qwertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfgh jklzxcvbnmqwertyuiopasdfghjklzxcvb nmqwertyuiopasdfghjklzxcvbnmqwer BUSINESS PROCESS REENGINEERING tyuiopasdfghjklzxcvbnmqwertyuiopas KANAKA RAJU RAYAPATI - 215112019 dfghjklzxcvbnmqwertyuiopasdfghjklzx cvbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyuio

pasdfghjklzxcvbnmqwertyuiopasdfghj klzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmrty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc

9/9/2013

TOTAL QUALITY MANAGEMENT

BUSINESS PROCESS REENGINEERING: Business process reengineering is the business management strategy to use the power of modern information technology to radically redesign our business processes in order to achieve dramatic improvements in their performance. BPR urges the radical reexamination of current practice in order to determine which of its steps really add value and search for new ways to achieve the result. To take the analogy of new product development, the BPR approach favors the development of a completely new product rather than one that improves marginally upon existing products. Recent examples, taken from the financial services industry, are the development of Direct Line insurance sales and the establishment of First direct as an alternative to conventional banking. BPR challenges old assumptions and shed the old rules that made the business underperform. The main objectives of BPR are to dramatically improve customer service, cut operational costs and become world class competitors. BPR MODELLING: Before commencing BPR, we have to examine the existing business processes deeply in order to redene and redesign their nature. To gain a wider picture of existing processes we need to consider the following questions: How does the process under development t into the whole business picture?, Who are the participants in the process?, What are the requirements of the process? and What is the nal objective of this process? REQUIREMENTS FOR BPR MODEL: ARTEFACT: The BPR models should serve as a medium for communication between the participants involved in the redesign process. An artefact that can be held in common is needed to enable all participants to understand and discuss the process to be reengineered and gain a shared understanding of problems. In the

BPR literature it is emphasized that reengineering should be achieved by active participation of people and not only be done by designers, managers or IT experts. To enable active participation, the model should be easily interpreted by participants. CREATIVITY: BPR is recognized as a design process, requiring creativity, innovation and radical thinking. Creativity is necessary in view of the following characteristics of requirements engineering: Requirements as presented are never so complete o r precise as to restrict the designer to a single option; There is no mechanical way of proceeding directly from requirements to the best design (or even a sound design); Proposed designs may include desirable features not specied in the original requirements. As a result, it may be necessary to modify the requirements to include these features; There is no way of assessing whether a given design is the best possible. DESIGN IN CHANGE: Business often changes in unpredictable ways and what used to be a standard process may not be sufficient for later situations. That is, in the dynamic business environment, there is no such thing as the standard solution. BPR OUTCOMES: The BPR characteristics - outcomes include the following: Several jobs are combined into one. Decision-making becomes part of the job of employees (employee empowerment).

Steps in the processes are performed in natural order, and several jobs get done simultaneously. Processes have multiple versions. This enables the economies of scale that result from mass production, yet allows customization of products and services.

Work is performed where it makes the most sense. Controls and checks and other non-value-added work are minimized. Reconciliation is minimized by cutting back the number of external contact points and by creating business alliances.

A single point of contact is provided to customers. A hybrid centralized/decentralized operation is used. BPR CYCLE: New Design Implementing the new design Identifying the processes Updating and review At first thorough knowledge about the current existing processes is a must to apply the business process reengineering, it gives a clear about the lagging areas and crucial changes that are to be implemented in BPR, after gaining knowledge a brand new design for the existing process with all the solutions for key ailments has to be prepared. This will be the key element for entire reengineering event, implementation of the new design is the next important task because it involves both functioning as well as controlling of the entire reengineering event, outcomes are to be noted and then identification of the non-productive tasks is taken care of by reviewing and updating them. This is termed as a cycle because it goes on till it

achieves the task of predefined efficiency by the management as this is a CONTINUOUS IMPROVEMENT PROCESS. ELEMENTS OF BPR: MISSION WORK PROCESSES DECISIONS INFORMATION TECHNOLOGY According to the predefined BPR model, a mission is fixed i.e; a clear statement of what to do and the final result which has to be achieved by the process performers. Reengineering starts with a high-level assessment of the organization's mission, strategic goals, and customer needs. Basic questions are asked, such as "Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who are our customers?" An organization may find that it is operating on questionable assumptions, particularly in terms of the wants and needs of its customers. Only after the organization rethinks what it should be doing, does it go on to decide how best to do it. A work process indicates what are all the necessary arrangements and methods to be implemented to revamp the entire business and to sort out the flaws in the old system; to make it a viable option both financially and operationally. A much better system with higher operational efficiency, financially stable and satisfying the major work force. Re-engineering recognizes that an organization's work processes are usually fragmented into sub processes and tasks that are carried out by several specialized functional areas within the organization. Often, no one is responsible for the overall performance of the entire process. Re-engineering

maintains that optimizing the performance of sub processes can result in some benefits, but cannot yield dramatic improvements if the process itself is fundamentally inefficient and outmoded. For that reason, re-engineering focuses on re-designing the process as a whole in order to achieve the greatest possible benefits to the organization and their customers. This drive for realizing dramatic improvements by fundamentally re-thinking how the organization's work should be done distinguishes re-engineering from process improvement efforts that focus on functional or incremental improvement. REENGINEERING AND ITS COMPONENTS OF CHANGE

REENGINEERING
MANAGEMENT AND DECISION SUPPORT SYSTEMS

POLICIES AND REGULATIONS

Core process

PEOPLE AND ORGANISATION S

INFORMATION AND TECHNOLOGY

During process implementation key decisions are to be taken i.e, process controlling and progress checking decisions. So these are to be made with utmost care as these will result in the outcome of the process. After decision implementation information regarding the process outcome is a vital component as it shows how much it has performed and what are the next steps to be taken by the management is in this step. Apt technology is a crucial part, since the world is growing exponentially, technology plays a vital role in this aspect, introduction of new technology and reaping the benefits for betterment of firm is essential. BPR METHODOLOGY: PREPARE FOR BPR: Build cross functional team. Identify customer driven objective. Develop strategic purpose MAP AND ANALYZE AS IS PROCESS: Create activity models. Create process models. Simulate and perform ABC analysis. Identify disconnects and value adding processes. DESIGN TO BE PROCESSES: Benchmark processes. Design to be processes.

 Validate to be processes. Perform tradeoff analysis. IMPLEMENT REENGINEERED PROCESSES: Evolve implementation plan. Prototype and simulate transition plans. Initiate training programs. Implement transition plan. IMPROVE CONTINUOUSLY: Initiate ongoing measurement. Review performance against target. Improve process continuously. BPR FAILURE FACTORS: Problems in communication. Organizational resistance. Lack of organizational readiness to change. Problems related to creating a culture for change. Lack of proper training and education. Problems related to commitment, support and leadership. Problems related to championship and sponsorship. Ineffective BPR teams. Problems related to integration mechanism, job definition and allocation of responsibilities. Problems related to planning and project management.

 Problems related to goals and measures. Inadequate focus and objectives. Ineffective process redesign. Problems related to BPR sources. Unrealistic expectations. Problems related to IT investment and sourcing decisions. Improper information system integration. Inadequate information system development. ROLE OF REENGINEERING CONSULTANTS: Consultants are the key people who create the right ambience to generate ideas, raise fundamental questions and finally focus on what process to choose for reengineering and how to go about doing it. In achieving this focus exercise, they bring in their experience with them. Reengineering involves questioning fundamentals. It is often difficult and embarrassing for an inside man to do it freely and objectively. On contrary, reengineering consultants, by virtue of their expertise and experience manage to win a special license to ask nave sounding questions which will make senior managers of the organization reflect and think. Since the consultants are keen on successful outcome of the project and benefits to the organization as a whole, their deliberations enable participants to place the interest of the organization ahead of their own personal interest. This is how the group is synergized and views get focused. The consultants will be accepted as better and more efficient trainers of reengineering concepts and practice

HR CONTRIBUTION TO BPR: Some of the key contributions from progressive HR are as follows Facilitating benchmarking of new operating procedures. Acting as a catalyst to promote smooth acceptance of change. As a systems specialist on new processes great support in implementation and training. Communicating to give clarity. Identification of in house talent to take new responsibilities. Integrate HR plan(recruitment, induction, training etc) to new processes. Managing diversity. Developing competitive compensation packages. Involvement of HR during the discussions on BPR. Making old and new teams to work together. Training existing staff for new skills. BPR BENEFITS: LOWER COSTS. LOWER RISKS. BETTER USE OF EXISTING STAFF. REVELATION OF BUSINESS RULES. INCREMENTAL DEVELOPMENT. INCREASED EMPLOYEE JOB SATISFACTION. GROWTH OF BUSINESS. IMPROVEMENT IN ORGANIZATIONAL APPROACH. JOB ENRICHMENT AND JOB ENHANCEMENT.

 INCREASED MARKET SHARE. UTILIZATION OF BEST TECHNOLOGY. MAINTAINS THE COMPETITIVE EDGE OVER THE RIVALS. FASTER REALIZATION OF BUSINESS PROCESS IMPROVEMENTS AND BUSINESS BENEFITS.