BUSINESS PROCESS

REENGINEERING

Definition of BPR

• Business Process Reengineering is a redesign and reorganization of business activities that results from questioning the status quo.

Definition of BPR

• It seeks to fulfill specific objectives and can lead to breakthrough improvement.

• It is often associated with significant cultural and technological changes.

5 ELEMENTS

• BPR Focuses on Business Process• BPR requires questioning of the Status Quo• BPR Focuses on Specific Objectives• BPR Focuses on Breakthrough Results• BPR Focuses on Significant Cultural Change

BPR Focuses on Business Process

• Business Process:– Set of inter related work activities

characterized by specific inputs that produce specific Customer Focused Outputs.

• Drawbacks in Classical Representation:– Gaps formation – Sub Optimization

Questioning of the Status Quo

• Lock In Effects– A Lock In occurs when an action is fixed

to such an extent that it continues despite its short comings.

• BPR eliminates Lock In by asking what exits and why it exists?

Specific Objectives

• BPR is a Reverse Design Process.• The operational objectives

are:–Improve quality–Speed of customer service–Enhance Customer supplier relationships

Cont..

• Specific Objective Driven BPR accomplishes two important features:

– The BPR effort remains focused.– Provide measurement benchmarks for

the process.

Breakthrough Results

• Presence of Slack within an Organization.

• Eliminating slack, BPR allows for radical improvements

Significant Cultural Change

• Layoffs and Early Retirements

• Work Rationalization:– No Job Security– Employee Responsible for learning new skills– Being Innovative– Doing more with less

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