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"An Organizational Make-Over": By: Deepika Arora Priyanka Kumari Issha Marwah

Business process reengineering (BPR) involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in critical performance measures like cost, quality, service and speed. The 4 steps of BPR are to create a vision, identify and understand existing processes, redesign the processes, and implement the redesigned processes. Case examples of successful BPR include Ford Motor Company reengineering their manufacturing process to focus on quality, and State Bank of India redesigning their branches and offering new technology-based services to compete with private banks. Challenges to BPR include lack of management support, underestimating resistance to change, poor resource allocation, timing and planning issues, and change costs seeming too large.

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Harmeet Singh
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48 views14 pages

"An Organizational Make-Over": By: Deepika Arora Priyanka Kumari Issha Marwah

Business process reengineering (BPR) involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in critical performance measures like cost, quality, service and speed. The 4 steps of BPR are to create a vision, identify and understand existing processes, redesign the processes, and implement the redesigned processes. Case examples of successful BPR include Ford Motor Company reengineering their manufacturing process to focus on quality, and State Bank of India redesigning their branches and offering new technology-based services to compete with private banks. Challenges to BPR include lack of management support, underestimating resistance to change, poor resource allocation, timing and planning issues, and change costs seeming too large.

Uploaded by

Harmeet Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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“An organizational make-over”

By:
Deepika Arora
Priyanka Kumari
Issha Marwah
CONTENTS
Definition
Introduction of BPR
Objectives of BPR
4 steps in BPR
Success factors for BPR
Case examples: Ford Motor
Company & SBI
BPR Challenges
DEFINITION
“The FUNDAMENTAL rethinking and
RADICAL redesign of business
PROCESSES to bring about
DRAMATIC improvements in critical,
contemporary measures of
performance, such as cost, quality,
service and speed.”

-Hammer, Champy (1993)


What is Business Process Re-
engineering?
Business process reengineering is one approach for
REDESIGNING the way work is done to better support
the organization's MISSION and reduce COSTS.

Reengineering starts with a high-level assessment of the


organization's MISSION, STRATEGIC GOALS, and
CUSTOMER NEEDS.

Leading organizations are becoming bolder in using this


technology to support INNOVATIVE business processes,
rather than refining current ways of doing work.
BPR seeks improvements of

Cost

Quality

Service

Speed
What is NOT Business Process Re-
engineering

TQM
ISO9000
Automation
Downsizing
Restructuring
Change Management
BPR Objectives
Improve Efficiency e.g reduce time to
market, provide quicker response to
customers
Increase Effectiveness e.g deliver higher
quality
Achieve Cost Saving in the longer run
Provide more Meaningful work for
employees
Increase Flexibility and Adaptability to
change
Enable new business Growth
4 steps in BPR

Create a Vision

Identify and understand Existing


Processes

Redesign the processes

Implement the redesigned processes


Business Process Re-engineering
CASE EXAMPLE 1: FORD
MOTOR COMPANY
Ford re-engineered their business and
manufacturing process from just manufacturing
cars to MANUFACTURING QUALITY CARS
cars, where the number one goal is quality.
Ford has accomplished this goal by incorporating
BARCODES on all their parts and SCANNERS to
scan for any missing parts in a completed car
coming off of the assembly line.
This helped them guarantee a SAFE and
QUALITY car and save millions on recalls and
warranty repairs .
CASE EXAMPLE 2: STATE
BANK OF INDIA
Private sector banks made their first appearance
in January 1993.
To overcome the intense competition from private
and foreign banks, SBI planned a major
Organisational Reconstruction exercise.
The key aspects involved Redesigning of
branches, providing alternate channels; focus on a
lean structure and technological upgradation.
Apart from restructuring, SBI launched several
innovative, value-added products and services to
project a customer friendly image i.e. telebanking
and remote login' to support transactional
requests.
BPR challenges
lack of management support for the
initiative and thus poor acceptance in the
organization.
underestimation of the resistance to
change within the organization
Allocation of Resources
Poor Timing and Planning
The Costs of the Change Seem Too Large

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