BUSINESSPROCESSREENGINEERING“An organizational make-over”“Reengineering is new, and it has to be done.”Peter F. DruckerBY-KAVINDRA
INTRODUCTION
BPR is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.				(Hammer & Champy, 1993)What is BPR?
SupplierCustomerInputOutputActivityActivityActivityProcessWhat is Process?Definition of ProcessA process is a cross-functional interrelated series of activities that convert business inputs into business outputs
What is a Business Process?A group of logically related tasks that use the firm's resources  to provide customer-oriented results in support of the organization's objectives
REQUIREMENTOFBPR
CustomersDemandingSophisticationChanging NeedsCompetitionLocalGlobalWhy Reengineer?
ChangeTechnologyCustomer PreferencesWhy Reengineer?
WHY REENGINEERING?ComplacencyResistanceNew DevelopmentsFear of Failure
WHAT DOES IT SEEK?BPR seeks CostQualityServiceSpeed, improvements
BEFORE THE USE OFBPR
Whatdoes thecustomer need?, operations are necessary? Can some operations be eliminated, combined, or simplified?….Whois performing the job? Can the operation be redesigned to use less skill or less labor? Can operations be combined to enrich jobs? ….Whereis each operation conducted?  Can layout be improved? ….Whenis each operation performed?  Is there excessive delay or storage? Are some operations creating bottlenecks? …..Howis the operation done? Can better methods, procedures, or equipment be used? ….Method Study Questions for Process Analysis
CHARACTERSTICSRadical ImprovementIntegrated ChangePeople CentredFocus on End-CustomersProcess-Based
SustainableProcess improvements need to become firmly rooted within the organizationStepped ApproachProcess improvements will not happen over night they need to be gradually introducedAlso assists the acceptance by staff of the changeRadical Improvement
Viable SolutionsProcess improvements must be viable and practicalBalanced ImprovementsProcess improvements must be realisticIntegrated Change
Business UnderstandingEmpowerment & ParticipationOrganizational CulturePeople-Centred
Added ValueBPR Initiatives must add-value over and above the existing processCustomer-Led BPR Initiatives must meet the needs of the customerProcess Based
Focus on End-CustomersProcess improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
ImplementingABPR  Strategy
Key StepsSelect The Process & Appoint Process TeamUnderstand The Current Process Develop & Communicate Vision Of Improved ProcessIdentify Action PlanExecute Plan
Two Crucial TasksSelect The Process to be ReengineeredAppoint the Process Team to Lead the Reengineering InitiativeSelect the Process & Appoint Process Team
Review Business Strategy and Customer RequirementsSelect Core ProcessesUnderstand Customer NeedsDon’t Assume AnythingSelect the Process
Select Correct Path for ChangeRemember Assumptions can Hide FailuresCompetition and Choice to Go ElsewhereAsk - Questionnaires, Meetings, Focus GroupsSelect the Process
Appoint BPR ChampionIdentify Process OwnersEstablish Executive Improvement TeamProvide Training to Executive TeamAppoint the Process Team
Capacity to view the organization as a wholeAbility to focus on end-customersAbility to challenge fundamental assumptionsCourage to deliver and venture into unknown areasCore Skills Required
Core Skills RequiredAbility to assume individual and collective responsibilityEmploy ‘Bridge Builders’
Used to generate internal capacityAppropriate when a implementation is needed quicklyEnsure that adequate consultation is sought from staff so that the initiative is organization-led and not consultant-drivenControl should never be handed over to the consultantUse of Consultants
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) Understand the Current Process
Clearly Identify Improvement OpportunitiesQualityReworkDocument the ProcessCostTime Value DataUnderstand the Current Process
Communicate with all employees so that they are aware of the vision of the futureAlways provide information on the progress of the BPR initiative - good and bad.Demonstrate assurance that the BPR initiative is both necessary and properly managedDevelop & Communicate Vision of Improved Process
Promote individual development by indicating options that are availableIndicate actions required and those responsibleTackle any actions that need resolutionDirect communication to reinforce new patterns of desired behaviorDevelop & Communicate Vision of Improved Process
Develop an Improvement PlanAppoint Process OwnersSimplify the Process to Reduce Process TimeRemove any Bureaucracy that may hinder implementationIdentify Action Plan
Remove no-value-added activitiesStandardize Process and Automate Where PossibleUp-grade EquipmentPlan/schedule the changesIdentify Action Plan
Qualify/certify the processPerform periodic qualification reviewsDefine and eliminate process problemsEvaluate the change impact on the business and on customersBenchmark the processProvide advanced team trainingExecute Plan
BPRChallenges

Business process reengineering