BPR 1
BPR 1
Process
Engineering
Content
• What is Business Process Engineering (BPE)?
• Why is BPE Important?
• Core Principles of BPE
• BPE Framework
• Business Process Management (BPM)
• BPM Lifecycle
• Benefits of BPM
• BPM Tools and Technologies
What is Business Process Engineering
(BPE)?
• Business Process Engineering (BPE) is the systematic analysis and
improvement of business processes.
• It focuses on redesigning processes to make them more efficient,
effective, and customer-centric.
• BPE utilizes various tools and techniques to identify bottlenecks,
eliminate waste, and optimize workflows.
Why is BPE Important?
• Enhanced Efficiency: BPE helps eliminate redundancies and
bottlenecks, leading to faster task completion times and reduced
operational costs.
• Improved Customer Satisfaction: Efficient processes ensure timely
delivery of products or services, leading to a better customer
experience.
• Increased Productivity: Streamlined workflows empower employees
to focus on value-adding tasks, boosting overall productivity.
• Greater Agility: BPE fosters a culture of continuous improvement,
enabling businesses to adapt to changing market demands.
Core Principles of BPE
• Customer Focus: All process improvement efforts should
align with customer needs and expectations.
• Continuous Improvement: BPE is an ongoing process,
fostering a culture of identifying and implementing better
ways of working.
• Data-Driven Decision Making: Data analysis plays a crucial
role in identifying process inefficiencies and measuring
improvement success.
Business Process Management (BPM)
Business Process Management (BPM) is a systematic approach to
managing and improving an organization's business processes.
It involves:
• Analyzing processes to identify inefficiencies.
• Designing and implementing improvements.
• Monitoring and measuring process performance.
• Continuously optimizing processes for better outcomes.
BPM Lifecycle
Business process management helps you reduce inefficiencies and
optimize business processes. To get started, follow these five steps
of the BPM lifecycle:
Cont.
• Analyze/Design: The first step of BPM is Analyze—though it’s sometimes referred
to as the Design step. During this step, take a look at your current business
processes and map them end to end. At this point, you aren’t making any changes
to your business processes; you’re simply understanding what they are
• Model: Model what it should actually look like. Ideally, you’ve identified
inefficiencies during the Analyze phase that you can trim, or places where work is
being bottlenecked with visual representations of processes using flowcharts or
diagrams.
• Execute/ Implement: Put your model into action, Implement the designed
processes within the organization. Monitor: Track and measure process
performance using KPIs.
• Monitor: Monitor them to see how well they’re doing. Have these new processes
actually improved bottlenecks and inefficiencies?
• Optimize: Sometimes called Automate—continue to tweak and improve your
business process. Analyze process data, identify improvement opportunities, and
implement changes.
Types of business process management
• Human-centric BPM
• Integration-centric BPM
Benefits of BPM
• Increased Efficiency
• Improved Customer Satisfaction
• Reduced Costs
• Maps and improves your processes
• Automates processes where possible
• Reduces waste
BPM Technologies
Technology plays a crucial role in modern BPM practices.
• Workflow management systems /Process design: focuses on the
creation and modification of business processes or Automate tasks
and workflows within a process
• Process performance/ Business activity monitoring (BAM) tools:
Track and analyze process performance in real-time.
• Process mining: analyze data from various business systems to
discover, monitor, and improve real processes by extracting
knowledge from event logs (e.g Healthcare provider).
Example: Streamlining the Order
Fulfillment Process
Imagine a company selling books online. Their current order
fulfillment process might look like this:
• Customer places an order: The order gets sent to the sales team.
• Sales team forwards order: The sales team manually forwards the order
details to the warehouse. (Potential bottleneck)
• Warehouse picks and packs order: Warehouse staff locate the ordered
books and pack them for shipment.
• Packing slip creation: A separate department creates a packing slip with
order details. (Potential redundancy)
• Shipping label creation: Another department generates a shipping label.
(Potential redundancy)
• Order shipped: The packed order is shipped to the customer.
Cont.
Inefficiencies:
• Manual handoffs between departments create delays.
• Duplicate steps (packing slip & shipping label) waste time and
resources.
BPE Improvement:
• Integrate an order management system to automate order flow.
• Combine packing slip and shipping label into one document.
• Empower warehouse staff to print labels directly.
Benefits:
• Faster order processing time.
• Reduced manual errors.
• Improved customer satisfaction with quicker deliveries.
• Lower operational costs.