business process re engineering by amruta

8/2/2019 Business Process Re Engineering by AMRUTA

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BUSINESS PROCESS REENGINEERING

BPR

Business Process Redesign or,

Business Transformation Or,

Business Process Change Management

BY : AMRUTA SANKHE


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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.


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What is a Business Process?

A business process is a collection of activities

which together produce something of value of

a customer.


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What is a Reengineering?

The organization uses IT to do new processes

to achieve quantum improvements and

maximize the value adding content of a

process.


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Hammer and Champy (1993)

define BPR as:-

BPR :=The fundamental rethinking and radical

redesign of business processes to achieve

dramatic improvements in critical

contemporary measures of performance, such

as cost, quality, service, and speed."


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Cycle:

BPR transform the current process (AS-IS) to an improved process (TO-BE)


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Case StudyFords Accounts Payable

Process


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DEFINITION

BPR derives its existence from different

disciplines, and four major areas can be

identified as being subjected to change in BPR

organization

technology

strategy

people


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WHY REENGINEERING?

Customers

Demanding

Sophistication

Changing Needs Competition

Local

Global


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The role of information technology

The role of information technologyInformation technology (IT) plays animportant role in the reengineering concept .

It is considered as a major enabler for newforms of working and collaborating within anorganization and across organizationalborders.


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THE ROLE OF INFORMATION TECHNOLOGY IN

THE REENGINEERING CONCEPT

1. Shared databases, making informationavailable at many places

2. Expert systems, allowing generalists to

perform specialist tasks3. Telecommunication networks, allowing

organizations to be centralized and

decentralized at the same time4. Decision-support tools, allowing decision-

making to be a part of everybody's job.


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Key Steps :

1) Select the process and appoint process team.

2) Understand the current process.

3) Develop and communicate vision of improvedprocess.

4) Identify action plan.

5) Execute plan.


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Select the Process & Appoint Team

Two Important Tasks:

Select the process to be reengineered Appoint a process team


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Select the Process

Review business strategy and customer

requirements

Select core processes

Understand customer needs

No assumption


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Select the Process & Appoint Team

Identify process owners

Develop executive improvement team

Provide training to executive team


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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


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Develop & Communicate Vision of

Improved Process

Communicate with all employees so that theyare 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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Identify Action Plan

Remove no-value-added activities

Standardize process and automate wherepossible

Up-grade equipment

Plan/schedule the changes


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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 andon customers

Benchmark the process

Provide advanced team training


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Conclusion

Business Process Reengineering has the

positive impact. It can dramatically lower the

operation cost, reduce the cycle time, increase

the customer satisfaction and raise the service

quality.


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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 large

Allocation of resources

Poor timing and planning

Keeping the team and organization on target


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THANK YOU

business process re engineering by amruta

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