we meeting these?
    ◦ Are there unknown wants?
     Single solution process
    ◦ One-size-fits-all
    ◦ Too complex for standard/simple cases

     Processes require flexibility for:


    ◦ Different markets
    ◦ Different situations
    ◦ Resource variations
    ◦ Special customer requests

     Reengineered process contains:


    ◦ Simple, standard path (80% - 90%)
    ◦ Exception handling path (8% - 18%)
    ◦ Large complex path (2%)
    Feedback

    Inputs Transformation Outputs

    Environment
    Select The Process & Appoint Process Team

    Understand The Current Process

    Develop & Communicate Vision Of Improved Process

    Identify Action Plan

    Execute Plan
     Two Crucial Tasks

    ◦ Select The Process to be Reengineered

    ◦ Appoint the Process Team to Lead the


    Reengineering Initiative
     Review Business Strategy and Customer
    Requirements

     Select Core Processes

     Understand Customer Needs

     Don’t Assume Anything


     Select Correct Path for Change

     Remember Assumptions can Hide Failures

     Competition and Choice to Go Elsewhere

     Ask - Questionnaires, Meetings, Focus


    Groups
     Appoint BPR Champion

     Identify Process Owners

     Establish Executive Improvement Team

     Provide Training to Executive Team


     Capacity to view the organization as a
    whole

     Ability to focus on end-customers

     Ability to challenge fundamental


    assumptions

     Courage to deliver and venture into


    unknown areas
     Ability to assume individual and collective
    responsibility

     Employ ‘Bridge Builders’


     Used to generate internal capacity
     Appropriate when a implementation is

    needed quickly
     Ensure that adequate consultation is sought

    from staff so that the initiative is


    organization-led and not consultant-driven
     Control should never be handed over to the

    consultant
     Develop a Process Overview
     Clearly define the process
    ◦ Mission
    ◦ Scope
    ◦ Boundaries
     Set business and customer
    measurements
     Understand customers expectations
    from the process (staff including
    process team)
     Clearly
    Identify Improvement
    Opportunities
    ◦ Quality
    ◦ Rework
     Document the Process
    ◦ Cost
    ◦ Time
    ◦ Value Data
     Carefullyresolve any
    inconsistencies
    ◦ Existing -- New Process
    ◦ Ideal -- Realistic Process
     Communicate with all employees so that
    they are aware of the vision of the future

     Always provide information on the progress


    of the BPR initiative - good and bad.

     Demonstrate assurance that the BPR


    initiative is both necessary and properly
    managed
     Promote individual development by
    indicating options that are available

     Indicate actions required and those


    responsible

     Tackle any actions that need resolution

     Direct communication to reinforce new


    patterns of desired behavior
     Develop an Improvement Plan

     Appoint Process Owners

     Simplify the Process to Reduce Process


    Time

     Remove any Bureaucracy that may hinder


    implementation
     Remove no-value-added activities

     Standardize Process and Automate Where


    Possible

     Up-grade Equipment

     Plan/schedule the changes


     Construct in-house metrics and targets

     Introduce and firmly establish a feedback


    system

     Audit, Audit, Audit


     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
     Assists the Implementation of Business
    Processes
    ◦ Enables Product & Service Innovations
    ◦ Improve Operational Efficiency
    ◦ Coordinate Vendors & Customers in the Process
    Chain
     Focus
    ◦ Business Processes
    ◦ Process Redesign
    ◦ Process Implementation
     Process Simplification is Common - True
    BPR is Not
     Desire to Change Not Strong Enough
     Start Point the Existing Process Not a Blank

    Slate
     Commitment to Existing Processes Too

    Strong
    ◦ REMEMBER - “If it ain’t broke …”
     Quick Fix Approach
     Process under review too big or too small
     Reliance on existing process too strong
     The Costs of the Change Seem Too Large
     BPR Isolated Activity not Aligned to the

    Business Objectives
     Allocation of Resources
     Poor Timing and Planning
     Keeping the Team and Organization on

    Target
     Reengineering is a fundamental rethinking
    and redesign of business processes to
    achieve dramatic improvements

     BPR has emerged from key management


    traditions such as scientific management
    and systems thinking

     Rules and symbols play an integral part of


    all BPR initiatives
     Don’t assume anything - remember BPR is
    fundamental rethinking of business
    processes

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