BUSINESS PROCESS REENGINEERING

Presented by: Rahul Sinha

IIPM Ahmedabad 2
What is BPR?


An organizational change method used to
redesign an organization to drive improved
efficiency, effectiveness and economy
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What is not BPR?
TQM

ISO 9000

Automation

Downsizing

Restructuring

Change Management
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Business Process Example
Order
Take Order
Credit Check
Enter Order Print Invoice
Find Goods Ship
Print Packing
List
Check Stock
Customer
Sales
Finance
Inventory
Control
Warehousing
Tell Mfg. to make order
B
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F
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A reengineered Business Process
Order on Web
Find Goods Ship
Print Packing
List & Invoice
Customer
Sales
Finance
Inventory
Control
Warehousing
Tell Mfg. to replenish order
B
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F
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Automatic Credit Check
Automatic Checking of Stock
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Key Steps in BPR
Create a Vision

Identify and understand Existing Processes

Redesign the processes

Implement the redesigned processes
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Why Reengineering?
Previous Now
Competition Local/Regional National/Global
Markets Mass Focused
Operations Controlled Flexible
Focus Performance Best Service
Performance Short term Sustained
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Core Skills Required
Viewing organization as a whole

Ability to focus on the end customer

Ability to challenge conventional ideologies

Courage to deliver into unknown areas
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Current
Business
Processes
Future
Business
Processes
Information
Technology
Skills
S
T
R
A
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E
G
I
C
D
I
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C
T
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Information
Technology
Skills
Current
Environments (AS-IS)
Future
Environments (TO-BE)
Transition/Implementation (Change Management)
Business Process Reengineering Methodology
Current products/Services Future Products/Services
Source: http://www.aimamc.com/staci/methodologies/methodology_bpr
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Step 1: Establish BPR/Project Plan
Step 3: Develop Business Case
Step 4: Implement Business Case
Step 5: Track and Validate Performance
Step 2: Conduct Preliminary Planning
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Step 1:
State the BPR objectives

Identify affected activities, employees, and FTEs

Identify impacted customers and stakeholders

Describe desired organizational change outcomes

Identify business and human capital management

Brief leadership and employees/union/others

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Step 2:
Identify and develop team members for the plan

Develop executive improvement plan

Develop action plan with milestones

Develop communications plan


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Step 3:
Implement communications plan

Conduct AS-IS organization analysis

Develop TO-BE

Measure gaps between AS-IS and TO-BE
organizations

Develop HR transition plans

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Step 4:
Identify and assign implementation to team members

Establish Letter of Obligation

Initiate phase-in and HR transition to the MSO

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Step 5:
Using the parameters identified in Step 1, measure
the success of the following;

closing performance gaps

achieving savings

improving operational quality and timeliness

closing skill and competency gaps
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Scope of BPR
Intra functional
Small scope within department Least Impact

Inter functional
Horizontal view across departments More Impact

Inter organizational
Broad view including entire supply & delivery chain
Maximum Impact
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Role of Information Technology
IT plays an important role in BRP

Enables new forms of working

Shared databases

Expert systems

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Role of Information Technology
Telecommunication networks

Wireless Data communication

Interactive Videodisk

Automatic identification & tracking

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Example: Kodak
In 1987
Kodaks rival, Fuji came up with a new 35mm single use
camera
Kodak had no competitive offering

Kodaks Traditional Product Development Process
Slow: 70 weeks production cycle

Result: New process Concurrent Engineering
Reduced the TAT to 38 weeks

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Example: Kodak
Key Redesign Strategy

Apply innovative use of CAD/CAM + integrated product
design database

Allow engineers to design at computer workstations
Database would collect each engineers work and combine
into overall design
Manufacturing would start tooling designs into products
in just 10 weeks instead of 28 weeks in the past



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Conclusion
BPR is a multi-dimensional approach for strategic
change

BPR must be managed as a project

BPR must be owned by the organisation not driven by
consultants

BPR requires constant communication and feed back
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