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Business Process Reengineering Guide

Business process reengineering is the fundamental redesign of business processes to achieve dramatic improvements in critical measures like cost, quality, service, and speed. A business process is a series of tasks that produce an outcome, like manufacturing or sales processes. Reengineering is needed when customer needs change or competition intensifies. It involves a 3-phase approach of planning, design, and implementation to determine new process requirements, uncover opportunities, map ideal processes, and implement changes on a trial basis before standardizing.

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4 views10 pages

Business Process Reengineering Guide

Business process reengineering is the fundamental redesign of business processes to achieve dramatic improvements in critical measures like cost, quality, service, and speed. A business process is a series of tasks that produce an outcome, like manufacturing or sales processes. Reengineering is needed when customer needs change or competition intensifies. It involves a 3-phase approach of planning, design, and implementation to determine new process requirements, uncover opportunities, map ideal processes, and implement changes on a trial basis before standardizing.

Uploaded by

strgrl
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

Business Process

Reengineering

What is a business process?


series of logically related tasks or steps designed to produce an outcome
workflows of material, information and knowledge
maybe tied to a functional area or be cross-functional
examples:
manufacturing and production: assembling the product
sales and marketing: identifying customers
finance and accounting: creating financial statements
human resources: hiring employees

What is business process reengineering?


the fundamental rethinking and radical design of business
processes to achieve dramatic improvements in critical
contemporary modern measures of performance, such as cost,
quality, service and speed (Hammer & Champy, 1993)

Why is there a need for BPR?


Customers changing needs
- the services provided by the organization are not
compatible with its customers needs.
Competition intensifies
- it takes too long for an organization to move its
products from conception to the market place as
compared to its competitors

Example: Ford Accounts Payable Process


Before BPR:

Example: Ford Accounts Payable Process


After BPR:

3-Phased Approach to a BPR Project

PHASE 1 : Planning
PHASE 2 : Design
PHASE 3 : Implementation

Phase 1: PLANNING
i.

Determine new process requirements

ii. Uncover break through opportunities


analyze as is capability
envision desired state
identify process performance gaps

Phase 2: DESIGN
i.

Map

the ideal process


complete preliminary work
set new goals and establish measures
create a new process flow chart

ii. Redefine process support requirement


iii. Develop a change management plan

Phase 3: IMPLEMENTATION
i.

Implement on Trial Run basis

ii. Standardize the reengineering process


iii. Evaluate process performance on an ongoing
basis

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