2. What is Reengineering?
Some common descriptions about what it is and
what it is not.
throwing aside old systems and starting over
not tinkering with what already exists
not a patchwork fix
means asking “if I were re-creating this
organization today, given what I know and given the
current technology, what would it look like?”
going back to the beginning and inventing a better
way of doing work
3. Definition of Reengineering
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.
4. Radical
means root
radical redesign: disregard all existing
structures and procedures and come up
(invent) new ways of accomplishing work
reengineering is
not business improvement
not business enhancement
not business modification
5. Dramatic
―blowing up the old and replacing it with something
new‖
not marginal or incremental improvements
achieving large and significant improvement is the
objective in reengineering
redecoration verses demolition and reconstruction
6. Processes
a process is a group of activities or tasks that
uses one or more kinds of input and creates an
output that is of value to the customer.
Eg.
registration process
passport issuing process
book check-out process at the library
7. What BPR is not ?
automation (more efficient way of doing the wrong
things!!!)
Restructuring
Downsizing
Reorganizing
de-layering or flattening an organization
total quality management or quality improvement
(although both TQM and BPR share common themes)
8. BPR is not TQM
Total Quality Management Business Process Reengineering
TQM BPR
Degree of Change Incremental Radical
Starting point Existing process Clean Slate
Frequency of change Continuous One Time
Time required Short Medium to Long
Inception/Participation Top Down/Bottom Up Top Down
Risks Moderate High
Type of Change Cultural Cultural & Structural
9. The case of IBM Credit Corp.
finances hardware, sofware, and services that IBM
sells; profitable business
processing requests for financing
5-step procedure; all done by different individuals
or groups.
the end of the process—a quote letter sent to the
IBM field salesperson
took 6 days (average); sometimes as long as 2
weeks
many times business was lost due to long
turnaround time
10. Applying BPR
installed a control desk to answer salespersons’s questions
added more time to the process
brainstorming session by two managers
actual work took only ninety minutes; the remainder of
seven days was due to travel from one department to the
other
replaced specialists with generalists; one person – deal
structurer – processed the entire application
old system was based on certain assumptions about the
nature of the work – every bid request is unique
developed a new computerized system to support the deal
structurers
the system was fine for most situations
deal structurers could get help from a pool of real
specialists, if needed
11. Results of reengineering
turnaround time: 7 days --à 4 hours
a slight decrease in number of people
increase in number of deals handled: 10000 %
90 % decrease in turnaround time
a very high increase in productivity
dramatic, radical, process – true BPR!!!
12. Fundamental
why do we do what we do?
why do we do it the way we do?
helps get rid of tacit rules and assumptions which
may be obsolete or erroneous.
ignore what is and concentrate on what should be.
start with no assumptions; no givens.
