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Reengineering….
BPR, Process Innovation, ERP, Mass Customization, Networked
Organization, Empowerment, Teams, Virtual Corporations, TQM, JIT
Supply Chain
Flow of materials, information, and services
Includes organizations and processes
Manage the entire processBusiness Process
Reengineering(BPR)
Reengineering the Corporation
Written - 1993Michael Hammer
– One of 1996 most influential people in the U.S.
Time Magazine July 17,1996
James Champy
What is Reengineering?
“the fundamental rethinking and radical redesign of businessprocesses to achieve dramatic improvements in critical, contemporary measures or performance, such as cost, quality, service, and speed”
p. 32
Reengineering is...
Reversing the Industrial revolution
InnovationProcess Oriented
Re-Inventing
Re-creating
Starting Over from Scratch
Impacts
Increase product by an order of magnitude
Examine process
VisionIncrease Profits
Benefit from better product
Needs are met
Tendency to return
Loyalty
Teams
Less Workers - More Work
Empowered
Layoffs
Company Customers Employees
Why Reengineer
The 3 C’s– Customers– Competition– Change
Nothing is Constant or PredictableChange is the only constant
To reengineer a company is to take a journey from the familiar into the unknown. The journey has to begin somewhere and with someone. Where and with whom?
– P. 101
Keys
Leaders Staff EmpowermentBroader Scope
– Knowledge / SkillsTasks to Process
– Redesign of SystemsInformation TechnologyCommunity
The 3 R’s
Redesign– Cross-function approach
Retool– Information Tools
Reorchestrate– Organization changes
Bell Atlantic’s Experience
The difference is that in a compliance mode I do what I must do because my boss tells me I must do it. In a commitment mode, I understand what the corporation is trying to achieve and how we’re going to achieve it, and I will do whatever it takes to make that happen, including changing the way I do my job if that is what is required
– p. 196/197
BPR
No longer a need to destroy everything - start from scratch
Instead - Flexible approach that can be executed by proven methodologies and principles.
Hammer and Stanton[1995]& Champy [1995]
Process Innovation
Encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions – order-of-magnitude improvements
Davenport (1993)
Process Innovation vs. Incremental Improvement
Change
Effects Involvement
Investment
Orientation Focus
Abrupt, volatile
Immediate Few
champions High initially,
less later Technology Profits
Gradual, constant Long-term From few to
everybody Low initially, high
to sustain People Processes
Process Innov. Incr. Improv.
Networked Organization
Formal Highly Structured Manage Control Direct Employee a cost Information
management owned Risk avoidance Individual
contributions
Informal Loosely Structured Delegate/lead Ownership/participation Empower Employees an asset Information
shared-ownership Risk management Team
contributions
Classical/Hierarchical Networked Organ.
Enabling IT(P. 133)
Information appears in only one place
Only expert can perform complex work
Only managers make decisions
Locate items manually
Shared Database, Inter, Intra
Expert Systems
Decision support systems
Tracking technology
Information appears simultaneously
Novices can perform work
Decision making is part of everyone’s job
Items located automatically
Old Rule Intervene Tech New Rule
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