Five Step Methodology To Implement Bpr


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Five Step Methodology To Implement Bpr

  1. 1. Five step Methodology to implement BPR Roy Antony Arnold G Lecturer/CSE Infant Jesus College of Engineering Tuticorin, Tamilnadu, India
  2. 2. Performance Levels of 3 major process:  Customer Orders – Took too long to procure, record and transmit for execution  Customer Service – Was error-prone, time consuming and suffered from stock-out problems.  Customer Feedback – Was not regular, and even when it did take place was done only on sampling basis.
  3. 3. Changes to be made…  Instead of having three points of contact with the customer, namely Sales Executive, the Service and Installation Technician and the Market Researcher, there will be only a Customer Executive who will perform all the functions.  Instead of an expensive and time consuming hierarchy involving branch offices, regional offices and then several layers at the Corporate Office, there will only be Office-Cum- Depots having direct communication with the Marketing Manager at the Corporate Office.  All Customer Executives are being provided with handheld computers which can be used for booking orders, for providing help during installation and service and for recording customer responses and feedback.
  4. 4. This is no longer a choice, it is an imperative for survival
  5. 5. Principles of BPR  Organize around Outcomes, not the task.  Identify all Processes and Prioritize them in order of redesign.  Integrate information processing work into real work that produces the information.  Treat geographically dispersed resources  Link Parallel activities to integrate the results.  Put the decision point where the work is performed, and build the control into the process.  Capture information once and at the source .
  6. 6. Develop and determine process Develop Vision 1 objectives Define the processes to be Define Process reengineered 2 Understanding and measuring the existing Measure Process 3 processes Identifying the IT Levers 4 Identify IT Lever Designing the prototype, 5 implement Prototype
  7. 7. Step – 1: Developing Process Vision and Determining Process Objectives
  8. 8. Step – 1: Developing Process Vision and Determining Process Objectives  The organization should focus on the future competition, products and customer expectations, and the plan model to succeed in the environment.  This first step recognizes following:  Market/Customer driven Business Vision and Goals  Achievement of business vision may involve reengineering of more than one process  Process attributes (cost, quality, time etc.) and process measures (half the cost, in a day etc) need to be derived.  At the end of this step, we would be clear on  What are the key process? (Identification)  How will they reengineered process perform qualitatively and quantitatively? (Vision & Objectives)
  9. 9. 2: Defining the Process to be Reengineered
  10. 10. 2: Defining the Process to be Reengineered  Develop and establish a common understanding of each process across all executives, clerks and workers involved in the execution of the respective processes.  Ask probing questions in order to obtain clarity on what we mean by an order fulfillment process.  Control and ensure the process outcome  Amber alert (x days) to division head for unfilled orders  Red alert (y days) to CEO for unfilled orders  Spare lie in stock for more than z months, red alert to CEO
  11. 11. Order Fulfillment Process Di s Lo trib gi uti st on ic s
  12. 12. Step 2: Contd…  Performance metrics are measured..  Planning – lead time committed for orders, percentage of delayed deliveries  Production – yields and efficiency, capacity utilization  Shipment – Cost of shipment  If no value to customer – No reengineering  This step helps to create an early vision of the reengineered process for the departments covered by the process.
  13. 13. 3: Understanding and Measuring Existing Processes
  14. 14. 3: Understanding and Measuring Existing Processes  Go through a presentation of how the existing system works, and find, whenever possible, the current process measures available.  Otherwise, poor performance levels of the existing process may inhibit us.  Example: 50% of the orders were termed complex or special. It took 12 to 18 weeks to be shipped.  This step forces the enterprise to obtain a common understanding of terms like,  Waiting time, Response time, etc.,  If it is first time, the result of performance measures on the existing system may lead to dissatisfaction.
  15. 15. 4: Identifying IT Levers
  16. 16. 4: Identifying IT Levers  Every effort in reengineering is also an initiative in process improvement.  Reengineering can be differentiated on the basis of two factors: 1. Reengineering should lead to a dramatic improvement in process performance on the selected measures. 2. Reengineering should end up achieving process destruction through effective or innovative deployment of IT.  Need to visualize scenarios where IT could be wisely deployed to drastically simplify the process.  Example: Using bar-code scanners
  17. 17. 5: Designing & Building Prototype
  18. 18. 5: Designing & Building Prototype  In any reengineering activity “Ideas are Acts”.  When the core group of the organization spends valuable time and invaluable thoughts on visualizing the reengineered processes, simultaneously, owners who would construct the reengineered processes are created. This is action.  This final stage of implementation is unique to each organization and project because it involves issues that are multi-dimensional in nature -  Issues relating to managing technology  Changing people’s attitudes and mindsets  Creating new organization structures and  Managing the entire change process
  19. 19. Contd…  It would be difficult for people who were managing the earlier system to adapt themselves to a new “revolutionary way of doing things”.  Prototype prove to be very valuable in working on mindsets as they provide a “learning environment” for people to adapt to the new system.  Prototypes always need tuning, more tuning, and still more tuning and that makes the job of implementation considerably easy and smooth.
  20. 20. BPR Drivers  ICT Developments (info, commu, tech)  Broken Processes.  Local, Global & Faster Competition  Rising overhead costs.  Shorter product life cycles  Stagnant business conditions  Unsatisfied Customers.
  21. 21. Why Organizations Don’t Reengineer?  Complacency( Satisfaction)  Political Resistance  New Developments  Fear of Unknown and Failure
  22. 22. Eight Decision Points in any BPR Project o Do we need to reengineer this business operation? p What is the end vision of the results of our reengineering? e What is the detailed design for our reengineered business operation? e Will our new design for the business operation is suitable? s What is the plan for getting that design implemented? s Should we fund the implementation of the business reengineering design? s Is the implementation going as planned? a Is the reengineered business operation ready to take on responsibility for continuous improvement to the process?
  23. 23. Continuous Process Improvement Model This method for improving business processes is effective to obtain gradual, incremental improvement
  24. 24. Break through Reengineering Model •Defining the scope and objectives of your reengineering project, •Learning process (with your customers, your employees, your competitors and non-competitors, and with new technology). •Create a vision for the future and design new business processes. ("to be" state) •Create a plan of action based on the gap between your current processes, technologies and structures. •Implementing your solution.
  25. 25. Implementing a BPR Strategy Key Steps Select The Process & Appoint Process Team Understand The Current Process Develop & Communicate Vision Of Improved Process Identify Action Plan Execute Plan