TURNAROUND

MANAGEMENT

BUSINESS PROCESS
REENGINEERING

Meaning:
BPR stands for Business Process
Reengineering. It refers to the analysis and
redesign of workflows both within and
between the organisation and the external
entities
BPR is not- downsizing, restructuring,
reorganisation, automation, new technology,
etc. It is the examination and change of five
components of the business- Strategy,
Processes, Technology, Organisation, and
Culture.

Definition:
Business Process Reengineering has
been defined as: fundamental
rethinking and radical redesign of
business processes to bring about
dramatic improvements in
performance.

Elements of BPR:

Fundamental
Radical
Process
Dramatic

Features of BPR:

Several jobs
Employees empowered
Step in business process
Multiple versions
Reconciliation
Hybrid centralized/decentralized
Process- oriented
Creative use of IT

Objectives of BPR:

Costumer focus
Speed
Compression
Flexibility
Innovation
Productivity

Need of BPR:

Rapid change
Well informed
Intense competition
Customer
Change
Technology
Fragmented piecemeal system

Steps in BPR
implementation:
Develop the business
Identify the process to Redesigned
Understand and Measure the existing
process
Identify IT levers
Design and build a Prototype of the
New Process

Central Thrust of BPR:

By eliminating the redundant stages
By drastically simplifying and
rationalizing work
By coordinating the entire process
By eliminating unwanted steps
By simplifying the system
By maintaining continuous effort

Advantages of BPR:

Increase effectiveness
Helps to improve efficiency
Reduce cost
Meaningful job for employees
Improvement in organisational approach
Growth of business
Simplification of processes
Enterprise integration

Disadvantages of BPR:

Long and complex process

Not suitable for small businesses
Resistance
Not an effective way to focus
Gradual and increamental
Culturally biased
Business processes not redesigned

IT and BPR:

Manage BPR project

Link between various BPR drives
Provide platform
Cost benefit
Study complete supply chain
Judge impact of reengineered
processes

TQM and BPR:

ATTRIBUTE

TQM

BPR

MEANING

Reducing or
eliminating errors

Innovation

CHANGE

Incremental change
and gradual
improvement

Radical redesign and

drastic improvement

PARTICIPATION

Bottom -up

Top-down

FLEXIBILITY/
STANDARDIZATION

Standardization of
processes

Flexibility in
operations

EXISTING/ NEW
PROCESS

Changing existing
process

Changing new
process

TOOLS

Usage of statistical
process control

Enabling role of IT

FOCUS

Current practice

Start again

INVESTMENT

Small

Large

SPEED

Small steps

Long steps

PARTICIPATION

Each employee

Selected few