business process re-engineering (bpr)
Post on 22-Nov-2014
326 Views
Preview:
DESCRIPTION
TRANSCRIPT
BUSINESS PROCESS REENGINEERING
Presented by Ramji Divya Uthirarajan Anitha Thevasena John paul
SIMPLE DEFINITION OF BPRMeans: “Starting Over”Does not mean: Tinkering with
what already exists or making incremental changes
Ask: “IF I were recreating the company today, given what I know and given current technology, what would it look like?”
Business Process Re-engineering or BPR is the analysis and redesign of workflow and processes within and between Organizations
BPR is the Fundamental rethinking and Radical redesign of Business Processes to achieve Dramatic improvements in critical measures of performance .. such as Cost, Quality, Service and Speed
- Michael Hammer & James Champy, 1993
THE NEED FOR BPRCustomersCompetitionChangeTechniques lag behind technologyProblem of the stovepipeFragmented piecemeal systemsIntegration
BPR PROCESS (1 OF 2)Frame the projectCreate the vision, values and
goalsRedesign the business operationConduct proof of concept
BPR PROCESS (2 OF 2)
Plan the implementationObtain implementation approvalImplement the redesignTransition to a continuous
improvement state
VALUE METRICSA Value metric is that which
determines an organization's behaviour and performance.
QualityServiceCostCycle Time
VALUE METRICS
Value =Quality X Service
Cost X Cycle Time
CHARACTERISTICS OF BUSINESS PROCESS REENGINEERING (1 OF 2)Several jobs are combined into
oneEmployees make decisionsSteps in business process: natural
orderProcess may have multiple
versionsWork is performed where it makes
the most sense
CHARACTERISTICS OF BUSINESS PROCESS REENGINEERING (2 OF 2)Controls, checks, other non value
added work is minimizedReconciliation is minimized -
minimize external contact pointsHybrid centralized / decentralized
operation is usedA single point of contact is
provided for the customer
BPR & RESTRUCTURING THE ORGANIZATION
Redesign of processesFrom mass production to mass
customizationCycle time reductionRestructuring organizations
THE 7 NEW QUALITY TOOLSGeneral Planning
Affinity DiagramInterrelationship Diagram
Intermediate PlanningTree DiagramMatrix DiagramMatrix Data Analysis
Detailed PlanningProcess Decision Program ChartArrow Diagram
AFFINITY DIAGRAMGathers large amounts of data and organizes it into groups based on the natural relationship between each item.
INTERRELATIONSHIP DIAGRAPM
TREE DIAGRAMSystematically maps out the full range of tasks/methods needed to achieve goal.
MATRIX DIAGRAMDisplays the relationship between necessary tasks and people or other tasks, often to show responsibility for tasks.
DATA MATRIX ANALYSIS
Temp
Humidity
PROCESS DECISION PROGRAM CHART (PDPC)
Maps out every conceivable event and contingency that can occur when moving from a problem statement to possible solutions.
Problem Statement
Solution x
Things that can go wrong
Countermeasures
Solved
ARROW DIAGRAM
ADDITIONAL TOOLS/METHODSBenchmarkingProcess SimplificationConcurrent EngineeringDemand Flow TechnologyActivity Based CostingEliminate Non-Value Added
Activities
9 CHANGES OCCASIONED BY BPR (1 OF 2) Work Units change
o from functional departments to process teams
Jobs changeo from simple tasks to multi-
dimensional work People’s roles change
o from controlled to empowered Job preparation changes
o from training to education
9 CHANGES OCCASIONED BY BPR (2 OF 2) Measures of Performance & compensation change
o from activity to results Criteria for career advancement change
o from performance to ability Values change
o from protective to productive Organizational Structures change
o from hierarchical to flat Executives change
o from scorekeepers to leaders4-22
CHALLENGES IN A BPR EXERCISE
1. Identifying Customer Needs & Performance Problems in the current Processes
2. Reassessing the Strategic Goals of the Organization
3. Defining the opportunities for Re-engineering
4. Managing the BPR initiative5. Controlling Risks 6. Maximizing the Benefits7. Managing Organizational Changes8. Implementing the re-engineered Processes
CRITICAL SUCCESS FACTORS IN BPR1. Clear Vision for Transformation2. Top management commitment3. Identification of Core Processes
for BPR4. Ambitious BPR team5. Knowledge of Reengineering
techniques6. Engaging external consultants7. Tolerance of “genuine failures"8. Change Management
CRITICAL FAILURE FACTORS IN BPR
1. Trying to Fix a process instead of Changing it
2. Lack of focus on Business-critical Processes
3. Lack of holistic approach4. Willingness to settle for minor results5. Quitting too early6. Limiting the scope of BPR by existing
constraints7. Dominance of existing corporate culture8. Adopting bottom-up approach9. Poor leadership10. Trying to avoid making anyone unhappy11. Dragging the BPR exercise too long.
THANK YOU
top related