CHAPTER 7

BUSINESS PROCESS
REENGINEERING
ABANEL, Errol

BALDE, Bianca

BUENCONSEJO, Sarah

BUETA, Michael

FRECIA, Shaina
Time Schedule: MTH 4:40-6:10 PM
BUSINESS PROCESS REENGINEERING (BPR)
- Is the analysis and redesign of work flows within and between
organizations to optimize end-to-end processes and automate non-
value added tasks.
- Is the process of changing the way they perform their work to
better accomplish the goals of the business.
- entails the radical redesign of foundation business processes to
realize remarkable improvements in productivity, cycle times and
quality.

BUSINESS PROCESS – is a set of related work activities that are

performed by employees to achieve business goals.
 - In BPR, companies begin with a blank sheet of paper and reorganize
present processes to bring further value to the customer.

They classically espouse a new value system that places better stress on
customer needs. Companies trim down organizational layers and get rid of
unproductive activities in two key areas:
1. They redesign functional organizations into cross-
functional teams.
2. They utilize technology to progress data distribution
and decision-making.

- The idea of BPR was first initiated in the late Michael Hammer’s 1990
Harvard Business Review article.
REENGINEERING THE CORPORATION

- Best selling book of Hammer and James Chappy

- The two authors endorsed the idea that sometimes radical redesign and
reorganization of an organization is indispensable to lessen costs and
amplify quality of service and that information technology is the main
enabler for that radical change

Business Process Reengineering can:

1. Reduce costs and cycle time

2. Improve the quality
 REASONS FOR BUSINESS PROCESS REENGINEERING
ENGAGEMENT
1. Change from a management focus to a customer focus wherein the boss is
not the boss, the customer is the boss.
2. Empower workers that are implicated in each process to have decision-making
and ownership in the process.
3. Change the emphasis from managing activities to focusing on results.

4. Get away from score keeping and center on leading and teaching so
employees can gauge their own results.
5. Modify the company’s orientation from a functional orientation to a process
or cross-functional orientation. This allocates for an increase in organizational
knowledge with its members and a better level of flexibility in completing
tasks.
PRINCIPLES OF BUSINESS PROCESS REENGINEERING
1. Organize around outcomes, not tasks.
2. Have those who use the output of the process perform
the process.
3. Subsume information-processing work into the real work that
produces the information
4. Treat geographically dispersed resources as though they were
centralized.
5. Link parallel activities instead of integrating their results.
6. Put the decision point where the work is performed, and build
control into the process.

7. Capture information once and at the source.

 HOW TO IMPLEMENT BUSINESS PROCESS
REENGINEERING IN THE BUSINESS

1. Business vision and objectives

2. Identification and slacking processes.
3. Understand and measure the “red” processes
4. Information system and technology
capabilities
5. Design, build and test the new prototype
6. Adapting the organization.
 SUCCESSES AND FAILURES OF BUSINESS PROCESS
REENGINEERING
A BPR can be successful if:
1. Customer desires are made the main concern and this vision is employed to
properly manage business practices.
2. There are cost advantages to be realizaed that assist the organization become
more competitive in its industry
3. A strategic vision of all operational processes is taken with pertinent questions
being asked about the instituted way of work and how it can be developed over
the long term period into more proficient business practices.
4. There is keenness to look further than tasks and customary functional
boundaries with focus outcomes. Through this, whole processes can be
eradicated or combined into fewer but more applicable and powerful processes
all over the organization.
 5. There is a genuine longing to make simpler the way of work by objectively
reviewing all activities and tasks and removing any that add less value and
more difficulty.

A BPR program will be unsuccessful if:

1. It is observe to create slight adjustments and improvements to present

processes. If there is no obvious keenness to put all present process onto the
chopping block, there is no possibility of success
2. It is perceived as a once cost cutting application. In actuality, cost reductions
are frequently a handy consequence of the activity but not the chief concern.
It is also not a one-time activity but a continuing change in mindset
3. There is no achievement in obtaining dedicated long-term commitment from
management and the employees. Bringing people committed i a hard undertaking
and many BPR plans never take off because sufficient effort is not put into
securing support
4. There is less effort to revamp and more to computerize

5. One department is given priority at the cost of the process. There needs to
be an directness towards learning each single process in detail and a
readiness to change whatever is required to accomplish efficiency in general
6. There is too greatly internal focus and not adequate of an eye on the
industry and what competitor best practices can be used as benchmarks.

 Quality Management and BPR share a cross-functional relationship.

 Quality specialists are likely to focus on incremental change and continuing
improvement of processes, while;
 proponents of reengineering frequently look for drastic redesign and radical
improvement processes.
 QUALITY MANAGEMENT – often referred to as TQM or continuous
improvement, are programs and initiatives, which highlight incremental
improvement in work processes, and outputs over an open-ended period of
time.

REENGINEERING – refers to cautious initiatives proposed to realize

radically redesigned and improved work processes in a definite time frame.

• Leadership is actually significant for effective BPR use, and successful leaders
apply leadership styles to go with the particular situation and carry out their tasks,
providing appropriate significance to to both people and work.

• Business process is basically value engineering applied to the system to generate,

and sustain the product with a stress on information flow.
 • Through planning the functions of the business process, low value functions can
be recognized and removed, thus dropping the cost.
•Other wise, a new and pricey process, which implements the function of the
existing process, can be developed to substitute for the present one.

•The role of top management in business process reengineering cannot be ignored.

• They should offer the desired resources to the team, display their active support
for the project, set the stage for reengineering by deciding on core business
processes, and by identifying the project scope and bjectives.

• The management should also take care to make available enough funding, set
new standards as well as persuade others to be open to pioneering approaches.
Three (3) Levels of Team Sctructure

1. STAKEHOLDERS – are key business leaders eventually accaountable

for the success of the project.

2. CORE TEAM – is the group in-charge for the design and realization
of the solution.

3. EXTENDED TEAM – consists of other people in the organization

contibuting to the project on an as-needed basis.
 SAMPLE PRACTICES IN BUSINESS PROCESS
REENGINEERING

1. FORD
2. TACO BELL
3. HALLMARK
THANK YOU!!!