The document discusses a case study of business process reengineering (BPR) at BHEL Trichy in India. It describes how BHEL Trichy migrated its ancillary development computer system from a COBOL-based system to an Oracle-based client-server system using BPR. This reduced costs, improved quality, and made information more accessible to users. Common BPR phases like understanding the existing process, reengineering the process, and blueprinting the new system are discussed. The BPR project at BHEL Trichy simplified the system, eliminated redundant steps, and empowered staff.

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1.Continuous Improvement through BPR in Software Development and Usage A CASE ST
UDY N.Vivekananthamoorthy Department of Information Technology KCG College of Te
chnology [email_address] Emerging Trends in Engineering and Technology
2.Introduction Business Process Reengineering means not only change -- but
dramatic change . Wh at constitutes dramatic change is the overhaul of
organizational structures, man agement systems, employee responsibilities and
the use of information technology . It was introduced by Dr.Michael Hammer in
1990s This paper presents the re-engineering work done at BHEL(Trichy) using BPR
strat egy in the software development and maintenance process as a CASE STUDY.
It invo lves migration from COBOL to ORACLE based Client Server system
Successful BPR can result in enormous reductions in cost or cycle time. It can a
lso potentially create substantial improvements in quality, customer service, or
other business objectives 3.What is BPR? "Business Reengineering is 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." -- Dr. Michael Hammer 4.FORD EXAMPLE
Reengineering a new management buzzword. The basic message is Many work flows,
job designs, control mechanisms, and organizational structures are either
superfluous or obsolete and should be completely redesigned. " We should
reengineer our [organizations]; use the power of modern informa tion processing
technology to radically redesign our ... processes in order achi eve dramatic
improvements in their performance.... We cannot achieve breakthroug hs in
performance merely by cutting fat or automating existing processes. Rather we
must challenge the old assumptions and shed old rules. --- Michael Hammer Hammer
illustrates reengineering with the revolution that took place in Ford s sys tem
of accounts payable. In the early 1980 s, Ford s auditors carefully studied acco
unts payable activities and concluded that, by consolidating, by rationalizing p
rocesses, and by installing new computer systems, staff could be cut twenty perc
ent -- from 500 employees to 400. 5.Common Steps in BPR Project Phases Required
For Successful BPR: Phase 1: Begin Organizational Change Phase 2: Build the
Reengineering Organization Phase 3: Identify BPR Opportunities Phase 4:
Understand the Existing Process Phase 5: Reengineer the Process Phase 6:
Blueprint the New Business System Phase 7: Perform the Transformation 6.Phase I
Begin Organizational Change Assess the current state of the organization -
Explain the need for change(Consolidate the problems which can be converted in
to opportunities-Creates potential for trying new technologies) - Illustrate the
desired state - Create a communications campaign for change 7.Phase -2 Build the
Re-engineering Organization Activities Establish a BPR organizational structure
Establish the roles for performing BPR Choose the personnel who will reengineer
8.Phase3 Identify BPR Opportunities Activities - Identify the core/high-level
processes - Recognize potential change enablers - Gather performance metrics
within industry

2. - Gather performance metrics outside industry - Select processes that should be
reengineered - Prioritize selected processes - Evaluate pre-existing business
strategies - Consult with customers for their desires --- Quality,Delivery -
Determine customer's actual needs ---- Sequential Delivery - Formulate new
process performance objectives - Establish key process characteristics 9.Phase4
Understand the existing process Activities Understand why the current steps are
performed - Model the current process - Understand how technology is currently
used COBOL Unix based system - Understand how information is currently used
batch system non interactive text based terminals(NO GUI) - Understand the
current organizational structure(slow to react to customer need s) - Compare
current process with the new objectives cycle time reduction fast in r eacting
to customer needs compettetive in market 10.Phase5 Re-engineer the process
Activities - Ensure the diversity of the reengineering team Top management,User
Group,Devel opers Group) - Question current operating assumptions - Brainstorm
using change levers Selecting the correct technology within Budget - Brainstorm
using BPR principles - Evaluate the impact of new technologies Competetive
Advantage,Cycle time reduc tion,Work life enrichment - Consider the perspectives
of stakeholders Faith in the information system - Use customer value as the
focal point Quality and Delivery 11.BPR Principles Several jobs are combined
into one; Workers make decisions; The steps in a process are performed in a
natural order; Processes have multiple versions; Work is performed where it
makes the most sense(Capture data where it originates Eg BOM from Design Dept);
Checks and controls are reduced; Reconciliation is minimized; A case manager
provides a single point of contact; Hybrid centralized/decentralized operations
are prevalent. -- Dr. Michael Hammer 12.Phase 7 Perform the Transformation
Activities - Develop a migration strategy A project plan - Create a migration
action plan PERT network with important milestones - Develop metrics for
measuring performance during implementation - Involve the impacted staff Consult
Users who are going to use the system - Implement in an iterative fashion -
Building proto types - Establish the new organizational structures - Assess
current skills and capabilities of workforce - Map new tasks and skill
requirements to staff - Re-allocate workforce - Develop a training curriculum
13.Phase 6 Blueprint the new Business System Activities - Define the new flow of
work - Model the new process steps - Model the new information requirements -
Document the new organizational structure

3. - Describe the new technology specifications - Record the new personnel
management systems - Describe the new values and culture required 14.CASE STUDY
Ancilliary Development Computer System BHEL(Trichy ) Hardware set up First
decentralized computer system (PDP11) established in 1986 Unix based
Multiprocessor system introduced in 1990 HCL Magnum Problems faced Existence of
information islands with fragmented systems Cobol based systems was huge and
difficult to maintain User has access to lot of data but he is not getting the
information he wants. Integration exists only in paper. Usage of variety of
software packages in a module Accountability down the line is poor. Currency of
data is poor. Difficult to get adhoc reports and to answer queries 15.CASE STUDY
Ancilliary Development Computer System BHEL(Trichy ) Hardware set up Client
server Technology with RDBMS introduced in 1997 with HP 9000 unix server The
Solution Try Business process reengineering Exploit new software capabilities
Upgrade the computer system to Client Server Technology with RDBMS Oracle
Improve data integration Empower working staff 16.CASE STUDY Ancilliary
Development Computer System BHEL(Trichy ) BPR Objectives Cost Reduction ( Mainly
operating cost can be drastically cut by reducing cycle time of processes and by
eliminating unwanted steps) Time and space shrinkage (Cutting processing time
from weeks to days and elimina ting unwanted intermediate outputs) Quality
enhancement(By eliminating errors,exercizing various controls which beco mes
amenable due to BPR) Work Life enrichment(By eliminating monotonous steps in
jobs by introducing crea tivity and by introducing new things to learn) Profit
improvement 17.CASE STUDY Ancilliary Development Computer System BHEL(Trichy )
Steps in BPR Develop Business Vision and Process objectives Identify processes
to be reengineered Understand and measure existing process 18.CASE STUDY
Ancilliary Development Computer System BHEL(Trichy ) Strategy Study the existing
system(Around 500 COBOL programs and Job Modules with no syst ematic
documentation) Evolve the sytem design from first principles(Then only we can
expect dramatic r esults). Development of Data Model(ER Diagram) after Business
Data Analysis(Mapping from Flat file System to Relational Data Model).
Identification of entities,attributes and relationships and Integrity Constraint
s. Batch to online conversion(COBOL to ORACLE) Eliminate many steps in the
existing system which are unnecessary(Merging tables dealing with same entity
etc) 19.CASE STUDY Ancilliary Development Computer System BHEL(Trichy )
Development of Interactive forms Study For data capture at source and populating
and changing the database conten t(Using front end tool Developer 2000 Many
cobol programs map into a single formThe program logic is converted as triggers
and PL/SQL Procedures) Incorporation of Business Rules

4. Eg Income tax and recovery calculation in Bills(Database triggers and PL/SQL pro
cedures) 20.CASE STUDY Ancilliary Development Computer System BHEL(Trichy )
Development of Interactive forms TRIG Name DCDATE TRIG TRIG Name KEY-NEXT-ITEM
TRIG declare TRIG myrcd varchar2(2); TRIG mm varchar2(2); TRIG yy varchar2(2);
TRIG dd varchar2(2); TRIG yymmdd varchar2(6); TRIG begin TRIG yymmdd :=
to_char(:blk2.dcdate,'yymmdd'); TRIG mm := substr(yymmdd,3,2); TRIG yy
:= substr(yymmdd,1,2); TRIG dd := substr(yymmdd,5,2); TRIG if mm in
( '01','02','03') then TRIG myrcd
:=to_char( to_number(substr(yy,2,1))-1)||substr(yy,2,1); TRIG else TRIG begin
TRIG if yy = '99' then TRIG myrcd := '90'; TRIG end if; TRIG
end; TRIG myrcd := substr(yy,2,1)||to_char(to_number(substr(yy,2,1))+1); TRIG
end if; TRIG :blk2.dcyrcd := myrcd; TRIG NEXT_ITEM; TRIG end; 21.CASE STUDY
Ancilliary Development Computer System BHEL(Trichy ) CASE STUDY An cilliary
Development Computer System BHEL(Trichy ) Trial Assembly 22.CASE STUDY
Ancilliary Development Computer System BHEL(Trichy ) 23.CASE STUDY Ancilliary
Development Computer System BHEL(Trichy) 24.CASE STUDY Ancilliary Development
Computer System BHEL(Trichy ) 25.CASE STUDY Ancilliary Development Computer
System BHEL(Trichy ) Development of Interactive forms 26.CASE STUDY Ancilliary
Development Computer System BHEL(Trichy ) Development of Interactive forms
27.CASE STUDY Ancilliary Development Computer System BHEL(Trichy ) SYSTEM
SIMPLIFICATION AND RE-ENGINEERING THROUGH ORACLE IMPLEMENTATION RE-ENGINEERING
Many computer process and intermediate steps eliminated while migrating from COB
OL to ORACLE Redundant data storage avoided Business Rules rewritten RE-
ENGINEERING EXAMPLES Faster Generation of other area indents due to automatic
area code identificatio n at DU absorption Rate Schedule eligibility check while
loading a supplier On line DC posting, Bill Processing and DCN processing keeps
always AD data curr ent. Acceptance of the bill based on multiple rates Extra
Rate acceptance based on original Vs extra rate schedule matrix Bill error is
corrected if the same is due to DC error by simultaneous attack on error
Terminal date shown in different reports are taken from single source SYSTEM
SIMPLIFICATION Monitoring of critical DUs simplified due to exception reports in
different sort

5. ing order DCN incorporation system simplified due to online implementation of
IOM system Integrated hold up with non match tonnage statement has helped to
identify criti cal items by clearing which maximum matching can be obtained.
Many user friendly enquiries have been developed which provides integrated infor
mation. 28.CASE STUDY Ancilliary Development Computer System BHEL(Trichy )
29.CASE STUDY Ancilliary Development Computer System BHEL(Trichy ) 30.CASE STUDY
Ancilliary Development Computer System BHEL(Trichy ) 31.CASE STUDY Ancilliary
Development Computer System BHEL(Trichy ) Conclusion The computer system
successfully migrated from COBOL to ORACLE using BPR strateg y. Information
islands bridged(Eg DBLINK facilty and distributed database approach) Online
System introduced due to which the information has become current and the same
is easily accessible by all users. People are empowered and life style changed
with job enrichment. (Other examples of BPR are computerized Railway reservation
and Banking operatio ns say easy passbook entry any time) We can cope up with
the shock due to technology change. 32.CASE STUDY Ancilliary Development
Computer System BHEL(Trichy ) References Andrews, Dorine C. and Susan K.
Stalick, Business Reengineering: the Survival Guide , Yourdon Press , 1994.
Davenport, Thomas H., Process Innovation , Boston, MA: Harvard Business School P
ress , 1993. Hall, Gene and Jim Rosenthal and Judy Wade, How to Make
Reengineering Really Wor k , H arvard Business Review, November-December 1993.
Hammer, Michael, Reengineering Work: Don t Automate, Obliterate, Harvard
Business Review, July-August 1990. Hammer, Michael and James Champy,
Reengineering the Corporation , NY: Harper Bus iness, 1993. Harvard Business
School Report, Business Process Reengineering: IT-Enabled Radic al Change , June
1993

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