Business Process

Reengineering

What is a business process?

series of logically related tasks or steps designed to produce an outcome
workflows of material, information and knowledge
maybe tied to a functional area or be cross-functional
examples:
manufacturing and production: assembling the product
sales and marketing: identifying customers
finance and accounting: creating financial statements
human resources: hiring employees

What is business process reengineering?

the fundamental rethinking and radical design of business
processes to achieve dramatic improvements in critical
contemporary modern measures of performance, such as cost,
quality, service and speed (Hammer & Champy, 1993)

Why is there a need for BPR?

Customers changing needs
- the services provided by the organization are not
compatible with its customers needs.
Competition intensifies
- it takes too long for an organization to move its
products from conception to the market place as
compared to its competitors

Example: Ford Accounts Payable Process

Before BPR:

Example: Ford Accounts Payable Process

After BPR:

3-Phased Approach to a BPR Project

PHASE 1 : Planning
PHASE 2 : Design
PHASE 3 : Implementation

Phase 1: PLANNING
i.

Determine new process requirements

ii. Uncover break through opportunities

analyze as is capability
envision desired state
identify process performance gaps

Phase 2: DESIGN
i.

Map

the ideal process

complete preliminary work
set new goals and establish measures
create a new process flow chart

ii. Redefine process support requirement

iii. Develop a change management plan

Phase 3: IMPLEMENTATION
i.

Implement on Trial Run basis

ii. Standardize the reengineering process

iii. Evaluate process performance on an ongoing
basis