BPR is NOT Automation of processes Total quality management Modifying information systems Restructuring of organizations. UNLESS You Take zero based approach Focus on the customers Look for new approach, reject the old. Set up a new benchmark Change the mind-set Focus on time aspect

Think of radical changes. Management of processes. start a fresh. excellent service. Focus those activities which adds value to the customers. fastest delivery and fair price.What is BPR ? It means: High quality. - . Formulate new rules of business. Reject the past.

EFFICIENCY NORMS PRESENT ‡ Orders ‡ Cost ‡ Inventory ‡ A/C payable ‡ ‡ ‡ ‡ Pending orders [Qty] Pending queries Customer complaints Productivity FUTURE ‡ Order processing cycle ‡ Servicing cycle ‡ Lead time[procurement cycle] ‡ Payment cycle ‡ Delivery cycle ‡ Response cycle ‡ Index on customers satisfaction ‡ Performance .

TODAY S BUSINESS ORGANIZATIONS Characteristics Inflexible Bureaucratic Compartmentalized Absence of customer focus. ‡ Large gap between value desired and value offered ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Unresponsive High overheads Delays Poor work culture .

You have to be profitable while you are technologically the best and commercially the lowest . you have to match the price of competition or the price expectation of the customer.Modern Approach Old approach Cost plus Modern approach Globally competitive The cost plus approach to price is valid in protected and sheltered markets. In global competition. .

max/min Value analysis/engineering Product variety by segments (mass customization) ‡ World class manufacturing ‡ ‡ ‡ ‡ ‡ .SURVIVAL AND GROWTH STRATEGIES Product development (improvement) Methods improvements Management techniques.

.Contd The integration of communication and comforter technologies coupled with an empowered knowledgeable work force will change today s business organization from event processing to real response processing virtual enterprise .

More investment on human resources.STRATEGIES FOR FUTURE ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Strategic alliance. Focus on processes in organization. Undergoing product development at faster rate. Build high propensity to change . Application of IT in all functions. Subcontracting service functions. Empowerment to people.

technology.Contd ‡ More scientific assessment of environment opportunities and threats. socioeconomic & political trends]. . lifestyle. consumer behaviour. ‡ More investment in research activities [Forecasting demand.

projects. ‡ Communication and trust are must for PR project . Project. ‡ Significant improvements in cycle time. ‡ Senior management must be involved throughout the process re-engg. process costs and/or customer satisfaction are key indices of process re-engg.TENETS OF RE-ENGINEERING ‡ The customer alone is responsible for defining what constitutes product/service value.

It includes following steps: .. creating an output of a value to the customer.SHIFT IN MANAGEMENT PHILOSOPHY ‡ Reactive Proactive ‡ Delegation of authority Empowerment ‡ Protective Competitive ‡ Profit oriented Customer satisfaction ‡ Control relationship Trust relationship Business process a set of activities performed across the Orgn.

process. communicate. documents.refers to activities which are essential to the process in order to meet the customers expectations. perform. achieve the business results. . produce. NVA[Non value added]. BVA[Business value added]. 3. record. access. measure.RVA[Real value added]. 2.refers to activities essential to run the business that add costs of process but don t add value for customers.Contd ‡ Receive input. analyses. PROCESS CYCLE TIME CONSISTS OF THREE FEATURES 1.refers to activities which do not add value from customer s or business point of view.

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