TURNAROUND MANAGEMENT

BUSINESS PROCESS REENGINEERING

Meaning:

• BPR stands for “Business Process Reengineering”. It refers to the analysis and redesign of workflows both within and between the organisation and the external entities

• BPR is not- downsizing, restructuring, reorganisation, automation, new technology, etc. It is the examination and change of five components of the business- Strategy, Processes, Technology, Organisation, and Culture.

Definition:

• Business Process Reengineering has been defined as: “fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance”.

Elements of BPR:

• Fundamental• Radical• Process• Dramatic

Features of BPR:

• Several jobs• Employees empowered• Step in business process• Multiple versions• Reconciliation• Hybrid centralized/decentralized• Process- oriented• Creative use of IT

Objectives of BPR:

• Costumer focus• Speed• Compression• Flexibility• Innovation• Productivity

Need of BPR:

• Rapid change• Well informed• Intense competition• Customer• Change• Technology• Fragmented piecemeal system

Steps in BPR implementation:

• Develop the business• Identify the process to Redesigned• Understand and Measure the existing process• Identify IT levers• Design and build a Prototype of the New

Process

Central Thrust of BPR:

• By eliminating the redundant stages • By drastically simplifying and rationalizing

work• By coordinating the entire process• By eliminating unwanted steps• By simplifying the system• By maintaining continuous effort

Advantages of BPR:

• Increase effectiveness• Helps to improve efficiency• Reduce cost • Meaningful job for employees• Improvement in organisational approach• Growth of business• Simplification of processes• Enterprise integration

Disadvantages of BPR:

• Long and complex process• Not suitable for small businesses• Resistance• Not an effective way to focus • Gradual and increamental• Culturally biased • Business processes not redesigned

IT and BPR:

• Manage BPR project• Link between various BPR drives• Provide platform• Cost benefit• Study complete supply chain• Judge impact of reengineered processes

TQM and BPR:ATTRIBUTE TQM BPR

MEANING Reducing or eliminating errors

Innovation

CHANGE Incremental change and gradual improvement

Radical redesign and drastic improvement

PARTICIPATION Bottom -up Top-down

FLEXIBILITY/ STANDARDIZATION

Standardization of processes

Flexibility in operations

EXISTING/ NEW PROCESS Changing existing process Changing new process

TOOLS Usage of statistical process control

Enabling role of IT

FOCUS Current practice Start again

INVESTMENT Small Large

SPEED Small steps Long steps

PARTICIPATION Each employee Selected few