Business Process Re-engineering

Presented by: Dhaval Modi

Presented by: Dhaval Modi

To make audience aware WHY BPR needed &

HOW it can be implement in the organization

to gain its benefits.

Is your business suffering with High operational costs

Low quality offered to customers

High level of ''bottleneck" processes at pickseasons

Poor performance of middle level managers

Inappropriate distribution of resources and jobsin order to achieve maximum

BPR is required in those organizations whoseexisting business processes cease to performat acceptable levels or become irrelevantwith the availability of electronic integrationfacilities.

BPR is process of fundamental re-thinking

and radical re-design of business processes to

achieve a dramatic revolutionary

improvement performance.

Performance measured by response time,

quality & cost.

Its about business re-invention, not business

improvement, enhancement or modification.

Its all about asking lots of right questions.

why customer order should takes 5 days for us to

acknowledgement?

Why a purchase order be prepared every time?

Why there should always be store receipt report

to pass a supplier’s bill?

It should be clear that automation or

computerization helps to carry out existing

INEFFECTIVE jobs faster – but do not

eliminate the jobs.

BPR is not fixing anything. It is starting from

a scratch. It can not be carried out in small

caution steps.

Not usual 10-20% but in the range of 50 –500% improvements

The NVA time & cost would be reducedsignificantly

duplication elimination

Quality improvements

Customer satisfaction

Response time reduce

Inventory reduce

Receivable reduction

Paperwork elimination

Continuous Evaluation

Eliminating Jobs

Failure rate as high as 75-85%

Improperly aligned BPR and IT

Expensive

Organizational resistance

“Every act of creation is first of all an act of destruction”

IBM credit corporation’s Old Process

IBM’s New Process

Ford Reengineers Its Payables Process

• Old process:

– The receiving department accepted orders that

did NOT match the purchasing order

• Lots of overhead to reconcile the inconsistencies

• New process:

– ONLY shipments that match the purchase order

are accepted

– The information is entered into a shared

database

Ford’s Process Redesign

An Example - Bank Customer deals with a single point of contact, the

account manager

Account manager is responsible for all bank services, and provides all services to the customer, who receives a single statement for all accounts

IT provides account manager with expert advice on specialized topics, such as loans

By allowing easy access to the different databases, the account manager can answer queries, plan, and organize the work with customers

Thank You !

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