Business Process Re-engineering

Outline

1.
2. 3.

4.
5. 6.

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Introduction Assumptions Objectives Components of BPR Methodology of BPR implementation Components Benefits

7. Key Actions in BPR

8. Phases of BPR 9. Importance of IT in BPR

10. Shift from Conventional to BPR

11. Comparison between BPR & TQM 12. Critical success factors for BPR

Introduction

Process- A structured, measured set of activities

designed to produce a specified output for a particular customer or market.

 Business Process Re-engineering (BPR)- The

fundamental rethinking & radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service & speed.

Elements of a Business Process

1.

Input

2. Processing

3. Outcome

Assumptions

1.

Radical change is required

2. Current processes are inapplicable

Objectives

Customer focus
Quality Innovation

Productivity
Speed Compression

Components of BPR
Organisation Analysis As-is Analysis

To-be Design
Human Change management

Benefits/outcomes of BPR

Combining of several jobs

Employee Empowerment Natural order of performing services

Multiple versions of processes

 Work is performed where it makes most sense

Minimisation of non-value added work Single point of contact for customers

Usage of hybrid centralised/decentralised operation

Key actions in BPR

Selection of strategic processes for redesign

Simplify new processes Organize teams for specific processes

Assigns roles & responsibilities

 Automate processes using IT

Train process teams Introduce redesigned processes into organization

structure

Phases of BPR

The Envision stage

The Initiation stage The Diagnosis stage

The Redesign stage

The Reconstruction stage The Evaluation stage

Importance of IT in BPR

Empowering people
Providing information Providing tools

Providing training

 Eliminating time wastage

Eliminating unnecessary paper Eliminating unnecessary variations in the processes

in systems
Minimizing burden of record keeping

Shift from Conventional to BPR

Conventional Functional Departments Simple Tasks Controlled people Training of employees Compensation for skill & time spent Raises based on promotion & seniority Advancement based on seniority Post BPR Process teams Empowered employees Multidimensional work Education of employees Compensation for results Low pay + high performances related bonuses Advancement based on performance

Protective organisation culture Managers supervise & control Hierarchical organisation culture Executives as scorekeepers Separation of duties & functions Linear & sequential processes Mass production

Productive organisational culture Managers coach & advise Horizontal structure Executives as leaders Cross-functional teams Parallel processes Mass customisation

Comparison between BPR & TQM

Criteria Goals TQM BPR

Small scale improvements Outrageous in many places with cumulative efforts Attention to tasks, steps & Select but broad processes across board processes Incremental & continual Important up front Incidental Order of magnitude & periodic Intensive throughout Cornerstone

Scope & focus Degree of change Senior management involvement Role of IT

Case for action

Assumed to be necessary

Compelling

Critical Conditions for the success of BPR

Thank you

Presented by: Sana Pardiwalla Anjali Ranjan