Business Process Reengineering Business Process Reengineering (BPR)(BPR)

“TThe fundamental rethinking and he fundamental rethinking and radical redesign of business processes radical redesign of business processes to achieve dramatic improvements in to achieve dramatic improvements in critical, contemporary measures of critical, contemporary measures of performance such as cost, quality, performance such as cost, quality,

service and speed.service and speed.””

Dr Michael HammerDr Michael Hammer

Five Elements of Working Five Elements of Working DefinitionDefinition

1)1) Focus on Business ProcessesFocus on Business Processes

2)2) Questioning of the Status QuoQuestioning of the Status Quo

3)3) Specific ObjectivesSpecific Objectives

4)4) Breakthrough AchievementBreakthrough Achievement

5)5) Significant Cultural ChangeSignificant Cultural Change

Management GapsManagement Gaps TopManagement Policy

Middle Management Planning

Supervisor’s Scheduling

Workers’ Operations

Functional Gaps: Functional Gaps: DepartmentalizationDepartmentalization

Manufacturing Finance

Isolated “Islands” of ActivityIsolated “Islands” of Activity

Classification of Reengineering Classification of Reengineering ProjectsProjects

FunctionalIntegration

BusinessRedefinition

FunctionalRefinement

ProcessRedesign

Extensive

Scale of BPR

Limited

Narrow Broad

Scope of BPR

BPR ProcessBPR Process

1.1. Business Drivers of ReengineeringBusiness Drivers of Reengineering

2.2. Reengineering ProcessReengineering Process

3.3. Reengineering FacilitatorsReengineering Facilitators

4.4. Reengineering End ProductReengineering End Product

Framework for Business ReengineeringFramework for Business Reengineering

Reengineering Facilitators

Reengineering End Product

Business Drivers

1. Competitive Environment

2. Recent Internal Changes

3. IT Infrastructure

Business Reengineering Process

1. Strategic Intent2. Core Competencies3. Process Definition4. Activity Analysis5. Root Cause Analysis6. Process Refinement

From the Vertical OrganizationFrom the Vertical Organization

Research Manufacturing Marketing Finance

To the Horizontal OrganizationTo the Horizontal Organization

Process Owners

Process Owners

Process Owners

Team Team

Team Team

Team Team

ORDER GENERATION AND FULFILLMENT

INTEGRATED LOGISTICS

COMMERCIALIZATION OF TECHNOLOGY CORE PROCESSES

KEY PERFORMANCE OBJECTIVES

Reduce CycleTime

Reduce Costs

Reduce throughput time

Corporate TransformationCorporate Transformation

Three Types of Transformation

1. Improving Operations

2. Strategic Transformation

3. Corporate Self-Renewal