2 ‫إدارة مشاريع‬

‫ رضا الهوني‬.‫د‬

Project Management II
EPM621

Business Process Reengineering (BPR)

Outline

 Introduction
 What is BPR ?
 Why BPR ?
 Principle & Methodology of BPR
 Challenge in BPR
 Critical Success / Failure Factors in BPR
 An example of BPR
 Conclusion

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 Introduction
1. In the early 1990’s, Michael Hammer and James Champy
published a book, “Reengineering the Corporation”, that stated
that in some cases, radical redesign and reorganization within a
company were the only way to reduce costs and improve service
quality. To this end, they said, information technology was the
key element for allowing this to happen.

2. Hammer and Champy said that most large companies made

(now invalid) assumptions about their goals, people and
technology that were impacting the workflow. They suggested
seven principles that could be used to reengineer and help
streamline workflows, thus improving quality, time management
and cost.

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What is a Business Process (BP)?
1. BP is a collection of activities that takes one or more kinds of
input and creates an output that is of value to customers.

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Types of Business Process

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What is BPR?

BPR is

The analysis and redesign of

workflow and processes

within and between organizations.

Michael Hammer & James Champy, 1993

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‫إعادة الهندسة هي إعادة التفكير بصورة أساسية وإعادة التصميم الجذري للعمليات الرئيسية بالمنظمات لتحقيق‬
‫نتائج تحسين هائلة في مقاييس األداء العصرية ‪ :‬التكلفة والجودة والخدمة وسرعة إنجاز العمل‬
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Reengineering is not……
1. Automation of existing ineffective processes
2. Sophisticated computerization of obsolete processes
3. Playing with organization structures
4. Downsizing- doing less with less, focuses on the reduction of
workforce to achieve short-term cost savings.

Reengineering focuses on rethinking from the ground up,

finding more efficient ways of working including eliminating
work that is unnecessary.
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 Automation & BPR

 Automation is using technology tools to perform OLD processes,

‘AS IS’ in a NEW way.
 Like putting OLD drink in a NEW bottle.

 BPR is about Innovation

 Making NEW drink and putting in a NEW bottle.

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BPR & Quality Initiatives

 Quality initiative attempt continuous improvement

 Six Sigma
 TQM (Total Quality Management)

 BPR attempts a radical redesign or transformation

 Big Bang approach (direct conversion, slam dunk)
 Quantum Leap (a sudden large change)
‫نقلة نوعية‬

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Why BPR ?
• Customers Problem statement
– Demanding
– Sophistication
– Changing Needs

• Competition
– Local
– Global

• Change
– Technology
– Customer Preferences ‫تفضيالت العمالء‬ 12
Suggested Question for BPR
1. What are the objectives of the process?
2. Are these objectives in line with the corporate objectives?
3. Do you need the process?
4. What value does it add to the corporate mission, vision or strategy?
5. Who are the customers of the process?
6. What are the customers requirements?
7. Does the process meet the customers requirements?
8. What problems does the process have in meeting its customers needs?
9. Who are the suppliers of the process ?
10. Have told them the requirements of the process ? Are these correct ?
11. Does the suppliers meet the specified requirements ?
12. Is the process efficient ? - Value Engineering / Analysis
13. Is there any waste in the process ? - How can we eliminate it ?
14. Who is responsible for the process ?
15. Who else could do it ?
16. Is the responsibility located correctly ?
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Principle and Methodology of BPR

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7 Basic Principle of BPR
1. Organize around outcomes, not tasks. ‫ وليس المهام‬، ‫تنظيم حول النتائج‬
2. Identify all the processes in an organization and prioritize them in
order of redesign urgency.
3. Integrate information processing work into the real work that
produces the information. ‫دمج عمل معالجة المعلومات في العمل الحقيقي‬
4. Treat geographically dispersed resources as though they were
centralized. ‫التعامل مع الموارد موزعة جغرافيا كما لو كانت مركزية‬
5. Link parallel activities in the workflow instead of just integrating
their results. ‫ربط األنشطة الموازية في سير العمل بدال من مجرد دمج نتائجها‬
6. Put the decision point where the work is performed, and build
control into the process. ‫ وبناء التحكم في عملية‬،‫وضع نقطة القرار حيث يتم تنفيذ العمل‬
7. Capture information once and at the source. ‫ التقاط المعلومات مرة واحدة من‬15
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Transformation Approaches
Transforming Process
- Eliminate
- Simplify
- Base on Trust
- Integrate
- Join Up
Transforming Channels
- Legislate
-Multiple Channels
Using Technology
- 24X7
- Enterprise Architecture
- Access
- Standards Transformation - Common Service
- Unified Databases'
- Mobile
- Unified Networks
- Self-Service
- Licensed Intermediaries
Transforming People ‫الوسطاء المرخصين‬
- Training
- Change Management
- Consultation
-Empowerment
- Education
- Awareness
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4 Steps in BPR
1. Understanding the Current Processes
• ‘AS IS’ study- Mapping current processes
• Analysis of Root causes for Inefficiencies
• Identifications of Problems, Issues
2. Inventing a NEW Process (‘TO BE’ Process)
• Survey of Best Practices
• Consultation of Stakeholders
3. Constructing the NEW Process
• Brining in new laws and rules
• Adopting Disruptive Technologies
4. Selling the New way of functioning
• Change Management
• Communication Strategy
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BPR Methodology

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‫عدم وجود نهج شامل‬

‫هيمنة ثقافة المؤسسة القائمة‬

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 Ford Motor Company

Eliminate the invoice.

In the new scenario, a buyer no longer needed to send a copy of the purchasing order form to the creditor
administration Instead, he registers an order in the online database. When the items appear at the store, the
storekeeper checks whether these correspond to the purchase order form in the system.
In the old system he did not have access to this form. If the items match the order, he accepts them and registers
this in the computer system. If they do not, the items are returned. Hammer reported that Ford benefited drastically
from this change with an almost 75% decrease in workforce in the accounts payable department.
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 (a) Process redesign in finance

Simplified process map (b) cross-functional process redesign

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(c) organizational process redesign