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Business Process Reengineerng

Industry earlier years 1776
Companies were founded and built around Adam Smiths discovery that industrial work should be broken down into its simplest and most basic tasks Advantage owing to three different circumstances: increase in dexterity, saving of time and invention of a great number of machines

20th Century, Henry Ford & Alfred Sloan the Automobile pioneers
Ford applied further division of labour and introduced moving assembly line Though jobs became simpler, coordinating the jobs become more difficult Alfred Sloan mass production, smaller, decentralised divisions, one division for each type of car

End of World war II and the 1960s
Enormous economic expansion Era of elaborate planning 1950s & 1960s the main operational concern was capacity number of tasks grew processes got complicated and managing them difficult the idea changed into reunifying those tasks into coherent business processes

Three Cs-Customers, Competition & Change
Customers- consumer expectations soared, mass production plus quality, price, selection, service Competition intensifies-niche competitors changed the face of the market, trade barriers being lifted, global village one nation

Change becomes constant- globalisation of economy, rapidity of technological changes, product life cycle have gone from years to months, less time to develop and produce new products Customers, Competition and Change-have created a new world of business, need of the hour is flexibility and quick response

BPR- Definition
The techniques used to accomplish this can be called business process reengineering Reengineering is defined as 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

General perception that automation is the answer to business problems Automating does get some jobs done faster Reengineering is about beginning again with a clean sheet of paper Reengineering is about inventing new approaches to process structure

Reengineering is not
the same as automation restructuring or downsizing the same as reorganizing, de-layering or flattening an organization software reengineering same as quality improvement/TQM

Reversing the industrial revolution Search for new models of organising work It is the new beginning

Characteristics of Reengineering
Several jobs are combined into one Workers make decisions The steps in the process are performed in a natural order Process have multiple versions Work is performed where it makes the most sense Checks and controls are reduced Reconciliation is minimised Hybrid centralized/Decentralised operations are prevalent The new world of work

Changes on Reengineering
Works units change from functional departments to process teams Jobs change from simple tasks to multi-dimensional work Peoples roles change from controlled to empowered Job preparation changes from training to education Focus of performance measures and compensation shifts from activity to results Advancement criteria change from performance to ability Values change from protective to productive Managers change from supervisors to coaches Organisational structures change from hierarchial to flat Executive change from scorekeepers to leaders

Methodology to Implement BPR

Step I: Developing process vision and determining process objectives Step II: Defining the processes to be reengineered Step III: Understanding and measuring existing process Step IV: Identifying the IT levers Step V: Designing and building a prototype of the new process

Who will Reengineer?

A senior executive who authorizes and motivates the over all engineering effort

Process Owner
A manager with responsibility for a specific process and the reengineering effort focused on it

Reengineering Team
A group of individuals dedicated to the reengineering of a particular process

Who will Reengineer?

Steering Committee
A policy making body of senior managers who develop the organisations overall reengineering strategy and monitor its progress

Reengineering Czar
An individual responsible for developing reengineering techniques and tools within the company and for achieving synergy across the companys separate reengineering projects

Thank You