POST SCHOOL MASTERS DEGREE IN ENGINEERING SYSTEMS Business Process Reengineering TEACHER: Mas.

Alberto A Jan MEMBERS: • Chumacero Rivas, Juan Manuel • Quinteros Espinoza, Rosario Janett Topics in Systems Engineering December 2007 Business Process Reengineering 2 Topics in Systems Engineering Business Process Reengineering 3 Topics in Systems Engineering BUSINESS Process Reengineering (Business Process Reengineering) BPR INTRODUCTION The Business Process Reengineering or BPR (Business Process Reeingeniering) may be regarded as one of the management tools. In fact, this is one of the most rec ent post appearing at the end of the eighties, at the hands of two authors: Mich ael Hammer and James Champy. It is known that BPR is not the only management too l that has relevance and practical application, but there are others of some sig nificance for most notably TQM (Total Quality Management), or what is the same, Quality Management Total. The BPR, as another of the new management tools must b e understood as a reaction to changing business realities. Aims to provide solut ions to combat: the challenges posed by customers, the barriers posed by the com petition and especially the risks involved in deep and fleeting change of busine ss reality. Business Process Reengineering 4 Topics in Systems Engineering 1 .- WHAT IS A PROCESS? A process is a set of sequential activities and makes some initial factors (inpu ts) into desired goods or services (outputs) by adding a value to them. 2 .- What is reengineering? Currently reengineering is a common theme in many businesses. Like any new activ ity and has received several names, including modernization, transformation and restructuring. However, regardless of the name, the goals are always the same: t o increase the ability to compete in the marketplace by reducing costs, increase d quality and greater speed of response. These objectives are consistent and app ly equally to the production of goods and for services. 3 .- Differences between continuous improvement and re-engineering general and s pecial cases aside, we can make the following differences: o In the case of cont inuous improvement in existing processes are reasonably close to the levels of c ustomer requirements . This does not happen in most cases applying reengineering

, which takes place in poor and outdated processes. We should clarify that compa nies have processes that meet and even exceed customer requirements and / or the market, made reengineering of its processes for the purpose of achieving greate r advantage over their competitors. o In the case of continuous improvement in e xisting processes are accepted, part of them for incremental improvements. While in reengineering are questioning the very bases of existing processes. o For th e case of continuous improvement using technology with an incremental approach, while reengineering views technology as the engine of change. It is here also po int out that this statement was not Business Process Reengineering 5 Topics in Systems Engineering given in all cases, since what matters in if creativity has been applied more te chnology which makes use. o Continuous improvement is less risky because the imp act of each change is generally smaller, has the impact of cumulative changes ov er time. In the case of reengineering the risks are greater because the impact i s great and cuts across the organization. o while the cost of change becomes ver y high in reengineering, the costs attributable to continuous improvement is in most cases irrelevant. 4 .- What is reengineering business processes? The Business Process Reengineering (Business Process Reengineering) is a managem ent tool by which radically redesigned core processes of an enterprise, to achie ve dramatic improvements in productivity, cycle times and quality. Process Reeng ineering is a modern management tool towards the improvement of processes. Follo wed the proper implementation of innovation and continuous improvements allow us to remain competitive, but at no time alone can be the solution to the ills, pr oblems or shortcomings of the organization. And the application does not guarant ee either the success of the company. Overall, reengineering is an appropriate m ethodology to review and redesign processes and to implement them.€Focusing on a dding value to each of the steps of a process and eliminate those that do not gi ve or can not give any added value, being very suitable for generating horizonta l organizations and organizations processes and to reduce costs, process times, improve service and products and to improve motivation and participation. Business Process Reengineering 6 Topics in Systems Engineering Of all these we are left to analyze in depth each of its terms with the definiti on of the fathers of the concept of Business Process Reengineering, Hammer and C hampy: "It is the fundamental rethinking and radical redesign of processes to ac hieve dramatic improvements in critical measures and contemporary performance su ch as cost, quality, service and speed. " Look deeper into this definition conta ins four key concepts: 1. Fundamental: Once you have decided to proceed with a business reengineering, the individual must be the most basic questions about your company and its operatio ns. Why do things this way?, Is there a better way to do it?. These questions re quire the employer to question the basic assumptions on which it bases its busin ess. It carries out a review of all adopted standards that far were unquestionab le. Reengineering initially determines what you should do business and then how to do it. A common mistake is when those responsible for implementing the BPR fo

cus exclusively on how to do things without considering the possibility at any t ime to stop what you are doing and start making completely new activities. BPR f ocuses on what a company "should be" and not what "is." 2. Radical: The radical redesign should be raised in the most literal sense, since it must get to the root of things. It is not making superficial changes or try t o fix what is already installed, but must leave the old. BPR involves the dispos al of all existing structures and procedures to reach quite different ways of do ing the work. This is a complete reinvention of the business and not to an attem pt to improve or modify it slightly. 3. Spectacular: The third key concept of the definition, which involves improvement s Process Reengineering must be spectacular and not marginal or incremental (own process improvement or slight modification). We associate the concept of BPR to giant leaps in performance. A company can analyze its results reach common sens e, at least, if needed or Business Process Reengineering 7 Topics in Systems Engineering not to undertake the Business Process Reengineering. For example, if a company n eeds to achieve increased quality of 10% cost reduction of 15%, increases the ma rket share of 5%, etc. no sense that decides to introduce the BPR in the company . In such situations it would suffice to implement other measures such as incent ive programs for employees, increases system quality improvement. According to H ammer and Champy, there are three types of company to undertake the BPR. First a re the companies with serious problems of subsistence, those in desperate situat ions where endangered the continuity of economic activity. These companies use R eengineering because they have no choice but to do so. Because the vast improvem ents are needed to remain on the market and not be eliminated by competition, is chosen to undertake the BPR assuming that if this does not work, you may know y our business so soon. Second, companies are not yet difficulties but whose admin istrative systems can anticipate potential crises, so that they are caught early onset of problems. Although by the time the results may seem satisfactory, the setting in which it operates the company's activity is uncertain and at any time present the possible emergence of new threats in the form of competitors, chang es in preferences customers, regulatory changes, etc. The mission of these compa nies is to exert a preventive Reengineering, before things start to get bad. Fin ally, the third type of firms that choose to immerse themselves in the BPR what are those found in top condition. No visible problems present now or on the hori zon, which is not inconsistent with the fact that his administration has aspirat ions and ability to reach even higher.€Such companies see Reengineering as an op portunity to peel off even more of its competitors, ie, come in a BPR Business Process Reengineering 8 Topics in Systems Engineering opportunity to gain a competitive advantage. From the position of leadership, wh ere apparently everything goes perfectly, it is quite hard for directors of a co mpany the fact of approaching reinvention of the systems operating properly. Ham

mer and Champy argue that "the hallmark of a truly successful company is the wil lingness to abandon what has long been successful. A really big company willingl y abandon practices that have worked well for a long time, with the hope and exp ectation to come up with something better. "As a summary of the classification o f enterprises Hammer and Champy point out that a good way to distinguish the mai n features of each of the three types of companies, depending on how the Busines s Process Reengineering face is this: those of the first category are those who are in dire straits, have hit a wall and are injured on the ground. Those in the second category are still running at high speed but its headlights allowed to s ee a barrier to them coming up imminently. You still have time to distinguish wh at type of obstacle in their way and so try to avoid it in time. Finally the thi rd category companies went for a walk one afternoon clear and uncluttered, witho ut any obstacle to the light and decided that was a perfect day to build a wall that cuts off others who attempt to follow in their footsteps. 4. Processes: The last of the key concepts of the definition of Hammer and Champy i s "processes." Undoubtedly, this is the most important word in the definition an d, therefore, which deserves further reflection on the part of managers to provi de for the BPR in the company. Until the advent of the concept of Business Proce ss Reengineering, culture and modes of most companies, especially as the increas ed size of the company, focused on tasks, jobs, position, responsibility, organi zational structures, but never processes. We call the whole process of activitie s that receive one or more inputs and creates a valuable product for the custome r. This concept implies that each process converge in one or more tasks. These i ndividual tasks within each process are important, but none of them is important for the client if the overall process does not work. So companies must Business Process Reengineering 9 Topics in Systems Engineering psych that the importance of the tasks under study in most companies, is conditi oned by the overview of the process involves. Another equivalent definition of b usiness process is that of Professor Michael Kutschke, "a specific ordering of a ctivities over time and space, with a beginning and an end and with the inputs a nd outputs." 5 .- PRINCIPLES OF THE BUSINESS Process Reengineering It is estimated in twelve key principles which underpin the BPR: 1 You need the support of top level management or strategic level, which should lead the progra m. 2 The business strategy must guide and lead the BPR programs. 3 The ultimate goal is to create customer value. 4 We must focus on processes, not functions, i dentifying those who need change. 5 teams are needed, responsible and trained, t o which must be encouraged and rewarded with positions in the new organization t hat will be achieved after the reengineering process. 6 º The observation of cus tomer needs and their level of satisfaction is a basic system of feedback to ide ntify to what extent objectives are being met. 7 Flexibility is needed when carr ying out the plan. While action plans are required, such plans should not be rig id, but must be flexible as it develops the BPR program and obtained the first e valuations of the results. 8 Reengineering Each program must adapt to the situat ion of each business so that you can not develop the same program for different businesses. 9th required the establishment of proper systems of measuring the de gree of fulfillment of the objectives. In many cases, time is a good indicator. However, it is the only possible and in some cases is not the most appropriate. Business Process Reengineering

10 Topics in Systems Engineering 10th should be taken into account the human factor in preventing or reducing res istance to change, which may cause a failure, or at least delays in the program. 11 The BPR should not be viewed as a single process, which should perform only once within the organization but should be viewed as a continuous process, which pose new challenges. 12th communication was established as an essential, not on ly at all levels of the organization, but transcending its borders (press, commu nity, political, etc.). 6 .- ADVANTAGES OF THE IMPLEMENTATION OF THE Business Process Reengineering Allow rapid repositioning of the company in the market, thanks to significant co st reductions, rapid improvements in the quality of services, response times, re duced waste and improved satisfaction levels and cycle times. For those companie s threatened by financial problems or liquidity, allows you to quickly and effec tively reduce costs and improve your cash flow. For other will enable major adva nces in technology, both products / services, but also on processes, which allow you to match or improve its position in relation to competing organizations. 7 .- DETAILS OF THE BUSINESS Process Reengineering From the requirements that the process of reengineering must meet to achieve cos t reductions, quality improvements and customer service, we can identify common characteristics in these processes: 1. Unification of tasks: it gives rise to the Unification of various tasks on a computer and consequently leads to a reduction of time limits, the removal supervision, while also improving quality, to avoid mistakes. The focus on processes characteristic of BPR implies Business Process Reengineering 11 Topics in Systems Engineering as we have seen above, a loss of organization of tasks. Processes specific weigh t gain at the expense of individual tasks. 2. Employee participation in decision making: they are themselves workers who make decisions and take responsibilities for their work. This, to so me extent contributes to each employee in turn become your own boss. For this to be necessary to carry out the effort, support, discipline, confidence, flexibil ity and adaptability. The benefits include reducing the time and costs, to compr ess the structures both vertically and horizontally. 3. Changing the sequence by natural processes: the leadership that takes the concept of process in any company, once introduced the BPR, things will start to perform in the order in which processes benefit, forg etting the order followed traditionally. The aim of that new way of working is t o save time and achieve the greatest possible reduction in delays. 4. Realization of different versions of the same product: this will intends to terminate the standardization and greater adaptation of the product t o customer needs and tastes. This idea is fully consistent with one of the princ iples of BPR, according to The Boston Consulting Group: to offer a product of re al value to the customer. Currently, tastes, needs and characteristics of the cl ients are very diverse, especially when the offer is open to a global market in which cultural differences are key factors to be taken into account. The customi

zation of the product through to market several versions of the same, helps to d ifferentiate from competitors and, of course, to more successfully meet the need s of consumers it is intended each of the versions of the product . 5. Reduction of checks and controls: it seeks to establish a plan evaluation and monitoring that includes only those controls that make sense Business Process Reengineering 12 Topics in Systems Engineering economic. Acting this way is faster and more flexible organizational structure. 6. The main role of the head of the process lies in its function appears to act as single point of contact, allowing more efficient treatment. 7. Hybrid operations: All operations reengineering process Processes have a dual nature. We can consider both centralized and decentralized as it is intended to enjoy the advantages of each of the two options. The vario us units can work with a high degree of autonomy, without losing the advantages of coordination between them (economies of scale, for example). 8.- MAJOR STEPS IN THE BUSINESS Process Reengineering The completion of the study is structured in four main steps: 1. A first step in confirming the objectives and scope of the study and identify the participants, starting the process of their involvement in the project. 2. Initially, there w ill be the Customer's organizational analysis, to identify their critical proces ses. 3. The following is jointly review the Customer processes in order to desig n actions for improvement. 4. Finally, we design a program for implementing the improvement actions. Throughout the study will develop activities related to cha nge management and the management of the quality of the study. Business Process Reengineering 13 Topics in Systems Engineering Phase 0: Organization of the Study The main objective of this phase is to make t he planning of the study, based on the proposed planning in this offer. It also made communication measures for the start of the project, after identifying the participants in the study. These main objectives can be broken down into: oooooo o defined or confirmed in her case, the scope and objectives of the work. Confir m and disseminate management commitment to the project. Identify the starting co nditions: organizational, technical, economic ... Be the highest body monitoring and management: the Steering Committee. Develop calendar of activities. Definin g the role of the participants in the project. To inform those involved of the o bjective and scope. In this starting phase of the project will yield the following results: o Genera l Plan study. Document containing the following: Study Objectives Sc ope Methodology Organization and project management Annexes detailed work plan: or interviews Plan Detailed list of participants in the study Study Start Communication Business Process Reengineering

14 Topics in Systems Engineering

Communication objectives target audience segmentation Actions to be taken Implem entation Plan Content actions Phase 1: Organizational Diagnosis This initial phase aims to determine through interviews and analysis of customer organization based on its organizational structure and the functions performed by studying the services provided and service processes and support to finally m ake a diagnosis of the situation. The objectives are specified in: o Analyze the organizational structure and functions of the client and the regulatory framewo rk will apply. ooo Cataloging the services provided, relating the systems and su pport tools. Identifying the service processes, making a first selection for ana lysis in Phase 2 of the study. Develop an initial diagnosis of client situations . In this phase, the following results: Preliminary diagnosis or current situation . Document containing the following: or Mission Strategic Objectives Organizational Structure Description posts / First diagnosis functions SWOT Ana lysis Process Map Service Business Process Reengineering 15 Topics in Systems Engineering

Value identifying processes of threads that make up each process Prime processes schema classification processes critical processes Phase 2: Process analysis and improvement This phase is the nuclear phase of the study focusing on the activities, accordi ng to the proposed plan. o o o Analysis of the processes. Defining criteria for improvement. Improvement actions. A key factor in the whole project and especially at this stage the active partic ipation of those directly involved in the process, encouraging their motivation and engagement, to ensure the quality of results and success in the subsequent i mplementation of the action plan . The main objectives to achieve are: ooooooo I ncorporate organizational diagnosis made. Establish quality improvement teams an d motivate and engage participants through training sessions. Analyze and docume nt current processes at the individual territory. Identify and prioritize action s to improve implementation. Get some future unified processes and incorporating the improvement actions identified. Develop a proposed plan of action for impro vement. Set up a proposed organization and design of services in the future scen ario defined. In this phase, the following results: Business Process Reengineering 16

Topics in Systems Engineering or Training Course. Be established to impart training. Down as possible topics for training include: Process Analysis oooooo Quality Certification Total Quality Management service quality assessment programs. As opportunities in the implementation of the processes of social marketing services in public programs and flowchart documentation of current processes Documentation Catalog improveme nt actions and flowchart of the processes of future plan of actions to improve o rganization and design of services Phase 3: Plan of action The Phase 3 study is the last stage of it. It summarizes all the results obtaine d in previous phases, to design the instruments that support the process of chan ge designed. These instruments are specified in implementing programs for improv ement actions identified in Phase 2 as well as a monitoring and evaluation of su ch programs. The main objectives of this phase are that: oooo Develop programs f or the implementation of improvement actions resulting from the previous phase. Designing a system for monitoring and evaluating the degree of implementation of the plan. Establish a proposed basis for a dynamic of continuous improvement. C ommunicate results of the study. Business Process Reengineering 17 Topics in Systems Engineering 9 .- INSTRUMENTS AND TECHNIQUES As we noted from the definition of BPR, the fundamental objective of any program of Reengineering is the radical improvement (this is not to reinvent and improv e or strengthen in part) of processes. However, so far we have not talked about the tools and techniques used to achieve those objectives. Different authors pro pose different instruments among which we highlight the following: 1. Process visualization: a tool advocated by Barrett believed that the key to success lies in developing a correct view of the process. This is for tho ughtful design of each and every one of the components of the target. It provide s basic tasks of each process that generates costs and deadlines for each phase. 2. Operations Research: Operations Research (OR) is a methodology that provides the empirical basis for making decisions, and help to improve the deliv ery of services. Used successfully in different social science, was in 1974, wit h support from the U.S. Agency for International Development (USAID), where the inception of IO in developing countries. The IO systematic research techniques u sed in five basic steps: problem identification, selection of the solution strat egy, test and evaluation strategy, dissemination of results and, finally, the us e of the results. 3. Management of change: to carry out a program of Business Process Reengineerin g is very important to take into account the human factor, and therefore the manageme nt of organizational change. A change as drastic as that proposed by the reengin eering can cause anxiety and be traumatic for the employees of the company, as s uddenly going to hear how managers tell them that the way they did things so far and does not work and you have to learn entirely new mechanisms. Because, as we

know, the BPR is a process that rests on all company employees in most of the t ime, management of change through pilot groups, adaptive systems, etc. becomes Business Process Reengineering 18 Topics in Systems Engineering an almost essential tool to prevent the failure of BPR resistance shows that the human factor. 4. Benchmarking: This technique consists in the attempt to outperform competitor s by reference to industry leaders. We analyze the strengths and weaknesses of the leading products on the market, in order to get as much information as possible to the processes within the organizations responsible for those products. This technique is commonly used to find market niches in which they remain our produc ts site. However, it also applies to the BPR study when the solutions adopted by the competition. 5. Infotech: according to Hammer, this is the basic tool for reengineering Processes. Of all these tools, we will emphasize the last one, the infotech, sin ce it is the most important of all. Most reengineering actions have been based o n technology€in the background, leaving the rest of the mechanisms discussed her ein. 10.-infotech In large part, thanks to the infotech traditional jobs are considerably altered. A company can not change their model of thinking about computing and other tech nologies can not reengineer. The fundamental mistake many companies make when th inking about technology is to see through the lens of their existing processes. They wonder: How can we use these new technological capabilities to enhance or s treamline what we are doing? On the contrary, the right question is: How can we use technology to do things that they're doing?. Reengineering, as opposed to au tomation, is innovation. It is to explore the new capabilities of technology to achieve entirely new goals. One of the most difficult aspects of reengineering i s to recognize the unfamiliar new capabilities of technology instead of the fami ly. Business Process Reengineering 19 Topics in Systems Engineering The misuse of technology not only does not encourage but can block reengineering . This risk of deadlock is the possibility that the infotech reinforce the old w ays of thinking and old patterns of behavior. Effective use of technology, and t he approach to be given to this are essential to predict the success or failure of the Business Process Reengineering. For a correct application of infotech in BPR programs, is essentially a change in the mentality of the management of the company. It requires companies to use a way of thinking to which business people are not used: inductive thinking. The strategic level tend to think deductively , ie, define problems correctly and then seek solutions to assess their impact. On the contrary, to implement the technology component to the Reengineering requ ires changing the mindset from the deductive to the inductive, that is, accordin g to Hammer and Champy in "the ability to recognize a powerful solution first an d then look for problems that may solve problems that the company may not know t

hey have. " Infotechnology classification is necessary to clarify that all these concepts refer to the infotech itself, which is not the same as the computer sy stems consist of a computer, Internet access, local area network, or Web page pu blished. These concepts challenge the employer to have not only a highly trained human resources, but because he himself is "soaked" for such technologies, for all, without exception, break paradigms and impose further business methodologie s and processes. The main applications are based on infotech: e-Business: is the transformation of key business processes through the use of Internet technologi es. An organization based on e-business directly connects critical business syst ems with their constituents (customers, employees, vendors, suppliers, partners, etc..) Across intranets, extranets and the World Wide Web. The ebusiness is the new form of Internet commerce, without borders, with a new approach to business models, global customers, new payment systems and innovative strategies. Business Process Reengineering 20 Topics in Systems Engineering e-Commerce: The e-commerce or electronic commerce, is the set of activities invo lving the purchase or sale of products, goods, information and services on the n etwork. This new activity is to create value using all the technology available today through which you can interact and transact business with potential custom ers, suppliers or employees and others. Angel Aguilar said that "extending the c apabilities of an Internet business involves addressing a myriad of points ... F or such requirements there is a range of options ranging from small, medium busi nesses and large corporations." e-Procurement: Also known as e-Purchasing, is a model that works trying to establish a new way to manage procurement in an organ ization, in an attempt to generate a source of competitive advantage through sav ings of resources, better standards information and greater customer-supplier in tegration. This comes as the result of applying electronic commerce technologies to the shopping area of an organization, with the aim of facilitating the flow of strategic sourcing processes. In addition, e-procurement is one of the main p illars for the creation of e-marketplaces. This model successfully developed by NASA,€Australia's government and IBM, among others, represents a change to the t raditional work schedule with regard to purchasing and supply processes. Through the processes of ecommerce, it creates a scenario where any company, regardless of their size, can provide or buy better products at better prices, acceleratin g the buying process, the payment for goods and services, thus helping reduce co sts, make quick decisions and get value added. While the ratings vary, one might say that e-procurement has three modes: • e-procurement simple: the purchase of goods and services through simple purchase processes. • e-procurement complex: it refers to the procurement of goods and services due to the large number of it ems or their description difficult, requires special attention. • e-procurement strategy: the process of selecting a small group of suppliers evaluated to see i f they can guarantee a good price and volume react to a possible lawsuit. Here a re very mindful of the discounts and services that the company can get as an add ed value. Business Process Reengineering 21 Topics in Systems Engineering In summary, the e-procurement can make more productive the procurement function by reducing costs and achieving a better service to the organization, distribute purchasing power in the organization while ensuring compliance with internal pr ocedures, improve the level of information management and control of expenditure

against the budget, reduce cycle time of purchase and concentrate ERP: For a co mpany to be inserted into a network of businesses, first requires being able to efficiently manage their internal processes. ERP (Enterprise Resource Planning) is a system of structured information management to meet the demand of enterpris e management solutions, based on offering a complete solution that enables compa nies to evaluate, implement and manage your business more easily. ERP solutions are characterized by modularity, information integration, universality, standard ization and interfaces with other applications. To achieve greater competitivene ss within a company requires that this be optimized and integrated internal info rmation flows and external trade relations, achieving basic goals such as improv ing productivity, quality, customer service and reducing costs. CRM: the relatio nship management tools with customers (Customer Relationship Management) solutio ns are developing technology to make the "theory of relationship marketing. Rela tionship marketing can be defined as a business strategy focused on anticipating , meeting and meet the needs and desires present and likely customers. Currently , many companies are developing such initiatives. According to a study by Cap Ge mini Ernst & Young, November 2001, 67% of European companies has launched an ini tiative management (CRM). In the process of remodeling firms to adapt to custome r needs, is when it detects the need to rethink the concepts of "traditional" ma rketing and use of relationship marketing concepts: 1. Customer Focus: "The cust omer is king." This is the concept on which turns the rest of the "philosophy" o f relationship marketing. It is no longer in an economy in which the center was the product to move into a customer-centric economy. Business Process Reengineering 22 Topics in Systems Engineering 2. Customer Intelligence: You need to have knowledge about the client to develop products / services targeted to their expectations. To convert data into knowle dge used databases and rules. 3. Interactivity: The process of communication goe s a monologue (owned by the client) to a dialogue (between the company and the c lient). Furthermore, it is the customer who directs the dialogue and decide when it begins and when it ends. 4. Customer loyalty: It is far better and more prof itable (about six times lower) customer loyalty to acquire new customers. The cu stomer loyalty becomes very important and therefore the management of customer l ife cycle. 5. The focus of the communication is focused direct marketing to indi vidual customers rather than means "massive" (TV, newspapers, etc..). It happens to develop campaigns based on profiles, special offers and messages targeted at certain types of customers, instead of using mass media with no differentiated messages. 6.€Personalization: Every client wants and offers customized communica tions that huge efforts are needed in intelligence and customer segmentation. Th e personalization of the message, in substance and form, dramatically increases the effectiveness of communications. 11 .- PRACTICAL CASES Case Study 01: The problem of the Ford Motor Within the first group of the class ification of Hammer and Champy of companies are set to launch the BPR found for Ford, which twenty years ago went through a brutal crisis that nearly stop their activity. This case study serves to illustrate how the reengineering was implem ented in the company, analyzing one of the areas on which this act. In the early eighties, Ford was in a situation in which he saw as overflowed their administr ative costs and internal management of the company. To try to reduce these costs , we studied the accounts payable department, which at that time consisted of mo re than 500 people. Executives thought they would achieve by using computers to reduce staff by at least 20%, according to their initial forecasts. As noted, th is reduction in costs can not be considered Reengineering, if not spectacular re sults are achieved. But Ford executives thought that 20% was more than enough un til you visited

Business Process Reengineering 23 Topics in Systems Engineering Mazda, a Japanese company whose 25% had recently been purchased by Ford. The dir ectors of Ford Mazda looked stunned as accounts payable attended by only five em ployees. Clearly these managers had taken into account the fact that Mazda was m uch smaller than Ford. However, the difference of five to five hundred should re side in some other factor apart from size. Once redefined Ford rush reengineerin g the process, "accounts payable" which became "supply." That process took an or der from a plant and that plant will provide goods purchased and paid. Therefore , the role of supply includes accounts payable but also includes purchases and r eceipts. The new process significantly reduced the amount of documentation gener ated in each order, recondujo efforts toward the necessary steps in each purchas e order, eliminating some unnecessary procedures. This reengineering process end ed with very rigid rules were always observed. TECHNOLOGICAL INNOVATION IN THE B USINESS Process Reengineering (I) F. Sáez Vacas, O. Garcia, J. And P. Palao Red 5.5 times change in a single word can change radically the process. This is the case of Ford, which, for example, went to "pay upon receipt of invoice" to "pay on receipt of the merchandise." To carry out this process Ford had to deploy a p owerful conversion plan and introduction of computer equipment. Thanks to this t echnological wizardry, which acted as an instrument enabling the BPR was impleme nted successfully. Adapted from Hammer and Champy, 1994, p.41 Secondly, companie s are still difficulties, but which are not allow administrative systems to anti cipate potential crises, so that they are caught early onset of problems. Althou gh by the time the results may seem satisfactory, the setting in which it operat es the company's activity is uncertain and at any time present the possible emer gence of new threats in the form of competitors, changes in preferences customer s, regulatory changes, etc. The mission of these companies is to exert a prevent ive Reengineering, before things start to get bad. Case Study 02: The City Counc il of Gijón We will use this second case study to see an example of the second t ype of companies capable of implementing the BPR. Moreover, this case shows that the scope of the Business Process Reengineering does not die in the private ent erprise Business Process Reengineering 24 Topics in Systems Engineering but is applicable to almost any type of institution, as in this case a represent ative of the Public Administration: the city of Gijón. This agency, through the development of so-called Information Systems Plan, pursued to achieve an improve ment in management efficiency and service delivery, using as an instrument of ch ange of information technologies. By reengineering, this council Spaniard claime d, among other objectives: • • • • • • • Improving the efficiency and service qu ality in the functioning of public administration.€Allow comprehensive monitorin g of cases through the various stages of completion. Ensure optimal levels of da ta integrity. Facilitate understanding of the administrative documentation. Simp lifying the channels for the transmission of documents. Allow an analysis of wor kloads. Reduce operational costs and risks of manipulation of documents using th e computer processing of the operation. TECHNOLOGICAL INNOVATION IN THE BUSINESS Process Reengineering (I) F. Sáez Vacas, O. Garcia, J. And P. Palao Red 5.6 The creation of a database containing all relevant information regarding the proced ures of the Municipality of Gijón will enable the consultation of such informati on both to the employees of the agency as to its own citizens, who may obtain th

is information through Internet, and even instances or forms necessary to procee d. For its part, the standardization of documents, which allows the implementati on of this project will have two consequences: the staff can perform their work faster, while compared to others, the corporate image of the body is strengthene d and unified. Adapted from B. M. Rodriguez Alvarez, 2002 Finally, the third typ e of firms that choose to immerse themselves in the BPR as those that are in goo d condition. No visible problems present now or on the horizon, which is not inc onsistent with the fact that his administration has aspirations and ability to r each even higher. Such companies see Reengineering as an opportunity to peel off even more of its competitors, ie the BPR see an opportunity to obtain a Business Process Reengineering 25 Topics in Systems Engineering competitive advantage. From the position of leadership, where apparently everyth ing goes perfectly, it is quite hard for directors of a company the fact of appr oaching reinvention of the systems operating properly. Hammer and Champy argue t hat "the hallmark of a truly successful company is the willingness to abandon wh at has long been successful. A really big company willingly abandon practices th at have worked well for a long time, with the hope and expectation to come up wi th something better. "As a summary of the classification of enterprises Hammer a nd Champy point out that a good way to distinguish the main features of each of the three types of companies, depending on how the Business Process Reengineerin g face is this: those of the first category are those who are in dire straits, h ave hit a wall and are injured on the ground. Those in the second category are s till running at high speed but its headlights allowed to see a barrier to them c oming up imminently. You still have time to distinguish what type of obstacle in their way and so try to avoid it in time. Finally the third category companies went for a walk one afternoon clear and uncluttered, without any obstacle to the light and decided that was a perfect day to build a wall that cuts off others w ho attempt to follow in their footsteps. Business Process Reengineering 26 Topics in Systems Engineering ABSTRACT This dedicated to Business Process Reengineering have made contact with Hammer a nd Champy's ideas. Process Reengineering, is to review the basics and reinvent p rocesses of a company to achieve dramatic improvements in quality, cost, custome r relations, etc. The tasks and work-ranking positions are subordinated to the i mportance of the processes. The BPR is not the responsibility of managers alone, but it is every employee of the company involved in the profound renewal. Depen ding on the situation of each company at the time of starting the BPR, Hammer an d shampoo developed a classification of the company into three groups: those tha t use the BPR as a desperate option, which need to avoid ending up as the first, which BPR being leaders employ to distance themselves further from their compet itors. For the reengineering of several tools available: process visualization, operational research, benchmarking ... among which highlights the use of Informa tion Technology and Communications. Finally, it should be noted that reengineeri ng is a radical solution that can not be confused with any other, since it invol ves the reinvention of processes and improvement or restructuring. Therefore, al though there are other alternatives that are less deep, as the quality or plans of reorganization,€Reengineering these options are not and must not fall into th

e common mistake of confusing. Business Process Reengineering 27 Topics in Systems Engineering BIBLIOGRAPHY • • CHAMPY.J. : M. Hammer (1994): Reengineering, Standard Ed Gomez, H. M. : Technology and Processes Reengineering perso.wanadoo.fr / chris.giron / reengesp.htm • MOLINA. L.: Notes Reengineering cmg-uv.tripod.com/REINGENIERIA.htm www.ing.udep.edu.pe Business Process Reengineering 28

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