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Approaches In Turnaround StrategiesCHAPTER NO. 9Reengineering Process TeamMeaningBPR team is responsible for execution of strategies and make BPR a success. BPR team has a diverse set of members from within and outside the organization. It is a cross-functional team, mixed in depth, knowledge, skills and experience. Each member has a particular task to work.

A BPR team consist of Team LeaderProcess OwnersReengineering TeamsExternal Consultants

Determinants of Effective BPRCapability of the team membersTheir motivation and dedicationTheir creditabilityTheir creativityTeam spirit and empowermentTraining of membersEffective team leadershipProper organization of the teamAdequate sizeInterchangeable accountabilityClarity of work assignedProper understanding of goalsBPR LeaderBPR leader also known as BPR head or manager is one of the very important members of the reengineering team. He sponsors, authorizes and motivates the overall reengineering effort. He is the senior executive leader or the CEO or head of any department or any other important person from the top management team.

QualitiesStrong, Consistent and continuous involvementAbility to delegateOpen to ideas and suggestionsExcellent Communication skillsConfidenceCommitmentAbility to motivate and inspire

Process OwnersA process owner can be defined as an individual held accountable and responsible for the workings and improvement of one of the organizations defined processes and its related sub processes.

QualitiesStrong technical knowledgeMotivate team membersEncourage creativityListen to problems CreativityResponsible for outcome of BPRResolves process bottlenecksTeamwork

Reengineering TeamsThis team carries out the actual job of reengineering the business process. They actually implement the BPR strategies designed by leader and process owners and communicate the outcome and feedback to process owners.

QualitiesCross function team membersTechnical, professional and financial knowledgeCreativity and enthusiasmCommunicate for any bottlenecks to process ownersTeam spiritPositive attitudeInnovativeOpen to ideas

External ConsultantsExternal Consultants look at the process initiatives from an outsider prospective and hence are better foreseeing problems. It is a joint initiative between the senior management, the operational staff and the external consultants.Advantages of External ConsultantsBrings a number of useful ideas and skillsImpartial and independent opinionGuidance beneficial at all stages of BPRThey are objectiveNot involved in inter office politicsThey have followed the process beforeBring information and best practicesGood communication pathsThey can question at top managementThey have ability to take greater riskDisadvantages of External ConsultantsResistance and non cooperation of staffThreat secrecy of business strategiesHigh costTime consuming activityNot suitable to small scale businessLoosing of controlKAIZENKaizen is a system that involves every employee from upper management to the cleaning staff. Everyone is encouraged to come up with small improvement suggestions on a regular basis. This is not once a month it is a continuous process.

It is a improvement in Quality, Technology, Processes, Company culture, Productivity, Safety, Leadership.

Benefits of KaizenLess wastePeople are more satisfiedImproved commitment Improved retentionImproved competitiveness Improved consumer satisfaction Improved problem solvingImproved teams

Distinguish between KAIZEN and BPRAttributeKaizenBPRMeaningContinuous improvementInnovationEffectNot dramaticDramaticSpeedSmall stepsLong stepsTime frameContinuousInterruptedParticipationEach employeeSelected fewInvestmentSmallLargemethodologyGroup workIndividual efforts5 S PrinciplesSeiri (Sort) Seiton (Straighten)Seiso (Shine)Seiketsu (Standardize)Shitsuke (Sustain)

JIT (Just in Time)A philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity.

JIT is used for the purposes of:Removing costImproving qualityImproving performanceImproving deliveryAdding flexibilityIncreasing innovationAdvantages of JITIt keeps stock holding costEliminates wasteLess working capital is requiredReturn on investment is highIncorporates change in demandEncourage right first time conceptHigh quality products and greater efficiency derivedClose relationship with suppliers and customersConstant communication with customerOverproduction is eliminated.Disadvantages of JITHave to be high reliance on suppliersWould not be able to meet the unexpected increase in orderTransaction cost would be highNot suitable for small organizationERP (Enterprise Resource Planning)ERP is a business management software that a company can use to collect, store, and manage and interpret data from many business activities including-

Product planning costManufacturing or service deliveryMarketing and salesInventory managementShipping and paymentBenefits of ERP System:Integration across all business processesAutomation enhances productivityIncrease overall performanceQuality reportsIntegrates across the entire supply chainGives a real-time view of dataEnhances customer serviceISO International Organization for StandardizationISO is a voluntary body for setting standards. It promotes development of standardization and related activities to facilitate international trade in goods and services and cooperation on economic, intellectual, scientific and technological aspects.ISO was founded on 23 February 1947Some ISO standards

ISO 9001- Quality management systemISO 14001 - Environmental management systemISO 20000 - IT service management systemISO 50001 Energy management system

FlowchartsA flowchart is a type of a diagram that represents a workflow or process showing the steps as boxes of various kinds, and their order by connecting them with arrows.A diagram of the sequence of movements or actions f people or things involved in a complex system or activity.Benefits:It provides an easy way of communicationDiagrammatic representationIt gives a step by step solution to a problemAccuracy in logic flowIt represents a data flowMandatory in certain casesIt is useful for documentation purpose

Name SymbolUse in FlowchartOvalBeginning or endFlow lineDirection of logic flow ParallelogramEither input operation or output operation RectangleProcess to be carried out

DiamondDecision to be madeFlowchart Symbol Process MappingProcess mapping is a workflow diagram to bring forth a clearer understanding of a process or series of parallel processes.

It is involved in defining What a business entity doesWho is responsibleTo what standard a business process should be completedHow the success of a business process can be determinedSteps of Process MappingProcess identificationInformation gatheringInterviewing and mappinganalysisBenchmarkingA measurement of the quality of an organization policies, products, programs, strategies, etc. and their comparison with standard measurement or similar measurement of its peers.

Steps involved in BenchmarkingSelect a product, service or process to benchmarkIdentify the key performance metricsChoose companies or internal areas to benchmarkCollect data on performance and practicesAnalyze the data and identify opportunities for improvementAdapt and implement the best practices, setting reasonable goals and ensuring company wide acceptance.Types of BenchmarkingInternalCompetitiveFunctionalGeneric

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