Business process reengineering

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Business process reengineering

  1. 1. BUSINESSPROCESSREENGINEERING<br />“An organizational make-over”<br />“Reengineering is new, and it has to be done.”<br />Peter F. Drucker<br />BY-KAVINDRA<br />
  2. 2. INTRODUCTION<br />
  3. 3. BPR is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.<br /> (Hammer & Champy, 1993)<br />What is BPR?<br />
  4. 4. Supplier<br />Customer<br />Input<br />Output<br />Activity<br />Activity<br />Activity<br />Process<br />What is Process?<br />Definition of Process<br />A process is a cross-functional interrelated series of activities that convert business inputs into business outputs<br />
  5. 5. What is a Business Process?<br />A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives<br />
  6. 6. REQUIREMENTOFBPR<br />
  7. 7. Customers<br />Demanding<br />Sophistication<br />Changing Needs<br />Competition<br />Local<br />Global<br />Why Reengineer?<br />
  8. 8. Change<br />Technology<br />Customer Preferences<br />Why Reengineer?<br />
  9. 9. WHY REENGINEERING?<br />Complacency<br />Resistance<br />New Developments<br />Fear of Failure<br />
  10. 10. WHAT DOES IT SEEK?<br />BPR seeks <br />Cost<br />Quality<br />Service<br />Speed, improvements<br />
  11. 11. BEFORE THE USE OFBPR<br />
  12. 12. Whatdoes thecustomer need?, operations are necessary? Can some operations be eliminated, combined, or simplified?….<br />Whois performing the job? Can the operation be redesigned to use less skill or less labor? Can operations be combined to enrich jobs? ….<br />Whereis each operation conducted? Can layout be improved? ….<br />Whenis each operation performed? Is there excessive delay or storage? Are some operations creating bottlenecks? …..<br />Howis the operation done? Can better methods, procedures, or equipment be used? ….<br />Method Study Questions for Process Analysis<br />
  13. 13.
  14. 14. CHARACTERSTICS<br />Radical Improvement<br />Integrated Change<br />People Centred<br />Focus on End-Customers<br />Process-Based<br />
  15. 15. Sustainable<br />Process improvements need to become firmly rooted within the organization<br />Stepped Approach<br />Process improvements will not happen over night they need to be gradually introduced<br />Also assists the acceptance by staff of the change<br />Radical Improvement<br />
  16. 16. Viable Solutions<br />Process improvements must be viable and practical<br />Balanced Improvements<br />Process improvements must be realistic<br />Integrated Change<br />
  17. 17. Business Understanding<br />Empowerment & Participation<br />Organizational Culture<br />People-Centred<br />
  18. 18. Added Value<br />BPR Initiatives must add-value over and above the existing process<br />Customer-Led <br />BPR Initiatives must meet the needs of the customer<br />Process Based<br />
  19. 19. Focus on End-Customers<br />Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve<br />
  20. 20. ImplementingABPR Strategy<br />
  21. 21. Key Steps<br />Select The Process & Appoint Process Team<br />Understand The Current Process<br /> Develop & Communicate Vision Of Improved Process<br />Identify Action Plan<br />Execute Plan<br />
  22. 22. Two Crucial Tasks<br />Select The Process to be Reengineered<br />Appoint the Process Team to Lead the Reengineering Initiative<br />Select the Process & Appoint Process Team<br />
  23. 23. Review Business Strategy and Customer Requirements<br />Select Core Processes<br />Understand Customer Needs<br />Don’t Assume Anything<br />Select the Process<br />
  24. 24. Select Correct Path for Change<br />Remember Assumptions can Hide Failures<br />Competition and Choice to Go Elsewhere<br />Ask - Questionnaires, Meetings, Focus Groups<br />Select the Process<br />
  25. 25. Appoint BPR Champion<br />Identify Process Owners<br />Establish Executive Improvement Team<br />Provide Training to Executive Team<br />Appoint the Process Team<br />
  26. 26. Capacity to view the organization as a whole<br />Ability to focus on end-customers<br />Ability to challenge fundamental assumptions<br />Courage to deliver and venture into unknown areas<br />Core Skills Required<br />
  27. 27. Core Skills Required<br />Ability to assume individual and collective responsibility<br />Employ ‘Bridge Builders’<br />
  28. 28. Used to generate internal capacity<br />Appropriate when a implementation is needed quickly<br />Ensure that adequate consultation is sought from staff so that the initiative is organization-led and not consultant-driven<br />Control should never be handed over to the consultant<br />Use of Consultants<br />
  29. 29. <ul><li>Develop a Process Overview
  30. 30. Clearly define the process
  31. 31. Mission
  32. 32. Scope
  33. 33. Boundaries
  34. 34. Set business and customer measurements
  35. 35. Understand customers expectations from the process (staff including process team) </li></ul>Understand the Current Process<br />
  36. 36. Clearly Identify Improvement Opportunities<br />Quality<br />Rework<br />Document the Process<br />Cost<br />Time <br />Value Data<br />Understand the Current Process<br />
  37. 37. Communicate with all employees so that they are aware of the vision of the future<br />Always provide information on the progress of the BPR initiative - good and bad.<br />Demonstrate assurance that the BPR initiative is both necessary and properly managed<br />Develop & Communicate Vision of Improved Process<br />
  38. 38. Promote individual development by indicating options that are available<br />Indicate actions required and those responsible<br />Tackle any actions that need resolution<br />Direct communication to reinforce new patterns of desired behavior<br />Develop & Communicate Vision of Improved Process<br />
  39. 39. Develop an Improvement Plan<br />Appoint Process Owners<br />Simplify the Process to Reduce Process Time<br />Remove any Bureaucracy that may hinder implementation<br />Identify Action Plan<br />
  40. 40. Remove no-value-added activities<br />Standardize Process and Automate Where Possible<br />Up-grade Equipment<br />Plan/schedule the changes<br />Identify Action Plan<br />
  41. 41. Qualify/certify the process<br />Perform periodic qualification reviews<br />Define and eliminate process problems<br />Evaluate the change impact on the business and on customers<br />Benchmark the process<br />Provide advanced team training<br />Execute Plan<br />
  42. 42. BPRChallenges<br />
  43. 43. Process Simplification is Common - True BPR is Not<br />Desire to Change Not Strong Enough<br />Start Point the Existing Process Not a Blank Slate<br />Commitment to Existing Processes Too Strong<br />REMEMBER - “If it ain’t broke …”<br />Quick Fix Approach<br />Common Problems<br />
  44. 44. Process under review too big or too small<br />Reliance on existing process too strong<br />The Costs of the Change Seem Too Large<br />BPR Isolated Activity not Aligned to the Business Objectives<br />Allocation of Resources<br />Poor Timing and Planning<br />Keeping the Team and Organization on Target<br />Common Problems with BPR<br />
  45. 45. ATLAST<br />
  46. 46. Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements<br />BPR has emerged from key management traditions such as scientific management and systems thinking<br />Rules and symbols play an integral part of all BPR initiatives<br />Summary<br />
  47. 47. Business Process Reengineering <br />Current<br />Products/Services<br />Future<br />Products/Services<br />Information<br />Information<br />S<br />T<br />R<br />A<br />T<br />E<br />G<br />I<br />C<br />D<br />I<br />R<br />E<br />C<br />T<br />I<br />O<br />N<br />S<br />Current<br />Business<br />Processes<br />Future<br />Business<br />Processes<br />Technology<br />Technology<br />Skills<br />Skills<br />Current<br /> Environments (AS-IS)<br />Future<br /> Environments (TO-BE)<br />Transition/Implementation (Change Management)<br />
  48. 48. THANKYOU<br />

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