BUSINESS PROCESS REENGINEERING

Presented by
Ramji
Divya Uthirarajan
Anitha
Thevasena
John paul

SIMPLE DEFINITION OF BPR
Means: Starting Over
Does not mean: Tinkering with what
already exists or making incremental
changes
Ask: IF I were recreating the
company today, given what I know and
given current technology, what would it
look like?
Business Process Re-engineering or BPR is
the analysis and redesign of workflow and
processes within and between Organizations



BPR is the Fundamental rethinking and
Radical redesign of Business Processes to
achieve Dramatic improvements in critical
measures of performance
.. such as Cost, Quality, Service and Speed
- Michael Hammer & James Champy, 1993
THE NEED FOR BPR
Customers
Competition
Change
Techniques lag behind technology
Problem of the stovepipe
Fragmented piecemeal systems
Integration
BPR PROCESS (1 OF 2)
Frame the project
Create the vision, values and goals
Redesign the business operation
Conduct proof of concept
BPR PROCESS (2 OF 2)
Plan the implementation
Obtain implementation approval
Implement the redesign
Transition to a continuous
improvement state
VALUE METRICS
A Value metric is that which determines
an organization's behaviour and
performance.

Quality
Service
Cost
Cycle Time
VALUE METRICS
Value
=
Quality X Service
Cost X Cycle Time
CHARACTERISTICS OF BUSINESS
PROCESS REENGINEERING (1 OF 2)
Several jobs are combined into one
Employees make decisions
Steps in business process: natural
order
Process may have multiple versions
Work is performed where it makes the
most sense
CHARACTERISTICS OF BUSINESS
PROCESS REENGINEERING (2 OF 2)
Controls, checks, other non value
added work is minimized
Reconciliation is minimized - minimize
external contact points
Hybrid centralized / decentralized
operation is used
A single point of contact is provided for
the customer
BPR & RESTRUCTURING THE
ORGANIZATION
Redesign of processes
From mass production to mass
customization
Cycle time reduction
Restructuring organizations
THE 7 NEW QUALITY TOOLS
General Planning
Affinity Diagram
Interrelationship Diagram
Intermediate Planning
Tree Diagram
Matrix Diagram
Matrix Data Analysis
Detailed Planning
Process Decision Program Chart
Arrow Diagram
AFFINITY DIAGRAM
Gathers large amounts of data and organizes
it into groups based on the natural
relationship between each item.
INTERRELATIONSHIP DIAGRAPM
TREE DIAGRAM
Systematically maps out the full range of
tasks/methods needed to achieve goal.
MATRIX DIAGRAM
Displays the relationship between necessary
tasks and people or other tasks, often to show
responsibility for tasks.
DATA MATRIX ANALYSIS
Temp
Humidity
PROCESS DECISION PROGRAM
CHART (PDPC)
Maps out every conceivable event and
contingency that can occur when moving from a
problem statement to possible solutions.
Problem Statement
Solution x
Things that can go wrong
Countermeasures
Solved
ARROW DIAGRAM
ADDITIONAL TOOLS/METHODS
Benchmarking
Process Simplification
Concurrent Engineering
Demand Flow Technology
Activity Based Costing
Eliminate Non-Value Added Activities
9 CHANGES OCCASIONED BY BPR (1 OF 2)
Work Units change
o from functional departments to process
teams
Jobs change
o from simple tasks to multi-dimensional
work
Peoples roles change
o from controlled to empowered
Job preparation changes
o from training to education
9 CHANGES OCCASIONED BY BPR (2 OF 2)

Measures of Performance &
compensation change
o from activity to results
Criteria for career advancement
change
o from performance to ability
Values change
o from protective to productive
Organizational Structures change
o from hierarchical to flat
Executives change
o from scorekeepers to leaders

4-22
CHALLENGES IN A BPR EXERCISE
1. Identifying Customer Needs & Performance
Problems in the current Processes
2. Reassessing the Strategic Goals of the
Organization
3. Defining the opportunities for Re-engineering
4. Managing the BPR initiative
5. Controlling Risks
6. Maximizing the Benefits
7. Managing Organizational Changes
8. Implementing the re-engineered Processes

CRITICAL SUCCESS FACTORS IN BPR
1. Clear Vision for Transformation
2. Top management commitment
3. Identification of Core Processes for
BPR
4. Ambitious BPR team
5. Knowledge of Reengineering
techniques
6. Engaging external consultants
7. Tolerance of genuine failures"
8. Change Management

CRITICAL FAILURE FACTORS IN BPR
1. Trying to Fix a process instead of Changing it
2. Lack of focus on Business-critical Processes
3. Lack of holistic approach
4. Willingness to settle for minor results
5. Quitting too early
6. Limiting the scope of BPR by existing
constraints
7. Dominance of existing corporate culture
8. Adopting bottom-up approach
9. Poor leadership
10. Trying to avoid making anyone unhappy
11. Dragging the BPR exercise too long.

THANK YOU