BUSINESS PROCESS

RE-NGINEERING
Presented By:
Debkona Bhattacharya
Garima Shroff
Madhuchanda Pramanik
Rinki Mussadi
Saloni Mohta
Shraddha Nahata
OBJECTIVES:
 Identify the goals, concepts, elements, types
and phases of BPR;

 Emphasize the benefits, advantages and

disadvantages of undertaking BPR; and

 Compare critical differences and/or

comparison
between TQM and BPR.
BUSINESS PROCESS RE-ENGINEERING
 Business Process
 simplya set of activities that transform a set of inputs into a set
of outputs (goods or services) for another person or process using
people and tools.

 Reengineering
 assumes the current process is irrelevant - it doesn't work, it's
broke, forget it. Start over.
BUSINESS PROCESS RE-ENGINEERING (BPR)

 Business process re-engineering is about rethinking

and redesigning organisational processes in order to
achieve dramatic improvements in performance,
including cost, quality, service and speed
(Hammer & Champy 1994).
THREE-PHASED APPROACH TO A BPR
PROJECT:
 Phase 1: Planning
 establishes the required oversight and reference materials for
successful Redesign and Implementation phases as well as
lays the administrative groundwork. Work in the Planning
phase spans approximately one month (part time).
 Phase 2: Redesign
 is the period during which the BPR team is trained, then
follows the methodology to transform the selected process
and deliver recommended solutions.
 Phase 3: Implementation
 is about bringing to life the team’s recommendations to
realize the goals of the redesign. It involves prioritizing,
planning for, and executing projects to achieve the redesign
BUSINESS PROCESS RE-ENGINEERING (BPR)

 The primary GOALS of BPR are:

 radical change
 dramatic outcomes
 transformation or replacement of an overall process

 Four Aspects of Reengineering:

 Fundamental – B/R starts with basic questions
 Radical – Redesign current structures and procedures
entirely
 Dramatic – Not gradual but epochal
 Processes – Key target of Reengineering
ELEMENTS OF BPR
ADVANTAGES OF BPR
 Satisfaction
 the work becomes more satisfying because the workers
get a greater sense of completion, closure, and
accomplishment from their jobs.
 Growth of Knowledge
 get a widespread knowledge of the whole process
 Solidarity to the Company
 more time on value adding work and less time on work
that adds no value, their contributions to the company
increase
 will on the whole be more highly compensated
 [Hammer, Champy, 2001]
RISK OR DISADVANTAGES OF BPR
 Resistance to the change
 “… the key is to expect this resistance and develop
ways to confront it…”

 Drawbacks to Business Process Reengineering

 “… must come from the top down – the executives
must be committed and ready to promote the changes
as an example for the rest of the company.“

 Higher Demands to the Workers

 "Itis not longer enough merely to look at prospective
employees' education, training, and skills; their
character becomes an issue as well. Are they self-
starting? Do they have self-discipline? Are they
motivated to do what it takes to please the customer?“
ADVANTAGES OF BPR
 Demanding Jobs
 “Much of the old, routine work is eliminated or
automated. If the old model was simple tasks for
simple people, the new one is complex jobs for
smart people, which raises the bar for entry into the
workforce. Few simple, routine, unskilled jobs are
to be found in a reengineered environment.”

 Authority
 “As management invests teams with the
responsibility of completing an entire process, it
must also give them the authority to make the
decisions needed to get it done”
COMMON BENEFITS OF BPR
 Enterprise integration
 Departments are consolidated
 Several jobs are combined into one job
 Worker empowerment
 There is both horizontal and vertical reorganization
 Handoffs are eliminated
 There are fewer rules and less coordination is required
 Number of steps in a process are reduced
 This is simplification
 Inspections, checks and controls are reduced or
eliminated
 The steps are performed in a more natural
order
COMMON BENEFITS OF BPR
 Like Process Improvement, steps are reassessed
 Can it be eliminated
 Can it be taken off line

 Can it be performed in parallel

 Can it be combined

 Is it a bottleneck

 Can its mean be reduced

 Can its variance be reduced

 WHAT IS ITS COST???

 Processes differ by the type of job being

processed
 Not just one process but many are employed depending on the
size of the job
 Work is performed where it makes the most
sense
 Wal-Mart moves the replenishment function to its suppliers