Business Process Re-Engineerin

8/9/2019 Business Process Re-Engineerin

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BUSINESS PROCESS RE ENGINEERING

Q.1. What do you mean by BPR? Explain with suitable examples.

Answer. The Fundamental Rethinking and radical redesign of businessprocesses to achieve dramatic improvement in critical success factors is calledBPR.Factors such as Cost Reduction, Quality Enhancement, Service Improvementand Cycle time Reduction are reengineered.After studying and analyzing the situation and demand designers of thebusinesses bring the changes in their new designs as well as in their currentstructure.Continuous Process improvement and BPR consists of striking differencebetween each other which depends upon the start, magnitude and rate ofresulting changes.

The initial and basic stage for BPR is to define the scope and objectives of re engineering project then have learn from others like customers, employeescompetitors and non competitors, new technologies and try to gain basicknowledge from their analyzation, so that perfect and clear vision is created forthe future and design new business processes.After defining and learning, plan of action can be created by keeping the gapbetween the current processes, technologies and structures and till where tocarry the action. Then finally implementation of the solution can take place.

Eg: -

The BPR is matter of scope project learn from others create to be process plan transition implementation.


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Q.2. Explain the various principles ofBPR in detail.

Answer. BPR is the Fundamental rethinking and radical redesign of businessprocesses to achieve dramatic improvement in critical success factors.BPR possess some Principles of Re Engineering.

Principles ofBPR are as follows: -

1)Organize around outcomes, not tasks: - Allotting one or a team to completethe task is better than using the traditional assembly line approach with manypeople taking many different steps is the basic principle ofBPR.Expected result should always be organized rather than organizing around thetask, perfectly and properly stating precisely the objective to achieve byreengineering and than as per the situation internally organizing the method andactivity to achieve the objective.Eg: - In an automobile company a department for customer ser4vice will look

after the customer demand, fulfilling their desired requirement, taking order anddelivering.

2)How those who use the output of the process to perform the process : -Other principle ofBPR is that, in reengineered system any department managercan make their own purchases which is required for the department using ashared database of approved vendors.This system is better for every department manager as in normal reengineeredsystem if any department manager wants to purchase something then he has togive purchase application to the purchasing department, then it is up to them toapprove it or not.

Thus this system is accordingly better although it contains costly paper work fortraditional purchasing procedures, but it is safe for purchasing and negotiatingwith the sellers.

3) Merge information processing work into the real work that produces theinformation: - Occurrence of error can be comparatively reduced when theinformation processing work is merged into the real work that produces theinformation.When the inspection of goods is carried, then the inspection report should alsobe prepared simultaneously.

4) Treat geographically dispersed resources as though they werecentralized: - Decentralized divisions maintain their own information systemsand this leads to the biggest occurrence of inefficiency.


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5) Link parallel activities during the process, rather than at the end of theprocess: - When manufacturing designs and engineering projects are large andcomplex then it is possible that many different activities are carried out bydifferent teams working together with shared database combine together to getfinal result.

Different advanced technologies and techniques should be used to make theconvenience for interacting with each other.Eg: - Video conferencing network, Tele conferencing network, etc.

6) Put the decision point where the work is performed and build controlinto the process: - The essential and important factor for any decision making isspeed and this is only possible if correct and right representing is done.Employees with complete and proper power cam take decisions with speed.

7) Capture information once at the source: - It is better and time consuming tostore information regarding any product once in different places of database

rather than creating, maintaining and using same information in different places.


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Q.3. Explain the strategic impact of IT on BPR with suitable examples.

Answer. Usage of different types of IT is introduced in BPR for betterment of thebusiness. IT possesses huge impact on BPR.Impacts of IT on BPR are as follows: -

Automational: - This means because of IT every process or level ofmanufacturing and organizing in every business is now becoming automated, allare working with automatic system, which requires less man power and thus dueto this need of human labor in the process are day by day going on decreasingwhich leads to unemployment and poverty.Eg: - When a packaging department of soap company became automated manyworkers were excluded from their work as there was no need of that muchamount of workers employed and they became unemployed.

Informational: - Trying to store the data of process information accordingly andproperly to understand the meaning and purpose of system and process.

Sequential: - This leads to change in the order of process in which it is carriedout. With the help of IT, business are taking place in the new sequence it makethe business comparable.Eg: - In the customer care department of a food company with the help of IT theprocess sequence was changed, it became totally hi tech, all the customercomplain and demand were recorded instantly, etc.

Tracking: - With the help of IT it became easier to look after the work going on inthe BPR. And with the help of this status of process can be closely monitorized.

Analytical: - Study and analyzation of information has improved and can bedone at advanced level. Thus proper and correct analyzation of information leadsto speed and proper decision making.Eg: - With the help of advanced IT system any organization like Nokia, Reliance,etc are able to collect and analyze the information and according to that they taketheir decisions regarding improvement of their product for customers.

Geographical: - To achieve efficiency system are arranged in perfect in perfectand easy way at different places which are at distances in the process.

Integrative: - In BPR process of reengineering and the work to be completed arearranged and coordinated together.


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Intellectual: - The information and the knowledge about the product quality,method, etc gained from the system are stored and arrangements are interferedto get better results.

These are the impact of IT on BPR which are mostly of benefit with the

organization to gain profit.


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Q.4. What are the various BPR methodologies and techniques?

Answer. The Hammer/Champy Methodology: - Hammer Champy define BPRas a fundamental rethinking and radical redesign of mission critical businessprocesses. According to Hammer Champy the big hurdle for successful

implementation ofBPR is the resistance of the peoples.Hammer Champy Methodology consists ofSix Steps:

Introduction into Business Reengineering

Identification of Business Processes

Selection of Business Processes

Understanding the selected Business Processes

Redesign of the selected Business Processes

Implementation of Redesigned Business Processes

The Davenport Methodology: - According to Davenport IT possesses the mostimportant role for innovating Business Process. According to Davenport within abusiness process organizational and Human Resource issues must becentralized and highlighted rather than technology issues and behavior issues.Davenport treated important some traditional management functions likeplanning, directing, monitoring, decision making and communication, formanaging the changes.

Davenport Methodology consists ofSix Steps:

Visioning and goal setting

Identification of Business Processes Understand and measure processes

Information Technology

Process Prototype

Implementation

The Manganelli/Klein Methodology: - As per Manganelli Klein concentrationshould be on Business Processes those directly support the strategic goals of thecompany and customer requirements. Business Processes such as knowledgeprocess which is for product development. According to them organizationalimpact, time, risk and cost cause binder to the progress.

Manganelli Klein Methodology consists ofFive Steps:


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Preparation

Identification

Vision

e design ( technical design, social design)

Transformation

Kodak Methodology: - This methodology is being applied to Kodak facilitiesaround the world.Kodak Methodology has been influenced by the Hammer/Champymethodology.

Kodak Methodology consists ofFive Steps:

Project Initiation

Process understanding

New process design

Business transition

Change Management

Techniques of BPR

1) Indicative Thinking: - This technique is use to point out or bring out theproblem or the system which has to be redesigned. Thus this technique is use tohighlight the change in BPR.

2) Flow Charting: - Through this method problems and systems needed changeare soughted out and are placed in an appropriate group.

3) Creative Process Redesign: - Analyzing the current processes and thendesigning new business processes.

4) Process Benchmarking: - Benchmarking is to form a standard or criterion ofa product and this is carried out when sufficient number of cases are reportedand available for the purpose of comparison of the reengineered processes.

5) Simulation: - After understanding the changes the work of Reengineering isstarted to give a better look.

6) Re engineering Software: - This makes redesigning easy. Through this aperfect plan of action can be generated for Re engineering. BPR is carried outin speed.


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Q.5. Discuss the various steps in BPR implementation in the organizations.

Answer. Steps in BPR implementation in the organizations:

1) First and basic step for implementing the Business Re engineering

Process is to involve or handle the project to the senior managers in theoperational area, who in Process Re engineering projects givesbusiness performance in terms of financial gains as well as customersatisfaction.

2) For the success ofBPR second step is to develop alignment in businessstrategy of the organization and IT strategy of the organization so thatboth strategy should have better relation, these strategy have field ofactivity internally as well as externally.

3) To prepare business case in the next step as business case is the intenseand important as it precisely states the project and its uses for assessingthe outcome of the project to the customers, associates and business

result. It explains the vision and plan for the future and has specificcommitments in terms of objectives to be attained.Business Case states the time and money required for the project and

pay back period for the same.4) Introducing Methodology for Reengineering to the team members is

another step because methodology decides the need of the project, andthis makes team members able to understand every aspect more clearly.So all team members should be trained in methodology.

5) BPR projects create strong impact on processes and organizationalstructure---------------------pg 85

6) With the help of external consultants and selected staff within the

organization, senior management implements Process ReengineeringProcesses. As external consultants are not sufficient and organizationalstaff are involved in execution of the Reengineering. But operational staffare also not sufficient so the end users are used as they contribute theirknowledge of the existing system. They own the solution, which is soughtto be developed --------------------pg 86

7) Finally the important point is that the Re engineering team whichimplements the BPR project should be a compact team.Team should consists of members who has knowledge of process insideout, members doesnt have knowledge of the process, all membersrepresenting the impacted organizations, technology experts, externalperson like consultants, customers, business associates, etc


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Q.6. What are the various barriers that need to be managed forBPRsuccess?

Answer. Barriers are problems which are unknown, severe, unexpectedand has to be face to complete the project. Barriers create risk factors in

Business Re engineering projects.

Barriers are clarified into Hard Barriers and Soft Barriers.They are as follows:

Hard Implementation Barriers: - The Barriers which causes things andregulation problems are called Hard Barriers.Eg: - IT problems, resource problems, legal obstacles, etc.

The IT software and hardware which are not suited to support a processbased organization is also a barrier. The organization want to invest their

major in hardware and software after thinking that current legacy systemswill provide the process requirements as well will face this Barrier astypical.Lack of space for a work team to meet on regular basis is one of thetypical resource problems.Various electronic communication equipments are used for easy access ofteam members when they are not in direct contact with each other.As support of work place regulation is necessary for work time flexibility.Another major barrier is Legal obstacles. This is a big problem whenfederal and state regulation obstructs Business Re engineering Projects.Eg: - HP was not able to gain as much profit and success after

Reengineering because there was several Legal aspects which does notallow to carry the work as it was planned.

Soft Implementation Barriers: - The people problems are termed asSoft Barriers. People means employees and employees always refrainfrom accepting the changes in the organization.Resistance is indirect way for subordinates to say no to the change.So people resist organizational changes, these resistance to BusinessReengineering change is classified as:

Internal Resistance

Internal Group Resistance

External Resistance

Internal Individual Resistance: - This shows out peoples behavior in theorganization not accepting the project contents and management.This can be concealed or can be done openly.Rather than checking for underlying reasons for resisting behavior, managementshortcuts individual resistance with destructive personality explanations.


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Internal Group Resistance: - This shows out the group behavior within theorganization. This can be organized formally or informally.

External Resistance: - This is carried out by people outside the organization.This Resistance takes place by customers, suppliers, public when they are

against the plans which interfere with their interests.

Resistance can be looked from two point of views:

TYPE AResistance against Business Reengineering ImplementationThis Resistance is against reasonable thinking and actions. The people who areaffected by the perspective of the initiators and project team demonstrate thistype of Resistance.When people resist organizational change, manager has to be careful for the fourcauses, i.e.

1] Low tolerance for the change.2] A misunderstanding of the change and its implications.3] A desire not to loose something of value.4] A belief that the change does not make sense in the organization.

TYPE B Resistance against Business Reengineering ImplementationThis Resistance is against indoctrination and power usage. This type is whenpeople resist to the change but they are not accepting their resistance.

Main Barriers comes in a way when people are not informed about how thechange is going to take place and how much it is going to affect them personallyand because of this there come Resistance.


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Q.7. Are BPR and TQM are interrelated with each other? Discuss.

Answer. TQM concentrates on step by step improvements, i.e. progressiveimprovement and maintaining that improvement.

BPR concentrates on revolutionary and impressive improvements byorganizing around the outcome which is determined by decisive factors ofsuccess.

TQM is a developing access towards the improvement.

BPR is a radical approach towards the improvement.

We should always start with developing approach for improvement in theprocesses and products by using TQM approach.

After processes are made, radical approach ofBPR can be used tofurther reengineer the processes.

After processes are reengineered, to maintain the gains reengineeredprocesses it is needed again to follow the developing approach for theimprovement i.e. TQM.

Hence after looking at the above points it is clear that if both BPR and TQMwhen implemented in right perspective they compliment each other.The common factors in both the approaches are the issue of cultural changeand change management. Thus it should be sure that organization should

consist of right culture for correct and successful implementation ofBPR andTQM.Thus it is clear that TQM and BPR are interrelated with each other because

creatively integrating both the concepts leads to successful and profitablebusiness.

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Business Process Re-Engineerin