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Business Process Re-engineering 02 – Principles & Dimensions
Dimensions & Characteristics Fundamental   changes to process, technology and human factors to achieve  dramatic  improvem...
Process: The Basic Concept <ul><li>What is a process? </li></ul><ul><li>-  “a collection of business activities that creat...
Process viewpoint <ul><li>Identification and mapping </li></ul><ul><li>-  identify, name and relate the processes to each ...
Process viewpoint <ul><li>Management </li></ul><ul><li>-  evaluate process performance against customer needs and competit...
The Business operation Business Processes Values and Beliefs Management and Measurement  Systems Jobs and Structure determ...
The Impact of BPR The business operation diamond in context Business Processes Values and Beliefs Management and Measureme...
Elements of BPR <ul><li>Process focus  </li></ul><ul><li>Radical change </li></ul><ul><li>Dramatic improvement </li></ul><...
Process Focus <ul><li>A set of linked activities that adds value to the process to create an effective output </li></ul><u...
<ul><li>The objective is to address competitiveness and market-dominance </li></ul><ul><li>Radical change provides  a new ...
Dramatic improvement <ul><li>To achieve major improvement in the core process </li></ul><ul><li>Planning, procedures and r...
BPR Model Best practices - the foundation for success Change and risk management Competitiveness BPR Process focus  Radica...
<ul><li>Downsizing / Rightsizing </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Quality improvement goals </li>...
Process Improvement Possibilities <ul><li>Eliminate duplicate activities </li></ul><ul><li>Combine related activities </li...
<ul><li>Invisible </li></ul><ul><ul><li>Managers delegate their knowledge </li></ul></ul><ul><ul><li>Process performance i...
BPR is different <ul><li>High ambition </li></ul><ul><ul><li>Improvements in key performance measures, such as cost, quali...
<ul><li>Creative rule-breaking </li></ul><ul><ul><li>Finding assumptions about normal business practice and customers’ nee...
<ul><li>Improve customer service </li></ul><ul><li>Reduce cycle time </li></ul><ul><li>Improve quality </li></ul><ul><li>R...
<ul><li>Developed by Michael Porter : </li></ul><ul><ul><li>To classify, understand and analyse an organisation’s value-ad...
Value-chain analysis PROFIT PROFIT Firm Infrastructure Human Resource Management Technological Development Procurement Inb...
Value-chain analysis Human Resource Management Technological Development Procurement Inbound Logistics Operations Outbound...
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Bpr 02 Principles

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Business process reengineering

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  • I agree with you about 'radical change' especially when you have to deal with the culture of the addressed environment. Nice presentation.
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Transcript of "Bpr 02 Principles"

  1. 1. Business Process Re-engineering 02 – Principles & Dimensions
  2. 2. Dimensions & Characteristics Fundamental changes to process, technology and human factors to achieve dramatic improvements in key measures <ul><li>The dimensions & characteristics: </li></ul><ul><li>Balanced attention to processes, people and </li></ul><ul><ul><li>technology </li></ul></ul><ul><li>Cross functional, process based perspective </li></ul><ul><li>Judged by measurable results achieved </li></ul>
  3. 3. Process: The Basic Concept <ul><li>What is a process? </li></ul><ul><li>- “a collection of business activities that creates value for a customer </li></ul><ul><li>- a transformation of inputs(s) into output(s): a state of change </li></ul><ul><li>Re-engineer processes, not functions or organisations </li></ul><ul><li>Some typical processes: </li></ul><ul><li>- concept to prototype : develop product </li></ul><ul><li>- target to customer order : acquire customer </li></ul><ul><li>- customer order to pay : fulfill order </li></ul><ul><li>- purchase request to payment : procure materials </li></ul><ul><li>- enquiry to resolution : service </li></ul>
  4. 4. Process viewpoint <ul><li>Identification and mapping </li></ul><ul><li>- identify, name and relate the processes to each other </li></ul><ul><li>Ownership </li></ul><ul><li>- assigning owners for all processes </li></ul><ul><li>Measurement </li></ul><ul><li>- establishing and communicating end-to-end customer driven process measures and measurement mechanisms </li></ul>
  5. 5. Process viewpoint <ul><li>Management </li></ul><ul><li>- evaluate process performance against customer needs and competitive benchmarks </li></ul><ul><li>Awareness </li></ul><ul><li>- creating appreciation of the organisation’s processes and customers </li></ul><ul><li>- develop a process-oriented mindset </li></ul>
  6. 6. The Business operation Business Processes Values and Beliefs Management and Measurement Systems Jobs and Structure determine require enable foster The business operation diamond
  7. 7. The Impact of BPR The business operation diamond in context Business Processes Values and Beliefs Management and Measurement Systems Jobs and Structure INFRASTRUCTURE Customer needs Competitor actions Technological and environmental factors Assessment of capabilities
  8. 8. Elements of BPR <ul><li>Process focus </li></ul><ul><li>Radical change </li></ul><ul><li>Dramatic improvement </li></ul><ul><li>BPR is about competitiveness. </li></ul>
  9. 9. Process Focus <ul><li>A set of linked activities that adds value to the process to create an effective output </li></ul><ul><li>Focus should be on core business processes that addresses the external customer and supplier </li></ul>
  10. 10. <ul><li>The objective is to address competitiveness and market-dominance </li></ul><ul><li>Radical change provides a new way of building core competencies and good investment management </li></ul>Radical Change
  11. 11. Dramatic improvement <ul><li>To achieve major improvement in the core process </li></ul><ul><li>Planning, procedures and resources are required </li></ul><ul><li>Measure, control and manage the process </li></ul>
  12. 12. BPR Model Best practices - the foundation for success Change and risk management Competitiveness BPR Process focus Radical change Dramatic improvement
  13. 13. <ul><li>Downsizing / Rightsizing </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Quality improvement goals </li></ul><ul><li>Functional performance improvement </li></ul><ul><li>Reduce costs </li></ul><ul><li>Increase speed (of service) </li></ul><ul><li>Overcome a competitive threat </li></ul><ul><li>Change of organisational structure </li></ul>Why re-engineer ?
  14. 14. Process Improvement Possibilities <ul><li>Eliminate duplicate activities </li></ul><ul><li>Combine related activities </li></ul><ul><li>Eliminate multiple reviews and approvals </li></ul><ul><li>Eliminate inspections </li></ul><ul><li>Simplify processes </li></ul><ul><li>Reduce batch size </li></ul><ul><li>Outsource inefficient activities </li></ul><ul><li>Centralise or decentralise functions / activities </li></ul>
  15. 15. <ul><li>Invisible </li></ul><ul><ul><li>Managers delegate their knowledge </li></ul></ul><ul><ul><li>Process performance is not measured </li></ul></ul><ul><li>Inconsistent </li></ul><ul><ul><li>Jobs, measures and infrastructure are not aligned with the current process </li></ul></ul><ul><li>Ignored </li></ul><ul><ul><li>Processes often unmanaged and rarely updated </li></ul></ul><ul><li>Ill conceived </li></ul><ul><ul><li>Processes and policies are developed piecemeal and informally rather than designed as a whole </li></ul></ul>Reasons to improve processes
  16. 16. BPR is different <ul><li>High ambition </li></ul><ul><ul><li>Improvements in key performance measures, such as cost, quality, service or speed </li></ul></ul><ul><li>Process focus </li></ul><ul><ul><li>A customer-oriented viewpoint. No organisational boundaries </li></ul></ul>
  17. 17. <ul><li>Creative rule-breaking </li></ul><ul><ul><li>Finding assumptions about normal business practice and customers’ needs </li></ul></ul><ul><li>Information technology to enable the above </li></ul><ul><ul><li>IT enables new ways of working through substitution and automation </li></ul></ul>BPR is different
  18. 18. <ul><li>Improve customer service </li></ul><ul><li>Reduce cycle time </li></ul><ul><li>Improve quality </li></ul><ul><li>Reduce costs </li></ul><ul><li>Increase market share </li></ul><ul><li>Reduce product development time </li></ul><ul><li>Increase sales </li></ul><ul><li>Think of specific examples for various processes </li></ul>Typical benefits BPR produces
  19. 19. <ul><li>Developed by Michael Porter : </li></ul><ul><ul><li>To classify, understand and analyse an organisation’s value-added processes to achieve competitive advantage </li></ul></ul><ul><ul><li>To analyse how to improve cost structure (productivity) and add value (differentiation) </li></ul></ul><ul><ul><li>Applicable to any industry </li></ul></ul><ul><ul><li>Processes classifed into 5 Primary activities and 4 Support activities </li></ul></ul>Value-chain analysis
  20. 20. Value-chain analysis PROFIT PROFIT Firm Infrastructure Human Resource Management Technological Development Procurement Inbound Logistics Operations Outbound Logistics Marketing and Sales Service
  21. 21. Value-chain analysis Human Resource Management Technological Development Procurement Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Financial Policy Accounting Regulatory Compliance Legal Community Affairs Flight/ Route and Yield Analysis Training Pilot Training Pilot Safety Baggage Handling Training Agent Training Inflight Training Computer Reservation System/ Inflight System/ Flight Scheduling System/ Yield Management System Product Development Market Research Baggage Tracking System Information Technology Communications <ul><li>Route selection </li></ul><ul><li>Passenger </li></ul><ul><li>service system </li></ul><ul><li>Yield </li></ul><ul><li>management </li></ul><ul><li>system (pricing) </li></ul><ul><li>Fuel </li></ul><ul><li>Flight scheduling </li></ul><ul><li>Crew </li></ul><ul><li>scheduling </li></ul><ul><li>Facilities </li></ul><ul><li>planning </li></ul><ul><li>Aircraft </li></ul><ul><li>acquisition </li></ul><ul><li>Ticket counter </li></ul><ul><li>operations </li></ul><ul><li>Gate operations </li></ul><ul><li>Aircraft operations </li></ul><ul><li>Onboard services </li></ul><ul><li>Baggage handling </li></ul><ul><li>Ticket office </li></ul><ul><li>Baggage system </li></ul><ul><li>Flight connections </li></ul><ul><li>Rental car and </li></ul><ul><li>Hotel reservation </li></ul><ul><li>system </li></ul><ul><li>Promotion </li></ul><ul><li>Advertising </li></ul><ul><li>Advantage </li></ul><ul><li>programmes </li></ul><ul><li>Travel agent </li></ul><ul><li>programmes </li></ul><ul><li>Group sales </li></ul><ul><li>Lost baggage services </li></ul><ul><li>Complaint follow - up </li></ul>
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