Lesson 8 - BPR

BUSINESS
PROCESS
REENGINEERING

An organizational make-over
Reengineering is new, and it has to be done.

Peter F. Drucker
BY-KAVINDRA
INTRODUCTIO
N

What is BPR?

BPR 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)
What is BPR?

BPR is the analysis and design of workflows
and processes within and between
organizations. Business activities should be
viewed as more than a collection of individual
or even functional tasks; they should be
broken down into processes than can be
designed for maximum effectiveness, in both
manufacturing and service improvement.
(Davenport ,1993)
What is BPR?

BPR is seeking to devise new ways of
organizing tasks, organizing people and
redesigning IT systems so that the processes
support the organization to realize the goals.
(Sherwood Smith ,1994)
What is Process?
Definition of Process

A process is a cross-functional interrelated
series of activities that convert business
inputs into business outputs
Supplier
Supplier Input Activity
Activity Activity
Activity Activity
Activity Output Customer
Customer
Process
What is a Business
Process?

A group of logically related tasks that use the
firm's resources to provide customer-oriented
results in support of the organization's
objectives
REQUIREMENT
OF

BPR
Why Reengineer?

Customers
Demanding
Sophistication
Changing Needs
Competition
Local
Global
Why Reengineer?

Change
Technology
Customer Preferences
WHY
REENGINEERING?

Complacency
Resistance
New Developments
Fear of Failure
WHAT DOES IT SEEK?
BPR seeks

Cost
Quality
Service
Speed, improvements
BEFORE THE

USE OF BPR
Method Study Questions
for Process Analysis

What does the customer need?, operations are necessary?
Can some operations be eliminated, combined, or simplified?
.
Who is performing the job? Can the operation be
redesigned to use less skill or less labor? Can operations be
combined to enrich jobs? .
Where is each operation conducted? Can layout be
improved? .
When is each operation performed? Is there excessive
delay or storage? Are some operations creating bottlenecks?
..
How is the operation done? Can better methods,
procedures, or equipment be used? .

CHARACTERSTICS

Radical Improvement
Integrated Change
People Centred
Focus on End-Customers
Process-Based
Radical Improvement

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
Integrated Change

Viable Solutions
Process improvements must be viable and
practical
Balanced Improvements
Process improvements must be realistic
People-Centred

Business Understanding
Empowerment & Participation
Organizational Culture
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
Focus on End-
Customers

Process improvements must relate to the
needs of the organization and be relevant to
the end-customers to which they are designed
to serve
Implementing A

BPR Strategy
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 Process Team

Two Crucial Tasks
Select The Process to be Reengineered
Appoint the Process Team to Lead the

Reengineering Initiative
Select the Process

Review Business Strategy and Customer
Requirements
Select Core Processes
Understand Customer Needs
Dont Assume Anything

Select the Process

Select Correct Path for Change
Remember Assumptions can Hide Failures
Competition and Choice to Go Elsewhere
Ask - Questionnaires, Meetings, Focus Groups

Appoint the Process
Team

Appoint BPR Champion
Identify Process Owners
Establish Executive Improvement Team
Provide Training to Executive Team

Core Skills Required

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
Core Skills Required

Ability to assume individual and collective
responsibility
Employ Bridge Builders

Use of Consultants

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
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 (staff including process team)
Understand the
Current Process

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

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

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
BPR Challenges

Common Problems

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 aint broke
Quick Fix Approach
Common Problems
with BPR

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
AT

LAST
Summary

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
Business Process Reengineering
Current Future
Products/Services Products/Services
Information S D Information
T I
Current R R Future
Business A E Business
Processes Technology C Technology Processes
T
E T
I
G
O
Skills I Skills
N
C S
Current Future
Environments (AS-IS) Environments (TO-BE)
Transition/Implementation (Change Management)

IF YOU WANT
SOMETHING YOUVE
NEVER HAD,
THEN YOUVE
GOT TO DO
SOMETHING YOUVE
NEVER DONE.

CHANGE
THANK YOU

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BUSINESS

Reengineering is new, and it has to be done.

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Select The Process to be Reengineered

Appoint the Process Team to Lead the

Select Core Processes

Understand Customer Needs

Dont Assume Anything

Remember Assumptions can Hide Failures

Competition and Choice to Go Elsewhere

Ask - Questionnaires, Meetings, Focus Groups

Identify Process Owners

Establish Executive Improvement Team

Provide Training to Executive Team

Ability to focus on end-customers

Ability to challenge fundamental assumptions

Courage to deliver and venture into unknown

Employ Bridge Builders

Always provide information on the progress of

Demonstrate assurance that the BPR initiative

Indicate actions required and those responsible

Tackle any actions that need resolution

Direct communication to reinforce new

Appoint Process Owners

Simplify the Process to Reduce Process Time

Remove any Bureaucracy that may hinder

Standardize Process and Automate Where

Plan/schedule the changes

BPR has emerged from key management

Rules and symbols play an integral part of all

Transition/Implementation (Change Management)

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