Business-Process-Reengineering METHOD.ppt

ERP

1. Business Process Reengineering

2. Presentation Outline
General Introduction
Business Process Reengineering
BPR Symbols
Understand and be able to implement a
BPR Strategy
Understand the main challenges in
implementing a BPR Strategy
Conclusion: Summary

3. Spectrum of Change
Automation
Rationalization
of procedures
Reengineering
Paradigm shift

4. Automation
refers to
computerizing
processes to speed
up the existing
tasks.
improves
efficiency and
effectiveness.

5. Rationalization of Procedures
refers to
streamlining of
standard operating
procedures,
eliminating obvious
bottlenecks, so that
automation makes
operating procedures
more efficient.
improves efficiency
and effectiveness.

6. Business Process Reengineering
refers to radical
redesign of business
processes.
Aims at
eliminating repetitive,
paper-intensive,
bureaucratic tasks
reducing costs
significantly
improving
product/service
quality.

7. Paradigm Shift
refers to a more
radical form of
change where the
nature of business
and the nature of
the organization is
questioned.
improves strategic
standing of the
organization.

8. 3
Business Process Reengineering
“Reengineering 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.”

9. 4
Key Words
Fundamental
Why do we do what we do?
Ignore what is and concentrate
on what should be.
Radical
Business reinvention vs.
business improvement

10. 5
Key Words
Dramatic
Reengineering should be brought in “when
a need exits for heavy blasting.”
Companies in deep trouble.
Companies that see trouble coming.
Companies that are in peak condition.
Business Process
a collection of activities that takes one or
more kinds of inputs and creates an
output that is of value to a customer.

11. BPR & The Organization

12. BPR is Not?
BPR may sometimes be mistaken for the following five
tools:

1. Automation is an automatic, as opposed to
human, operation or control of a process, equipment or
a system; or the techniques and equipment used to
achieve this. Automation is most often applied to
computer (or at least electronic) control of a
manufacturing process.

2. Downsizing is the reduction of expenditures in
order to become financial stable. Those expenditures
could include but are not limited to: the total number of
employees at a company, retirements, or spin-off
companies.

13. BPR is Not?

3. Outsourcing involves paying another
company to provide the services a company
might otherwise have employed its own staff
to perform. Outsourcing is readily seen in the
software development sector.

4. Continuous improvement emphasizes
small and measurable refinements to an
organization's current processes and systems.
Continuous improvements’ origins were
derived from total quality management (TQM)
and Six Sigma.

14. 16
Reengineering & Continuous
Improvement--Similarities
Reengineering Continuous Improvement
Similarities
Basis of analysis Process Process
Performance measurementRigorous Rigorous
Organizational changeSignificant Significant
Behavioral change Significant Significant
Time investment Substantial Substantial

15. 17
Reengineering & Continuous
Improvement--Differences
Reengineering Continuous Improvement
Differences
Level of changeRadical Incremental
Starting point Clean slate Existing process
Participation Top-down Bottom-up
Typical scope Broad, cross-functionalNarrow, within functions
Risk High Moderate
Primary enablerInformation technologyStatistical control
Type of change Cultural and structuralCultural

16. What is a Process?
A specific ordering of work activities
across time and space, with a
beginning, an end, and clearly
identified inputs and outputs: a
structure for action.

17. What is a Business Process?
A group of logically related tasks
that use the firm's resources to
provide customer-oriented results in
support of the organization's
objectives

18. Why Reengineer?
Customers
Demanding
Sophistication
Changing Needs
Competition
Local
Global

19. Customer Demands
• expect us to know everything
• to make the right decisions
• to do it right now
• to do it with less resources
• to make no mistakes
• expect to be fully informed

20. Why Reengineer?
Competition
Local
Global
Change
Technology
Customer Preferences

21. Business Process Reengineering
WHY ?
Integrate people, technology, & organizational culture
To Respond to rapidly changing technical & business
environment and customer’s needs to achieve Big
performance gains

22. Why Organizations Don’t Reengineer?
Complacency
Political Resistance
New Developments
Fear of Unknown and Failure

23. Performance
BPR seeks improvements of
Cost
Quality
Service
Speed

24. BPR Symbols

25. Business Process Flowchart
Symbols
An Activity
A Document
A Decision
Data (input as outputs)

26. Business Process Flowchart
Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End

27. Business Process Flowchart
Symbols
Continuation of the process at the same page
at an equal symbol with the same number. Used
when a relation arrow crosses another relation arrow
Off-Page Connector - Process will continue on the
next page
Integration Relation - A relation to another module is
identified and described

28. Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)

29. Data Flowchart Symbols
Manual Data Item
A Database File
Representing a Relation
Continuation
Off-Page Connector

30. Rules For Data Symbols

31. Rules For Data Symbols
Start
End
Generate
Purchase
Order
OK? Yes
No
Symbol used to identify the start of a business process
Activities must be described as a verb
Decisions have only two possibilities (Yes & No)
Crossing lines are not allowed
If one side of the decision has no further processes
defined this symbol has to be used

32. Rules For Data Symbols
Purchase
Order
Posting
of Bonus
I
A
Continuation symbol within the same number must be
present twice on the same page
Name the document
Off- Page Connector is used to continue a process at the
next page or to let the process to flow over at the previous
to the next page. If more than one is needed use A, B, C,
D …
Name the data

33. Rules For Data Symbols
Sub-Process
Delivery
BC 4.04
Predefined Processes always have a relation to level and
stream by a number in the line below a sub-process
description
A predefined process must be described in a different
flowchart. To make the relation clear between the
predefined process and the belonging flowchart a unique
alpha numeric number should be assigned to this
predefined process.

34. Version Management
For different versions of a business
process or data flow some mandatory
information must be on the flowchart.
Name of the business process
Unique number of the business process
Revision number
Date of last change
Author
Page number with total pages

35. Implementing a BPR Strategy

36. The C’s related to
Organization Re-engineering Projects
The 3C’s of
organization Re-
engineering:
The 4C’s of effective
teams:
- Customers
- Competition
- Change
- Commitment
- Cooperation
- Communication
- Contribution

37. Key Steps
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of Improved Process
Identify Action Plan
Execute Plan

38. 1.Select the Process & Appoint
Process Team
Two Crucial Tasks
Select The Process to be Reengineered
Appoint the Process Team to Lead the
Reengineering Initiative

39. Select the Process
Review Business Strategy and
Customer Requirements
Select Core Processes
Understand Customer Needs
Don’t Assume Anything

40. Select the Process
Select Correct Path for Change
Remember Assumptions can Hide
Failures
Competition and Choice to Go Elsewhere
Ask - Questionnaires, Meetings, Focus
Groups

41. Appoint the Process Team
Appoint BPR Champion
Identify Process Owners
Establish Executive Improvement
Team
Provide Training to Executive Team

42. Core Skills Required
Capacity to view the organization as a whole
Ability to focus on end-customers
Ability to challenge fundamental
assumptions
Courage to deliver and venture into
unknown areas

43. Core Skills Required
Ability to assume individual and
collective responsibility

44. Use of Consultants
Used to generate internal capacity
Appropriate when a implementation is
needed quickly
Ensure that adequate consultation is
sought from staff so that the initiative
is organization-led and not consultant-
driven
Control should never be handed over
to the consultant

45. 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)

46. 2.Understand the Current Process
Clearly Identify Improvement
Opportunities
Quality
Rework
Document the Process
Cost
Time
Value Data

47. 3.Understand the Current Process
Carefully resolve any
inconsistencies
Existing -- New Process
Ideal -- Realistic Process

48. 3.Develop & 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

49. 3.Develop & Communicate Vision of
Improved Process
Promote individual development by indicating
options that are available
Indicate actions required and those
responsible
Tackle any actions that need resolution
Direct communication to reinforce new
patterns of desired behavior

50. 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

51. 4.Identify Action Plan
Remove no-value-added activities
Standardize Process and Automate
Where Possible
Up-grade Equipment
Plan/schedule the changes

52. 4.Identify Action Plan
Construct in-house metrics and
targets
Introduce and firmly establish a
feedback system
Audit, Audit, Audit

53. 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

54. Information Technology & BPR

55. Benefits From IT
Assists the Implementation of
Business Processes
Enables Product & Service Innovations
Improve Operational Efficiency
Coordinate Vendors & Customers in the
Process Chain

56. BPR Challenges

57. Common Problems with BPR
Process Simplification is Common -
True BPR is Not
Desire to Change Not Strong Enough
Start Point the Existing Process Not a
Blank Slate
Commitment to Existing Processes
Too Strong
REMEMBER - “If it isn’t broke …”

58. Common Problems with BPR
Process under review too big or too small
Reliance on existing process too strong
The Costs of the Change Seem Too Large
BPR Isolated Activity not Aligned to the
Business Objectives
Allocation of Resources
Poor Timing and Planning
Keeping the Team and Organization on
Target

59. How to Avoid BPR Failure
To avoid failure of the BPR process it is recommended
that:
BPR must be accompanied by strategic planning, which
addresses leveraging Information technology as a
competitive tool.
Place the customer at the centre of the reengineering
effort, concentrate on reengineering fragmented
processes that lead to delays or other negative impacts
on customer service.
BPR must be "owned" throughout the organization, not
driven by a group of outside consultants.
Case teams must be comprised of both managers as
well as those who will actually do the work.

60. How to Avoid BPR Failure
The Information technology group should be
an integral part of the reengineering team
from the start.
BPR must be sponsored by top executives, who
are not about to leave or retire.
BPR projects must have a timetable, ideally
between three to six months, so that the
organization is not in a state of "limbo".
BPR must not ignore corporate culture and
must emphasize constant communication and
feedback.

61. Summary
Reengineering is a fundamental rethinking
and redesign of business processes to
achieve dramatic improvements
BPR has emerged from key management
traditions such as scientific management
and systems thinking
Rules and symbols play an integral part of
all BPR initiatives

62. Summary
Don’t assume anything - remember
BPR is fundamental rethinking of
business processes