BPR OR Business Process Re-Engineer

Business Process Re-engineeringBusiness Process Re-engineering

Name : UBAID UR RAHMANRoll No : FA11-MS-0065Subject : BPR (Business Process Re-EngineeringTeacher/By : Zulfiqar Ahmed Farhan

By: Zulfiqar Ahmed Farhan

Change Becomes ConstantChange Becomes Constant

• Change has become both pervasive and persistent

• The pace of change has accelerated due to globalization of the economy and technological advancements

• What’s driving this?– E-commerce


Managing ChangeManaging Change• The ability to manage change is

critical to the success of systems development. – The new or modified systems created

during systems development will inevitably cause change.

– Managing change requires the ability to recognize existing or potential problems.


All this leads to the need for change

All this leads to the need for change

• Business Process Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.


BUSINESS PROCESSESBUSINESS PROCESSESBusiness Process Redesign

Six principles for redesigning business processes:

1. Organize business processes around outcomes, not tasks

2. Assign those who use the output to perform the process

3. Integrate information processing into the work that produces the information


BUSINESS PROCESSESBUSINESS PROCESSESBusiness Process Redesign

Six principles for redesigning business processes:

4. Create a virtual enterprise by treating geographically distributed resources as though they were centralized

5. Link parallel activities instead of integrating their results

6. Have the people who do the work make all the decisions, and let controls built into the system monitor the process


Four Key Wordsfor ReengineeringFour Key Words

for Reengineering

• Fundamental

• Radical

• Dramatic

• Process


FundamentalFundamental

• Why do we do what we do?

• Why do we do it the way we do?


RadicalRadical

• Getting to the root of things: not making superficial changes or fiddling with what is already in place

• Disregarding all existing structures and procedures and inventing completely new ways of accomplishing work


DramaticDramatic

• Dramatic improvement demands blowing up the old and replacing it with something new


ProcessProcess

• Collection of activities that takes one or more kinds of input and creates an output that is of value to the customer


BPR Versus Continuous Improvement

BPR Versus Continuous Improvement

Process Reengineering

Radical TransformationPeople & Technology Focus

High InvestmentRebuild

Champion Driven

Continuous Improvement

Incremental ChangePeople Focus

Low InvestmentImprove ExistingWork Unit Driven


BPR Versus Process SimplificationBPR Versus Process Simplification

Process Reengineering

Radical TransformationVision-Led

Change Attitudes & BehavioursDirector-Led

Limited Number of Initiatives

Process Simplification

Incremental ChangeProcess-Led

Assume Attitudes & BehavioursManagement-Led

Various Simultaneous Projects

(Source Coulson-Thomas, 1992)


Common Benefits of BPRCommon Benefits of BPR

• Enterprise integration

– Departments are consolidated

– Several jobs are combined into one job



• Worker empowerment

– There is both horizontal and vertical reorganization

– Handoffs are eliminated

– There are fewer rules and less coordination is required



• The steps are performed in a more natural order

– Many tasks can be done simultaneously – In reengineered process, work is sequenced in terms of what needs to follow what

• Processes have multiple versions

– Not just one process but many are employed depending on the size of the job

– Which version works best in a given situation (for simpler process short version)

• Work is performed where it makes the most sense

– Wal-Mart moves the replenishment function to its suppliers



• Reconciliation is minimized – Inconsistent data

• Checks and controls are reduced

• A case manager provides a single point of contact

• Hybrid centralized/decentralized operations are prevalent

– IT enables decisions to operate autonomously


Information Technology & BPRInformation Technology & BPR


Benefits From ITBenefits From IT

• Assists the Implementation of Business Processes– Enables Product & Service Innovations– Improve Operational Efficiency– Coordinate Vendors & Customers in the

Process Chain – Improve monitoring– Centralization– Uniformity


Computer Aided BPR (CABPR)Computer Aided BPR (CABPR)

• Focus– Business Processes– Process Redesign– Process Implementation


BPR ChallengesBPR Challenges


Common ProblemsCommon Problems

• Process Simplification is Common - True BPR is Not

• Desire to Change Not Strong Enough

• Start Point the Existing Process Not a Blank Slate

• Commitment to Existing Processes Too Strong


Common Problems with BPRCommon Problems with BPR

• Process under review too big or too small

• Reliance on existing process too strong

• The Costs of the Change Seem Too Large

• BPR Isolated Activity not Aligned to the Business Objectives

• Allocation of Resources

• Poor Timing and Planning

• Keeping the Team and Organization on Target


Phases of BPR


Phases of BPR Phases of BPR

• Phase 1

• Trigger: – Performance problem

– Competitive e-Business move

– Supply chain partner pressure

• Deliberation / Discussion

• Proposal

• Management go-ahead


Phases of BPRPhases of BPR

Phase 2

• Project leader

• Core team

• Preliminary assessment of IT-infrastructure around processes

• BPR Plan & Budget



• Phase 3

• Process is redesigned

• Performance comparison – Benchmarking

• Prepare for implementation



• Phase 4

• Implementation and organization transformation phase

• Introducing and instituting new process

– Org. design changes

– Training

– Political & human problems



• Phase 5

• Continuous monitoring

• Modified as needed.


BPR is Not?BPR is Not?

• Automation

• Downsizing

• Outsourcing

• Business Improvement

• Restructuring

• TQM


SummarySummary

• 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


SummarySummary

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


TransformationInputs Outputs

Feedback

Environment

Systems PerspectiveSystems Perspective


BPR SymbolsBPR Symbols


Business Process Flowchart Symbols


An Activity

A Document

A Decision

Data (input as outputs)




A Predefined Process

The Start of a Process

The End of a Process

Representing a Relation

Start

End




Continuation of the process at the same page at an equal symbol with the same number. Usedwhen a relation arrow crosses another relation arrow

Off-Page Connector - Process will continue on the next page

Integration Relation - A relation to another module is identified and described


Data Flowchart SymbolsData Flowchart Symbols

An Activity

A Document

A Decision

Flat Data File (input as outputs)


Data Flowchart SymbolsData Flowchart Symbols

Manual Data Item

A Database File

Representing a Relation

Continuation

Off-Page Connector


BPR & ERP BPR & ERP

• Just automating the existing business practices will not help ERP to achieve the anticipated results

• Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup

• Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup

• BPR may be time consuming but the scope can be restricted & controlled by the Management


Impact on ERP Impact on ERP

• If poor BPR is conducted, or if vendor system adopted without consideration of organizational requirements

– Will discard processes in which organization has developed competitive advantage

– Even when BPR beneficial, there will be a transition period where

employee performance degrades while learning new system

Education

BPR OR Business Process Re-Engineer