to familiarise the participants with the characteristics of business process

8/14/2019 To Familiarise the Participants With the Characteristics of Business Process

1/77


2/77

Learning Objectives Understand and be able to

implement a BPR Strategy

Understand the main challengesin implementing a BPR Strategy


3/77

Sequence of Presentation

Introduction to Business Process Salient Features and Stages of

Reengineering

Reengineering Initiatives Forms of Reengineering Features of Business Process

Reengineering Technology as Process Enabler Mapping an Existing Process Process Redesign and New Process

Validation Conclusion


4/77


5/77

What is BPR? Reengineering is the

fundamental rethinking andredesign of business processesto achieve dramaticimprovements in critical,contemporary measures of

performance, such as cost,quality, service and speed.

(Hammer & Champy,

1993)


6/77

BPR Versus ProcessSimplification

Process Reengineering

Radical TransformationVision-Led

Change Attitudes & BehaviorsDirector-Led

Limited Number of Initiatives

Process Simplification

Incremental ChangeProcess-Led

Assume Attitudes & BehaviorsManagement-Led

Various Simultaneous Projects


7/77

BPR Versus ContinuousImprovement

Process Reengineering

Radical TransformationPeople & Technology Focus

High InvestmentRebuild

Champion Driven

Continuous Improvement

Incremental ChangePeople Focus

Low InvestmentImprove Existing

Work Unit Driven


8/77


9/77

TransformationInputs Outputs

Feedback

Environment

Systems Perspective


10/77

Aspects of Processes Objects: Processes manipulate

objects. These could be Physicalor Informational

Entities: Processes occurbetween organizational entities.

Activities: Processes encompasstwo types of activities-Managerial and Operational


11/77

Why Reengineer? Customers

Demanding Sophistication Changing Needs

Competition Local Global


12/77

Why Reengineer? Change

Technology Customer Preferences


13/77

Why Organizations DontReengineer?

Complacency

Political Resistance

New Developments

Fear of Unknown and Failure


14/77

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).


15/77

Key Characteristics Systems Philosophy Global Perspective on Business

Processes Radical Improvement Integrated Change

People Centred Focus on End-Customers Process-Based


16/77

Process Based Added Value

BPR Initiatives must add-value overand above the existing process

Customer-Led BPR Initiatives must meet the

needs of the customer


17/77

Radical Improvement Sustainable

Process improvements need tobecome firmly rooted within theorganization

Stepped Approach Process improvements will not

happen over night they need to begradually introduced

Also assists the acceptance by staff of the chan e


18/77

Integrated Change Viable Solutions

Process improvements must beviable and practical

Balanced Improvements Process improvements must be

realistic


19/77

People-Centred Business Understanding Empowerment & Participation

Organizational Culture


20/77

Focus on End-Customers Process improvements must

relate to the needs of theorganization and be relevant tothe end-customers to which theyare designed to serve


21/77

Business Process FlowchartSymbols

An Activity

A Document

A Decision

Data (input as outputs)


22/77


A Predefined Process

The Start of a Process

The End of a Process

Representing a Relation

Start

End


23/77


Continuation of the process at the same pageat an equal symbol with the same number. Usedwhen a relation arrow crosses another relation arrow

Off-Page Connector - Process will continue on thenext page

Integration Relation - A relation to another module isidentified and described


24/77

Data Flowchart Symbols

An Activity

A Document

A Decision

Flat Data File (input as outputs )


25/77

Understand the CurrentProcess

Develop a Process Overview Clearly define the process

Mission Scope Boundaries

Set business and customermeasurements

Understand customersexpectations from the process

(staff including process team )


26/77


Clearly Identify ImprovementOpportunities

Quality Rework

Document the Process

Cost Time Value Data


27/77


Carefully resolve anyinconsistencies

Existing -- New Process Ideal -- Realistic Process


28/77

Develop & Communicate Vision of ImprovedProcess

Communicate with all employeesso that they are aware of thevision of the future

Always provide information onthe progress of the BPR initiative

- good and bad. Demonstrate assurance that the

BPR initiative is both necessaryand ro erl mana ed


29/77


Communicate with all employeesso that they are aware of thevision of the future

Always provide information onthe progress of the BPR initiative

- good and bad. Demonstrate assurance that the

BPR initiative is both necessaryand ro erl mana ed


30/77


Promote individual development byindicating options that areavailable

Indicate actions required and thoseresponsible

Tackle any actions that needresolution

Direct communication to reinforce


31/77

Identify Action Plan Remove no-value-added

activities

Standardize Process andAutomate Where Possible

Up-grade Equipment

Plan/schedule the changes


32/77

Identify Action Plan Construct in-house metrics and

targets

Introduce and firmly establish afeedback system

Audit, Audit, Audit


33/77

Execute Plan Qualify/certify the process Perform periodic qualification

reviews Define and eliminate process

problems

Evaluate the change impact onthe business and on customers Benchmark the process

Provide advanced team training


34/77

Stages of Reengineering Realization Key Essentials

Rethink Redesign Retool Evaluating Again


35/77

Realization Identify needs and threats from

Competition and political,economic and social environments

Realization that it must showregularly, Incremental or Radicalbusiness improvement

Leadership at all levels to convincethe work force of the necessity forchange

Transformation through


36/77

Key Essentials State Mission, vision and Values

of the Organisation in terms of Satisfaction of Customer Needs

Establish Key PerformanceIndicators for the Product orService being offered.


37/77

Rethink Re-examine the current and

existing processes of theorganisation. Critical Questions:-

-Is the current process capable of producing competitive productsand services?

-Is the current process capable of satisfying all the essentialrequirements of the customer andthe organisation?-


38/77

Redesign Appraise the entire system of

procedures, products and serviceswith the associated work elements,tasks and jobs

Principles of Process Redesign: All essential Requirements of

customers and organisation must bemet

Job satisfaction must be givenimportance in the redesign process The main objectives of redesigning

processes are to eliminate all sourcesof waste and enhance theorganisations competitive position


39/77

Retool Evaluate New technologies and

tools required for improving theservice and production process

Map the existing Technologiesaccording to prequalified processcharcteristics

Examine the weaknesses of thecurrent technology and tools bydetermining the Mean time tofailure, mean time to repair, meantime to dismantle

Incorporate the new technologyand reengineer the process.


40/77

Evaluating Again Reevaluate by getting data on key

performance success factorsquality, productivity, customer

satisfaction, market share,variation levels, profitably indexes,and cost reduction savings etc.

The responsibility of examining theperformance of the process leiswith the workers themselves, asthey are best qualified to controlthe variables in the process.


41/77

Re-engineeringInitiatives

Re-engineering in Large Business(P &C, 8000 employees)-

2.Strategy: Fundamental Changes inProducts, Customers , Processesand Technology)

3.Structural Changes Managing a Large Re-engineering

Initiative- 1. Involvement of Employees- helped build upownership of the Project. 2. Map of key value Chain processes

Managing Change in a Re-engineering Initiative-


42/77


43/77

Forms of Re-engineering Systems Re-engineering Infrastructure Reengineering

Business Process Re-engineering


44/77

System Re-engineering Ensure Effective Utilisation of :2.Computers

3.Data Storage4.Programmer Productivity


45/77

System Re-engineering..Contd

Hardware Engineering-Radical Shift in ComputerTechnology

Software Engineering- Adopt SWTechnologies

4.Computer Aided Design (CAD)5.Computer Aided Manufacturing

(CAM)

6.Computer Integrated


46/77

CAD Technique used for Designing

Products and Processes onComputers

Assists in Creation, Modification,analysis and optimization of design

CAD system incorporatesGraphics for highlightingPhysical Attributes of theProduct and Engineering

Systems for highlighting the


47/77

Benefits of CAD Increase in Productivity Improvement in the Quality of

Product or Process Design More Standardized products and

design documents


48/77

CAM Computers control and support the

Automated ManufacturingOperations

Benefits of CAM:-3.Reliable Information inputs4.Consistent Product Quality

5.Reduction in Labor Costs6.Better Control and management of Equipment and materials

7.Improvements in Production Rate


49/77

CIM It integrates the engineering

functions of CAD/CAM with thebusiness functions of the firm.

Business Functions include OrderEntry, Cost Accounting,Maintenance of Employee timerecords, payroll and customerbilling.

Highest Level of Integration in

Manufacturing

f


50/77

Infrastructure Re-engineering

Infrastructure of an Oraganisationincludes People, Processes,Technology and Resources (Men,Machine and Material)

Infrastructure re-engineeringinvolves restructuring of an entireorganisation with the purpose of improving its productivity

Macro Level Issues:- Change in thedegree of Centralisation of decision-making

Micro Level Issues:- Job definitionand Content, job satisfaction,


51/77

BPR It is a methodical, regimented

progressive move toward thecritical examination, rethinking,

redesign and implementation of the redesigned processes of anorganisation.

It is also referred to as BusinessProcess Improvement (BPI)

Can be applied Incrementally,but more often as Dramatic or

Radical refurbishment of existing


52/77

Features of BPR Process Orientation Project Goals Rule Breaking

Creative Use of Technology Combining Several Jobs into one Decentralisation of Decision-

Making Authority Multiple Versions of Processes Checks and Controls are Reduced A Single Point of contact for a

Customer


53/77

Effects of BPR1. Change in Nature of Jobs-from simple tasks to

multi dimensional work 2. Change in roles-from controlled to empowered3. Changes in preparation for the job-from

training to education4. Change in the focus of performance measures

and compensation from activity to results5. Change in the criteria for promotion-from

performance to ability6. Change in values from protective to

productive7. Change in responsibilities of Managers-from

supervisors to Coaches8. Changes in vertical organisational structure-from hierarchical to flat

9. Change in the horizontal organisationalstructure-from functional departments toprocess teams.

P bl f F i l


54/77

Problems of FunctionalDivision

BPR and Functional Division BPR and Division of Labor

T h l P


55/77

Technology as ProcessEnabler

Impact of Technology inManufacturing

2.AutomationFlexible Manufacturing SystemsRoboticsAutomated Guided VehiclesAutomated Storage and RetrievalSystems

Ad t f


56/77

Advantages of Automati on

1. Improvement in Productivity2. Efficient Use of Materials3. Improvement in the Quality of

the Product4. Improvement in Work

Environment for the Workers5. Reduced Factory Lead-Time

Di d t f th


57/77

Disadvantages of theAutomation

Negative Feedback from theEmployees

High Initial Investment Higher Level of Maintenance

Needed Less Flexible Requirement of Technical

Manpower

M i E i ti


58/77

Mapping an ExistingProcess

Have a thorough Understanding of the Existing Process

Map the existing Process first andanalyse and improve on them todesign new processes

Identify the breaks that prevents

the process from achieving thedesired result of value addition Re-engineer the process to

streamline the Break

P R d i d N


59/77

Process Redesign and NewProcess Validation

Process Validation measures thecorrespondence between aformal model of intendedprocess behavior exhibiting aprocess.

It is done by allowing the user to

simulate the execution of aprocess.


60/77

Validation.. Contd Model Validation Specifics

How can I assess the sufficiency of the functiona

How can I detect non-constant variation across t

How can I tell if there was drift in the process? How can I assess whether the random errors are

How can I test whether or not the random errors

How can I test whether any significant terms are

How can I test whether all of the terms in the fu
http://www.itl.nist.gov/div898/handbook/pmd/section4/pmd441.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd442.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd443.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd444.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd445.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd446.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd447.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd447.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd446.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd445.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd444.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd443.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd442.htmhttp://www.itl.nist.gov/div898/handbook/pmd/section4/pmd441.htm


61/77

Information Technology

& BPR


62/77

Benefits From IT Assists the Implementation of

Business Processes Enables Product & Service

Innovations Improve Operational Efficiency Coordinate Vendors & Customers in

the Process Chain

Computer Aided BPR


63/77

Computer Aided BPR(CABPR )

Focus Business Processes Process Redesign Process Implementation


64/77

BPR Challenges


65/77

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 aint broke


66/77

A Business Revolution Hammer was former CS professor switched to consulting guru business celebrity for a while

Rhetoric of revolution trash existing business, rebuild from scratch process oriented view engineer better systems

Insists new idea Old ways were good before New technology means new approach


67/77

Attention to Processes Is a good thing Some common sense stuff Simplify processes rather than

automate Design rather than just accumulate (As Davenport says, this is tied to

TQM)

Exploit technology Minimize organizational barriers to

process Put a single person in charge

Simplify organizational chart if


68/77

Quotes from Hammer I "American managers . . . must abandon the

organizational and operational principles and procedures they are

now using and create entirely new ones.... Business reengineering means starting all over, starting from scratch.... It means forgetting how work was done....

Old job titles and old organizational arrangements . . .

cease

to matter. How people and companies did things yesterday doesn't matter to the business reengineer....

Reengineering ... can't be carried out in small andcautious

steps. It is an all-or-nothing proposition." Reengineering the Corporation


69/77

Quotes from Hammer II "In this journey we'll carry our wounded

and shoot the dissenters.... I want to purge from the

business vocabulary: CEO, manager, worker, job."

Forbes ASAP, Sept. 13, 1993 "It's basically taking an axe and a

machine gun to your existing organization."

Computerworld,Jan. 24, 1994 "What you do with the existing structure

is nuke it!" Site Selection, February 1993

Common Problems with


70/77

Common Problems withBPR

Process under review too big ortoo small

Reliance on existing process too

strong The Costs of the Change Seem

Too Large

BPR Isolated Activity not Alignedto the Business Objectives Allocation of Resources Poor Timing and Planning


71/77

Summary Reengineering is a fundamental

rethinking and redesign of business processes to achievedramatic improvements

BPR has emerged from keymanagement traditions such as

scientific management andsystems thinking

Rules and symbols play anintegral part of all BPR


72/77

Summary Dont assume anything -

remember BPR is fundamentalrethinking of business processes

Business Process Reengineering Methodology


73/77

73

CurrentBusiness

Processes

FutureBusiness

Processes

Information

Technology

Skills

STRATEGIC

DIRE

CTIONS

Information

Technology

Skills

CurrentEnvironments (AS-IS) FutureEnvironments (TO-BE)

Transition/Implementation (Change Management)

Business Process Reengineering Methodology

Current

Products/Services

Future

Products/Services

AIMCORP-Automated Information Management Corporation


74/77

E i i Q i


75/77

Examination Questions

1. BPR helps------a) Streamline flow of informationb) Increase overall efficiency of businessprocessc) Increase quality of Productiond) Manage Customer bettere) Decision making process

7. BPR is a radical change in business process.Relate

A complete structural change in businessfunctions

Change in customer relationship Maintain proper SCM Business Transactions carried on the net Preparing for e-business3. Discuss Business Process Reengineering.

4. The term BPR refers to:-


76/77

b) Business Program Re-engineeringc) Business Process Reengineeringd) Business Process Re-applicatione) Business Process Re-structuringf) Business Plan Reengineering5. Not a single day should go by without some kind of improvement

being made somewhere in the company. This phrase is mostapplicable in case of :-

h) BPRi) TQM

j) Kaizenk) ERPl) CRM6. CIM is:n) Computer Integrated Marketingo) Computer Integrated Manufacturingp) Computer Integral Manufacturingq) Chip Integrated Manufacturing.7. Explain the Stages of Re-engineering

8 Business Process automation relates to


77/77

8. Business Process automation relates to:-

b)Implementing a new software packagec)Refining automated business processesd)Automating the work in Progresse)Automating the business process as it

is without any changesf) Revamping the existing system9. What is Business Process

Reengineering? Briefly discuss thesuccess factors that may lead tosuccessful outcomes for BPR Projects.What are the major factors which

to familiarise the participants with the characteristics of business process

Documents