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Chapter 4

Big R Small r reengineering

Role of BPR in ERP implementation


The need to have a strong rational for moving from a legacy
system to an integrated ERP system is very important. The success and failure of ERP
implementation depends on how the organization handles it.
Often a result of using business process reengineering (BRP) to streamline
processes and procedures to create a competitive advantage.
ERPs and BRP have become linked over the years. ERP vendors have worked
to include best practices in the system within a given industry, whereas BPR
identifies current processes and the change requirement to implement best practice.
BPR is a set of logically related tasked performed to achieve a well defined
business outcome. The process involves dismantling existing processes into individual
activities and puts them back together in a new set of business flows or sets of
business flows.
It helps in ERP implementation because it looks at the overall current process
within the organization by going through the stages of preparation, as is process, to
be process, testing and measuring the new process and re-evaluating the whole
process to either adjust or improve it.

The steps involved in BRP and how they are closely related to ERP
implementation
1. Preparation
The drive behind the need for BPR is to implement an ERP system to help
improve customer service, streamline current processes, reduce costs and address

accountability. This improvement can be identified by setting goals, identify teams,


and develop an inventory of processes.
2. Define the as is process
With the identified goals, the functional teams must define existing processes.
3. Map out to be process
Addresses the timing of processes and the changes needed to meet the goals.
4. Test and measure new processes
The phase is to ensure that there is no step that have been missed or that a
process was not achievable.
5. Reevaluation
This phase is to make sure that the organization can learn from their mistakes
if the implementation did not go well. It will also give the organization a chance to
review the whole process and indicate a change or update in the implementation
process.

Conclusively, the benefits of BPR are enormous. They include the


following, but not limited to
1. Business process is streamlined.
2. Business process is optimized and more efficient.
3. Strict controls can be enforced and monitored.
4. Best practices can be adhered to.
5. Time and cost saving as a result of eliminated redundant tasks.

Business process visualization


The term business process visualization is ambiguous, because people dont
understand what the word business process refers to. What will be visualized will be
clarified, once we dig down the meaning of the word business process from three
aspects.
1. Rule
2. Progress
3. Results

Business
Operation

Visualize

Rule

Progress

Visualize
Result

1. Visualization of business process rule


To clarify the business process rule, and to share the rule with all the people
who are involved in it. This is also called standardization business process
By defining the business process rules in to a visual form, such as business manuals or
a Business process diagram (Work Flow Chart), and make them referable by hanging
on the wall, this will enable everybody to share how to proceed correctly, how to
proceed with high efficiency, and ,how to proceed without making any mistakes.

2. Visualization of progress

To make it possible to grasp the current situation of the operations which are
being processed based on the Business process diagram or Business manuals.
Specifically, it is to be able to detect delays, mistakes and workload of staff on
each and operation in real time

3. Visualization of result
To understand the result of completed operations. Being able to review the
way past operations were processed. For example, to be able to check the number of
processes during a certain period, or the average time to carry out the process.
BPM activity includes the following three activities.

Defining the business process.


Executing the tasks exactly along the business processes .
Analyzing the results of performance.

For the visualization of business process the following must be provided in order:
Visualization

of

business

rule,

Visualization

of

business

progress,

Visualization of business result. And based on the finding of these three views, each
visualization will be repeated again and again.
The cycle of the visualization of the three aspects of business, and the cycle of three
steps of BPM activity do not necessarily have a one-to-one correspondence. The
following figure shows the similarities among them.
Cycle of
Visualization of
business process

Cycle of BPM

Rule

Definition of
problem

Progress

Execution

Result

Analysis

The result of sequentially processing the visualization of business process activities


from the three aspects is to do BPM activity.

Advantages of Business process visualization are:


Simplicity: The complexity of a process model has a significant negative influence on
its comprehensibility as well as its aesthetic appearance. Therefore, the visualization
of process models must be intuitive and simple.
Appeal: The graphical representation of a process model should support the user's
perception of the entire process. In particular, users should feel comfortable when
working with process models in order to foster their willingness to reuse the models.
To achieve this goal, the visualization of process models should be appealing.
Structure: Small variations in process models might lead to significant differences in
respect to their comprehensibility. Amongst others, the structuring of a process model
was identified as a factor positively influencing comprehensibility and aesthetic
appearance.

Business process simulation


Business process simulation plays an important role in the continuous
improvement approach to business process management (BPM). By running business
process simulations, companies can predict how business process performs under
specific conditions. Simulations can also be used to test process design, measure
performance, identify bottlenecks and test changes. Ultimately, process simulation can
identify the most effective process flow and help prevent problems from cropping up
during process execution. Simulation model can be very simple or highly complex.
There are several characteristics of simulation that make this method suitable
for business process modeling:

A process approach in simulation modeling terminology relates to a timeordered sequence of interrelated events which describes the entire experience

of an entity as it flows through the system.


Simulation models can be easily modified to follow changes in the real system
and as such can be used as a decision support tool for continuous process
improvement.

A simulation model of non-existing business process can be developed and

used for process design.


Simulation model can capture the behavior of both human and technical

resources in the system.


Simulation model can incorporate the stochastic nature of business processes

and random behavior of their resources.


The visual interactive features of many situation packages available on the
market enable a graphical display of the dynamic behavior of model entities,
showing dynamic changes in state within processes.

The benefits of simulation in business processes

Organization can react more quickly to market changes, because simulating


the effect of redesigned processes before implementation can improve the

chances of getting the processes right at the first attempt.


Visual interactive simulation backed up by a variety of geographical output

reports can show the benefits of redesigned processes.


Simulation can be used for focusing Brain storming meetings.
A simulation model of business processes can determine a potential bottleneck
area and ascertain which resources are critical.

A frame work for carrying out business process simulation consists of the
following steps;
Step 1- Defining modeling objectives
Once it has been decided to use simulation for business process modeling, it
has to be decided what the required outcome of modeling is and which information
the model should provide.
Step 2- Deciding on modeling boundaries
In this stage, it has to be decided which processes should be incorporated in
the model. This determined on the basis of the importance of certain processes or a
needed to redesign insufficient processes and on the basis of the suitability of
particular processes to be captured in a simulation.
Step 3- Data collection and analysis
Depending on the scale of modeling, a certain amount of important data about
the processes being modeled needs to be collected and analyzed in order to be
incorporated in a model. Data is usually collected through discussions with experts

and particularly with people involved in the processes and through studying
documentation about processes.
Step 4- Business process simulation model development
Once the relevant data about the business processes is collected and analyzed,
a simulation model is developed using a simulation software packages. This should be
done through an iterative process where a simple model is initially developed, which
is then expanded and redefined until an acceptable model is obtained.
Step 5- Model testing
After each iterative step in the model development, model in progress
should be thoroughly tested using as many model verification techniques as feasible.
Step 6- Model experimentation
After acceptable testing, experimentation with model can commence. Formal
experimental design seems to be appropriate where there are a number of alternative
ways of performing the same process. General rules related to the design experiments
include;

Random errors should be reduced


Experiments should be designed in such a way to include a wide range of
alternatives so that recommendations could be valid for a range of

organizational units.
The experiments should be as simple as possible.
A sound statistical analysis should be applied without making unrealistic
assumptions related to the nature of business processes.

Step 7- Output analysis


Output results obtained during experimentation should be analyzed using
standard statistical techniques for simulation output analysis related to the estimation
of the values of the output variables.
Step 8- Business process change recommendations
The simulation model output analysis is used as a basis for making
recommendations regarding business process change or improvement.

Advantages of simulation model

Promotes creativity by enabling easy testing of ideas.

Captures system dynamics but avoids disturbances of current process.

Can capture interactions between sub-processes.

Mitigates the risk of sub-optimization

Graphical reporting features promote better process understanding and


facilitate communication.

The quantitative nature brings a sense of objectivity into the picture.

Business process prototyping


Pre-production model of a product, engineered for full service test. Changes
based on test results are incorporated into the prototype which undergoes the same
tests again. On achieving the desired results, the product is approved for volume
production.
Business process prototyping is the activity of creating prototypes of business
processes, i.e., incomplete versions of business process being reengineered.

The process involved in the business process prototyping


Identify basic requirements
Determine basic requirements including the inputs and output in

formations desired. Details such as security, can typically be ignored.


Develop initial prototype
The initial prototype is developed that includes only user interfaces.
Review
The customers including end users examine the prototype and provide
feedback on additions or charges.
Revise and enhance the prototype
Using the feedback both the specifications and prototype can be
improved.

Advantages of prototyping
There are many advantages to using prototyping in business processes they
are:

Reduced time and costs:


Prototyping can improve the quality of requirements and specifications
provided to developers. Because changes cost exponentially more to

implement as they are detected later in development.


Improved and increased user involvement
Prototyping requires user involvement and allows them to see and
interact with prototype allowing them to provide better and more
complete feedback and specifications,

Disadvantages of prototyping

Insufficient analysis
The focus on a limited prototype can distract developers from properly
analyzing the complete project. This can lead to overlooking better
solution preparation of incomplete specifications or the conversion of

limited prototypes into properly engineered final projects.


User confusion of prototype and finished system
Users can begin to think that the prototype intended to be thrown away,

is actually a final system that merely needs to be finished or polished.


Developers misunderstanding of user objectives
Developers may assume that users share their objectives, without
understanding wider commercial activities. Users might believe they
can demand auditing on every field, whereas developers might think
this is feature creep because they have made assumptions about the

extent of user requirements.


Developer attachment to prototype
Developers can also become attached to prototypes they have spent a
great deal of effort producing, this can lead to problems like attempting
to convert a limited prototype into a final system when it does not have
an appropriate underlying architecture.