business process reengineering..ppt

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Presentation OnBUSINESS PROCESS RE-ENGINEERING

PRESENTATORS

ARUN SHAKYAWAR (12)

ASHISH GUPTA (13)

BHAWANA JOSHI (14)

BHAVANA SINGH (15)

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Business process re-engineering is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.

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What is BPR?

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

(Hammer & Champy, 1993)

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What is a Process?

• A specific ordering of work activities across time and space, with a beginning, an end, and clearly identified inputs and outputs: a structure for action.

(Davenport, 1993)

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What is a Business Process?

• A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives

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What is Re-engineering

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

(Hammer & Champy, 1993)

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Why Reengineer?

• Customers– Demanding– Sophistication– Changing Needs

• Competition– Local– Global

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Why Reengineer?

• Change– Technology– Customer Preferences

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Origins

• Scientific Management. FW Taylor (1856-1915).

• Frederick Herzberg - Job Enrichment

• Deming et al - Total Quality Management and Kaizen

• In Search of Excellence (Peters and Waterman)

• Value-Added Analysis (Porter).

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Characteristics of Business Process Reengineer

• Controls, checks, other nonvalue-added work is minimized

• Reconciliation is minimized - minimize external contact points

• Hybrid centralized / decentralized operation is used

• A single point of contact is provided for the customer

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Key Characteristics

• Systems Philosophy

• Global Perspective on Business Processes

• Integrated Change

• People Centred

• Focus on End-Customers

• Process-Based

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TransformationInputs Outputs

Feedback

Environment

Systems Perspective

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Process Based

• Added Value– BPR Initiatives must add-value over and above the

existing process

• Customer-Led – BPR Initiatives must meet the needs of the customer

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Integrated Change

• Viable Solutions– Process improvements must be viable and practical

• Balanced Improvements– Process improvements must be realistic

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People-Centred

• Business Understanding

• Empowerment & Participation

• Organizational Culture

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Focus on End-Customers

• Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve

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Tools for BPR

• Simulation

• Flow diagrams

• Work analysis

• Application development

• Workflow software

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Implementing a BPR Strategy : Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan

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Information Technology & BPR

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Benefits From IT

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

Chain

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Computer Aided BPR (CABPR)

• Focus– Business Processes– Process Redesign– Process Implementation

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Role of IT

• Shared databases, making information available at many places

• Expert systems, allowing generalists to perform specialist tasks

• Telecommunication networks, allowing organizations to be centralized and decentralized at the same time

• Decision-support tools, allowing decision-making to be a part of everybody's job

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• Wireless data communication and portable computers, allowing field personnel to work office independent

• Interactive videodisk, to get in immediate contact with potential buyers

• Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found

• High performance computing,and school, allowing on-the-fly planning and revisioning

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Advantages of BPR

• Performance improvement

• Increase in profits

• Increase in productivity

• Better business practices

• Enormous cost reduction

• Speed up business processes

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Advantages of BPR

• Improvement in employee satisfaction

• Improvement in quality

• Improvement in customer service

• Profitability

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Disadvantages of BPR

• BPR has bad reputation for major layoffs.

• It never change management thinking.

• Lack of management support for the initiative and thus poor acceptance in organization.

• Exaggerated expectations regarding the benefits of BPR

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Disadvantages of BPR

• Underestimation of resistance to change within organization.

• Implementation of generic best practices that do not fit specific company needs.

• Over-trust in technology solutions.

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Summary

• 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

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Summary

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

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QUERIES ?

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THANK YOU