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Business Process, Anna University Syllabus, MCA
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Five step Methodology to implement BPR
Roy Antony Arnold GLecturer/CSEInfant Jesus College of EngineeringTuticorin, Tamilnadu, India
Performance Levels of 3 major process:
1. Customer Orders – Took too long to procure, record and transmit for execution
2. Customer Service – Was error-prone, time consuming and suffered from stock-out problems.
3. Customer Feedback – Was not regular, and even when it did take place was done only on sampling basis.
Changes to be made…Instead of having three points of contact with the
customer, namely Sales Executive, the Service and Installation Technician and the Market Researcher, there will be only a Customer Executive who will perform all the functions.
Instead of an expensive and time consuming hierarchy involving branch offices, regional offices and then several layers at the Corporate Office, there will only be Office-Cum-Depots having direct communication with the Marketing Manager at the Corporate Office.
All Customer Executives are being provided with handheld computers which can be used for booking orders, for providing help during installation and service and for recording customer responses and feedback.
This is no longer a
choice, it is an imperative for
survival
Principles of BPR Organize around Outcomes, not the task. Identify all Processes and Prioritize them in
order of redesign. Integrate information processing work into
real work that produces the information. Treat geographically dispersed resources Link Parallel activities to integrate the
results. Put the decision point where the work is
performed, and build the control into the process.
Capture information once and at the source .
Develop and determine process objectives
Define the processes to be reengineered
Understanding and measuring the existing processes
Identifying the IT Levers
Designing the prototype, implement
1
2
3
4
5
Develop Vision
Define Process
Measure Process
Identify IT Lever
Prototype
Step – 1: Developing Process Vision and Determining Process Objectives
Step – 1: Developing Process Vision and Determining Process Objectives
The organization should focus on the future competition, products and customer expectations, and the plan model to succeed in the environment.
This first step recognizes following: Market/Customer driven Business Vision and Goals Achievement of business vision may involve
reengineering of more than one process Process attributes (cost, quality, time etc.) and process
measures (half the cost, in a day etc) need to be derived.
At the end of this step, we would be clear on1. What are the key process? (Identification)2. How will they reengineered process perform
qualitatively and quantitatively? (Vision & Objectives)
2: Defining the Process to be Reengineered
2: Defining the Process to be Reengineered
Develop and establish a common understanding of each process across all executives, clerks and workers involved in the execution of the respective processes.
Ask probing questions in order to obtain clarity on what we mean by an order fulfillment process.
Control and ensure the process outcomeAmber alert (x days) to division head for unfilled
ordersRed alert (y days) to CEO for unfilled ordersSpare lie in stock for more than z months, red alert to CEO
Order Fulfillment Process
Distribution
Logistics
Step 2: Contd…Performance metrics are measured..
Planning – lead time committed for orders, percentage of delayed deliveries
Production – yields and efficiency, capacity utilization
Shipment – Cost of shipmentIf no value to customer – No reengineering
This step helps to create an early vision of the reengineered process for the departments covered by the process.
3: Understanding and Measuring Existing Processes
3: Understanding and Measuring Existing ProcessesGo through a presentation of how the existing
system works, and find, whenever possible, the current process measures available.
Otherwise, poor performance levels of the existing process may inhibit us.Example: 50% of the orders were termed complex or
special. It took 12 to 18 weeks to be shipped.This step forces the enterprise to obtain a common
understanding of terms like,Waiting time, Response time, etc.,
If it is first time, the result of performance measures on the existing system may lead to dissatisfaction.
4: Identifying IT Levers
4: Identifying IT LeversEvery effort in reengineering is also an initiative in
process improvement.Reengineering can be differentiated on the basis of
two factors:1. Reengineering should lead to a dramatic
improvement in process performance on the selected measures.
2. Reengineering should end up achieving process destruction through effective or innovative deployment of IT.
Need to visualize scenarios where IT could be wisely deployed to drastically simplify the process. Example: Using bar-code scanners
5: Designing & Building Prototype
5: Designing & Building Prototype
In any reengineering activity “Ideas are Acts”.When the core group of the organization spends
valuable time and invaluable thoughts on visualizing the reengineered processes, simultaneously, owners who would construct the reengineered processes are created. This is action.
This final stage of implementation is unique to each organization and project because it involves issues that are multi-dimensional in nature -Issues relating to managing technologyChanging people’s attitudes and mindsetsCreating new organization structures and Managing the entire change process
Contd…It would be difficult for people who were
managing the earlier system to adapt themselves to a new “revolutionary way of doing things”.
Prototype prove to be very valuable in working on mindsets as they provide a “learning environment” for people to adapt to the new system.
Prototypes always need tuning, more tuning, and still more tuning and that makes the job of implementation considerably easy and smooth.
BPR Drivers ICT Developments (info, commu, tech) Broken Processes. Local, Global & Faster Competition Rising overhead costs. Shorter product life cycles Stagnant business conditions Unsatisfied Customers.
Why Organizations Don’t Reengineer?
Complacency( Satisfaction)
Political Resistance
New Developments
Fear of Unknown and Failure
Eight Decision Points in any BPR Project
1. Do we need to reengineer this business operation?
2. What is the end vision of the results of our reengineering?
3. What is the detailed design for our reengineered business operation?
4. Will our new design for the business operation is suitable?
5. What is the plan for getting that design implemented?
6. Should we fund the implementation of the business reengineering design?
7. Is the implementation going as planned?
8. Is the reengineered business operation ready to take on responsibility for continuous improvement to the process?
Continuous Process Improvement Model
This method for improving business processes is effective to obtain gradual, incremental improvement
Break through Reengineering Model
•Defining the scope and objectives of your reengineering project,
•Learning process (with your customers, your employees, your competitors and non-competitors, and with new technology).
•Create a vision for the future and design new business processes. ("to be" state)
•Create a plan of action based on the gap between your current processes, technologies and structures.
•Implementing your solution.
Key Steps
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of Improved Process
Identify Action Plan
Execute Plan
Implementing a BPR Strategy