The document discusses business process management (BPM) and business process reengineering (BPR). It defines BPM as combining quality tools and lean management principles to quickly analyze and improve business process effectiveness and efficiency. BPR is defined as fundamentally rethinking and radically redesigning processes to achieve dramatic improvements in areas like cost, quality and speed. The document also lists the core phases of BPR as beginning organizational change, building a reengineering organization, identifying opportunities, understanding the current process, reengineering the process, blueprinting the new system, and performing the transformation. It notes potential benefits of BPR include increased productivity, reduced costs, improved quality and reduced risks, while potential challenges include major layoffs and lack of management support

1. Aylin Şahin
15.04.2013
Marmara University- Engineering Management
Prof. Dr. Özalp Vayvay

2. • Business Process Management
• The core elements of Business Process Management
• Mayor Factors for BPM
• BPM- Quality Management
• Innovation Point: BPR
• Business Process Reengineering Cycle
• Phases of BPR
• Examples - BPR methodologies from contemporary
literature
• Advantages and Disadvantages of BPR

3. Business Process Management combines the best of
effective quality tools with the principles of Lean
Management to create a quick analysis of key business
processes in order to immediately increase their
effectiveness and efficiency.

4. • To make quick improvements
• To move quickly
• To avoid from expensive and long trainings
• Quick analysis of key business processes
• To increase the effectiveness and efficiency
BPM helps organizations to remain
competitive, innovative, and profitable by identifying a
reduction in their cost and cycle-time while increasing
customer satisfaction levels and delivering standardized
high quality

5. BPM helps organizations to remain competitive, innovative,
and profitable by identifying a reduction in their cost and
cycle-time while increasing customer satisfaction levels
and delivering standardized high quality

6. • Identifying Key Business Processes
Select only key business processes. That is, those process
that have a direct impact on the organization and its
customers. Develop the benchmark against which success
will be measured.

7. • Identifying the Voice of the Customer
Collect this data through your internal and external
feedback mechanisms. This will include surveys and
interviews.
Recognize that customers of each key business process
will likely include both internal and external customers.

8. • Develop the Current Value Stream Map
Use all of the subject matter experts to ensure that you are
able to identify everything that is included in completing
each portion of the key business process. Create a detailed
flowchart of this information. This will identify what is being
done and why.

9. • Measure the Process
Identify the direct costs, people costs, overhead costs and
opportunity costs associated with this business process.

10. • Completing a Root Cause Analysis of the key business
process
Identify all of the blockages and barriers preventing the
business process from immediately reaching its defined
"improvement" requirements.

11. • Developing the Ideal Value Stream
Put aside what you know to be true of the current process
and identify the blockages and barriers to reaching your
defined success measures.
Create the "ideal" process map that will address the root
causes of all identified issues, concerns, problems and
challenges in the current process.

12. • Developing Solutions
Generate a list of possible options and solutions that can
be implemented. Select the best possible options and
solutions, ensuring that these will overcome the root
causes.

13. • Developing the Implementation Plan
Develop a detailed implementation strategy to ensure that
the solutions are successfully realized. Include who needs
to do what, when and with what resources.

14. 1. Productivity increase
2. Cost Reduction
3. Quality Increase
4. Risk Reduction

15. • WHY? / WHEN?
• A shift in the industry
• Improved products or services
• A new pricing strategy
• New product introduction
• Or a favorable change in the competitive landscape
• According to various studies, companies have been able
to reduce process cycle times by 16 percent and
increase worker productivity by 30 percent.

16. • WHAT? / WHY?
• Maturing or commoditized products
• Aggressive pricing by competitors
• Idle or overcapacity/excess inventory
• Increased regulatory requirements
• Functional overlaps, for example, resulting from mergers and
acquisitions
• Studies from leading research groups have revealed that
companies were able to achieve an average of 18
percent year-on-year reduction in costs by focusing on
their business processes.

17. • WHAT?/ WHY?
• Product recalls
• High rework costs or customer complaints
• Risk of losing key customers due to poor service
• Flat or dropping customer satisfaction
• Missed service-level agreements (SLAs)
Studies show elimination of unclear, incorrect, or missing
data and
up to 50 percent reduction of errors

18. • WHAT?/ WHY?
• Restoration of service (meantime to repair)
• New or tightened compliance rules
• Escalation procedures
• According to some surveys, some 68 percent of
respondents indicate reduced risk and cost associated
with compliance.

19. • Does BPM improvement has effects for better Quality?
http://en.q-
bpm.org/mediawiki/index.php/Seven_QC_Tools

20. • Conclusion
It is imperative that organizations start to analyze their key
business processes, using Business Process Management, to
ensure that performance and employee morale is increased.
It is likely that staff is still feeling stressed from the recession of
past years of work and ready to embrace the positive change that
engagement in BPM will ensure.

21. “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.

23. 1. Begin organizational change.
2. Building the reengineering organization
3. Identifying BPR opportunities.
4. Understanding the existing process.
5. Reengineering the process.
6. Blueprint the new business system.
7. Perform the transformation.

24. • Asses the current state of organization.
• Explain the need for change.
• Illustrate the desired state.
• Create the communications campaign for change.

25. • Establish a BPR organizational structure
• Establish the rules for performing BPR
• Choose the personnel who will reengineer.

26. • Identify the core/high level processes.
• Recognize potential change-enablers
• Gather performance metrics within the industry.
• Gather performance metrics outside the industry.
• Select processes that should be reengineered.
• Prioritize selected processes.

27. • Understand why the current steps are being
performed.
• Model the current process.
• Understand how technology is currently used.
• Understand how information is currently used.
• Understand the current organizational structure
• Compare current process with the new
objectives.

28. • Evaluate pre-existing business strategies.
• Consult with customers to know their desires.
• Determine customer‘s actual needs.
• Formulate new process performance objectives.
• Establish key process characteristics.
• Identify potential barriers to implementation.

29. • Ensure the diversity of the reengineering team.
• Question current operating assumptions.
• Brainstorm using change levers.
• Brainstorm using BPR principles.
• Evaluate the impact of new technologies.
• Consider the perspectives of stakeholders.
• Use customer value as the focal point.

30. • Define the new flow of work.
• Model the new process steps.
• Model the new information requirements.
• Document the new organizational structure.
• Describe the new technology specifications.
• Record the new personnel management
systems.
• Describe the new values and culture required.

31. • Develop a migration strategy.
• Create a migration action plan.
• Develop metrics for measuring performance during
implementation.
• Involve the impacted staff.
• Implement in an iterative fashion.
• Establish the new organizational structures.

32. • Assess current skills and capabilities of workforce.
• Map new tasks and skill requirements to staff
• Re-allocate workforce.
• Develop a training curriculum.
• Educate the staff about the new process.
• Educate the staff about the new technology used.
• Educate the management on facilitation skills.
• Decide how the new technologies will be introduced.
• Transition to the new technologies.
• Incorporate process improvement mechanisms

34. • Performance improvement
• Increase in profits
• Increase in productivity
• Better business practices
• Enormous cost reduction
• Speed up business processes
• Improvement in employee satisfaction
• Improvement in quality
• Improvement in customer service
• Profitability

35. • BPR has bad reputation for major layoffs.
• It never change management thinking.
• Lack of management support for the initiative and thus
poor acceptance in organization.
• Exaggerated expectations regarding the benefits of BPR
• Underestimation of resistance to change within
organization.
• Implementation of generic best practices that do not fit
specific company needs.
• Over-trust in technology solutions.

36. is to break away from old ways of working, and effect
radical (not incremental) redesign of processes to achieve
dramatic improvements in critical areas (such as
cost, quality, service, and response time) through the in-
depth use of information technology. Also called business
process redesign.