8c44ebpr & tqm 1

8/13/2019 8c44eBPR & TQM 1

http://slidepdf.com/reader/full/8c44ebpr-tqm-1 1/16

1

OCD

BPR & TQMDr. Sriparna Basu

8/13/2019 8c44eBPR & TQM 1


BPR: What is it?

• “A set of logically related tasks performed to achieve a defined

business outcome” (Davenport & Short, 1990)

• A process is “a structured measured set of activities designed

to produce a specified output for a particular customer or

market

• Processes have two important characteristics:

o They have customers (internal or external)

o They cross organizational boundaries i.e. they occur across or

between organizational subunits

• Example of identifying business process in an organization is

the value chain method proposed by Porter & Miller (1985)

2

8/13/2019 8c44eBPR & TQM 1


Business Process Contd.• Processes are generally identified in terms of beginning and end

points, interfaces, and the involvement of organizational units,and target audience

• Every process has a process owner who develops new products,orders goods from the vendors, and even creates the marketingplan

• Processes may be defined based on 3 dimensions:

a) Entities: processes take place between organizational entities.They could be inter-organizational, inter-functional, or inter-personal

b) Objects: processes result in manipulation of objects. Theseobjects could be physical or informational

c) Activities: processes may involve two types of activities:managerial and operational

3

8/13/2019 8c44eBPR & TQM 1


Successful Process

Re-engineering Requires

•

1st

step is to address culture issues such as employeeempowerment, encouraging teamwork, and developing

communication programs

• Introducing teamwork and empowerment cannot be done

unless it is consistent with the culture of the organization• With BPR, a new culture evolves

• BPR determines jobs and structures that are managed and

measured to shape values & beliefs

•To successfully conduct the BPR process, leaders must createthe right environment, ensuring the BPR process fits into the

culture

4

8/13/2019 8c44eBPR & TQM 1


2 types of Culture

• Ensures participative management• Open communication

• Greater employee satisfaction

• Employees also get involved in BPR

Empowerment-

oriented

• Reduced employee involvement

• Hierarchical structure

• Narrow span of control

• BPR can work where jobs areprotocol bound and technology

plays a significant role in achievingquality & effectiveness

Control-oriented

5

8/13/2019 8c44eBPR & TQM 1


Example: McDonalds

• Core philosophy is to achieve worldwide the same qualitythe same level of service.

• To ensure these, the company has developed standard

operating procedures (SOPs), detailing each and every activity

and sub-activity. Employees are supposed to perform their jobs along the lines of SOP details, and cannot be innovative.

• Innovation-based BPR through employee empowerment

cannot fit in McDonalds type of organization.

6

8/13/2019 8c44eBPR & TQM 1


3 Phases of BPR

Discover:

initial phase

Important to

Consider

values &

Culture

Redesign:

organization

systematizes

the process

Realize:

Organizationcreates the

new corporate

culture

7

8/13/2019 8c44eBPR & TQM 1


BPR Impact on Organizations

• McKinsey’s

7S Framework Strategy

Systems

Skills

Style

Staff

Structure

Shared Values

or Super-

ordinate goals

8/13/2019 8c44eBPR & TQM 1


The 7 S: What do they Mean?

• Strategy: determine allocation of resources and to

commit the organization to a specific course of action• Structure: determine the number of levels & authority

centers

• Systems: organizational processes, procedures, reports &

routines• Staff: key human resource groups and to classify them

demographically

• Style: determine the manner in which managers shouldbehave for achieving organizational goals

• Super-ordinate goals: shared values for building conceptsthat the organization instills in its members

• Skills: determine the abilities of people in an organization

8/13/2019 8c44eBPR & TQM 1


Mc-Kinsey 7-S Model

• Strategy

• Structure

•

Systems• Style

• Staff

• Skills• Super-ordinate goals

Hard S: Factual and easy to

identify. They can be found in

strategy statements, corporate

plans, organization charts & otherdocumentation

The Soft S’s are difficult to describe,

they are continuously developing and

changing. They are highly determined bypeople at work in the organization

8/13/2019 8c44eBPR & TQM 1


Effective HR Formulation & Implementation

Source: Luis R. Gomez-Mejia et al

HR Strategies

EnvironmentOrganizationalStrategies

Organizational

CapabilitiesOrganizational

Characteristics

Consistency

C

o

n

s

is

t

e

n

c

y

C

o

n

s

is

t

e

n

c

y

Consistency

FitFit

FitFit

8/13/2019 8c44eBPR & TQM 1


Principles for determining the basis for BPR or BPM in

Organizations (Peters & Waterman, 1982)

• A bias for action (excellent firms make things happen)

• Closeness to the customer

• Autonomy & entrepreneurship

•

Productivity• Hands-on, value-driven management

• Stick to the knitting (always deal from strength)

• Simple form lean staff

• Simultaneous loose-tight properties (de-centralize

decisions while maintaining tight control)

8/13/2019 8c44eBPR & TQM 1


Some BPR experiences of Organizations

Ford:

• Re-engineered business from just manufacturing of cars to

manufacturing of quality cars

• Re-engineering process saved millions of dollars on recalls and

warranty repairs• The basis re-engineering was done (1) first in each and every

part that goes in the car assembly (2) thorough scanning for

any missing parts in the assembled car

•

This restored Ford’s confidence in providing quality car to suchextent that the company was able to give a 3 year guarantee

to their customers, which helped to reposition Ford’s car in a

competitive market worldwide

8/13/2019 8c44eBPR & TQM 1


Example 2: P&G

• Being an innovation driven organization with 300 branches

worldwide, P&G cannot afford to stop its brand portfolio

increase

• They re-engineered the brand management activity

introducing the “innovating innovation” program

• P&G used a scorecard to evaluate which innovative idea can

payoff better

• This approach helped the company to introduce selectively

the innovative brands to suit the market

• The digital scorecard significantly improved the overall

performance of P&G

• P&G expects to conduct 90% of its R&D in virtual mode, and

the remaining 10% only for physical validation of results

8/13/2019 8c44eBPR & TQM 1


Criticism of BPR

•

BPR may lead to large-scale layoffs in organizations• BPR is often perceived as a downsizing tool

• Often BPR mentality becomes that the existing performance

of the company is not good, without examining existing

processes thoroughly• It focuses on technological efficiency, ignoring people

• There may be lack of support for implementation, or

exaggerated expectation of benefits

•It does not consider resistance from people

• There is lack of focus on strategy alignment

8/13/2019 8c44eBPR & TQM 1


Lean Management & Culture

•

The Lean Enterprise Institute at Cambridge,UK defines lean as:

• “a business system for organizing and

managing product development, operations,suppliers, and customer relations that require

less human effort, less space, less capital, and

less time to make mass production”

8c44ebpr & tqm 1

Documents