Professional Documents
Culture Documents
Chapter 7
McGraw-Hill/Irwin
Outline of Chapter 7
Systems Thinking The Process View of Business Measuring Process Flows Flowchart Analysis Materials-Flow Analysis Information-Flow Analysis Service Blue Printing Business Process Reengineering (BPR)
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Systems Thinking
Definition of a system Whole > sum of parts Application of systems thinking to businesses Cant sell from an empty wagon. Defining systems boundaries Role of cross functional teams in systems analysis Systems thinking requires cross-functional teams to include all affected functions.
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Reduce waste
2.
3. 4. 5. 6.
7.
8.
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Who is performing the job? Can the operation be redesigned to use less
skill or less labor? Can operations be combined to enrich jobs? .
Where is each operation conducted? Can layout be improved? . When is each operation performed? Is there excessive delay or
storage? Are some operations creating bottlenecks? ..
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Business Process Reengineering (BPR) BPR defined (Hammer and Champy, 1993)
BPR Philosophy
Principles of BPR Success of BPR
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BPR Defined
BPR is the fundamental rethinking and radical redesign of business [or organizational] processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.
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BPR Defined
This is in contrast to incremental change or continuous improvement of an existing process. If I were recreating this company today, given what I know and given current technology, what would it look like?
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BPR Philosophy
Does the reengineering consultant see the glass as half full or half empty?
Neither.
Its the wrong size of glass! Or, should it be a glass? or a liquid?
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Principles of BPR
Organize around outcomes Have the people who do the work, process their own information Put the decision point where work is performed and build control into the process Eliminate unnecessary steps in the process
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BPR Mistakes
Trying to fix a process instead of changing it
Summary
Systems Thinking The Process View of Business Measuring Process Flows Flowchart Analysis Materials-Flow Analysis Information-Flow Analysis Service Blue Printing Business Process Reengineering (BPR)
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