Business Process Re-engineering (BPR)

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					BUSINESS PROCESS RE-NGINEERING
Submitted by:
Anna Isabela Martinez Michelle Mendoza Peter Allen Sy

Submitted to:
Mr. Fermin Chavez

OBJECTIVES:
•

Identify the goals, concepts, elements, types and phases of BPR; Emphasize the benefits, advantages and disadvantages of undertaking BPR; and Compare critical differences and/or comparison between TQM and BPR.

•

•

BUSINESS PROCESS RE-ENGINEERING (BPR)


Business Process
 simply

a set of activities that transform a set of inputs into a set of outputs (goods or services) for another person or process using people and tools.



Reengineering


assumes the current process is irrelevant - it doesn't work, it's broke, forget it. Start over.

BUSINESS PROCESS RE-ENGINEERING (BPR)


is focused on fundamentally rethinking and radically redesigning a business process to bring about dramatic improvements in performance.
(Hammer & Champy, The Reengineering Revolution)



focused on the implementation of new technology, rather than the improvement of business processes. can be copied from other companies (benchmarking), bought (from an IT company or consultant), or they can be original ideas
(Thomas 1994).





re-engineering is about rethinking and redesigning organisational processes in order to achieve dramatic improvements in performance, including cost, quality, service and speed
(Hammer & Champy 1994).

BUSINESS PROCESS RE-ENGINEERING (BPR)


The primary GOALS of BPR are:


radical change  dramatic outcomes  transformation or replacement of an overall process


4 aspects of Reengineering:
Fundamental – B/R starts with basic questions  Radical – Redesign current structures and procedures entirely  Dramatic – Not gradual but epochal  Processes – Key target of Reengineering


THREE-PHASED APPROACH TO A BPR PROJECT:


Phase 1: Planning


establishes the required oversight and reference materials for successful Redesign and Implementation phases as well as lays the administrative groundwork. Work in the Planning phase spans approximately one month (part time). is the period during which the BPR team is trained, then follows the methodology to transform the selected process and deliver recommended solutions.
is about bringing to life the team’s recommendations to realize the goals of the redesign. It involves prioritizing, planning for, and executing projects to achieve the redesign



Phase 2: Redesign




Phase 3: Implementation


CONCEPT OF BPR

ELEMENTS OF BPR

ADVANTAGES OF BPR


Satisfaction


the work becomes more satisfying because the workers get a greater sense of completion, closure, and accomplishment from their jobs. get a widespread knowledge of the whole process



Growth of Knowledge




Solidarity to the Company


more time on value adding work and less time on work that adds no value, their contributions to the company increase  will on the whole be more highly compensated
• [Hammer, Champy, 2001]

ADVANTAGES OF BPR


Demanding Jobs


"There is, however, a challenging side to all this good news about work in a reengineered environment. If jobs are more satisfying, they are also more challenging and difficult. Much of the old, routine work is eliminated or automated. If the old model was simple tasks for simple people, the new one is complex jobs for smart people, which raises the bar for entry into the workforce. Few simple, routine, unskilled jobs are to be found in a reengineered environment.“
• [Hammer, Champy, 2001]



Authority


"don´t want employees who can follow rules; they want people who will make their own rules. As management invests teams with the responsibility of completing an entire process, it must also give them the authority to make the decisions needed to get it don
• [Hammer, Champy, 2001]

RISK OR DISADVANTAGES OF BPR


Resistance to the change  “… the key is to expect this resistance and develop ways to confront it…”
• [Cartland, Business Administration 542, 1998]



Drawbacks to Business Process Reengineering  “… must come from the top down – the executives must be committed and ready to promote the changes as an example for the rest of the company.“
• [Cartland, Business Administration 542, 1998]



Higher Demands to the Workers  "It is not longer enough merely to look at prospective employees' education, training, and skills; their character becomes an issue as well. Are they selfstarting? Do they have self-discipline? Are they motivated to do what it takes to please the customer?“
• [Hammer, Champy, 2001]

COMMON BENEFITS OF BPR


Enterprise integration
 Departments

are consolidated  Several jobs are combined into one job


Worker empowerment
 There

is both horizontal and vertical reorganization  Handoffs are eliminated  There are fewer rules and less coordination is required


Number of steps in a process are reduced
 This

is simplification  Inspections, checks and controls are reduced or eliminated


The steps are performed in a more natural order

COMMON BENEFITS OF BPR


Like Process Improvement, steps are reassessed
Can it be eliminated  Can it be taken off line  Can it be performed in parallel  Can it be combined  Is it a bottleneck  Can its mean be reduced  Can its variance be reduced  WHAT IS ITS COST???


 Processes

differ by the type of job being

processed


Not just one process but many are employed depending on the size of the job

 Work


is performed where it makes the most sense
Wal-Mart moves the replenishment function to its suppliers

COMPARISON BETWEEN TQM & BPR

COMPARISON BETWEEN TQM & BPR


				
DOCUMENT INFO
Description: Business Process Re-engineering Report. Includes: Concepts, Elements, Phases, Goals, Benefits, Advantages and Disadvantages of BPR. Also TQM vs. BPR.