Unit – II-bpr

7/31/2019 Unit – II-bpr

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7/31/2019 Unit – II-bpr


Business process reengineering is emerging as one of the

crucial business strategies of the 1990s. Business process reengineering is the fundamental

rethinking and reimplementation of business processes toachieve never-before-possible levels of quality, cost,throughput, and service.

This is especially significant in an era of workforcedownsizing and greater demands for shortened time tomarket and faster customer response.

Organizations are currently engaging in business processreengineering in many domains, including financialservices, telecom services, healthcare services, customerorder fulfillment, manufacturing procedure automation,and electronic commerce.

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While business process reengineering provides a businessmanagement concept, business process flow management(BPFM) software—or more accurately, middleware— provides theenabling technologies for business process reengineering tosupport flexible solutions for the management of enterprise-

wide operations, including:

Process flow control, automation, and monitoring

Resource allocation, authorization, and authentication

Task initialization and data exchange End-to-end communication and security.

BPFM is more than just a technology. It offers an overallenvironment and approach to unifying, automating, and

measuring business processes. BPFM is not a technology supporting only business process

reengineering. It can be used to manage existing non automatedlegacy processes—what is often called “paving the cow paths.”

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Business Process Flow Management System At the enterprise level, the process to be managed can be

very complex, spanning several organizations with multiplesteps being performed in parallel. In such cases, a BPFMsystem can act as the superstructure that ties togetherdisparate systems whose business purposes areinterconnected.

A BPFM system provides procedural automation of abusiness process by managing the sequence of processactivities and the invocation of appropriate human,instrument, or computer resources associated with variousactivity steps. It involves the high-level specification of flows, and provides the operational glue and environmentsupport for managing and automating the f lows,

recovering from failures, and enforcing consistency. A BPFM system also enforces various administrative policiesassociated with resources and work.

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The structure and flow of a business process managed by a BPFM system can bepreplanned or ad hoc.

Typically, a BPFM system: Provides a method for defining and managing the f low of a business

process. Supports the definition of resources and their attributes. Assigns resources to work.

Determines which next steps will be executed within a business processand when they will be executed.

Article 8 October 1996 Hewlett-Packard Journal 2

Ensures that the business process flow continues until propertermination. Notifies resources about pending work.

Enforces administrative policies such as access control.

Tracks execution and supports user inquiry of status.

Provides history information in the form of an audit trail for completedbusiness processes.

Collects statistical data for process and resource bottleneck analysis, flowoptimization, and automatic

workload balancing.

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BPR: fundamental, radical, dramatic, process.

Ignore existing processes and organization.

Symptoms of a sick process:

too many cases (in-process-inventory)

(throughput time / service time)-ratio is too high

service level (% in time) is too low

Key performance indicators:

throughput time, waiting time, service level occupation rate, number of cases, ...

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Check the necessity of each task.

Appoint a process manager.

Appoint case managers.

(Re)consider the size of each task. (Re)consider the trade-off between a generic process and

multiple versions of the same process.

(Re)consider the trade-off between a generic task and

multiple specialized tasks. Try to introduce more parallelism.

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A process design is evaluated on the basis of four

key issues:

time

quality costs

flexibility

Often there is a trade-off!

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Throughput time is composed of: service time (including set-up) transport time (can often be reduced to 0) waiting time

sharing of resources (limited capacity) external communication (trigger time)

There are several ways to evaluate throughput/waitingtime:

average variance service level ability to meet due dates

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External: satisfaction of the customer Product: product meets specification/expectation. Process: the way the product is delivered (service level)

Internal: conditions of work challenging varying controlling

There is often a positive correlation between externaland

internal quality.

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Type of costs fixed or variable,

human, system (hardware/software), or external,

processing, management, or support.

Note the trade-off between human/system-related costs.

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The ability to react to changes.

Flexibility of resources (ability to execute many tasks/new

tasks) process (ability to handle various cases and

changing workloads) management (ability to change

rules/allocation) organization (ability to change the structure

and responsiveness to wishes of the marketand business partners)

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Costs

Quality

Time

Flexibility

(T+/-,Q+/-,C+/-,F+/-)

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Process Analysis

An operation is composed of processes designed to add value by transforming inputs into useful outputs. Inputs may be

materials, labor, energy, and capital equipment. Outputs may bea physical product (possibly used as an input to another process)or a service. Processes can have a significant impact on theperformance of a business, and process improvement canimprove a firm's competitiveness.

The first step to improving a process is to analyze it in order tounderstand the activities, their relationships, and the values of relevant metrics. Process analysis generally involves thefollowing tasks:

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Unit – II-bpr