Business Process Reengineering

Lec 2

Dr. M. Bilal Qureshi

Data Collection, Feedback Analysis, and
Corrective Action

 Main part in change management is played by employees

involvement.
 Change management is not a one-way street process.
 Employees feedback is a key element.
 Feedback is collected and change process is managed
accordingly.
 Business analysis and corrective action based on employees
feedback provides a robust cycle for change implementation.
Celebrating and Recognizing Success

 Success celebration encourages employees.

 Early success, special achievement, and long term wins must
be recognized and celebrated.
 Individual or a group should be recognized in order to
reinforce the change in the organization.
 Final step in the change management process is after-action
review.
 Stand back from the entire program, evaluate successes and
failures, and identify process changes for the next project.
 Benefits of Reengineering

 Empowering employees
 Eliminating waste, unnecessary management overhead, and
inefficient processes
 Significant reduction in cost and process cycle times
 Enabling revolutionary improvements in business processes
as measured by quality and customer service
 Helping top organizations stay on top and achievers to
become effective competitors
 Benefits of Reengineering

 Empowering employees
 Eliminating waste, unnecessary management overhead, and
inefficient processes
 Significant reduction in cost and process cycle times
 Enabling revolutionary improvements in business processes
as measured by quality and customer service
 Helping top organizations stay on top and achievers to
become effective competitors
 The need for BPR

 Improvement in the way we do things

 To change into something better than it was before
 Wish of change
 Technology innovation – way from Charles Babbage
Analytical Engine to present-day Internet age
 Keeping eye on and adopting the technology of business
rivals to compete

 Total Quality Management

 Comprehensive and structured approach to organizational

management that seeks to improve the quality of products
and services through ongoing refinements in response to
continuous feedback.
 TQM was founded upon the principles of reducing errors
produced during the manufacturing or service process,
increasing customer satisfaction, streamlining supply chain
management, and aiming for modernization of equipment and
processes.
 PDCA Cycle

 .Deming crystallized the TQM concept in terms of PDCA

cycle
 PDCA Cycle

 “Plan” – defining business problem, collecting relevant facts

and data, and attempt to understand the root cause of the
problem.
 Comprehensive solution is developed and implemented in the
“DO” stage.
 In the “Check” stage, results are confirmed from before and
after implementation.
 In the “Act” stage, results are documented and
communicated, and recommendations are made for further
improvements in the next cycle of PDCA.
 PDCA Cycle

 This is an incremental process where small changes are

made to improve the processes continuously from one cycle
to the other.
 Six Sigma

 Define, Measure, Analyze, Improve, Control, Implement

 Highly disciplined process that helps to focus on developing
and delivering near-perfect products and services.
 Six sigma was developed and popularized by Motorola Corp
in 1980.
 To measure the defects and minimize them as much as
possible.
 Six Sigma

 .
 PIP – Process Improvement Process

 IT is a method to introduce process changes to improve

quality, reduce costs, or accelerate schedules.
 OR series of actions taken by a process owner to identify,
analyze and improve existing processes within an
organization to meet new goals and objectives.
 A specific methodology is followed to create successful
results.
 TQM and Six Sigma are both examples of PIP where the
results obtained and the changes made in the process are
incremental.
Five Step BPR Model
 Why BPR?

 Following questions provide justification for BPR

1. Is the competition outperforming the company?
2. Are there many conflicts in the organization?
3. Is there an extremely high frequency of meetings?
4. Is there an excessive use of nonstructural communication?
5. Have the continuous improvement processes stopped
yielding meaningful business results?