This document provides an overview of business process reengineering (BPR). It discusses BPR as fundamentally rethinking and redesigning processes to dramatically improve performance metrics like cost, quality and speed. Six key principles of BPR are outlined, along with the typical steps of selecting processes and teams, understanding the current process, developing a new vision, identifying an action plan, and executing that plan. Phases of a BPR project and examples of organizations that have implemented BPR are also summarized.

1. BUSINESS PROCESS
REENGINEERING
“An organizational make-over”
“Reengineering is new, and it has to be done.”
Presented by
S.Esther Shilpa
Peter F. Drucker

3. Business Process Re-engineering
(BPR) is basically rethinking and radically
redesigning an organization's existing
resources to achieve dramatic
improvements in critical, contemporary
measures of performance, such as cost,
quality, service, and speed.

4. PRINCIPLES
OF BPR

5. PRINCIPLES
Six principles for redesigning business
processes:
1. Organize business processes around
outcomes, not tasks
2. Assign those who use the output to
perform the process
3. Integrate information processing into the
work that produces the information

6. 4. Create a virtual enterprise by treating
geographically distributed resources as
though they were centralized
5. Link parallel activities instead of
integrating their results
6. Have the people who do the work make
all the decisions, and let controls built
into the system monitor the process

7. STEPS IN
IMPLEMENTING
BPR

8. Key Steps
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of Improved Process
Identify Action Plan
Execute Plan

9. Select the Process & Appoint Process
Team
• Two Crucial Tasks
– Select The Process to be Reengineered
– Appoint the Process Team to Lead the
Reengineering Initiative

10. Selecting the Process
• Review Business Strategy and Customer
Requirements
• Select Core Processes
• Understand Customer Needs
• Don’t Assume Anything
• Select Correct Path for Change
• Remember Assumptions can Hide Failures
• Competition and Choice to Go Elsewhere
• Ask - Questionnaires, Meetings, Focus Groups

11. Appoint the Process Team
• Appoint BPR Champion
• Identify Process Owners
• Establish Executive Improvement Team
• Provide Training to Executive Team

12. Understand the Current Process
• Develop a Process Overview
• Clearly define the process
– Mission
– Scope
– Boundaries
• Set business and customer measurements
• Understand customers expectations from the
process (staff including process team)
• Clearly Identify Improvement Opportunities
– Quality
– Rework

13. Understand the Current Process
• Document the Process
– Cost
– Time
– Value Data
• Carefully resolve any inconsistencies
– Existing -- New Process
– Ideal -- Realistic Process

14. Develop & Communicate Vision of
Improved Process
• Communicate with all employees so that they
are aware of the vision of the future
• Always provide information on the progress of
the BPR initiative - good and bad.
• Demonstrate assurance that the BPR initiative is
both necessary and properly managed

15. Develop & Communicate Vision of
Improved Process
• Promote individual development by indicating
options that are available
• Indicate actions required and those responsible
• Tackle any actions that need resolution
• Direct communication to reinforce new patterns
of desired behavior

16. Identify Action Plan
• Develop an Improvement Plan
• Appoint Process Owners
• Simplify the Process to Reduce Process
Time
• Remove any Bureaucracy that may hinder
implementation
• Remove no-value-added activities
• Standardize Process and Automate
Where Possible

17. Identify Action Plan
• Up-grade Equipment
• Plan/schedule the changes
• Construct in-house metrics and targets
• Introduce and firmly establish a feedback
system
• Audit, Audit, Audit

18. Execute Plan
• Qualify/certify the process
• Perform periodic qualification reviews
• Define and eliminate process problems
• Evaluate the change impact on the
business and on customers
• Benchmark the process
• Provide advanced team training

19. Four Key Words for Reengineering
• Fundamental
• Radical
• Dramatic
• Process

20. Fundamental
• Why do we do what we do?
• Why do we do it the way we do?
• Reengineering begins with no
assumptions and no givens.
• It ignores what is and concentrates on
what should be.

21. Radical
• Getting to the root of things: not making
superficial changes or fiddling with what is
already in place
• Disregarding all existing structures and
procedures and inventing completely new
ways of accomplishing work.
• Throwing away the old. Business
reinvention.

22. Dramatic
Dramatic improvement demands blowing up
the old and replacing it with something
new

23. Process
• Collection of activities that takes one or
more kinds of input and creates an output
that is of value to the customer.

24. PHASES OF
BPR

25. Phases of BPR
Phase 1
• Trigger:
– Performance problem
– Competitive e-Business move
– Supply chain partner pressure
• Deliberation / Discussion
• Proposal
• Management go-ahead

26. Phase 2
• Project leader
• Core team
• Preliminary assessment of IT-infrastructure around
processes
• BPR Plan & Budget

27. Phase 3
• Process is redesigned
• Performance comparison
– Benchmarking
• Prepare for implementation

28. Phase 4
• Implementation and organization transformation phase
• Introducing and instituting new process
– Org. design changes
– Training
– Political & human problems

29. Phase 5
• Continuous monitoring
• Modified as needed.

30. Why re-engineer ?
• Downsizing / Rightsizing
• Customer satisfaction
• Quality improvement goals
• Functional performance improvement
• Reduce costs
• Increase speed (of service)
• Overcome a competitive threat
• Change of organisational structure

31. AN EXAMPLE

34. APPLICATION
OF BPR

35. APPLICATION OF BPR
• Many public and private sector
organizations and Small / Medium
Enterprises World-wide had undergone
major reengineering efforts.
• First applied to multinational co-operations,
such as IBM, AT&T, SONY,
GENERAL ELECTRIC, WALL MART,
HEWLLET PACKARD, DEC, KRAFT
FOODS having as a result major
downsizing

36. APPLICATION OF BPR
• Later, the Banking sector began to
reengineer with a great degree of success
such as CITIBANK , NORTHWESTERN
BANK, BANK OF AMERICA and others.
• Utility companies used reengineering as
a technique to improve service like OTE
(Our Town Electricity), ELTA.

37. Types of firms / organizations that
BPR can be applied
• BRP could by implemented to all firms
(manufacturing firms, retailers, services,
etc.)
• Public organizations that satisfy the
following criteria:
 Minimum Number of employees: 20.
 Strong management commitment to new
ways of working and innovation.
 Well formed IT infrastructure

38. BPR could be applied to companies that
confront problems
such as the following:
• High operational costs
• Low quality offered to customers
• High level of ''bottleneck" processes at
peak seasons
• Poor performance of middle level
managers
• Inappropriate distribution of resources
and jobs in order to achieve maximum
performance, etc.

39. SUMMARY
• Reengineering is a fundamental rethinking
and redesign of business processes to
achieve dramatic improvements
• BPR has emerged from key management
traditions such as scientific management
and systems thinking

40. Thank You