The document discusses business process re-engineering and introduces the Business Value Enhancement Methodology (BVEM) as an 11-step approach to successfully implementing business process re-engineering. BVEM aims to reduce failures by capturing stakeholder needs, mapping current and future processes, conducting benchmarking and gap analysis, creating performance metrics, and performing risk analysis. The methodology provides a comprehensive framework to radically redesign processes and achieve dramatic improvements in areas like cost, quality, and speed.

1. ICQRE - 2011
INTERNATIONAL CONFERENCE ON
QUALITY & RELIABILITY
ENGINEERING
Recent Trends & Future Directions
Theme: Quality - New Frontiers
20th December 2011
RE-ENGINEERING BUSINESS PROCESSES – A
WINNING APPROACH TO TRANSFORM
BUSINESSES USING THE BUSINESS VALUE
ENHANCEMENT METHODOLOGY (BVEM)
-Senthil Anantharaman,
-Tata Communications Limited, Chennai.
- senthil.anantharaman@tatacommunications.com

2. “ The fundamental rethinking and
radical redesign of business processes to
achieve dramatic improvements in critical
modern measures of performance, such
as cost, quality, service, and speed”.
Hammer and Champy
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3. INTRODUCTION
 Business Process Re-Engineering
 Goals
 Radically redesign organization’s existing resources.
 Dramatic improvement in Service, Quality and Speed. Change
 Contributes significantly than improving processes.
 Differences from Continuous Process Improvement
 Massive change in contrast to small changes.
 Focus on relations in contrast to parts
 Return on investment
 Better customer satisfaction/lesser complaints
 More net profit
 Less cycle time
 Opportunities for innovation/ produces new opportunities and markets
 Disadvantages
 Lowers employees morale
 Substantial investment in computers and IT
 Reasons for failure in BPR implementations.
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4. BUSINESS VALUE ENHANCEMENT
METHODOLOGY
(BVEM)
A unique 11 stepped comprehensive BPR methodology
Reduces failures in BPR implementations.
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5. 11 STEPS IN BVEM
o 1) Create Process Mission.
o 2) Capture Voice of Stakeholders.
o 3) Create SIPOC.
o 4) Draw As –Is Process Maps.
o 5) Create Measurement System Blue Print.
o 6) Conduct Bench Marking.
o 7) Perform Gap Analysis.
o 8) Create To-Be/Future State Process Maps.
o 9) Create Process Tables.
o 10) Create Dashboards.
o 11) Perform Failure Mode Effects Analysis.
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6. STEP 1 : CREATE PROCESS MISSION
 • Why does this process exist?
 • For whom does it exist?
 • What are our own reasons for setting this process up – what are our drivers?
 • Not the same as Process Goals. Precedes and is more generic than goals but
specific in its scope.
 Characteristics of a good Process Mission
 • Reflects and Represents the values of the Process founders
 • Brief, succinct, but clear
 • Covers “reason why” the process was set up.
 • Specific to what you are delivering
 Ex. Process Mission of a traditional restaurant’s kitchen :
 To be the first choice in our catchment area for home-like food cooked using
traditional recipes and processes.
 From this :
 The Stakeholders will be identified
 The Vision and Goals will be based on how Stakeholders describe their
expectations form
 this process. 6

7. STEP 2 : CAPTURE VOICE OF STAKEHOLDERS
STEP 2.1
•Understanding our stakeholders
•Who are we in business for?
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8. STEP 2 : CAPTURE VOICE OF STAKEHOLDERS(VOS)
 Step 2.2
 Understanding Stakeholder Needs
 How do you understand???
 1.List all Stakeholder groups
 2.List roles/levels within each
 3.List individual representatives
 4.Conduct interview/Record responses
 5.Convert to Expectations/Needs in the QFD.
 6.Brainstorm metrics
 7.Look for measures with high correlation
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9. STEP 3 : SIPOC - TO SCOPE THE CUSTOMERS
VIEW OF THE PROCESS
 Build the SIPOC so it represents the Customer (stake-holder
of the process) view.
 Capture this view formally in defining the Output. The Output
defines the sub processes (components ) in the Process
 The Process then determines the Input. The Output and the
Input are tangible, physical….and have attributes that are then
measured
 The Output coincides with the Start Point.
 The Input coincides with the End Point.
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10. STEP 4 :DRAW AS – IS PROCESS MAPS
•Start with strategic high level L 0’s,
•Proceed to L1’s of each L 0’s
•Proceed to L2’s which are more detailed with activities and
decision boxes
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11. If you can't describe what you are doing as a
process, you don't know what you are doing." -
Deming
"Measurement is the first step that leads to control
and eventually to improvement. If you can't
measure something, you can't understand it. If you
can't understand it, you can't control it. If you can't
control it, you can't improve it."
- H. James Harrington
"Without a standard there is no logical
basis for making a decision or taking
action."
-Joseph M. Juran
What gets measured gets done, what gets
measured and fed back gets done well,
what gets rewarded gets repeated."
- John E. Jones 11

12. STEP 5 : CREATE MEASUREMENT SYSTEM BLUE PRINT
 1.List all metrics/measures
 2. Write out operational definition of the metric
 3. Identify distinct data elements in each metric
 4. For each data element identify certified data source
 5. Determine when the data has to be extracted
 6. Determine the method of collection
 7. Determine the frequency of collection
 8. Determine who will collect
Look to have measures that gives us distributions
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13. STEP 6 : CONDUCT BENCH MARKING
STEPS IN BENCHMARKING
•Select subject
•Define the process
•Identify potential partners
•Identify data sources
•Collect data and select partners
•Determine the gap
•Establish process differences
•Target future performance
•Communicate
•Adjust goal
•Implement
•Review and recalibrate
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14. STEP 7 : PERFORM GAP ANALYSIS
Goals
• Determines the variance between business requirements and
current capabilities
 It identifies gaps between the optimized allocation and integration of
the inputs (resources), and the current allocation level
 How to perform??????
 Decide the topic/subject you are going to perform gap analysis on
For Ex Revenue, Market share etc.
 Identify the As-Is Situation based on attributes.
 Identify the goals over a specific time frame.
 Identify the current gap and where you would want to be in.
 Determine how gap need to be filled …by using 5 M’s.
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15. STEP 8 :CREATE TO –BE PROCESS MAPS
•Implement the corrections from gap analysis, use lean tools like
VSM and create To – be/Future state process maps.
•Start with strategic high level L 0’s,
•Proceed to L1’s of each L 0’s
•Proceed to L2’s which are more detailed with activities and
decision boxes
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16. STEP 9 : CREATE PROCESS TABLES
 PROCESS TABLE AND ITS ELEMENTS
 Key Advantage : Single point of information
 Process/Sub Process Names–Each Process and sub process has its own
documentation. Clear link to the Deployment Flow Charts.
 •Activity id–In the format 1.1.1.1…The number of places corresponds to the number of
levels of drill down.
 •Activity –Description of specific task…taken as is from Deployment flow chart. Verb-
Noun format.
 •TAT –standard time for task.
 •R–the role(s) Responsible for this activity/task.
 •A –the role Accountable –only one and as far down as it will go.
 •C –the role(s) that need to be consulted (two-way).
 •I –the role(s) that need to be informed (one way).
 Input–define at activity level for those activities that need an Input. Develop
format/instructions, link as hyperlinks.
 •Source –where the specific input is obtained from.
 •Output -define at activity level for those activities that need an Output. Develop format/
instructions, link as hyperlinks.
 •Destination-where the specific input is obtained from.
 •KPI –For all input and output points examine if a metric is required to ensure success
of the process. 16

17. STEP 10 : CREATE DASHBOARDS
 Create dashboards of KPI’s obtained in Process
Table.
 Helps to unearth any patterns.
 Future resource for continuous improvement
projects applying lean, six sigma etc.
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18. STEP 11 : PERFORM FMEA
A structured approach to:
•Identify the ways in which a
process can fail to meet critical
customer requirements
•Estimate the risk of specific
causes with regard to these failures
•Evaluate the current control plan
for preventing these failures from
occurring
•Prioritize the actions that should
be taken to improve the process.
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19. BRINGING ABOUT THE BPR TRANSFORMATION
SOME MIGRATION STRATEGIES
 Full cutover to the new process, a phased approach, a pilot
project, or creating an entirely new business unit.
 Integration of the new process(/s) with other processes
 Consciously managing behavioral as well as structural
change, with both sensitivity to employee attitudes and
perceptions, and a tough minded concern for results.
 Use of proper BPM software tool like Case-wise is
prescribed.
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20. BIBLIOGRAPHY
 K.B.Unni, Symposium, Seven Hat Consulting,
Bangalore, India.
 Michael Hammer & James Champy, Re-
Engineering The Corporation.
 Michael Covert, Successfully Performing BPR,
Visible Systems Corporation, MA, USA.
 From Wikipedia, the Free Encyclopedia.
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21. THANK YOU
VIEWERS
AND
SPECIAL THANKS TO
BE TEAM, TATA COMMUNICATIONS LTD.
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