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What Is BPR?

BPR involves fundamentally rethinking and redesigning business processes to achieve dramatic improvements in performance metrics like cost, quality, service, and speed. It is not the same as automation, downsizing, outsourcing, process simplification, or continuous improvement. BPR aims for radical transformation rather than incremental change. Key aspects of BPR include taking a systems perspective, focusing on business processes and end customers, and driving integrated and people-centered change. Successful BPR implementation requires selecting the right process to reengineer, appointing a skilled process team, thoroughly understanding the current process, developing a vision for improvement, and executing a detailed action plan.

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0% found this document useful (0 votes)
130 views55 pages

What Is BPR?

BPR involves fundamentally rethinking and redesigning business processes to achieve dramatic improvements in performance metrics like cost, quality, service, and speed. It is not the same as automation, downsizing, outsourcing, process simplification, or continuous improvement. BPR aims for radical transformation rather than incremental change. Key aspects of BPR include taking a systems perspective, focusing on business processes and end customers, and driving integrated and people-centered change. Successful BPR implementation requires selecting the right process to reengineer, appointing a skilled process team, thoroughly understanding the current process, developing a vision for improvement, and executing a detailed action plan.

Uploaded by

BrijeshKapoor
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
You are on page 1/ 55

1

What is BPR?

• Reengineering is the fundamental rethinking


and redesign of business processes to achieve
dramatic improvements in critical,
contemporary measures of performance, such
as cost, quality, service and speed.
(Hammer & Champy, 1993)
2

BPR is Not?
• Automation
• Downsizing
• Outsourcing
3

BPR Versus Process Simplification

Process Simplification Process Reengineering

Incremental Change Radical Transformation


Process-Led Vision-Led
Assume Attitudes & Behaviors Change Attitudes & Behaviors
Management-Led Director-Led
Various Simultaneous Projects Limited Number of Initiatives

(Source Coulson-Thomas, 1992)


4

BPR Versus Continuous Improvement

Continuous Improvement Process Reengineering

Incremental Change Radical Transformation


People Focus People & Technology Focus
Low Investment High Investment
Improve Existing Rebuild
Work Unit Driven Champion Driven
5

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.
(Davenport, 1993)
6

What is a Business Process?


• A group of logically related tasks that use the
firm's resources to provide customer-oriented
results in support of the organization's objectives
7

Why Reengineer?
• Customers
– Demanding
– Sophistication
– Changing Needs

• Competition
– Local
– Global
8

Why Reengineer?
• Change
– Technology
– Customer Preferences
9

Why Organizations Don’t Reengineer?


• Complacency

• Political Resistance

• New Developments

• Fear of Unknown and Failure


10

Performance
• BPR seeks improvements of

– Cost
– Quality
– Service
– Speed
11

Origins
• Scientific Management. FW Taylor (1856-1915).
• Frederick Herzberg - Job Enrichment
• Deming et al - Total Quality Management and
Kaizen
• In Search of Excellence (Peters and Waterman)
• Value-Added Analysis (Porter).
12

Key Characteristics
• Systems Philosophy
• Global Perspective on Business Processes
• Radical Improvement
• Integrated Change
• People Centred
• Focus on End-Customers
• Process-Based
13

Systems Perspective

Feedback

Inputs Transformation Outputs

Environment
14

Process Based
• Added Value
– BPR Initiatives must add-value over and above the
existing process

• Customer-Led
– BPR Initiatives must meet the needs of the customer
15

Radical Improvement
• Sustainable
– Process improvements need to become firmly rooted
within the organization

• Stepped Approach
– Process improvements will not happen over night
they need to be gradually introduced
– Also assists the acceptance by staff of the change
16

Integrated Change
• Viable Solutions
– Process improvements must be viable and practical

• Balanced Improvements
– Process improvements must be realistic
17

People-Centred
• Business Understanding
• Empowerment & Participation
• Organizational Culture
18

Focus on End-Customers
• Process improvements must relate to the needs of
the organization and be relevant to the end-
customers to which they are designed to serve
19

BPR Symbols
20

Business Process Flowchart Symbols

An Activity

A Document

A Decision

Data (input as outputs)


21

Business Process Flowchart Symbols

A Predefined Process

Start The Start of a Process

End The End of a Process

Representing a Relation
22

Business Process Flowchart Symbols

Continuation of the process at the same page


at an equal symbol with the same number. Used
when a relation arrow crosses another relation arrow

Off-Page Connector - Process will continue on the


next page

Integration Relation - A relation to another module is


identified and described
23

Data Flowchart Symbols

An Activity

A Document

A Decision

Flat Data File (input as outputs)


24

Data Flowchart Symbols

Manual Data Item

A Database File

Representing a Relation

Continuation

Off-Page Connector
25

Rules For Data Symbols


26

Rules For Data Symbols

Start Symbol used to identify the start of a business process

Generate
Purchase Activities must be described as a verb
Order

OK? Yes Decisions have only two possibilities (Yes & No)

No

Crossing lines are not allowed

End If one side of the decision has no further processes


defined this symbol has to be used
27

Rules For Data Symbols

I Continuation symbol within the same number must be


present twice on the same page

Purchase
Order Name the document

Off- Page Connector is used to continue a process at the


A next page or to let the process to flow over at the
previous to the next page. If more than one is needed use
A, B, C, D …

Posting
of Bonus Name the data
28

Rules For Data Symbols

Predefined Processes always have a relation to level and


Sub-Process stream by a number in the line below a sub-process
Delivery description

BC 4.04 A predefined process must be described in a different


flowchart. To make the relation clear between the
predefined process and the belonging flowchart a unique
alpha numeric number should be assigned to this
predefined process.
29

Version Management
• For different versions of a business process or
data flow some mandatory information must be
on the flowchart.
– Name of the business process
– Unique number of the business process
– Revision number
– Date of last change
– Author
– Page number with total pages
30

Implementing a BPR Strategy


31

Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan
32

Select the Process & Appoint Process Team

• Two Crucial Tasks

– Select The Process to be Reengineered

– Appoint the Process Team to Lead the Reengineering


Initiative
33

Select the Process


• Review Business Strategy and Customer
Requirements

• Select Core Processes

• Understand Customer Needs

• Don’t Assume Anything


34

Select the Process


• Select Correct Path for Change

• Remember Assumptions can Hide Failures

• Competition and Choice to Go Elsewhere

• Ask - Questionnaires, Meetings, Focus Groups


35

Appoint the Process Team


• Appoint BPR Champion

• Identify Process Owners

• Establish Executive Improvement Team

• Provide Training to Executive Team


36

Core Skills Required


• Capacity to view the organization as a whole

• Ability to focus on end-customers

• Ability to challenge fundamental assumptions

• Courage to deliver and venture into unknown


areas
37

Core Skills Required


• Ability to assume individual and collective
responsibility

• Employ ‘Bridge Builders’


38

Use of Consultants
• Used to generate internal capacity
• Appropriate when a implementation is needed
quickly
• Ensure that adequate consultation is sought from
staff so that the initiative is organization-led and
not consultant-driven
• Control should never be handed over to the
consultant
39

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 (staff including process team)
40

Understand the Current Process

• Clearly Identify Improvement


Opportunities
– Quality
– Rework
• Document the Process
– Cost
– Time
– Value Data
41

Understand the Current Process

• Carefully resolve any inconsistencies


– Existing -- New Process
– Ideal -- Realistic Process
42

Develop & Communicate Vision of Improved Process

• Communicate with all employees so that they are


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
43

Develop & Communicate Vision of Improved Process

• Promote individual development by indicating


options that are available

• Indicate actions required and those responsible

• Tackle any actions that need resolution

• Direct communication to reinforce new patterns


of desired behavior
44

Identify Action Plan


• Develop an Improvement Plan

• Appoint Process Owners

• Simplify the Process to Reduce Process Time

• Remove any Bureaucracy that may hinder


implementation
45

Identify Action Plan


• Remove no-value-added activities

• Standardize Process and Automate Where


Possible

• Up-grade Equipment

• Plan/schedule the changes


46

Identify Action Plan


• Construct in-house metrics and targets

• Introduce and firmly establish a feedback system

• Audit, Audit, Audit


47

Execute Plan
• Qualify/certify the process
• Perform periodic qualification reviews
• Define and eliminate process problems
• Evaluate the change impact on the business and
on customers
• Benchmark the process
• Provide advanced team training
48

Information Technology & BPR


49

Benefits From IT
• Assists the Implementation of Business
Processes
– Enables Product & Service Innovations
– Improve Operational Efficiency
– Coordinate Vendors & Customers in the Process
Chain
50

Computer Aided BPR (CABPR)


• Focus
– Business Processes
– Process Redesign
– Process Implementation
51

BPR Challenges
52

Common Problems
• Process Simplification is Common - True BPR is
Not
• Desire to Change Not Strong Enough
• Start Point the Existing Process Not a Blank
Slate
• Commitment to Existing Processes Too Strong
– REMEMBER - “If it ain’t broke …”
• Quick Fix Approach
53

Common Problems with BPR


• Process under review too big or too small
• Reliance on existing process too strong
• The Costs of the Change Seem Too Large
• BPR Isolated Activity not Aligned to the
Business Objectives
• Allocation of Resources
• Poor Timing and Planning
• Keeping the Team and Organization on Target
54

Summary
• Reengineering is a fundamental rethinking and
redesign of business processes to achieve
dramatic improvements

• BPR has emerged from key management


traditions such as scientific management and
systems thinking

• Rules and symbols play an integral part of all


BPR initiatives
55

Summary
• Don’t assume anything - remember BPR is
fundamental rethinking of business processes

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