Process View of Organization

EWIS 2011 IBS-G

Process View of Organization

What is a process? So process steps are the activities that you and the entities involved do to complete some transaction. And processes are set of such steps that transform a set of inputs into a set of outputs (goods or services) for another person or process using people and tools.

What is Business Process?

A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives. It has beginning and end points, interfaces and organizational units. The three aspects of Business process are
Objects: physical or informational Entities: process occur between organizational entities. They could be inter organizational ,inter functional or inter-personal Activities: process encompasses two types of activties: Managerial and Operational

Functional Silos Vs. Process View

Why to have a process view of an organization?

For improvement.
Improvement on all the fronts of functional areas with the business measures applicable.

Process Flow Chart

Continuous Improvement Model?

Data Collection

Document the way you do at present.

Establish measures to check the output.

Follow process and collect data.

Measure performance

As-is process.

Identify improve ment opportu nities.

Implement

Measures

Identify improvement opportunities.

Best-in-class companies?
To be competitive in business, have answers for What should the process look like? What do my customers want it to look like? What do other employees want it to look like? How do best-in-class companies do it? What might we be able to do with new technology.

BPR Model for improvement?

Re-engineering
Totally reinventing and rebuilding the structure of a corporation. Deciding to reengineer a company is a major decision that has fair amount of risk attached to it. An existing process may be completely changed or

Eliminated in favour of a new structure.

Large savings in terms of money and time Example: HP, XEROX,IBM

Salient Features of Reengineering

Reengineering is improvement and it could be done with individual process and on the whole. Leads to performance improvements by maximizing value added content and minimizing production level costs. It involves in
rewriting organizations procedures. reviewing reward system and internal competitiveness. installing new measures of performance.

It expects a total change in Organization culture.

Why Reengineering?
Customers
Demanding Sophistication Changing Needs

Competition
Local Global

Change
Technology Customer Preferences

Reengineering Model?
Data Collection

Scoping

Learning from BIC

Measure performance

As-Is Process.

Decide to-be state

Plan transition

Implement

Measures

Implement

Reengineering model begins with

Defining the scope and objectives of reengineering project, Going through a learning process (with customers, employees, competitors and non-competitors, and with new technology). Create a vision for the future and design new business processes. To achieve "to be" state, create a plan of action based on the gap between current processes, Technologies and structures, and "to be" state. It is then a matter of implementing solution.

What does BPR do?

REASSESSES your business purpose REPOSITION -- for greater market penetration RECONFIGURE for smoother workflow RESTRUCTURE so that jobs match reality REVITALISE for on-going competitiveness

Problems of Functional Division

Process Departmentalization
It refers to purchasing, manufacturing and sales.

Purpose Departmentalization
It refers to the arrangement of work around product, geographic locations or specific customers.

The structure which focuses on the organizational output rather than on the processes is also known as Divisionalized Organization

Mapping Existing process

AS-Is Analysis

BPR

To-Be Model

Mapping an Existing Process

Identify the breaks Find the amount of time required by the activity to perform Cost incurred Justify the reengineering

Process Redesign
An integral part of BPR. An Examination and plan of workflows and processes both in and between organizations. It is an analytical study to bring improvements in the performance and increase customer satisfaction. Goal is to simplify processes and to make organization more efficient and effective.

New Process Validation

Done by allowing the user to simulate the execution of a process. Using a process model validation tool
helps the user to answer queries about the state of process as it proceeds. Offers declarative language for process specification. Can simulate even when part of a specification is available