Implementation of BPR Framework

SESSION 2
8 AM 10 AM

SUMMARY OF SESSION
1
What is BPR
Why did BPR arise
Difference b/w BPR & Kaizen

Assignment 1 : Case study white paper

IMPLEMENTATION OF
BPR
1. Five steps of BPR implementation
( Davenport & Short in 1990)
a.
b.
c.
d.
e.

Development of Business Vision & Process Objectives

Identification of process to be reengineered
Understanding & Measurement of existing processes
Utilization of IT as an enabler
Design & Evaluation of process prototype

2. Dimensions of Process types

a.
b.
c.

Process
Process objects
Process Activities

PREPARATORY THOUGHTS
Success : Lack of awareness, training , focus & alignment b/w
org.goals , top leadership direction & BPRed processes
Failure rate : as high as 90 % ( bad luck, wrong timing, it doesn't work
here etc)
BPRs focus is on process & not task
Business process / Business system
Before BPR : Tasks & not processes were optimized
Process oriented thinking prerequisite to BPR

Top leadership should take lead

Responsibility of communicating decision to go with BPR
Form a core group of individuals
Various groups- Bring awareness , discussions , campaigns
Brainstorm the queries that may arise
Same responses to queries raised

Create an environment of encouragement & not catch up

Take care of old timers who have contributed
Successful processes may also be targeted
Ensure comprehensive risk evaluation is completed

Handle resistance
Resistance may not be visible
Persuasion better than action
Firmness in action if reqd to drive three points : Importance, priority, Seriousness

1. Development of Business Vision & Process

Objectives
Every big company has a vision statement
Generally the following three key aspects are present in
every vision
Competition
Quality
Customer satisfaction

Vision statement generally has at least one of the process

objectives

Cost reduction ( not a great selling point)

Time reduction ( Service oriented organizations)
Quality improvement ( most commonly used)
Improved work life/learning/empowerment ( used by market leaders )

Simultaneous fulfilment of all the above may not be

possible ...but great if you are able to achieve

1. Examples of Vision statements of top

organizations
1.

Nike : "To bring inspiration and innovation to every athlete* in the world

2.

Disney : "We create happiness by providing the finest in entertainment

for people of all ages, everywhere.

3.

Amazon: "To build a place where people can come to find and discover anything
they might want to buy online

4.

Starbucks : "To establish Starbucks as the most recognized and respected brand in
the world.

5.

Google : To organize all of the data in the world and make it accessible for
everyone in a useful way

6.

KFC : "To sell food in a fast, friendly environment that appeals to price conscious,
health-minded consumers.

7.

eBay : To provide consumers with an intercontinental marketplace through the

world wide web, allowing almost anyone to trade a host of items easily, with this
mechanism allowing for a host of financial opportunities across the globe

8.

Face book : People use Face book to stay connected with friends and family, to
discover whats going on in the world, and to share and express what matters to
them.

9.

Apple : Apple is committed to bringing the best personal computing experience to

students, educators, creative professionals and consumers around the world

1. Development of Business Vision & Process

Objectives

Awareness of vision statement and strategies by every layer is key

More often than not this is the # 1 problem

Meetings , regular communication ( print) to communicate & explain

vision at all levels
Clear understanding on where/how BPR fits into the Vision
Documented effort to show/communicate effectively when desired

1. Development of Business Vision & Process

Objectives

Result : Clear & documented understanding of where BPR is

needed and how it impacts the business vision

2. IDENTIFICATION OF
PROCESSES TO BE
REENGINEERED
Understanding from end customer
point
Concerned team to understand the process and tasks in
detail ( VSM or PFD approach )
Understand how task is linked to process and therefore
understand end-2-end process
Understand how value is derived from the process and
how it matters to the end customer ( ask as if you were a
customer)

VSM
The purpose of value-stream mapping is to
highlight sources of waste and eliminate them
by implementation of a future-state value stream
that can become reality in a short period of time

Classic Lean includes these areas

of waste (TIMWOODS)

Transportation
Inventories
Movement
Waiting
Over-production
Over-processing
Defects
Skills - the loss of ideas, creativity,
experience, etc. is wasteful

PFD
Pictorial representation
of process and tasks
Relationships b/w tasks
Order of tasks
Cross Functions involved
Type/Categorization of
tasks
SIPOC
Macro Map
Detailed PFD
VSM
Swim lane maps
MS Office : Visio

VA / NVA / BNVA
Valuethat
Add
Something
the

customer would be willing

to pay for.
Value adding activities
generally change the form,
fit, or function of the
product or service.
Any activity that does not
add value is waste and
only adds cost to the
process. Eliminating waste
will accomplish the
following:
Improve safety
Reduce cost to the
organization ( Margin$)
Reduce queue times
between processes (Time=$)
Improve productivity
Improve quality
Make organization more
competitive (Growth)
Encourage teamwork and
employee involvement (
employees)

Typical companies spend less

then 10% of their time on
value added activities.

Non Value Add

What is non-value-added
(waste)?
Any activity customers are
not willing to pay for
Activities that add time, effort
or cost but no value

Business Non Value

Add
What is Business Non-valueadded (BNVA) waste?
An activity were you can
reduce the waste, but it
cannot be eliminated
completely (ex,
changeover, receiving of
raw materials or product
into the facility to complete
the process;)

An example of a required
non-value-added activity
are activities that the
business requires due to
policy or regulations (ex,
audits or activities due to
Sarbanes Oxley (SOX), ISO,
JCAHO, FDA, GMP. These
activities can be reduced
but not eliminated.

2. IDENTIFICATION OF PROCESSES
TO BE REENGINEERED
Resp :Top & Senior leadership
Two approaches for identification & prioritization
Exhaustive approach : All the processes are I&P based on
URGENCY
Eg : PQCDSM rating based process identification
High Impact approach : I&P those processes which are at
most CONFLICT with business vision & process objectives
Eg : Cost/effort vs. Impact / result ( 4 Quadrant approach )

EXHAUSTIVE APPROACH : LISTS & PRIORITIZE

PQCDSM rating scale : Widely used ( concept similar to CE
Matrix)

Team based approach

Stakeholders make the team
Index rating : Organization
Statement rating : End customer
Sort from H to L
Fix a threshold
Collect : Cross threshold

HIGH IMPACT:
PRIORITIZE
4 Quadrant approach

Team based approach

Stakeholders make the team
Qualitative approach major
Supports Grouping
Can be used in conjunction
with prioritization method lat
X & Y can be customized

2. Identification of Processes to be Reengineered

Result : A critical process to reengineer

3. Understanding & Measurement of existing

processes

AS IS process quantification

Advantages of quantification
1. Understand the baseline or AS-IS performance levels

Understand clearly key terms

Key people / teams

Existing challenges

Knowledge of tasks/activities with no KPIs

To avoid unrealistic expectations/demands/targets

Knowledge of Complacent tasks : Stretch targets

3. UNDERSTANDING &
MEASUREMENT OF EXISTING
PROCESSES
Any PFD technique can be used for depicting the process & tasks/activities,
their relationships, order, cross functions involved and type of activities
involved

Data collection plan should be first prepared

What data
Period
How data will be collected
Frequency
RACI

Data analysis & interpretation

Formulas to be used
Analysis tools
Qualitative or Quantitative
Dashboard formats

3. Understanding & Measurement of existing

processes

Result : AS IS process with task/activity list, relationships,

performance levels & other critical information

4. IT AS AN ENABLER
Before :
First generation of computers : To replace manual tasks
Computing : Rare & less popular ( complex nature of computing)
General approach : How best to use in my present task ? ( Task orientation
than process orientation rules our minds !!)

After :
IT & BPR are inseparable
BPR relies on ECR approach : IT facilitates the same
IT in BPR reason for DRAMATIC & RADICAL "improvements
Best results : IT interface should be from the START, than POST
reengineering of process ( part of project charter)
IT in BPR : Enabled dynamic visualization and evaluation

4.
IT
AS
AN
ENABLER
Key 9 capabilities IT enables
Capability

Organization al Impact/Benefit

Transactional

Transform unstructured processes into

routinized transactions

Geographical

Transfer information with rapidity & ease

across large distances, making processes
independent of geography

Automation

Replace or reduce human labour in a process

Analytical

Bring complex analytical methods to bear on in

a process

Informational

Bring vast amounts of detailed information

into a process

Sequential

Enable changes in the sequence of tasks in a

process, often allowing multiple tasks to be
worked on simultaneously

Knowledge
Management

Allows the capture and dissemination of

knowledge and expertise to improve the
process

Tracking

Allows the detailed tracking of task status,

inputs & outputs

Example

4. IT AS AN ENABLER
Hundreds of success stories
Company

BPR

4. IT as an enabler

Result : Effective integration of IT from start to end resulting in a

BPR process with dramatic IT intervention

Remember : IT specialist should be part of the

BPR process right from the START to benefit

5. Design and Evaluation of Process Prototype

What do you understand by Prototype ?

Why is prototyping done ?

Prototype in BPR is concerned with a process, and not a

__________

5. Design and Evaluation of Process Prototype

Result : A fully functional prototype process,

meeting performance levels

SUMMARIZE
Five steps of BPR implementation
& Short in 1990)
a.
b.
c.
d.
e.

( Davenport

Development of Business Vision & Process Objectives

Identification of process to be reengineered
Understanding & Measurement of existing processes
Utilization of IT as an enabler
Design & Evaluation of process prototype

ASSIGNMENT 2 BY
9PM SAT, 1 AUG
1. Paragraph explaining ( 500 600 alphabets)
a)
b)
c)
d)
e)
f)

VSM
CE Matrix
8 Wastes
Value add & Non Value add activities
Exhaustive approach
High Impact approach

2. How do you frame a organizations vision & mission

statement ( > 350 and < 500 words)
3. What should be the role of senior management while
communicating a CHANGE ( > 500 and < 750 words)
4. Detail 3 examples of IT enabled BPR process ( > 500 and <
750 words)
5. Advantages& disadvantages of prototyping ( > 350 and <
500 words)