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Thank You For Downloading This Free Module
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And So On …
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Business Process Reengineering
Please Note That This A Sample Module Only And Is Not An Exhaustive Treatment Of This Topic.
Should you wish to see another sample module of our full training modules
Contact [email protected]
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Learning Objectives
• Explain the role of Business Process Reengineering (BPR) within the organization
• Understand the origins and key characteristics of BPR
• Identify and be able to use core BPR Symbols
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Learning Objectives
• Understand and be able to implement a BPR Strategy
• Understand the main challenges in implementing a BPR Strategy
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BPR & The Organization
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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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BPR is Not?
• Automation
• Downsizing
• Outsourcing
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BPR Versus Process Simplification
Process Reengineering
Radical TransformationVision-Led
Change Attitudes & BehaviorsDirector-Led
Limited Number of Initiatives
Process Simplification
Incremental ChangeProcess-Led
Assume Attitudes & BehaviorsManagement-Led
Various Simultaneous Projects
(Source Coulson-Thomas, 1992)
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BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople & Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
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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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Why Reengineer?
• Customers– Demanding– Sophistication– Changing Needs
• Competition– Local– Global
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Why Reengineer?
• Change– Technology– Customer Preferences
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Why Organizations Don’t Reengineer?
• Complacency
• Political Resistance
• New Developments
• Fear of Unknown and Failure
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Performance
• BPR seeks improvements of
– Cost– Quality– Service– Speed
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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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Key Characteristics
• Systems Philosophy
• Global Perspective on Business Processes
• Radical Improvement
• 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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Radical Improvement
• Sustainable– Process improvements need to become firmly rooted
within the organization
• Stepped Approach– Process improvements will not happen over night
they need to be gradually introduced– Also assists the acceptance by staff of the change
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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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BPR Symbols
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Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
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Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
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Business Process Flowchart Symbols
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
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Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
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Data Flowchart Symbols
Manual Data Item
A Database File
Representing a Relation
Continuation
Off-Page Connector
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Rules For Data Symbols
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Rules For Data Symbols
Start
End
Generate Purchase
Order
OK? Yes
No
Symbol used to identify the start of a business process
Activities must be described as a verb
Decisions have only two possibilities (Yes & No)
Crossing lines are not allowed
If one side of the decision has no further processes defined this symbol has to be used
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Rules For Data Symbols
PurchaseOrder
Posting of Bonus
I
A
Continuation symbol within the same number must be present twice on the same page
Name the document
Off- Page Connector is used to continue a process at the next page or to let the process to flow over at the previous to the next page. If more than one is needed use A, B, C, D …
Name the data
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Rules For Data Symbols
Sub-ProcessDelivery
BC 4.04
Predefined Processes always have a relation to level and stream by a number in the line below a sub-process description
A predefined process must be described in a different flowchart. To make the relation clear between the predefined process and the belonging flowchart a unique alpha numeric number should be assigned to this predefined process.
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Version Management
• For different versions of a business process or data flow some mandatory information must be on the flowchart. – Name of the business process– Unique number of the business process– Revision number– Date of last change– Author– Page number with total pages
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Implementing a BPR Strategy
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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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Select the Process & Appoint Process Team
• Two Crucial Tasks
– Select The Process to be Reengineered
– Appoint the Process Team to Lead the Reengineering Initiative
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Select the Process
• Review Business Strategy and Customer Requirements
• Select Core Processes
• Understand Customer Needs
• Don’t Assume Anything
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Select the Process
• Select Correct Path for Change
• Remember Assumptions can Hide Failures
• Competition and Choice to Go Elsewhere
• Ask - Questionnaires, Meetings, Focus Groups
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Appoint the Process Team
• Appoint BPR Champion
• Identify Process Owners
• Establish Executive Improvement Team
• Provide Training to Executive Team
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Core Skills Required
• Capacity to view the organization as a whole
• Ability to focus on end-customers
• Ability to challenge fundamental assumptions
• Courage to deliver and venture into unknown areas
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Core Skills Required
• Ability to assume individual and collective responsibility
• Employ ‘Bridge Builders’
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Use of Consultants
• Used to generate internal capacity
• Appropriate when a implementation is needed quickly
• Ensure that adequate consultation is sought from staff so that the initiative is organization-led and not consultant-driven
• Control should never be handed over to the consultant
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Understand the Current Process
• Develop a Process Overview
• Clearly define the process – Mission
– Scope
– Boundaries
• Set business and customer measurements
• Understand customers expectations from the process (staff including process team)
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Understand the Current Process
• Clearly Identify Improvement Opportunities– Quality
– Rework
• Document the Process– Cost
– Time
– Value Data
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Understand the Current Process
• Carefully resolve any inconsistencies– Existing -- New Process
– Ideal -- Realistic Process
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Develop & Communicate Vision of Improved Process
• Communicate with all employees so that they are aware of the vision of the future
• Always provide information on the progress of the BPR initiative - good and bad.
• Demonstrate assurance that the BPR initiative is both necessary and properly managed
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Develop & Communicate Vision of Improved Process
• Promote individual development by indicating options that are available
• Indicate actions required and those responsible
• Tackle any actions that need resolution
• Direct communication to reinforce new patterns of desired behavior
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Identify Action Plan
• Develop an Improvement Plan
• Appoint Process Owners
• Simplify the Process to Reduce Process Time
• Remove any Bureaucracy that may hinder implementation
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Identify Action Plan
• Remove no-value-added activities
• Standardize Process and Automate Where Possible
• Up-grade Equipment
• Plan/schedule the changes
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Identify Action Plan
• Construct in-house metrics and targets
• Introduce and firmly establish a feedback system
• Audit, Audit, Audit
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Execute Plan
• Qualify/certify the process
• Perform periodic qualification reviews
• Define and eliminate process problems
• Evaluate the change impact on the business and on customers
• Benchmark the process
• Provide advanced team training
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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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BPR Challenges
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Common 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– REMEMBER - “If it ain’t broke …”
• Quick Fix Approach
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Common 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
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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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