Module 6

Business Process Re-engineering

Dr Soney Haris-AssociateProfessor-SJCC
Learning Outcome
• Business Process Re-engineering - Meaning - Process
Maps - Product and Service Development Design -
Concepts – Importance - Uses – Stages. Sustainability
impacts of operations management.

Dr Soney Haris-AssociateProfessor-SJCC
Business Process Re-engineering (BPR)
• Business Process Re-engineering is the radical redesign of
business processes to achieve dramatic improvements in
productivity, cycle times, quality, and employee and
customer satisfaction.
• A major aim of BPR is to analyze workflows within and
between business functions in order to optimize the end-to-
end business process and eliminate tasks that do not
improve performance or provide the customer with value.

Dr Soney Haris-AssociateProfessor-SJCC
Dr Soney Haris-AssociateProfessor-SJCC
Business Process Re-engineering: Examples
• Ford Motor Company. Ford radically changed its accounts
payable (AP) process by implementing an online database that
tracked the process from purchase order to delivery and then
automatically made payment. The move to paperless invoices
negated the need for staff to spend time matching paper
purchase orders with receiving documents and invoices.
• By rethinking the purchase process to take advantage of
technology, the automotive company reduced its AP
department's head count by 75%.

Dr Soney Haris-AssociateProfessor-SJCC
• Duke Power Co. In anticipation of power deregulation, Duke
Power Co. reengineered its customer operations processes in
the 1990s to cut costs and improve customer service. Although
the company performed well on both fronts, once it embarked
on BPR, many inefficiencies and inconsistencies were identified
across Duke's 13 geographic areas. Process owners were
appointed, standard measurements were devised for all types
of customer service and "scorecards" were adopted so that
employees could track how their work contributed to Duke's
business goals of higher earnings and better service.

Dr Soney Haris-AssociateProfessor-SJCC
Business Process Mapping
• Business process mapping is the visual display of the steps
within a business process showing how it's done from start
to finish.
• This sort of mapping provides a concise picture of the steps
needed to bring a product, service or other process from
start to completion and the sequence of steps that must take
place.

Dr Soney Haris-AssociateProfessor-SJCC
The use of process maps
• The redesign of business processes requires a detailed analysis of
existing processes. Process maps can assist in such an examination.
• A process map provides a visual representation of the steps and
decisions by which a product or transaction is processed.
• The map will include workflow either within a process or within the
organization and the flows of information or products along supply
chains and across networks.

Dr Soney Haris-AssociateProfessor-SJCC
Symbols used in a process chart
• The start/stop oval symbol, Input/Output square symbol, process
rectangle symbol, decision diamond symbol, connector symbol, and
lines are the most frequently used symbols in a flowchart.

Dr Soney Haris-AssociateProfessor-SJCC
Dr Soney Haris-AssociateProfessor-SJCC
New Product Development(NPD) Process/Stages

• Idea Generation
• Idea Screening
• Business Analysis
• Product Development
• Test Marketing
• Commercialization

Dr Soney Haris-AssociateProfessor-SJCC
New Product Development Process
Step 1. Idea Generation

Systematic Search for New Product Ideas

•Internal sources
•Customers
•Competitors
•Distributors
•Suppliers

Dr Soney Haris-AssociateProfessor-SJCC
New Product Development Process
Step 2. Idea Screening
➢Process to spot good ideas and drop poor ones
➢Criteria:
➢ Market Size
➢ Product Price
➢ Development Time & Costs
➢ Manufacturing Costs
➢ Rate of Return/(ROI)

Dr Soney Haris-AssociateProfessor-SJCC
New Product Development Process
Step 3. Business Analysis
Step 4. Product Development

Business Analysis

Review of Product Sales, Costs,

and Profits Projections to See if
They Meet Company Objectives

If No, Eliminate
Product Concept

If Yes, Move to
Product Development

Dr Soney Haris-AssociateProfessor-SJCC
New Product Development Process
Step 5. Test Marketing

Standard Controlled
Test Market Test Market
Full marketing campaign A few stores that have
in a small number of agreed to carry new
representative cities. products for a fee.

Simulated
Test Market /
Prototype Testing
Test in a simulated
shopping environment
to a sample of
consumers.
Dr Soney Haris-AssociateProfessor-SJCC
New Product Development Process
Step 6. Commercialization

• Launching the product-- local, national, and international

market

Dr Soney Haris-AssociateProfessor-SJCC
The importance of sustainability in operations
management
• OM is increasingly connected with the environment and sustainable
development (i.e. the development that meets the needs of the
present without compromising the ability of future generations to
meet their own needs), and it now concerns both the operational
drivers of profitability and their relationship with people and the
planet.

Dr Soney Haris-AssociateProfessor-SJCC
Sustainable Business

Dr Soney Haris-AssociateProfessor-SJCC
How sustainability impacts operations management
Operations management might contribute to achieving an organization’s
sustainability targets in a number of ways. One major issue is :
1. Product and process design - Operations managers cannot avoid
responsibility for environmental protection generally, or their organization’s
environmental performance more specifically.
• It is often operational failures which are at the root of pollution disasters and
operations decisions (such as product design) which impact on longer-term
environmental issues.

Dr Soney Haris-AssociateProfessor-SJCC
2. Supply Chain Management:
• Supply chain sustainability is a trending topic nowadays because of people’s growing
awareness to keeping the Earth sustainable.
• The topic of sustainability is defined as the quality of not being harmful to the
environment or depleting natural resources, and thereby supporting long-term
ecological balance.
• Environmental impacts from supply chains can include toxic waste, water pollution,
loss of biodiversity, deforestation, long-term damage to ecosystems, hazardous air
emissions as well as greenhouse gas emissions and energy use.
• There is an increasing need to combine environmentally friendly choices into supply-
chain management.
• Supply chain costs impacts the environment because if you deliver products more
efficiently, it can reduce your carbon footprint on the environment.
• Companies are now implementing sustainability programs to help the environment
by reducing miles, reducing production costs, and reducing product waste as well as
unplanned activities.
Dr Soney Haris-AssociateProfessor-SJCC
Learning Outcome
• Business Process Re-engineering - Meaning - Process
Maps - Product and Service Development Design -
Concepts – Importance - Uses – Stages. Sustainability
impacts of operations management.

Dr Soney Haris-AssociateProfessor-SJCC
 Thank You☺
All the BEST!!!

Dr Soney Haris-AssociateProfessor-SJCC