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vivek sharma business process reengineering presentation


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vivek sharma business process reengineering presentation

  1. 1. Presented By: Vivek Sharma
  2. 2. What Is BPR ? •The fundamental rethinking and radical redesign of core business processes to achieve dramatic improvements in critical performance measures such as quality, cost, and cycle time. Business Process Reengineering:
  3. 3. • Fundamental implies that everything – every assumption, every reason, every activity – is challenged by asking why it should be continued. The implication is that nothing should be accepted as sacred. Over time, practices that were once required become obsolete and need to be removed. 1. FUNDAMENTAL • Do not try to improve the existing situation, invent completely new ways of accomplishing work. 2. RADICAL
  4. 4. • Do not use business process redesign to obtain marginal improvements, aim at order-of- magnitude improvements (ten times). If the marginal gains – 5 to 10 percent – are the goal, then continuous improvement is a more appropriate path than reengineering. DRAMATIC • Focus on the business processes instead of organizational structures. PROCESS
  5. 5. •It is an automatic, as opposed to human, operation or control of a process, equipment or a system; or the techniques and equipment used to achieve this. Automation •It is the reduction of expenditures in order to become financial stable. Those expenditures could include but are not limited to the total number of employees at a company, retirements, or spin-off companies. Downsizing •Involves paying another company to provide the services a company might otherwise have employed its own staff to perform. Outsourcing is readily seen in the software development sector. Outsourcing •Emphasizes small and measurable refinements to an organization's current processes and systems. Continuous improvements’ origins were derived from total quality management (TQM) and Six Sigma. Continuous improvement
  6. 6. A group of logically related tasks that use the firm's resources to provide customer oriented results in support of the organization's objectives
  7. 7. Marketing & Sales Purchase Production Distribution Accounting CEO Supplier Customer/ Markets Needs Value-added Products/ Services to Customers "Manage the white space on the organization chart!" "We cannot improve or measure the performance of a hierarchical structure. But, we can increase output quality and customer satisfaction, as well as reduce the cost and cycle time of a process to improve it."
  8. 8. Obliterate what you have now and start from scratch. Transform every aspect of your organization.
  9. 9. Which line is shorter and faster? 1 2 3 4
  10. 10. Key Concept: • One queue for multiple service points • Multiple services workstation
  11. 11. Customers CompetitionChange Commitment CooperationCoordination Contribution The 3C’s of organization Re-engineering: The 4C’s of effective teams
  12. 12. Key Steps Execute Plan Identify Action Plan Develop & Communicate Vision Of Improved Process Understand The Current Process Select The Process & Appoint Process Team
  13. 13. Assists the Implementation of Business Processes Enables Product & Service Innovations Improve Operational Efficiency Coordinate Vendors & Customers in the Process Chain Information Technology Business Reengineering Business-pulled Technology-driven
  14. 14. Accounts Payable Process
  15. 15. Accounts Payable Vendor GoodsReceiving Payment Invoice Receiving document Purchasing Purchase order Copy of purchase order PO = Receiving Doc. = Invoice ? ?
  16. 16. More than 500 accounts payable clerks matched purchase order, receiving documents, and invoices and then issued payment. It was slow and cumbersome. Mismatches were common
  17. 17. When goods arrive at the loading dock at Mazda: Use bar-code reader is used to read delivery data. Inventory data are updated. Production schedules may be rescheduled if necessary. Send electronic payment to the supplier.
  18. 18. Accounts Payable Vendor GoodsReceiving Payment Goods received Purchasing Purchase order Purchase order Data base
  19. 19. Reengineer “procurement” instead of AP process. The new process cuts head count in AP by 75%. Invoices are eliminated. Matching is computerized. Accuracy is improved.