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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