BUSINESS REENGINERING

&

CONTINUOUS IMPROVEMENT

Presented by :

Ameera Ezzaty Mohd Azman 2011485392

Dhaniyah Farhana Zainol 2011636462

BUSINESS REENGINERING

&

CONTINUOUS IMPROVEMENT

Presented by :

Ameera Ezzaty Mohd Azman 2011485392

Dhaniyah Farhana Zainol 2011636462

BPR ON HAMMER

BUSINESS PROCESS

REENGINEERING (BPR)

DEFINITION

Fundamental rethinking and RADICAL REDESIGN of business process

COST

QUALITY

DELIVERY

BENEFITS

LONG TERM SUCCESSFUL

TO COMPETE

SYSTEMATIC

4 MAJOR STEPS :

Prepare a business process map

Establish goals

Reorganize work flow

Implementation

EXAMPLE –TACO BELLPROBLEMS

1) Lack of business vision

2)Reliance on obsolete mgt and operational practices-focus more on PROCESS > customer

3)Multiple level of mgt

4)Traditional approaches-assumed customers wanted without asking them

5)Invest more in kitchen area

REENGINEERED SOLUTION

1) Complete reorganize HR

2) Dramatic redesign of operational system

3) Replace area supervisors with market managers and reduce their number

4)Elimate district manager & promoting restaurant managers

Changed kitchen structure•Kitchen area 70% to 30%•Customer area 30% to 70%•Doubling the seating capacity

EXAMPLE-TACO BELL

• Taco Bell created the K-Minus program (Kitchenless restaurant) based on their belief that they are a retail service company, not a manufacturing company. In the new process, meat, beans, corn shells, lettuce, tomatoes and cheese for their products are prepared outside of the restaurant in central commissaries. At the Taco Bell restaurants, the food ingredients are prepared when ordered for customer consumption. Taco Bell cites the following results: greater quality control, better employee morale, fewer employee accidents and injuries (due to preparation task off-site), big savings and more time to focus on the customer business processes. Currently they are redefining how to deliver their food services, by taking their food service to places where people gather such as dining centers, schools, universities, airport, and stadiums. Taco Bell has progressed from a $500 million regional company in 1982 to a $3 billion national company. (Hammer and Champy 1993, p 178-179).

CONTINUOUS

PROCESS

IMPROVEMENT

(CPI)

DEFINITION

• incremental (minor) improvements that is NOT drastic to improve products,services or processese.g reduce time of production process

PROCESS

PLANNINGIdentify current

process,

procedure or

workflow.

DO

Implement

solution

CHECK

monitor result

ACTStandardize on

new process

EXAMPLE

Products

• Comes out with updated stylish in-trend design, based on their targeted customer

Services

• Faber House in Berlin, located at centre of the city

• Have branches all over the world, provide after-sale services

Processes

• Introduced segregation of duties-based on the genders

• Focus on giving motivation to workers-as they believe the workers are the heart of the company

DIFFERENCES BETWEEN BUSINESS REENGINEERING AND CONTINUOUS

IMPROVEMENT

BPR

VS

CPI

WHO LEADS?

TYPE OF PROCESS

SCOPE

COST

DICTIONARYKeyword: Fundamental

• Understanding the fundamental operations of business is the first step prior to reengineering. Business people must ask the most basic questions about their companies and how they operate: Why do we do what we do? and why do we do it the way we do? Asking these basic questions lead people to understand the fundamental operations and to think why the old rules and assumptions exist. Often, these rules and assumptions are inappropriate and obsolete.

Keyword: Radical

• Radical redesign means disregarding all existing structures and procedures, and inventing completely new ways of accomplishing work. Reengineering is about business reinvention, begins with no assumptions and takes nothing for granted.

Keyword: Dramatic

• Reengineering is not about making marginal improvements or modification but about achieving dramatic improvements in performance. There are three kinds of companies that undertake reengineering in general. First are companies that find themselves in deep trouble. They have no choice. Second are companies that foresee themselves in trouble because of changing economic environment. Third are companies that are in the peak conditions. They see reengineering as a chance to further their lead over their competitors.

Keyword: Processes

• Process is the most important concept in reengineering. In classic business structure, organisation are divided into departments, and process is separated into simplest tasks distributing across the departments. The preceding order-fulfilment example shows that the fragmented tasks - receiving the order form, picking the goods from the warehouses and so forth - are delayed by the artificial departmental boundaries. This type of task-based thinking needs to shift to process-based thinking in order to gain efficiency. The following example is taken from Hammer and Champy to illustrate the characteristics of reengineering - fundamental, radical, dramatic, and especially process.