Introduction to BPR

CHALO THODASA ENGINEER

BANNENGE
INTRODUCTION
Management of companies need
organizations flexible enough to adjust
quickly to changing market conditions to
beat any competitors price, innovative
enough to deliver products and services
that deliver maximum quality and
customer service.
But instead we find today companies that
are rigid, sluggish, uncreative, ineffective
are just not able to cope with the ever
increasing and rapidly changing demand
of the customer.

The need of the hour for the organizations of
today is to effectively meet the demands of
flexibility and quick response demanded by the
three Cs-customer, competition and change. To
do this what is needed is to reverse the industrial
revolution. What this means is starting all over
again.
Task oriented jobs are obsolete. Instead,
companies must organize work around the
process the entire business process. This is what
Business Process Reengineering means.
WHAT IS REQUIRED TODAY?
Business process is a set of logically related tasks
performed to achieve a defined business outcome.
Processes are generally identified in terms of beginning and
end points, interfaces and reorganization units involved. A
process is like a black box, which starts with an input, adds
value to it through several value-adding activities and
converts it to an output that satisfies customers. Well
managed processes contribute to business excellence and
financial health of an organization.
LETS UNDERSTAND WHAT THE
PROCESS IS?????
A core business process is the one that creates
value for company thereby giving the
company a competitive advantage in the
market. They are vital for success in the
industry in which the company operates.

CORE BUSINESS PROCESS
The existing processes in a typical vertical organization have following
disadvantages:
They organize work as a narrowly defined individual tasks or
activities
They specify restrictive job roles based on their execution
They segregate these roles into departments
They devise elaborate mechanisms to monitor and control
the performance of these tasks or activities.
They provide managerial positions to administer the junior
executives of narrow job roles.
They have resulted in hierarchic layers transmitting work
related information upwards for appraisal and decision-
making.

Need for Process Redesign



These factors have caused fragmentation of
integrated work process. They have resulted
in creating a narrow vision amongst
employees in the organization at the cost of
quality and improvement in performance.
WHAT HAPPENED???
Inter-organizational Processes are concerned
with the process coordination that takes place
between two or more organizations along the
value-added chain.(EDI)
Inter-functional processes are carried out
within functions of the organization
automatically. (MIS)
An inter-personal process represents tasks
carried out within and between small groups
in the same department. (QC)


Types of Processes

BPR is defined as the critical analysis and
radical redesign of existing business processes
to achieve breakthrough improvements in
performance measures such as cost, quality,
service and speed. Hammer explains
Reengineering 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.
BPR -DEFINITION


Fundamental ----Ascertain the relevance of
the job
Rethinking---Explore the possibility of doing it
in a different and better way
Dramatic improvements---total reinvention
Radical-----root of business process
Redesign----go back to basics & reexamine the
way the job is done
WORD BY WORD PADHAI KARO


BPR advocates that enterprises go back to the
basics and re-examine their very roots. It
doesnt believe in small improvements. Rather
it aims to total reinvention. As for results: BPR
is clearly not for companies who want a 10%
improvement. It is for ones that need a ten-
fold improvement. Reengineering assumes
nothing and questions everything.
WHAT ELSE IS BPR


Develop the business vision
Understand the process objectives
Identify the processes to be redesigned
Understand and measure the existing
processes
Design and built in prototype the new process
Implement and regularize the process
BPR Methodology:

The operational excellence of a company is a major basis for
its competitiveness.
The Business strategy of a company should be oriented
towards leveraging its operational excellence into the
marketplace.
A customer focused organization needs to be realigned in
terms of process orientation.
Processes need to be improved and not functions.
Continuous improvement is not useful when a company is far
behind its competitors and needs rapid quantum leaps
(jumps) in performance.
The thrust should be on ways to compete in the business
world in order to bring about substantial improvement.

Premises of BPR:

Identify underlying problem
Reduce the number of stages
Remove delays, errors and ambiguities during
handoffs between functional areas
Combine steps, work roles, phase of activities
Let those who use the output of a process,
perform the process
Considerations for Process Redesign
Changes that occur when a company
reengineers its business process
Work units change--from functional departments to
process teams
Jobs change-from simple task to multi-dimensional work
Peoples role changefrom controlled to empowered
Job preparation changesfrom training to education
Focus of performance measures and compensation
shiftsactivity to results
Advancement criteria change-from performance to ability
Value change --from protective to productive
Managers change -from supervisors to coach
Organization structure changes-from hierarchical to flat
TURNAROUD AFTER BPR
Although BPR is a multi-faceted and multi-dimensional
undertaking its central thrust may be identified as the
reduction of the total cycle time of a business process. The
total cycle time of a process is the time it takes to complete
the performance of the process from beginning to end. It
may also be viewed as the total duration from the time a
customer need is expressed until it is satisfied. The longer
the cycle time of a process, the more inefficient it is apt to
be.
BPR seeks to reduce the cycle time of a process by
eliminating the redundant (unneeded) stages and non-
value adding steps, by drastically simplifying and
rationalizing work methods/procedures, systems and flows
by coordinating the entire process through a single-role
position.
Conclusion: