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Business Process Reengineering

Business Process Reengineering

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Published by Sohaib Akhtar

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Published by: Sohaib Akhtar on Jul 07, 2012
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12/14/2012

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Business Process Reengineering

Presentation Outline
 

General Introduction Business Process Reengineering

Understand and be able to implement a BPR Strategy
Understand the main challenges in implementing a BPR Strategy Conclusion: Summary

 

Spectrum of Change

Automation
Rationalization of procedures Reengineering

Paradigm shift

Automation

refers to computerizing processes to speed up the existing tasks. improves efficiency and effectiveness.

improves efficiency and effectiveness. so that automation makes operating procedures more efficient. . eliminating obvious bottlenecks.Rationalization of Procedures   refers to streamlining of standard operating procedures.

Aims at  eliminating repetitive.Business Process Reengineering   refers to radical redesign of business processes. paper-intensive. bureaucratic tasks  reducing costs significantly  improving product/service quality. .

Paradigm Shift   refers to a more radical form of change where the nature of business and the nature of the organization is questioned. improves strategic standing of the organization. .

quality. contemporary measures of performance such as cost. and speed. service.Business Process Reengineering  “Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical.” 3 .

business improvement 4 .   Radical  Business reinvention vs.Key Words  Fundamental Why do we do what we do?  Ignore what is and concentrate on what should be.

5 .Key Words  Dramatic  Reengineering should be brought in “when a need exits for heavy blasting.  Companies that see trouble coming.  Business Process  a collection of activities that takes one or more kinds of inputs and creates an output that is of value to a customer.”  Companies in deep trouble.  Companies that are in peak condition.

BPR & The Organization .

Those expenditures could include but are not limited to: the total number of employees at a company. retirements etc. as opposed to human.BPR is Not?  BPR may sometimes be mistaken for the following tools: 1. Automation is most often applied to computer (or at least electronic) control of a manufacturing process. 2. or the techniques and equipment used to achieve this. Downsizing is the reduction of expenditures in order to become financial stable.   . equipment or a system. operation or control of a process. Automation is an automatic.

Outsourcing involves paying another company to provide the services a company might otherwise have employed its own staff to perform. Continuous improvements’ origins were derived from total quality management (TQM) .BPR is Not?  3.  4. . Outsourcing is readily seen in the software development sector. Continuous improvement emphasizes small and measurable refinements to an organization's current processes and systems.

. with a beginning. an end.What is a Process?  A specific ordering of work activities across time and space. and clearly identified inputs and outputs: a structure for action.

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 .

Why Reengineer?  Customers Demanding  Sophistication  Changing Needs   Competition Local  Global  .

Customer Demands • expect us to know everything • to make the right decisions • to do it right now • to do it with less resources • to make no mistakes • expect to be fully informed .

Why Reengineer?  Change Technology  Customer Preferences  .

Business Process Reengineering WHY ? Integrate people. technology. & organizational culture To Respond to rapidly changing technical & business environment and customer’s needs to achieve Big performance gains .

Why Organizations Don’t Reengineer?  Complacency Political Resistance New Developments Fear of Unknown and Failure    .

Performance  BPR seeks improvements of Cost  Quality  Service  Speed  .

Implementing a BPR Strategy .

The C’s related to Organization Re-engineering Projects The 3C’s of organization Reengineering: .Communication .Competition .Customers The 4C’s of effective teams: .Contribution .Change .Commitment .Cooperation .

Key Steps Select The Process & Appoint Process Team Understand The Current Process Develop & Communicate Vision Of Improved Process Identify Action Plan Execute Plan .

1.  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 Don’t Assume Anything    .

Questionnaires   .Select the Process  Select Correct Path for Change Remember Assumptions can Hide Failures Ask .

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 .

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 organizationled 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)  .2.

 Understand the Current Process Clearly Identify Improvement Opportunities  Quality  Rework  Document the Process  Cost  Time  Value Data .2.

3.New Process  Ideal -.  Understand the Current Process Carefully resolve any inconsistencies  Existing -.Realistic Process .

  Demonstrate assurance that the BPR initiative is both necessary and properly managed .good and bad.3.  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 .

 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    .3.

Identify Action Plan  Develop an Improvement Plan Appoint Process Owners Simplify the Process to Reduce Process Time Remove any Bureaucracy that may hinder implementation    .4.

4. Identify Action Plan  Remove no-value-added activities Standardize Process and Automate Where Possible Up-grade Equipment Plan/schedule the changes    .

Audit   . Audit.4. Identify Action Plan  Construct in-house metrics and targets Introduce and firmly establish a feedback system Audit.

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 .5.

Information Technology & BPR .

Benefits From IT  Assists the Implementation of Business Processes Enables Product & Service Innovations  Improve Operational Efficiency  Coordinate Vendors & Customers in the Process Chain  .

BPR Challenges .

Common Problems with BPR     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 .

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 .

which addresses leveraging Information technology as a competitive tool.     . concentrate on reengineering fragmented processes that lead to delays or other negative impacts on customer service. Place the customer at the centre of the reengineering effort. not driven by a group of outside consultants.How to Avoid BPR Failure  To avoid failure of the BPR process it is recommended that: BPR must be accompanied by strategic planning. Case teams must be comprised of both managers as well as those who will actually do the work. BPR must be "owned" throughout the organization.

. BPR must be sponsored by top executives. so that the organization is not in a state of "limbo".How to Avoid BPR Failure     The Information technology group should be an integral part of the reengineering team from the start. BPR projects must have a timetable. BPR must not ignore corporate culture and must emphasize constant communication and feedback. who are not about to leave or retire. ideally between three to six months.

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  .

Summary  Don’t assume anything .remember BPR is fundamental rethinking of business processes .

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