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Aim
To familiarise the Participants with the Characteristics of Business Process
Reengineering(BPR) with a view to enable them to undertake BPR in their respective
organisations
Learning Objectives
bull Understand and be able to implement a BPR Strategy
bull Understand the main challenges in implementing a BPR Strategy
Sequence of Presentation
bull Introduction to Business Processbull Salient Features and Stages of Reengineeringbull Reengineering Initiativesbull Forms of Reengineeringbull Features of Business Process Reengineeringbull Technology as Process Enablerbull Mapping an Existing Processbull Process Redesign and New Process Validationbull Conclusion
Introduction to Business Process
bull A measured and structured group of activities designed to produce a definite output for a particular customer or market
bull Features-They have customers- Internal or External- Not limited by boundaries-Recognisable beginning and End interfaces and organisational units
What is BPR
bull Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost quality service and speed
(Hammer amp Champy 1993)
BPR Versus Process Simplification
Process Reengineering
Radical TransformationVision-Led
Change Attitudes amp BehaviorsDirector-Led
Limited Number of Initiatives
Process Simplification
Incremental ChangeProcess-Led
Assume Attitudes amp BehaviorsManagement-Led
Various Simultaneous Projects
BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople amp Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
What is a Process
bull 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
(Davenport 1993)
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Learning Objectives
bull Understand and be able to implement a BPR Strategy
bull Understand the main challenges in implementing a BPR Strategy
Sequence of Presentation
bull Introduction to Business Processbull Salient Features and Stages of Reengineeringbull Reengineering Initiativesbull Forms of Reengineeringbull Features of Business Process Reengineeringbull Technology as Process Enablerbull Mapping an Existing Processbull Process Redesign and New Process Validationbull Conclusion
Introduction to Business Process
bull A measured and structured group of activities designed to produce a definite output for a particular customer or market
bull Features-They have customers- Internal or External- Not limited by boundaries-Recognisable beginning and End interfaces and organisational units
What is BPR
bull Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost quality service and speed
(Hammer amp Champy 1993)
BPR Versus Process Simplification
Process Reengineering
Radical TransformationVision-Led
Change Attitudes amp BehaviorsDirector-Led
Limited Number of Initiatives
Process Simplification
Incremental ChangeProcess-Led
Assume Attitudes amp BehaviorsManagement-Led
Various Simultaneous Projects
BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople amp Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
What is a Process
bull 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
(Davenport 1993)
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Sequence of Presentation
bull Introduction to Business Processbull Salient Features and Stages of Reengineeringbull Reengineering Initiativesbull Forms of Reengineeringbull Features of Business Process Reengineeringbull Technology as Process Enablerbull Mapping an Existing Processbull Process Redesign and New Process Validationbull Conclusion
Introduction to Business Process
bull A measured and structured group of activities designed to produce a definite output for a particular customer or market
bull Features-They have customers- Internal or External- Not limited by boundaries-Recognisable beginning and End interfaces and organisational units
What is BPR
bull Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost quality service and speed
(Hammer amp Champy 1993)
BPR Versus Process Simplification
Process Reengineering
Radical TransformationVision-Led
Change Attitudes amp BehaviorsDirector-Led
Limited Number of Initiatives
Process Simplification
Incremental ChangeProcess-Led
Assume Attitudes amp BehaviorsManagement-Led
Various Simultaneous Projects
BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople amp Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
What is a Process
bull 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
(Davenport 1993)
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Introduction to Business Process
bull A measured and structured group of activities designed to produce a definite output for a particular customer or market
bull Features-They have customers- Internal or External- Not limited by boundaries-Recognisable beginning and End interfaces and organisational units
What is BPR
bull Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost quality service and speed
(Hammer amp Champy 1993)
BPR Versus Process Simplification
Process Reengineering
Radical TransformationVision-Led
Change Attitudes amp BehaviorsDirector-Led
Limited Number of Initiatives
Process Simplification
Incremental ChangeProcess-Led
Assume Attitudes amp BehaviorsManagement-Led
Various Simultaneous Projects
BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople amp Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
What is a Process
bull 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
(Davenport 1993)
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
What is BPR
bull Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost quality service and speed
(Hammer amp Champy 1993)
BPR Versus Process Simplification
Process Reengineering
Radical TransformationVision-Led
Change Attitudes amp BehaviorsDirector-Led
Limited Number of Initiatives
Process Simplification
Incremental ChangeProcess-Led
Assume Attitudes amp BehaviorsManagement-Led
Various Simultaneous Projects
BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople amp Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
What is a Process
bull 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
(Davenport 1993)
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
BPR Versus Process Simplification
Process Reengineering
Radical TransformationVision-Led
Change Attitudes amp BehaviorsDirector-Led
Limited Number of Initiatives
Process Simplification
Incremental ChangeProcess-Led
Assume Attitudes amp BehaviorsManagement-Led
Various Simultaneous Projects
BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople amp Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
What is a Process
bull 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
(Davenport 1993)
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople amp Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
What is a Process
bull 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
(Davenport 1993)
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
What is a Process
bull 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
(Davenport 1993)
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
TransformationInputs Outputs
Feedback
Environment
Systems Perspective
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Aspects of Processess
bull Objects Processes manipulate objects These could be Physical or Informational
bull Entities Processes occur between organisational entities
bull Activities Processes encompass two types of activities- Managerial and Operational
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Why Reengineer
bull Customersndash Demandingndash Sophisticationndash Changing Needs
bull Competitionndash Localndash Global
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Why Reengineer
bull Changendash Technologyndash Customer Preferences
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Why Organizations Donrsquot Reengineer
bull Complacency
bull Political Resistance
bull New Developments
bull Fear of Unknown and Failure
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Origins
bull Scientific Management FW Taylor (1856-1915)
bull Frederick Herzberg - Job Enrichment bull Deming et al - Total Quality Management and
Kaizen bull In Search of Excellence (Peters and
Waterman) bull Value-Added Analysis (Porter)
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Key Characteristics
bull Systems Philosophy bull Global Perspective on Business Processes bull Radical Improvementbull Integrated Changebull People Centredbull Focus on End-Customersbull Process-Based
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Process Based
bull Added Valuendash BPR Initiatives must add-value over and above
the existing process
bull Customer-Led ndash BPR Initiatives must meet the needs of the
customer
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Radical Improvement
bull Sustainablendash Process improvements need to become firmly
rooted within the organization
bull Stepped Approachndash Process improvements will not happen over night
they need to be gradually introducedndash Also assists the acceptance by staff of the change
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Integrated Change
bull Viable Solutionsndash Process improvements must be viable and
practical
bull Balanced Improvementsndash Process improvements must be realistic
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
People-Centred
bull Business Understandingbull Empowerment amp Participationbull Organizational Culture
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Focus on End-Customers
bull Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number Usedwhen 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
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Understand the Current Process
bull Develop a Process Overviewbull Clearly define the process ndashMissionndash Scopendash Boundaries
bull Set business and customer measurements bull Understand customers expectations from
the process (staff including process team)
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Understand the Current Process
bull Clearly Identify Improvement OpportunitiesndashQualityndashRework
bull Document the ProcessndashCostndashTime ndashValue Data
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Understand the Current Process
bull Carefully resolve any inconsistenciesndash Existing -- New Processndash Ideal -- Realistic Process
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Develop amp Communicate Vision of Improved Process
bull Communicate with all employees so that they are aware of the vision of the future
bull Always provide information on the progress of the BPR initiative - good and bad
bull Demonstrate assurance that the BPR initiative is both necessary and properly managed
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Develop amp Communicate Vision of Improved Process
bull Promote individual development by indicating options that are available
bull Indicate actions required and those responsible
bull Tackle any actions that need resolution
bull Direct communication to reinforce new patterns of desired behavior
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Identify Action Plan
bull Remove no-value-added activities
bull Standardize Process and Automate Where Possible
bull Up-grade Equipment
bull Planschedule the changes
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Identify Action Plan
bull Construct in-house metrics and targets
bull Introduce and firmly establish a feedback system
bull Audit Audit Audit
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Execute Plan
bull Qualifycertify the processbull Perform periodic qualification reviewsbull Define and eliminate process problemsbull Evaluate the change impact on the business
and on customersbull Benchmark the processbull Provide advanced team training
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Stages of Reengineering
bull Realizationbull Key Essentialsbull Rethinkbull Redesignbull Retoolbull Evaluating Again
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Realization
bull Identify needs and threats from Competition and political economic and social environments
bull Realization that it must show regularly Incremental or Radical business improvement
bull Leadership at all levels to convince the work force of the necessity for change
bull Transformation through Cooperation Creativity and Innovation
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Key Essentials
bull State Mission vision and Values of the Organisation in terms of Satisfaction of Customer Needs
bull Establish Key Performance Indicators for the Product or Service being offered
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Rethink
bull Re-examine the current and existing processes of the organisation Critical Questions--Is the current process capable of producing competitive products and services-Is the current process capable of satisfying all the essential requirements of the customer and the organisation-Is the current process capable of satisfying all critical performance success factors
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Redesign
bull Appraise the entire system of procedures products and services with the associated work elements tasks and jobs
bull Principles of Process Redesignndash All essential Requirements of customers and organisation
must be metndash Job satisfaction must be given importance in the redesign
processndash The main objectives of redesigning processes are to
eliminate all sources of waste and enhance the organisationrsquos competitive position
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Retool
bull Evaluate New technologies and tools required for improving the service and production process
bull Map the existing Technologies according to prequalified process charcteristics
bull Examine the weaknesses of the current technology and tools by determining the Mean time to failure mean time to repair mean time to dismantle
bull Incorporate the new technology and reengineer the process
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Evaluating Again
bull Reevaluate by getting data on key performance success factors quality productivity customer satisfaction market share variation levels profitably indexes and cost reduction savings etc
bull The responsibility of examining the performance of the process leis with the workers themselves as they are best qualified to control the variables in the process
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Re-engineering Initiatives
bull Re-engineering in Large Business (P ampC 8000 employees)-
1 Strategy Fundamental Changes in Products Customers Processes and Technology)
2 Structural Changesbull Managing a Large Re-engineering Initiative- 1
Involvement of Employees- helped build up ownership of the Project 2 Map of key value Chain processes
bull Managing Change in a Re-engineering Initiative- Commitment of all
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Re-engineering Initiatives
bull Re-engineering in Large Businessbull Managing a Large Re-engineering Initiativebull Managing Change in a Re-engineering
Initiative
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Forms of Re-engineering
bull Systems Re-engineeringbull Infrastructure Reengineeringbull Business Process Re-engineering
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
System Re-engineering
bull Ensure Effective Utilisation of 1 Computers2 Data Storage3 Programmer Productivity
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
System Re-engineering Contdhellip
bull Hardware Engineering-Radical Shift in Computer Technology
bull Software Engineering- Adopt SW Technologies
1 Computer Aided Design (CAD)2 Computer Aided Manufacturing (CAM)3 Computer Integrated Manufacturing
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
CAD
bull Technique used for Designing Products and Processes on Computers
bull Assists in Creation Modification analysis and optimization of design
bull CAD system incorporates Graphics for highlighting Physical Attributes of the Product and Engineering Systems for highlighting the Operational Capabilities of the proposed design
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Benefits of CAD
bull Increase in Productivitybull Improvement in the Quality of Product or
Process Designbull More Standardized products and design
documents
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
CAM
bull Computers control and support the Automated Manufacturing Operations
Benefits of CAM-1 Reliable Information inputs2 Consistent Product Quality3 Reduction in Labor Costs4 Better Control and management of Equipment
and materials5 Improvements in Production Rate
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
CIM
bull It integrates the engineering functions of CADCAM with the business functions of the firm
bull Business Functions include Order Entry Cost Accounting Maintenance of Employee time records payroll and customer billing
bull Highest Level of Integration in Manufacturing
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Infrastructure Re-engineering
bull Infrastructure of an Oraganisation includes People Processes Technology and Resources (Men Machine and Material)
bull Infrastructure re-engineering involves restructuring of an entire organisation with the purpose of improving its productivity
bull Macro Level Issues- Change in the degree of Centralisation of decision-making
bull Micro Level Issues- Job definition and Content job satisfaction communication patterns and skill requirement
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
BPR
bull It is a methodical regimented progressive move toward the critical examination rethinking redesign and implementation of the redesigned processes of an organisation
bull It is also referred to as Business Process Improvement (BPI)
bull Can be applied Incrementally but more often as Dramatic or Radical refurbishment of existing processes
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Features of BPR
bull Process Orientationbull Project Goalsbull Rule Breakingbull Creative Use of Technologybull Combining Several Jobs into onebull Decentralisation of Decision-Making Authoritybull Multiple Versions of Processesbull Checks and Controls are Reducedbull A Single Point of contact for a Customer
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Effects of BPR
1 Change in Nature of Jobs-from simple tasks to multi dimensional work
2 Change in roles-from controlled to empowered3 Changes in preparation for the job-from training to education4 Change in the focus of performance measures and
compensation ndashfrom activity to results 5 Change in the criteria for promotion-from performance to ability6 Change in values ndashfrom protective to productive7 Change in responsibilities of Managers-from supervisors to
Coaches8 Changes in vertical organisational structure-from hierarchical to
flat9 Change in the horizontal organisational structure-from
functional departments to process teams
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Problems of Functional Division
bull BPR and Functional Divisionbull BPR and Division of Labor
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Technology as Process Enabler
bull Impact of Technology in Manufacturing1 Automation
Flexible Manufacturing Systems Robotics Automated Guided Vehicles Automated Storage and Retrieval Systems
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Advantages of Automation
1 Improvement in Productivity 2 Efficient Use of Materials3 Improvement in the Quality of the Product4 Improvement in Work Environment for the
Workers5 Reduced Factory Lead-Time
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Disadvantages of the Automation
bull Negative Feedback from the Employeesbull High Initial Investmentbull Higher Level of Maintenance Neededbull Less Flexiblebull Requirement of Technical Manpower
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Mapping an Existing Process
bull Have a thorough Understanding of the Existing Process
bull Map the existing Process first and analyse and improve on them to design new processes
bull Identify the breaks that prevents the process from achieving the desired result of value addition
bull Re-engineer the process to streamline the Break
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Process Redesign and New Process Validation
bull Process Validation measures the correspondence between a formal model of intended process behavior exhibiting a process
bull It is done by allowing the user to simulate the execution of a process
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Validation Contdhellipbull Model Validation Specifics
How can I assess the sufficiency of the functional part of the model bull How can I detect non-constant variation across the data bull How can I tell if there was drift in the process bull How can I assess whether the random errors are independent from
one to the next
bull How can I test whether or not the random errors are distributed normally
bull How can I test whether any significant terms are missing or misspecified in the functional part of the model
bull How can I test whether all of the terms in the functional part of the model are necessary
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Information Technology amp BPR
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Benefits From IT
bull Assists the Implementation of Business Processesndash Enables Product amp Service Innovationsndash Improve Operational Efficiencyndash Coordinate Vendors amp Customers in the Process
Chain
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Computer Aided BPR (CABPR)
bull Focusndash Business Processesndash Process Redesignndash Process Implementation
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
BPR Challenges
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Common Problems
bull Process Simplification is Common - True BPR is Not
bull Desire to Change Not Strong Enoughbull Start Point the Existing Process Not a Blank
Slatebull Commitment to Existing Processes Too Strongndash REMEMBER - ldquoIf it ainrsquot broke helliprdquo
bull Quick Fix Approach
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
bull A Business Revolutionbull Hammer was former CSbull professorbull switched to consulting gurubull business celebrity for a whilebull Rhetoric of revolutionbull trash existing business rebuildbull from scratchbull process oriented viewbull ldquoengineerrdquo better systemsbull Insists new ideabull Old ways were good beforebull New technology means newbull approach
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
bull Attention to Processesbull Is a good thingbull Some common sense stuffbull Simplify processes rather than automatebull Design rather than just accumulatebull (As Davenport says this is tied to TQM) Exploit technologybull Minimize organizational barriers to processbull Put a single person in chargebull Simplify organizational chart if possible
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
bull Quotes from Hammer Ibull American managers must abandon the organizationalbull and operational principles and procedures they are nowbull using and create entirely new ones Businessbull reengineering means starting all over starting frombull scratch It means forgetting how work was done Oldbull job titles and old organizational arrangements ceasebull to matter How people and companies did thingsbull yesterday doesnt matter to the business reengineer bull Reengineering cant be carried out in small and cautiousbull steps It is an all-or-nothing propositionbull Reengineering the Corporationbull (quotes gathered by Paul Strassmann in ldquoThe Hocus-Pocus of Re-engineering)
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
bull Quotes from Hammer IIbull 1048708 In this journey well carry our wounded and shoot thebull dissenters I want to purge from the businessbull vocabulary CEO manager worker job Forbes ASAPbull Sept 13 1993bull 1048708 Its basically taking an axe and a machine gun to yourbull existing organization ComputerworldJan 24 1994bull 1048708 What you do with the existing structure is nuke it Sitebull Selection February 1993bull 1048708 Reengineering must be initiated by someone whobull has enough status to break legs Planning Review
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Common Problems with BPR
bull Process under review too big or too smallbull Reliance on existing process too strongbull The Costs of the Change Seem Too Largebull BPR Isolated Activity not Aligned to the
Business Objectivesbull Allocation of Resourcesbull Poor Timing and Planningbull Keeping the Team and Organization on Target
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Summary
bull Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
bull BPR has emerged from key management traditions such as scientific management and systems thinking
bull Rules and symbols play an integral part of all BPR initiatives
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Summary
bull Donrsquot assume anything - remember BPR is fundamental rethinking of business processes
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
73
CurrentBusinessProcesses
FutureBusinessProcesses
Information
Technology
Skills
STRATEGIC
DIRECTIONS
Information
Technology
Skills
Current Environments (AS-IS)
Future Environments (TO-BE)
TransitionImplementation (Change Management)
Business Process Reengineering Methodology hellip
CurrentProductsServices
FutureProductsServices
AIMCORP-Automated Information Management Corporation
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
Examination Questions
1 BPR helps------a) Streamline flow of informationb) Increase overall efficiency of business processc) Increase quality of Productiond) Manage Customer bettere) Decision making process
2 BPR is a radical change in business process Relatebull A complete structural change in business functionsbull Change in customer relationshipbull Maintain proper SCMbull Business Transactions carried on the netbull Preparing for e-business3 Discuss Business Process Reengineering
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
4 The term BPR refers to-a) Business Program Re-engineeringb) Business Process Reengineeringc) Business Process Re-applicationd) Business Process Re-structuringe) Business Plan Reengineering5 ldquoNot a single day should go by without some kind of improvement being made
somewhere in the companyrdquo This phrase is most applicable in case of -f) BPRg) TQMh) Kaizeni) ERPj) CRM6 CIM isk) Computer Integrated Marketingl) Computer Integrated Manufacturingm) Computer Integral Manufacturingn) Chip Integrated Manufacturing7 Explain the Stages of Re-engineering
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
8 Business Process automation relates to -a) Implementing a new software packageb) Refining automated business processesc) Automating the work in Progressd) Automating the business process as it is without
any changese) Revamping the existing system9 What is Business Process Reengineering Briefly
discuss the success factors that may lead to successful outcomes for BPR Projects What are the major factors which differentiate BPR from TQM
