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Transcript

  • 1. Business Process Management Business Process Re-engineering Business Process Analysis Business Process . . .
  • 2. Traditional Organisation and Functional Management
    • Traditional Organisation Chart
    • Source: D Williamson, Introduction to Management Accounting
    • People work in functional areas : production people in the Production department(s), marketing people in Marketing, ICT (Information and Computer Technology) in ICT, etc.
  • 3. Traditional Organisation and Functional Management
    • Traditional Organisation Chart (cont’d)
    • Chart shows:
    • a set of co-ordinated functional specialisms
    • division of labour
    • Traditional view identifies where people belong
    • But is it flexible?
    • Can it adapt/react quickly to change?
    • Is only collaboration via Purchasing and Sales?
  • 4. Business Process Management
    • BPRC NEWSLETTER 1 , November 1995 (with my emphasis):
    • The combined effects of developments in information technology and internationalisation of markets have led researchers and managers to a view that new practices and organisational structures are becoming necessary in a mature industrial age …bringing about fusion rather than division of labour, and a view of industry as a set of seamless internal and external relationships
  • 5.
    • BPRC NEWSLETTER 1 , continued (with my amendments) :
    • aimed at delivering sustained customer satisfaction [ , ] rather than as a set of coordinated functional specialisms.
    • The Business Process approach to resource management is emerging as [ a ] major innovative mechanism [ , ] enabling the organisation to adapt to the new competitive environment.
    Business Process Management
  • 6.
    • BPRC NEWSLETTER 1 (with amendments) , continued :
    • Business Process Management is [ also ] not restricted to the manufacturing sector.
    • The ESRC Business Processes Resource Centre, Warwick Manufacturing Group, International Manufacturing Centre, University of Warwick:
    Business Process Management
  • 7. Business Process Management 2
    • What is it?
    • Recent innovations in managing businesses by American and some UK companies.
    • Global marketplace changes and so firms respond.
    • Constantly introduce innovations in both technologies, for processing and producing goods and services, and in developing products, plus in cycles in manufacturing.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 8. Business Process Management 3
    • What is it?
    • Are too many business innovations in US today!
    • But business has identified cost, quality and time as demands in the market
    • So, we are looking at significant innovations used to improve business processes.
    • and to help US businesses meet these demands
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 9. Business Process Re-engineering
    • Process Re-engineering (BPR) increasingly used to describe efforts to improve Business processes.
    • Are different implementation models and methods because re-engineering is often interpreted in many ways.
    • Re-engineering examples r ange from a firm re-engineering a production process to completely restructuring its entire organisation.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 10. Business Process Re-engineering 2
    • From ‘local’ BPR, analytical models have been developed to optimise existing processes, through using simpler procedures and using IT.
    • An industry of consultants has grown up, plus tools for mapping process and simulation tools.
    • Organisations’ established structures and processes have been totally replaced by new structures and flexible processes.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 11. Business Process Re-engineering 3
    • This may include using cross-functional teams, retraining workers, and managing innovation, as integral parts of firms’ business processes,
    • much more than just designing, manufacturing, and servicing products.
    • It means re-engineering people : the way they learn their jobs, the way they work and the way they collaborate with their workmates.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 12. Business Process Re-engineering 4
    • Workers often have to learn new trades and learn new practices at work, take on new work ethics which go beyond their narrow specialisations.
    • Successful innovations in industry in the past used division of labour but almost removed human ingenuity and innovation from the workplace.
    • View of the workforce in making changes to the organisation has also changed with BPR.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 13. Business Process Re-engineering 5
    • Production is now more efficient, streamlined and flexible, due to new technologies in manufacturing and process.
    • Has resulted in achieving previously unachievable quality at unattainable speeds.
    • Work-force now groups with competence across many areas of manufacturing, motivated by team-spirit, delegated power and vested authority; no longer just skilled individuals
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 14. Business Process Re-engineering 6
    • Retraining programmes now seen as crucial in companies’ success in implementing BPR.
    • There are resources in bigger companies to re-engineer processes and re-train their workforces
    • Ability of suppliers in the value chain to practice BPR also crucial for companies success with BPR.
    • Individual firms are seen as being responsible to implement BPR and train suppliers’ workforces.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 15. Business Process Re-engineering 7
    • However,the government in the US is helping restructure the processes of US businesses!!
    • It is providing initiatives and inducements to firms to provide continuing education and retraining.
    • It is actively and innovatively filling in gaps, especially in processing and manufacturing, that it sees in US companies.
    • This is considered essential to keep American products globally competitive.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 16. Business Process Re-engineering 8
    • Multi-agency programs have been introduced in defence, dual-use, and civilian sectors,
    • providing short-term research programs in high value but high risk manufacturing technologies.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 17. Business Process Re-engineering 9
    • Why?
    • Japanese firms were successful in capturing a significant part of the US automobile market in the 70's and 80's.
    • They could adapt to changes in economic conditions, without large unemployment changes
    • This has led to a rethink of the nature of American industry’s business operations.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 18. Business Process Re-engineering 10
    • Result: serious look at new business models and the car industry in Japan being scrutinised by US companies and business theorists.
    • Studied Japanese process innovations, quality management and lean production technologies.
    • Introduction of IT into Japanese firms’ work practices, with US innovations, preserved Japanese organisational and cultural advantages.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 19. Business Process Analysis 1
    • Business Process Analysis is continually changing
    • in both details of every process matter, but also in overall objectives of organisations.
    • Technology is a force driving re-engineering.
    • Economic and cultural practices also relevant.
    • Tomorrow’s BPR methods and tools are the knowledge and experience gained by individual companies and business theorists.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 20. Business Process Analysis 1
    • BPR is proving to be a powerful approach for organizations wanting to be competitive.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
    • Business Process Analysis - A Letter from America, A report to Engineering and Scocial Science Research Council, UK: Abstract
    • http://bprc.warwick.ac.uk/bprv1-1f.html
  • 21. However:
    • Reported failure rates of about 40 to 70 percent for BPR applications in achieving stated goals
    • This could be due both to perceived differences in defining re-engineering and to the level where it is implemented.
    • The coverage and scope of BPR in different firms may explain differences in firms using BPR successfully or unsuccessfully, rather than how they apply BPR tools and methods.
    • Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh
  • 22. Any Questions ? Powerpoint presentation adapted by M C Pratt, St Martin’s College, from: 1. BPRC NEWSLETTER 1 , November 1995 . The ESRC Business Processes Resource Centre, Warwick Manufacturing Group, International Manufacturing Centre, University of Warwick: Web address: http://bprc.warwick.ac.uk/news1.html 2. Professor Arunachalam and Dr. Subrahmanian, Carnegie Mellon University, Pittsburgh, Business Process Analysis - A Letter from America, A report to Engineering and Scocial Science Research Council, UK Web address: http://bprc.warwick.ac.uk/bprv1-1f.html 3. Managing Activities, Powerpoint presentation by A Mulengani, Northampton University College, 2001