This presentation gives a brief about business process reengineering ,the different approaches and models available for re-engineering

1. Business Process Reengineering: A
Consolidated Approach to Different
Models
Adopted from :Business Process
Reengineering
by Sanjay Mohapatra

2. OUTLINE OF PRESENTATION
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● Understanding
Business Process
Reengineering
● Reengineering
Vision
● Principles of
Reengineering
● Consolidated
Framework
● Conclusion
● Background
● Introduction
● Office Process Reengineering
and Change Management
● History and Development of
Business Process
Reengineering
● What is Business Process
Reengineering?

3. Background
 The concept of business process reengineering finds its roots to at least a
decade ago when the success of techniques of Just-In-Time inventory and
process focus employed by Japanese organizations were recognized and
appreciated.
 The concept of Quality Circles came into existence which held separate
work cells responsible for the work rather than departments.
 Thus, due to such decentralized quality control, better customer service could
be provided as well as multiskilled work could be performed.
 This reduced costs as well as made the quality control tasks dynamic and
achieve customer satisfaction.
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4. “Reengineering Work: Don’t
Automate Obliterate
-Thomas Davenport
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5. Introduction
 In today’s world ,three Cs have become very important for
organizations: Cutomer,Competition and Change.
 Business Process Reengineering is a kind of solution based on the latter.
 Reengineering refers to the fundamental rethinking and radical redesign of
business processes to achieve rapid improvements in terms of
cost,quality,responsiveness and service.
 A business process is a series of steps which if implemented lead to a product
or service ,through which organization's endeavor to add value for the customers
both internal and external can be achieved provided the process is viewed as a
whole rather than as an individual department.

6. ● Process Mapping is the technique used for
identifying the current As-Is processes and
can be used to provide To-Be processes
after reengineering.
● The choice of the processes to be
reengineering is based on the following
criteria
 Dysfunction: Identifying the processes
that are functioning the worst.
 Importance: Identifying the most
critical and influential processes on the
basis of customer satisfaction.
 Feasibility: Identifying the processes
that are most likely to be reengineering
successfully.
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7. Office Process Reengineering and
Change Management
 Traditionally ,businesses are divide into divisions and departments. Each
division is responsible for certain product lines, services and other sets of
responsibilities.
 Within these departments, different tasks can be identified, which are performed
by certain employees.
 This concept was built for almost two centuries on the principles of Adam
Smith’s insight about fragmenting the work into its component’s tasks.
 Several highly specialised workers performing single elementary tasks would
produce more efficiently than the same no.of generalists each engaged in whole
work.
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8. The Problem Traditional Businesses
Experience
 Many organisations are not customer
focussed
 Organisations provided
products/services to customers, but
not solutions to their problems.
 Every employee is interested in
his/her part of the responsibility
which includes individual tasks.
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9.  Too much time and resources spent on non-value added activities
 Michael Hammer classifies activities into three types:
■ Value-adding work or the work for which the customer is
willing to pay.
■ Non-value adding work, which creates no value for the
customer but is required in order to get the value-adding work
done.
■ Waste or work that neither adds nor enables value.
 The reason why employees are unable to solve problems is because
they apply task solutions to process problems.
 Customer service contains errors not because people perform
individual tasks inaccurately, but because people misunderstand each
other while performing one task after another.
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10. Change Management
 The change management process is the sequence of steps or activities
that a change management team or project leader would follow to apply
change management to a project or change.
 Based on Prosci’s research of the most effective and commonly
applied change, most change management processes contain the
following three phases:
 Phase 1-Preparing for the Change
 Phase 2-Managing Change
 Phase 3-Reinforcing Change
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11. History and Development of
Business Process Reengineering
 The beginning of business process goes back at least a decade, when
Western companies realised why the Japanese used the concept of processes
together with Just-In-Time principle.
 By applying these principles, the lead times had been reduced dramatically
and the customer received a much better service.
 As a result of the success achieved by Japanese manufacturing companies,
organisations elsewhere started to show an interest in these innovative
techniques.
 In the later half of 1980s and early 1990s companies in the United States of
America introduced Business Process Reengineering programs to improve
performance .
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12. What is Business Process
Reengineering?
“Reengineering is the
fundamental rethinking and
radical redesign of business
processes to achieve dramatic
improvement in critical
,contemporary measures of
performance such as
cost,quality,service and speed” .
-Hammer and Champy
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13.  From the other definitions available ,the following key elements are
identified as essential for business process reengineering
 A radical change.
 Change in orientation.
 Redesign business processes.
 Change organisational structure.
 Technological improvements.
 The objective is the improvement of customer service and reduction of
costs.
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14. Understanding Business
Process Reengineering
 BPR relies on a different school of thought rather than continuous process
improvement.
 It assumes the current process is irrelevant and starts over a clean slate approach.
 Such an approach is depicted below which is called the Breakthrough
Reengineering Model
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Project Scope
Learn
from
others
Create To-
Be
process
Plan transition Implement

15. Hammer and Jacobson described a few common
trends on how to restructure the business, which
are discussed below:
 Processes replace individual tasks and
departments
 Complex jobs and simple processes replace
simple jobs and complex processes
 Work in teams
 A process owner replaces the manager
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16. BPR is based on a horizontally structured enterprise organized around key business
processes. The following are the features of the BPR vision:
● Shared information
Information must be maintained,managed,and made available when it is needed
for critical decision making.
● Mission support
When business processes are redesigned they should strengthen the mission
support. Those that do not add value to mission achievement should be eliminated.
● Functional Leadership & Reduced Costs
The need for executive-level leadership and commitment to the process is very
essential for the successful reengineering vision.
Activities that increase the cost of doing business but provide no benefits to
stakeholders are to be reduced or eliminated.
Reengineering Vision
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17. Principles of Reengineering
 Organising around outcomes not tasks.
 Identifying and prioritising processes in
organisation on the basis of urgency.
 Capturing information at source.
 Information processing and integrating all
data for the organisation’s data
warehouse.
 Removing non-value-added activities and
undertaking parallel activities for better
customer service
 Linking parallel activities rather than
just pipelining the results.
 Avoiding over-sophistication
 Considering geographically diverse
resources
 TQM and BPR as natural
components must be identified as a
strength.
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18. Consolidated Framework
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The process of BPR can be mapped under five major methodologies or stages
Preparation
for
reengineering
Map and
analyze As-Is
process
Design to-be
process
Implement
reengineered
process
Improve
process
continuously

19. Different Reengineering
Methodologies
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The Hammer/Champy methodology
Introduction to
Business
Reengineering
Identification of
Business Process
Selection of
Business
Processes
Understanding the
Selected Processes
Redesign of
Selected Processes
Implementation
of Redesigned
Processes

20. The Davenport Methodology
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Visioning
and goal
setting
Identification
of business
processes
Understand
& measure
processes
Information
technology
Process
prototype

21. Andrews and Stalick Methodology
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Transition made to CPI environment
Implement Redesign
Approval of Implementation
Implementing the Plan
Proof of Concept
Redesign of Business Operations
Create Vision, Values and Goals
Frame the Project

22. Kodak Methodology
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Project Initiation
Process Understanding
New Process Design
Business Transition
Change Management

23. The Manganeli/Klein Methodology
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Preparation Identification Vision Redesign Transformation

24. The Conceptual Model
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Leadership
Team
Listen to
Voice of
Customer
Develop a
Strategic
Vision for the
Organization
Establish
Improvement
Objectives
Defining
Metrics for
Measuring the
Objectives
Communicate
the Need for
Change
Create a
Cross-
functional
Design Team
Understanding
of the Need for
Change
Basic
Understanding of
Process
Structured
Approach to
Develop
Redesign
Alternatives
Develop an
Implementati
on Plan
Develop a
Continuous
Improvement
Plan for the
Processes

25. Selecting methodologies for Process
Reengineering RTI
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The recommended approach fro a business process reengineering project includes the
following phases
Project
Planning and
launch
Current state
assessment
and learning
from others
Solution design
Business case
development
Solution
development
Implementation
Continuous
improvement

26. Benefits of Reengineering
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The rewards of reengineering are many including
• Empowering employees.
• Eliminating waste, unnecessary management overhead and obsolete or inefficient
processes.
• Producing often significant reductions in cost and cycle times.
• Enabling revolutionary improvements in many business processes are measured by
quality and customer service.
• Helping top organisations stay on top and low achievers to become effective
competitors.

27. Critical success factors for ensuring
reengineering success
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28. Critical success factors for ensuring
reengineering success
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29. Summary
● Business Process Reengineering is a powerful approach to
bring in extraordinary improvements in the output of an
organization.
● This is achieved through radical changes in the processes
which are keys to the success of the firm.
● The history of reengineering, reengineering vision, the
principles of reengineering are discussed.
● Different reengineering methodologies and the critical
success factors which ensure reengineering success are
also described.
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30. “Reengineering eliminates
work, not jobs or people"
-Michael Hammer
THANK YOU!
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