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OPERATION MANAGEMENT BUSINESS PROCESS REENGINEERING “An organizational make-over” “Reengineering is new, and it has to be done.” Peter F. Drucker 1 21-05-2012 Sayed Soyeb Ali..MA1143 Shambhu Sharma.S MA1140

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OPERATION MANAGEMENTBUSINESS PROCESS REENGINEERING

“An organizational make-over”

“Reengineering is new, and it has to be done.”

Peter F. Drucker

21-05-2012

Sayed Soyeb Ali..MA1143

Shambhu Sharma.S MA1140

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What is BRP ?

Reengineering 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)

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Origins

Scientific Management. FW Taylor (1856-1915).

Frederick Herzberg - Job Enrichment .

Deming et al - Total Quality Management and Kaizen .

In Search of Excellence (Peters and Waterman) .

Value-Added Analysis (Porter).

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Why Reengineer ?

Change Technology Customer Preferences

Customers Demanding Sophistication Changing Needs

Competition Local Global

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Why Organizations Don’t Reengineer?

New Developments

Fear of Unknown and Failure

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Performance

BPR seeks improvements of

Cost

Quality

Service

Speed

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Key Characteristics Systems Philosophy

Global Perspective on Business Processes Radical Improvement

Integrated Change

People Centred

Focus on End-Customers

Process-Based

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BPR Cycle

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Example

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Example

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Rules For Data Symbols

Start

End

Generate Purchase

Order

OK? Yes

No

Symbol used to identify the start of a business process

Activities must be described as a verb

Decisions have only two possibilities (Yes & No)

Crossing lines are not allowed

If one side of the decision has no further processes defined this symbol has to be used21-05-2012

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Rules For Data Symbols

PurchaseOrder

Posting of Bonus

I

A

Continuation symbol within the same number must be present twice on the same page

Name the document

Off- Page Connector is used to continue a process at the next page or to let the process to flow over at the previous to the next page. If more than one is needed use A, B, C, D …

Name the data

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Rules For Data Symbols

Sub-ProcessDelivery

BC 4.04

Predefined Processes always have a relation to level and stream by a number in the line below a sub-process description

A predefined process must be described in a different flowchart. To make the relation clear between the predefined process and the belonging flowchart a unique alpha numeric number should be assigned to this predefined process.

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Implementing a BPR Strategy

Key StepsSelect The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan

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BPR Challenges Common Problems with BPR

Process Simplification is Common - True BPR is Not

Desire to Change Not Strong Enough

Process under review too big or too small

BPR Isolated Activity not Aligned to the Business Objectives

Allocation of Resources

Poor Timing and Planning

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How to Avoid BPR Failure

To avoid failure of the BPR process it is recommended that:

BPR must be accompanied by strategic planning, which addresses leveraging Information technology as a competitive tool.

Place the customer at the centre of the reengineering effort, concentrate on reengineering fragmented processes that lead to delays or other negative impacts on customer service.

BPR must be "owned" throughout the organization, not driven by a group of outside consultants.

Teams must be comprised of both managers as well as those who will actually do the work.

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Continue….. The Information technology group should be an integral

part of the reengineering team from the start. BPR must be sponsored by top executives, who are not

about to leave or retire.

BPR projects must have a timetable, ideally between three to six months, so that the organization is not in a state of "limbo".

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Summary

Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements.

BPR has emerged from key management traditions such as scientific management and systems thinking.

Rules and symbols play an integral part of all BPR initiatives

Don’t assume anything - remember BPR is fundamental rethinking of business processes.

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