Professional Documents
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Group Assignment: Prof. R Raghavendra Ravi
Group Assignment: Prof. R Raghavendra Ravi
A report submitted to
Operations Excellence
By Group 6
On
16-08-2017
Business Process Engineering
Introduction:
Many organizations are using Information Technology sectors to redesign their current
processes and structures. Consistent proven methods and approach enable easy predictability
of costs. Monitoring different KPI’s assists in providing analytical feedback which effectively
ensures continuous alignment of business processes with current demands and needs. Most of
the business process engineering methods are measurable and can be self-monitored.
Moreover, these methods enable continuous loop evaluation, resulting improved results every
time.
Following are the major reasons why most of the organizations are using Business Process
Engineering:
ANALYSIS
DESIGN
IMPLEMENTATION
MONITORING
Why Did Business Process Engineering Take Off In A Major Way?
Following could be the reasons why organizations are adopting business process engineering.
These can be classified into 3Cs.
Customers:
With the advent of technology customers have become more demanding and
sophisticated. In order to fulfil their needs, large range of alternatives are being
proposed by the organization which eventually exerts pressure on the suppliers. The
technological adeptness has enabled suppliers to identify alternatives from consistent
business processes hence, providing customers with their own customized solutions.
Competition:
The global and local competition have forced organizations to increase efficiency and
productivity and simultaneously reduce the overall operational cost. Companies now a
days are maintaining database at a larger level. Since, the data itself is very difficult to
manage, usually companies approach third party who will observe and analyse data
for supply.
Change:
Continuous innovations and new technology penetrations have enabled organizations
to change their structures. Companies are using various methodologies to align their
business goals in all departments. It has also assisted in developing consistent
collaboration among various business units such as, marketing department,
warehouse, manufacturing unit and head office. It has reduced the geo-political
differences among the business units and has stabilized a constant communication,
thereby increasing flexibility to the process.
1. Ford: The process Engineering requires a proper attitude of the employees because
the employees may need to take some additional responsibilities. They may need to
take proper decisions at the right time. When Ford reengineered its account payable
process by instituting ‘invoice less processing,’ the clerks on the dock had to make
decisions whether to accept the goods or not. Purchasing agents also had new
responsibilities like keeping track of the data whether information about purchase has
entered into the database timely, the information is correct and sending the check at
the right time. Vendors had to become partners in the shared business process. They
were no longer be seen as adversaries. The vendors also had to adjust with the process
and changes. The company had to remove any discrepancies between financial record
and physical record. In some cases, invoices formed the basis of their accounting
systems, but the reconciling cash received against invoices never sent. Without the
right attitude, the Engineering process could be a mere failure.
As per our previous discussion, it is clear that BPE involves adapting business
processes and rethinking to get and achieve high productivity along with gaining competitive
advantage. For the success of any organization it acts as a key entity. Following are the
suggestions for the implementation of BPE –
1. BPE and IT: Common cause of BPE failures is the misuse of IT practises. To enable
any new process IT acts as a key component, as in enabling and streamlining the new
processes IT plays an important role. Which in result helps in reducing the
inefficiencies of the overall process.
Organizations do not succeed as they don’t have proper knowledge and expertise for
the use of IT tools and applications. For a proper implementation and utilization of IT
tools, proper learning and training system must be there.
3. Ownership of BPE: BPE must be owned and implemented by the organization itself.
Company should not give the whole responsibility the outside consultants. Company
can take necessary help from outside entities but at the core it should drive the BPE
itself. Core team of the BPE must include the top-executives who are not going to
retire or going to leave the company. Proper communication is really necessary, all
teams involved must be aware of their key responsibilities and the deliverables from
their end. All the teams must work as per the timelines of the project, as well as
proper communication should be there between managers and their subordinates.
5. Hiring proper consultants: All the tasks that are entailed by the adaptation of
Business Process Engineering may not be implemented immediately. The resistance
may be offered by the employees who do not want to change. Also, having an insider
look doesn’t always. Hence, hiring an outside consultant to implement BPE brings
fresh eyes on the organization. Also, since the consultants would be an outside entity,
they would not be limited in their tasks by the politics and behavioural dynamics of
the organization. They could impartially observe the operations of the company and
give their constructive suggestions. Also, the employees may exhibit lesser resistance
to suggestions given by outside consultants. However, this makes the role of the
consultants highly important and hence, they should be hired after due diligence.