CORE PROCESS

REENGINEERING
 DEFINITION
• Core Process Reengineering is the
fundamental rethinking and radical redesign
of business processes to achieve dramatic
improvements in critical, contemporary
measures of performance such as cost,
quality, service and speed.”
 CONCEPT
• BPR focuses on processes and not on tasks, jobs
or people
• “A business process is a series of steps designed
to produce a product or a service. It includes all
the activities that deliver particular results for a
given customer(external or internal)
• Business processes encompass a wide spectrum
of activities — procurement, order fulfilment,
product development, customer service and sales.
 PROPONENTS OF CPR
• Michael Hammer and James Champy, in a
series of book claimed that the major
challenge for managers is to obliterate non-
value adding work, rather than using
technology for automating it.
 Process of CPR

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 STEP I: PREPARE
• ‘Is BPR necessary?’
• executive consensus on the importance of
reengineering
• cross-functional team is established with a
game plan for the process of reengineering
• The impact of the environmental changes
must also be considered in establishing
guidelines for the reengineering project
 STEP II: ANALYZE AND MAP
• Understand the existing process
• Identify disconnects
• Creation and documentation of Activity and Process
models making use of the various modeling methods
available.
• The amount of time that each activity takes and the
cost that each activity requires in terms of resources
is calculated
• Processes that need to be reengineered are identified
• Process maps to give a picture of how work
flows through the company.
• Deciding which ones need to be reengineered
and in what order ,
• Generally companies make there choices based
on three criteria:-
• dysfunction: which processes are functioning the worst?;
• importance: which are the most critical and influential in
terms of customer satisfaction;
• feasibility: which are the processes that are most likely
to be successfully reengineered
 STEP III:DESIGN TO BE PROCESS

• Produce one or more alternatives to the

current situation
• Comparison
• To be models developed and analysed and
validated
 STEP IV:IMPLEMENTATION
• Maximum Resistance
• Culture change program
• Transition from current to redesigned process
• Business policies and procedures, Information
systems and organizational structure must be
in alignment
 STEP V: IMPROVE
• A process cannot be reengineered overnight
• Two things have to be monitored
• Progress of actions
• Result
• The progress of action is measured by conducting attitude
surveys and discrete ‘fireside chats’ with those initially not
directly involved with the change.
• As for monitoring the results, should be measured through
knowing employee attitudes, customer perceptions, supplier
responsiveness etc.
• Communication is strengthened throughout the organization,
 CRITICISM OF CPR
– BPR assumes that the factor that limits
organization's performance is the ineffectiveness
of its processes. This may or may not always be
true. Also BPR offers no means to validate this
assumption.
– BPR assumes the need to start the process of
performance improvement with a "clean slate",
i.e. totally disregard the status quo.
 CONCLUSION
• Reengineering is the key that every
organization should possess to attain these
prerequisites to success.
• BPR doesn’t offer a miracle cure on a platter.
Nor does it provide a painless quick fix. Rather
it advocates strenuous hard work and
instigates the people involved to not only to
change what they do but targets at altering
their basic way of thinking itself.
CPR Vs. TQM
 SIMILARITIES
• Both TQM and BPR are customer-oriented.
They both aim on improving the customer
satisfaction.
• Also, both suggest thinking from the
customer's viewpoint.
• Both take team approach
• Continuous Improvement
• In a way, TQM and BPR practices are
complementary to each other. BPR redesigns
the business process that will fit the business
environment and TQM serves as fine tuning
mechanism to make sure that new business
processes will work well
 DIFFERENCES
• The basic assumptions of TQM and BPR are different.
– TQM assumes that the existing practices or systems are
principally right and useful. BPR assumes the existing
system is useless and suggests starting it over.
• Unlike TQM that aims on smoothly and incremental
improvements, BPR aims on dramatic results.
• While TQM project focuses on incremental change
within organisations, BPR practice focuses on
improving business processes through radical and
rapid changes to business operations.
• TQM aims on standardize the practices, thus
achieving a consistent performance. However,
BPR emphasis on flexibility and believes that
standardization would increase the complexity
of the process.
• TQM emphasis on the use of statistical process
control. However, there is no similar concern
for BPR. On the other hand, BPR emphasis
more on the enabling role of information
technology.
• In fact, BPR is a risky project that is suitable
for organizations in deep trouble or facing
great challenges. However, an organization
cannot always be under BPR. TQM, on the
other hand, can be treated as a consolidation
approach for the organizations to maintain
continuously improvements.
 CONCLUSION
• There are 'hard way' and 'soft way‘ . They are
with the same purpose. BPR is just like the
'hard way‘ . It is efficient and looks attractive.
However, if it is not used carefully, it may be
harmful to the own health. TQM, on the other
hand, is the 'soft way’. It needs a long time to
practice but it can make one's body healthy
too.
THANK YOU

PRESENTED BY:
DIVYA AGRAWAL
MPMIR – IIIrd SEM