BUSINESS PROCESS RE-ENGINEERING

For dramatic improvement

What is Re-engineering?

• The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as Cost,Quality,Service and Speed.

Why Re-engineering?

• It is focused on break through improvement to dramatically improve the quality and speed of work and to reduce its cost by fundamentally changing the processes by which work gets done.

History and development of Business Process Reengineering

• Manufacturer’s made significant improvement in their internal operations during 1980s.

• Excellence in Manufacturing has not always translated to superior sustainable results in the market place.

• In 1990 two Americans ,James Champy and Michel Hammer presented the idea of BPR in their book “ Reengineering the Corporations" published in 1993.

Principles of Re-engineering

• Organize around outcomes, Not tasks• Have those who use the output of the process perform

the process• Merge information processing work into real work that

produces the information• Treat Geographically dispersed resources as though

they work Centralized• Link parallel activities instead of integrating their results• Put the decision point where the work is performed and

build control into the process• Capture information once – at the source

Application of Re-engineering

• Develop business vision and process objectives

• Identify the processes to be re-designed

• Understand and measure existing processes

• Identify information Technology levels

• Design and build a prototype of the process

Basic phases of re-engineering

• Rethink

• Redesign

• Retool

Requirement of Re-engineering Processes

• Critical processes

• Strong leadership

• Cross-functional teams

• Information Technology

• Clean slate Philosophy

• Process Analysis

Salient features for Re-engineering in Service Industry

• Make the Customer the starting point for Change

• Design work processes in light of Organizational Goals

• Restructure to support front line performance

Impact of Re-engineering on Service Industry

• The Human Dimension

• The work process dimension

• The Technology dimension

Steps for implementation of Re-engineering Process

• State a case for action

• Identify the process for Re-engineering

• Evaluate enablers for reengineering

• Understand the current process

• Create a new process design

• Implement the reengineered process

Process Redesign Tools and Techniques

• Inductive thinking

• Flowcharting

• Creative Process redesign

• Process Benchmarking

• Simulation

• Reengineering Software

Approaches to Integrating process improvement and Re-engineering

activities• Sequencing change initiatives

• Creating a portfolio of process change programme

• Limiting the scope of work design

• Undertaking improvement through innovation

Integrating Reengineering & Process Improvement

• Sequencing Change initiatives suggests Cycling through process stabilization, Process reengineering and Continuous Improvement

• Creating a Portfolio of Process change programmes involving categorization of all Processes and Sub-processes

Integrating Reengineering & Process Improvement(Contd)

• Limiting the scope of work design in which high level processes are designed by the responsible reengineering teams and the workers design the detail work process.

• Undertake Improvement through innovation

Benefits of Reengineering

• By Reengineering, an Organization can achieve radical improvement in performance like Cost,Quality,Cycle time

• It boosts Competitiveness through leaner and more productive processes

• Reengineering encourages revolutionary thinking in an Organization

• Reengineering encourages abandoning of Conventional approaches in favor of problem solving

Benefits of Reengineering(Contd)

• Reengineering promotes break-through improvements

• Reengineering transform a rule driven, job centered Organization to Customer focused Organization

• Reengineering generally results in radically new Organization designs that helps Companies to respond well to Competitive pressure

Benefits of Reengineering(Contd)

• Reengineering helps to radically change the Corporate Culture

• Reengineering encourages workers at all level to make their suggestion for improvement

• Reengineering helps to create more Challenging and more rewarding jobs for employees

Beyond Business Process Reengineering

• HOLONIC BUSINESS SYSTEM allows business continuously to de-invent and re-invent themselves as they face increasingly ambiguous markets

• A holonic network is a set of companies that acts integrated and organically, it is constantly configured to manage each business opportunity a customer presents.

Beyond Business Process Reengineering(Contd)

• Holonic Business System is market and opportunity driven and Customer focused

• Continuous improvement occurs at the network level

Types of Holonic Networks

• Vertical Networks

• Horizontal Networks

• Regional Networks

• Out of necessity Networks

• Self promoted Networks

Advantage of Holonic Business System

• Leverage

• Speed

• Flexibility

• Shared Risk

• Independence

• Faster Growth

Advantage of Holonic Business System(Contd)

• Increased Profits

• Sustainable Customers

• Less Capital required

• Quick failure recognition

• Increased ability to deal with inevitable change