Presentation on business process engineering

1. Business Process Re-Engineering
Anit Jain 15MCD0032
Pritesh Patil 15MCD0016
School of Mechanical and Building Science
VIT University, Vellore-632014, India
September 19, 2015
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2. Outline
1 Introduction
2 Defination of B.P.R
3 History
4 Characteristics of B.P.R
5 Methodology of B.P.R
6 Implementation of B.P.R
7 Benefits of B.P.R
8 Causes of failure of B.P.R
9 Duration and Implementation cost
10 How is BPR different from TQM?
11 Case Study
12 Conclusion
13 Bibliography
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3. Introduction
Business process Re-engineering (BPR) has been receiving
attention from industries and the academic community, as it is likely
to change management practice and working processes in
organizations.
The entire technological, human, and organizational dimensions may
be changed in BPR.
Information Technology plays a major role in Business Process
Re-engineering.
It provides office automation, allows the business in different
locations, provides flexibility , permits quicker delivery and paperless
transactions.
Re-engineering identifies, analyzes, and re-designs an organization’s
core business processes with the aim of achieving dramatic
improvements in critical performance measures, such as cost, quality,
service, and speed.
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4. What is Re-Engineering?
Hammer and Champy provide the following definitions:
Re-engineering: is the
fundamental rethinking and
radical redesign of business
processes to achieve dramatic
improvements in critical
contemporary measures of
performance such as cost,
quality, service and speed.
Business process re-engineering
is also known as Business
Process Redesign, Business
Transformation, or Business
Process change Management.
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5. What is Process?
Process: A process is a cross-functional interrelated series of
activities that convert business inputs into business outputs.
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6. History
In 1990, Michael Hammer, a
former Professor of Computer
Science at the Massachusetts
Institute of Technology (MIT),
published the article “Re-engineering
Work: Don’t Automate, Obliterate”
in the Harvard Business Review, in
which he claimed that the major
challenge for managers is to
obliterate forms of work that do not
add value, rather than using
technology for automating it.
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7. Characteristics of B.P.R
1 Radical Improvement.
2 Integrated Change.
3 People Centered.
4 Focus on End-Customers.
5 Process-Based.
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8. 1. Radical Improvement
Sustainable
Process improvements need to become firmly rooted within the
organization
Stepped Approach
Process improvements will not happen over night they need to be
gradually introduced
Also assists the acceptance by staff of the change
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9. 2. Integrated Change
Viable Solutions
Process improvements must be viable and practical
Balanced Improvements
Process improvements must be realistic
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10. 3. People-Centered
Business Understanding
Empowerment and Participation
Organizational Culture
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11. 4. Process Based
Added Value
BPR Initiatives must add-value over and above the existing process
Customer-Led
BPR Initiatives must meet the needs of the customer
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12. 5. Focus on End-Customers
Process improvements must relate to the needs of the organization
and be relevant to the end-customers to which they are designed to
serve
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13. Methodology of B.P.R
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14. Implementation of B.P.R
Following are the steps followed in a BPR:
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15. 1. Select the Process
Review Business Strategy and Customer Requirements
Select Core Processes
Understand Customer Needs
Dont Assume Anything
Select Correct Path for Change
Remember Assumptions can Hide Failures
Competition and Choice to Go Elsewhere
Ask - Questionnaires, Meetings, Focus Groups
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16. 2. Understand the Current Process
Develop a Process Overview
Clearly define the process
Mission
Scope
Boundaries
Set business and customer measurements
Understand customers expectations from the process (staff including
process team)
Clearly Identify Improvement Opportunities
Quality
Rework
Document the Process
Cost
Time
Value Data
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17. 3. Develop and Communicate Vision of Improved
Process
Communicate with all employees so that they are aware of the vision
of the future
Always provide information on the progress of the BPR initiative -
good and bad.
Demonstrate assurance that the BPR initiative is both necessary and
properly managed
Indicate actions required and those responsible
Promote individual development by indicating options that are
available
Tackle any actions that need resolution
Direct communication to reinforce new patterns of desired behavior
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18. 4. Identify Action Plan
Develop an Improvement Plan
Appoint Process Owners
Simplify the Process to Reduce Process Time
Remove any Bureaucracy that may hinder implementation
Remove no-value-added activities
Standardize Process and Automate Where Possible
Up-grade Equipment
Plan/schedule the changes
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19. 5. Execute Plan
Qualify/certify the process
Perform periodic qualification reviews
Define and eliminate process problems
Evaluate the change impact on the business and on customers
Benchmark the process
Provide advanced team training
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20. Implementation of B.P.R
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21. Benefits of B.P.R
Increase Effectiveness
Helps to improve efficiency
Reduces cost
Meaningful job for employees
Improvement in organizational approach
Lower risks
Incremental development
Maintain your competitive advantage
Avoid the“paving the cowpaths” trap
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22. Causes of failure of B.P.R
Management heterogeneity
Vague methodology
Cross-functional teams creating problem
Employee commitment and job security
Focus on short-term objectives
Lack of proper training
Lack of resources
Resistance to change
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23. Duration
The BPR technique, in general, is not a time consuming process. The
duration of each BPR project varies from 6 -to 10 months. This
variation relates to the kind of business and the extent to which BPR
is going to be implemented. Moreover, it depends on the techniques
and methodology that each consulting company (that usually
participates in the procedure) is using.
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24. Implementation cost
The implementation of a BPR project consists of two stages:
1 The process management and redesign study and consulting stage.
2 The implementation of the redesigned process using IT tools including
employee training and introduction of the new processes to the
company organizational structure.
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25. How is BPR different from TQM?
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26. CASE STUDY
on
Implementation of BPR in
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27. Circumstances that lead M and M to implement
BPR
Manufacturing Inefficiencies.
Poor productivity.
Long production cycle.
Sub-optimal output.
Unhealthy work culture.
Corruption was widespread.
Decision to focus on enhancing productivity and delivering world-class
quality at the least possible cost.
Ambition to become the largest tractor manufacturer in the world.
The three Cs (customers, competition, change).
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28. Why M and M faced resistance from unions while
implementing BPR?
Fear of Downsizing
Several jobs were combined into one.
Management accepting the Union demands every time.
Lenient approach of management towards running the plant.
Inflexibility of the workers.
Idle time available to workers due to unorganized processes
Censorship of disclosure
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29. Comments on the benefits M and M reaped as a
result of BPR program
Around a 100 officers produced 35 engines a day as compared to the
1200 employees producing 70 engines in the pre-BPR days.
Igatpuri Plant: Employees declined by 400 but productivity went up
by 125 engines per day
Nashik Plant: 125% improvement in productivity
Reduction in employee costs:
1994:- 12.4%
1996:- 10.1%
Value added per employee increased from 0.3 million to 0.46 million.
Better inventory control.
Better sourcing.
Better order distribution across plants.
Online availability of data.
Inflexibility of the workers.
Process transparency.
Integrated sales and supply chain.
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30. Conclusion
1 Re-engineering is a fundamental rethinking and redesign of business
processes to achieve dramatic improvements.
2 BPR has emerged from key management traditions such as scientific
management and systems thinking.
3 Rules and symbols play an integral part of all BPR initiatives.
4 BPR requires constant communication and feedback.
5 BPR is a multi-discipline approach for strategic change.
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31. Bibliography
Michael Hammer, M., (1990). “Reengineering Work: Don’t Automate,
Obliterate”, Harvard Business Review, July/August, pp. 104-112.
Champy, J. (1995). Reengineering Management, Harper Business
Books, New York
Sotiris Zigiaris, MSc, BPR engineer, BPRHELLASSA,INNOREGIO:
dissemination of innovation and knowledge management
techniques,January 2000
Davenport, Thomas and Short, J. (1990), “The New Industrial
Engineering: Information Technology and Business Process Redesign”,
in: Sloan Management Review, Summer 1990, pp 11-27
Understanding Critical Success and Failure Factors of Business
Process Reengineering by Muhammad Nauman Habib, March 2013.
Method for business process Reengineering based on enterprise
Ontology by Pedram Bahramnejad, Seyyed Mehran Sharafi, Akbar
Nabiollahi
Business Process Re-engineering Assessment Guide, United States
General Accounting Office, May 1997.
www.wikipedia.com
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32. THANK YOU
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33. ANY QUESTION?
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