BUSINESS PROCESS RE- ENGINEERING For dramatic improvement
What is Re-engineering?• The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as Cost,Quality,Service and Speed.
Why Re-engineering?• It is focused on break through improvement to dramatically improve the quality and speed of work and to reduce its cost by fundamentally changing the processes by which work gets done.
History and development of Business Process Reengineering• Manufacturer’s made significant improvement in their internal operations during 1980s.• Excellence in Manufacturing has not always translated to superior sustainable results in the market place.• In 1990 two Americans ,James Champy and Michel Hammer presented the idea of BPR in their book “ Reengineering the Corporations" published in 1993.
Principles of Re-engineering• Organize around outcomes, Not tasks• Have those who use the output of the process perform the process• Merge information processing work into real work that produces the information• Treat Geographically dispersed resources as though they work Centralized• Link parallel activities instead of integrating their results• Put the decision point where the work is performed and build control into the process• Capture information once – at the source
Application of Re-engineering• Develop business vision and process objectives• Identify the processes to be re-designed• Understand and measure existing processes• Identify information Technology levels• Design and build a prototype of the process
Basic phases of re-engineering• Rethink• Redesign• Retool
Requirement of Re-engineering Processes• Critical processes• Strong leadership• Cross-functional teams• Information Technology• Clean slate Philosophy• Process Analysis
Salient features for Re-engineering in Service Industry• Make the Customer the starting point for Change• Design work processes in light of Organizational Goals• Restructure to support front line performance
Impact of Re-engineering on Service Industry• The Human Dimension• The work process dimension• The Technology dimension
Steps for implementation of Re- engineering Process• State a case for action• Identify the process for Re-engineering• Evaluate enablers for reengineering• Understand the current process• Create a new process design• Implement the reengineered process
Process Redesign Tools and Techniques• Inductive thinking• Flowcharting• Creative Process redesign• Process Benchmarking• Simulation• Reengineering Software
Approaches to Integrating processimprovement and Re-engineering activities• Sequencing change initiatives• Creating a portfolio of process change programme• Limiting the scope of work design• Undertaking improvement through innovation
Integrating Reengineering & Process Improvement• Sequencing Change initiatives suggests Cycling through process stabilization, Process reengineering and Continuous Improvement• Creating a Portfolio of Process change programmes involving categorization of all Processes and Sub-processes
Integrating Reengineering & Process Improvement(Contd)• Limiting the scope of work design in which high level processes are designed by the responsible reengineering teams and the workers design the detail work process.• Undertake Improvement through innovation
Benefits of Reengineering• By Reengineering, an Organization can achieve radical improvement in performance like Cost,Quality,Cycle time• It boosts Competitiveness through leaner and more productive processes• Reengineering encourages revolutionary thinking in an Organization• Reengineering encourages abandoning of Conventional approaches in favor of problem solving
Benefits of Reengineering(Contd)• Reengineering promotes break-through improvements• Reengineering transform a rule driven, job centered Organization to Customer focused Organization• Reengineering generally results in radically new Organization designs that helps Companies to respond well to Competitive pressure
Benefits of Reengineering(Contd)• Reengineering helps to radically change the Corporate Culture• Reengineering encourages workers at all level to make their suggestion for improvement• Reengineering helps to create more Challenging and more rewarding jobs for employees
Beyond Business Process Reengineering• HOLONIC BUSINESS SYSTEM allows business continuously to de-invent and re- invent themselves as they face increasingly ambiguous markets• A holonic network is a set of companies that acts integrated and organically, it is constantly configured to manage each business opportunity a customer presents.
Beyond Business Process Reengineering(Contd)• Holonic Business System is market and opportunity driven and Customer focused• Continuous improvement occurs at the network level
Types of Holonic Networks• Vertical Networks• Horizontal Networks• Regional Networks• Out of necessity Networks• Self promoted Networks
Advantage of Holonic Business System• Leverage• Speed• Flexibility• Shared Risk• Independence• Faster Growth
Advantage of Holonic Business System(Contd)• Increased Profits• Sustainable Customers• Less Capital required• Quick failure recognition• Increased ability to deal with inevitable change