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    BPR - Business Process Reengineering

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    Raju Desai
    BPR is defined as,,the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance. In BPR the word design has got to do with either work design or process design. The word 'radical' is derived from Latin word,,radix", which means,,root". Which tells to get in to the root of business processes.

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    BPR - Business Process Reengineering

    Uploaded by

    Raju Desai
    219 views21 pages
    BPR is defined as,,the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance. In BPR the word design has got to do with either work design or process design. The word 'radical' is derived from Latin word,,radix", which means,,root". Which tells to get in to the root of business processes.

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    BPR- Business Process Reengineering

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    BPR is defined as,,the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance. In BPR the word design has got to do with either work design or process design. The word 'radical' is derived from Latin word,,radix", which means,,root". Which tells to get in to the root of business processes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT or read online from Scribd
    Download as ppt
    219 views21 pages

    BPR - Business Process Reengineering

    Uploaded by

    Raju Desai
    BPR is defined as,,the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance. In BPR the word design has got to do with either work design or process design. The word 'radical' is derived from Latin word,,radix", which means,,root". Which tells to get in to the root of business processes.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT or read online from Scribd
    Download as ppt
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    Business Process Reengineering

    Contents
    Introduction Origin of BPR Meaning and Definition Important questions before initiating BPR Why reengineering Objectives How to startup with reengineering A five-step approach to Re-engineering Role of IT Success factors in BPR Benefits of reengineering Critics of BPR Success stories Conclusion

    FNF India 2010 Confidential

    Introduction
    Till the beginning of 1990s Indian businesses were operating in fairly protected market and limited global competition. Only few MNCs mostly from USA and Europe, were doing business in India. The customer had limited choices and the sellers used to dominate the market. There was a little concern for customers need, product/service quality and prompt delivery because the manufacturers/service providers were quite sure of finding customers queuing up for their product irrespective of quality, timelines or price.
    Ex. Telecommunication operators, Automobile companies etc

    As a result, very few Indian business organizations were world class.

    FNF India 2010 Confidential

    Origin of BPR : Michael Hammer of USA who coined the word re-engineering,
    Michael Hammer and Jim Champy on BPR

    - BPR means reinventing or starting from the Scratches


    - The Heart of the BPR is discontinuous thinking

    FNF India 2010 Confidential

    Meaning and definition of BPR


    Business Process Reengineering is defined as the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance. Performance measured in terms of cost, quality, accuracy, service, speed etc. Business process means a group of logically related activities that use firms resources to provide an output that is valuable to customer in support of the organizations objectives The word fundamental attempts to examine why the particular task/job is being done and why it is being done in particular way.
    Objective: 1. To ascertain the relevance of job. 2. To explore possibility of doing it in different and better way.

    FNF India 2010 Confidential

    Meaning and definition of BPR continuation

    The word radical is derived from Latin word radix, which means root. Which tells to get in to the root of business processes. It is not concerned with the marginal or incremental improvements as envisaged in Kaizen. The word design has a strong engineering connotation. In BPR the word design has got to do with either work design or product design.
    No matter how well the product/service is designed, if the activities involved in producing are not properly designed.

    The word dramatic relates to radical improvements. It relates specially for those business processes which are totally inadequate & doing just marginal improvements just for survival. These need redesign to get dramatic change.

    FNF India 2010 Confidential

    Other Definitions
    BPR :-is a systematic approach to radically improving the core business processes and key supporting processes. BPR is radical re-design of a business as whole or individual work process in order to maximize business effectiveness

    FNF India 2010 Confidential

    Important questions before initiating BPR


    1)NATURE OF BUSINESS:- What business are we in ?
    - How fast is our business changing and why? - What are our strengths and weakness?

    2)THE CRITICAL SUCCESS FACTORS:- What are the key success factors customers are looking for?
    - What are our customers asking us and other suppliers? - Will they be asking for it in future?

    3)THE PROCESSES TO BE IMPROVED :-Where can the competition hurt us?


    -Will only continuous process improvement work, without redesigning the technology? -Which process needs re-engineering ?

    FNF India 2010 Confidential

    Why Re-engineering?
    It focuses on break through improvement to dramatically improve the quality and speed of work and to reduce its cost by fundamentally changing the processes by which work gets done. Competition Universal need & Environmental Demands Technological Advancement Customers are demanding for better and better products and services Sinking Profitability and Market Share

    FNF India 2010 Confidential

    Objectives

    Cost reduction

    Increase quality
    Leverage Speed

    Flexibility
    Independence Faster Growth

    FNF India 2010 Confidential

    How to start up with Reengineering?


    Make the Customer the starting point for Change Design work processes in light of Organizational Goals Restructure to support front line performance

    FNF India 2010 Confidential

    A five-step approach to Re-engineering


    Develop the business vision and process objectives - Cost reduction
    - Time reduction - Quality improvement

    Understand and measure the existing processes - avoid the repeating of old mistakes
    - provide a baseline for future improvements

    Identify the business processes to be redesigned Design and build a prototype of the new process Identify change levers (Ex. IT)

    FNF India 2010 Confidential

    Process

    FNF India 2010 Confidential

    Role of Information technology


    Shared & structured databases, making information easily available. Expert systems, allowing generalists to perform specialist tasks Decision-support tools, allowing decision-making to be a part of everybody's job

    Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found
    High performance computing, allowing on-the-fly planning and envisioning

    FNF India 2010 Confidential

    Success Factors in Reengineering


    1. 2. 3. 4. 5. 6. 7. Setting an aggressive reengineering performance target. Review of customer needs, economic leverages & market targets. Top management commitment. Precise vision. Picking up of right process for reengineering. Empowering people & getting them to take initiative. Developing belongingness among the people in the organization.

    FNF India 2010 Confidential

    Benefits of Reengineering
    Improvement in entire organization as a whole, Increased Profits By Reengineering, an Organization can achieve radical improvement in performance like Cost,Quality,Cycle time

    It boosts Competitiveness through leaner and more productive processes


    Reengineering encourages revolutionary thinking in an Organization Reengineering encourages abandoning of Conventional approaches in favor of problem solving

    FNF India 2010 Confidential

    Benefits of Reengineering(Contd)
    Reengineering transform a rule driven, job centered Organization to Customer focused Organization

    Reengineering generally results in radically new Organization designs that helps Companies to respond well to Competitive pressure
    Reengineering helps to radically change the Corporate Culture Reengineering encourages workers at all level to make their suggestion for improvement Reengineering helps to create more Challenging and more rewarding jobs for employees

    FNF India 2010 Confidential

    Critics of the BPR approach


    Label BPR was used for major workforce reductions Lack of management support for the initiative and thus poor acceptance in the organization. Exaggerated expectations regarding the potential benefits from a BPR initiative and consequently failure to achieve the expected results. Implementation of generic so-called best-practice processes that do not fit specific company needs.

    Underestimation of the resistance to change within the organization.


    Over trust in technology solutions.

    FNF India 2010 Confidential

    Success stories

    General Motors Southwest Airlines Dell Ford Procter and Gamble American Airlines

    FNF India 2010 Confidential

    CONCLUSION
    In todays competitive environment three forces viz.. Customer, competition & change play a significant role. The traditional organization can not meet the present challenges. So BPR plays an important role to deliver goods & services at competitive prize, quality & on time delivery. The benefits of re-engineering are very significant. The industrial engineers are the agents of the change & have several assets that make them good candidate for BPR team membership.

    FNF India 2010 Confidential

    FNF India 2010 Confidential

    21

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