Bpr 03 Process Re Design


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Business process reengineering

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Bpr 03 Process Re Design

  1. 1. Business Process Re-engineering 03 – Process Re-Design & Process Improvement
  2. 2. <ul><li>Beginning Process Re-Design </li></ul>
  3. 3. Process Re-design <ul><li>Two approaches to BPR: </li></ul><ul><li>Systematic re-design </li></ul><ul><ul><li>identify / understand the existing process </li></ul></ul><ul><ul><li>It is reviewing current processes and then making the relevant improvements </li></ul></ul><ul><li>Clean sheet approach </li></ul><ul><ul><li>Rethinking the way the product / service is delivered and design a new process from the start </li></ul></ul><ul><ul><li>It is like demolishing an old building and rebuilding instead of patching it up. </li></ul></ul>
  4. 4. Defining processes <ul><li>A simple way to begin defining processes: </li></ul><ul><li>Identify a set of processes </li></ul><ul><li>- executives work back from their own responsibilities (they know their work processes best) </li></ul><ul><li>Rationale to establish main processes </li></ul><ul><li>- identify major and minor processes </li></ul><ul><li>- categorise processes as innovation, delivery and infrastructure </li></ul><ul><li>- group related processes together </li></ul><ul><li>Define process boundaries </li></ul><ul><li>- what is the process owner’s control? </li></ul><ul><li>- where is the process customer’s involvement? </li></ul>
  5. 5. Guidelines for selecting processes <ul><li>Processes selected for re-engineering should be: </li></ul><ul><li>Major contributors to core competencies (key processes for e.g. marketing & sales) </li></ul><ul><li>Ready for change – at an acceptable level of risk (some processes may take a very long time for change) </li></ul><ul><li>Able to produce early successes (early hits) </li></ul><ul><li>Interrelated with other processes (across functions or departments) </li></ul>
  6. 6. Definition of Visualisation <ul><li>To enable radical changes and dramatic improvements to processes: </li></ul><ul><li>Visualisation is: </li></ul><ul><ul><li>moving a process from an ‘As-is’ state to a ‘To-be’ state </li></ul></ul><ul><ul><li>the creative process of developing achievable visions of the ‘To-be’ state </li></ul></ul><ul><li>Visualisation involves: </li></ul><ul><ul><li>understanding what others do well </li></ul></ul><ul><ul><li>deciding attainable but tough improvement targets (“stretch goals”) </li></ul></ul><ul><ul><li>thinking ahead of the competition to achieve the competitive “edge” </li></ul></ul><ul><ul><li>a high level design to pragmatic solutions for the current business state </li></ul></ul>
  7. 7. Process Redesign Issues <ul><li>Some of the issues related to redesign include: </li></ul><ul><li>Motivation – lack of motivation to enable redesign to processes </li></ul><ul><li>Attitude – there may be resistance </li></ul><ul><li>Knowledge – not all may have information on the processes </li></ul><ul><li>Creativity – lack of creative ideas </li></ul><ul><li>Innovation – not easy and challenging; thinking ‘out of the box’ </li></ul>
  8. 8. <ul><li>BPR Project Structure </li></ul><ul><li>& </li></ul><ul><li>Methodology </li></ul>
  9. 9. BPR Project Structure Strategy Analysis Visualisation Deployment Continuous Improvement Insight Invent Implement Develop full understanding of current situation Invent new ways of achieving business objectives Transition from current situation to new ways Optimise performance Stages to a BPR Project
  10. 10. Strategy Strategy Deliver: BPR plan Scope and plan Interviews & Surveys Develop Assessment Insight Stages to a BPR Project
  11. 11. Analysis Analysis Deliver: Comprehensive understanding Quick hits Current Process Problems: Assumptions Metrics Tools and Techniques Baseline of current operations Insight Stages to a BPR Project
  12. 12. Visualisation Visualisation Deliver: Implementable processes to meet objectives Business case Benchmarks; BestPractice Stretch goals Invent new processes Tools and Techniques Evaluate options Invent Stages to a BPR Project
  13. 13. Deployment Deployment Deliver: Implementable processes to meet objectives Business case Process design Deployment plan Implement new IT Staff - training & organisation IT Strategy Implement Stages to a BPR Project
  14. 14. Continuous improvement Implement Continuous Improvement Performance measurement Fine tune new processes TQM Deliver: Optimised processes; Measured improvement Stages to a BPR Project
  15. 15. BPR Methodology <ul><li>Generic Methodology </li></ul><ul><li>1. Create a Reengineering Framework </li></ul><ul><li>to build a comprehensive foundation and framework for the entire process reengineering change effort that will create the required focus, direction, and motivation necessary to sustain itself. </li></ul><ul><li>2. Identify Customers and Determine Needs </li></ul><ul><li>to develop a concrete and comprehensive understanding of the customers of the targeted process, and their needs and wants, that will result in a redesigned business process that clearly provides added value to the customer. </li></ul>
  16. 16. <ul><li>3. Map the Existing Process </li></ul><ul><li>to gain an understanding of the &quot;what&quot; and &quot;why&quot; of the targeted process that will reinforce the need for significant change and provide a basis for the redesign step. </li></ul><ul><li>4. Measure Process Performance </li></ul><ul><li>to gain the needed performance understanding of the targeted process through the collection of appropriate and relevant data, and to translate the data into redesign goals </li></ul>BPR Methodology
  17. 17. BPR Methodology <ul><ul><li>Davenport & Short </li></ul></ul><ul><li>Identify processes for innovation </li></ul><ul><li>Identifying change levers (enabling or transformation technologies) </li></ul><ul><li>Developing process vision </li></ul><ul><li>Understanding and improving existing process </li></ul><ul><li>Designing and prototyping the new process </li></ul>
  18. 18. BPR Methodology <ul><ul><li>Hammer & Champy </li></ul></ul><ul><ul><li>Identify the core process using process mapping. </li></ul></ul><ul><ul><li>Identify process requiring reengineering </li></ul></ul><ul><ul><li>High level understanding of the current process from a customer perspective </li></ul></ul><ul><ul><li>Process redesign using the following principles (Hammer 1990): </li></ul></ul><ul><ul><ul><li>Organize around outcomes not task </li></ul></ul></ul><ul><ul><ul><li>Have those who use the output of the process perform the process </li></ul></ul></ul><ul><ul><ul><li>Subsume information-processes work into the real work that produces the information </li></ul></ul></ul><ul><ul><ul><li>Treat geographically dispersed resources as though they were centralized </li></ul></ul></ul><ul><ul><ul><li>Link parallel activities instead of integrating their results </li></ul></ul></ul><ul><ul><ul><li>Put the decision point where the work is performed and build control into the process </li></ul></ul></ul><ul><ul><ul><li>Capture information once and at the source. </li></ul></ul></ul>
  19. 19. <ul><li>Barriers to BPR </li></ul>
  20. 20. <ul><li>Potential barriers </li></ul><ul><ul><li>Hard implementation </li></ul></ul><ul><ul><li>Soft implementation </li></ul></ul><ul><li>Potential causes of barriers </li></ul><ul><ul><li>project </li></ul></ul><ul><ul><li>people </li></ul></ul><ul><ul><li>organisation </li></ul></ul><ul><ul><li>environments </li></ul></ul>Barriers to BPR
  21. 21. Barriers to BPR