Session 3 -BPR

8/13/2019 Session 3 -BPR

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BPR first introduced in 1990 in a HarvardBusiness Review article by Michael Hammer,Reengineering Work: Don't Automate.



Reengineering is the fundamental rethinking andradical redesign of business processes to achievedramatic improvements in critical, contemporarymeasures of performance, such as cost, quality,

service, and speed.Hammer and Champy 1993

Reengineering is the rapid and radical redesign ofstrategic, value-added business processes and thesystems policies and organizational structures that

support them — to optimize the work flows andproductivity in an organization.

Manganelli and Klein 19942



Customers

Competition

Organizational Change

Techniques lag behind technology: Focus is on Business

Integration is the key

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Accounts Payable function 500 people Most work on mistakes between

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Purchase

Orders

Receiving

DocumentsInvoices



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It should develop a clear statement of corporategoals.

It should be process-oriented.

It should facilitate the classification of activities.

It should lead to fundamental change.

It should develop a plan to deliver final resultswithin a year or so.

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BPR

Improved

Customer Focus

Improved

Cycle Time

Improved

Process Efficiency



Broken Processes: Which processes are in thedeepest trouble?

Important Processes: Which processes have the

greatest impact on the company’s customers?

Feasible Processes: Which processes are at the

moment most susceptible to successful redesign?

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Operations research

teams Benchmarking teams

Voice of the clientdata collection teams

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Workflow

design teams

Application

design teams

Pilot teams

Implementation teams

Transition teams

Executive Sponsor

Project Team

Design

(3-6 months)

Analysis(2-4 months)

Implementation(12-24 months)



Flow chart technique (Flowcharter, Flowmark)

Data Flow Diagrams (CASE Tool, 4Keeps)

Role activity diagram (RADitor)

Role interaction diagrams (RADitor) Gantt Chart (Project Scheduler7, Workflow BPR)

IDEF (Design IDEF, IDEF Tools)

UML (Magic Draw UML, Visual UML)

Simulation (Metis, Arena)



It is a graphical representation which uses symbols torepresent such things as operations, data, flow direction, andequipment, for the definition, analysis, or solution of aproblem.

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Data Flow Diagrams DFDs) describe the processes showinghow these processes link together through data stores andhow the processes relate to the users and the outside world.

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Role ActivityDiagrams RADs)are based around agraphic view of the

process from theperspective of

individual roles

concentrating on

the responsibilityof roles and the

interactions

between them .

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Role Interaction Diagrams are composed of amatrix that represents the processes byusing text and symbols.

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Gannt Chart is a matrix representation thatshows the flow of activities and durations.

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FunctionInputs Outputs

Controls

Mechanism

Legends

Process OrderCustomer

order

Processed order

Order

processing

policy

Order

processing

system

Order

processing

clerks

Work

schedule



UML is a language for specifying visualizationconstructing and documenting facts of softwaresystems, as well as for business modelling and othernon-software systems.

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Other problems: the danger of another inefficient system

ignoring the embedded system knowledge accumulation over manyyears hidden agendas of top management and discontinues in the leadership lack of communication selecting wrong IT vendors lack of awareness of the lead times associated with IT

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Biggest obstacles that reengineering faces are

(i) Lack of sustained management commitment and

leadership

(ii) Unrealistic scope and expectations

(iii) Resistance to Change.

75% of the

BPR projectsfail



◦ 75 extranet projects in Boeing (expected to savemillions) for such use as receiving $100 million in sparepart orders from airlines through one Web site; sendingdocuments to government.

◦ General Electric bought over $1 billion in goods andservices via its Trading Process Network; estimated to

save $500 million over the next three years.

◦ Dell used the Internet for messages to suppliers andreduced inventory on hand to eight days (versusCompaq's 26 days).

◦ Internet-based audio-video conferencing, integratingvoice, data, and video over the network: Ford sharesdocuments in real time; estimated to have shortenedaverage car design time from 36 months to 24 months;

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