2. What Is BPR ?
•The fundamental rethinking and radical
redesign of core business processes to
achieve dramatic improvements in critical
performance measures such as quality,
cost, and cycle time.
Business Process Reengineering:
3. • Fundamental implies that everything – every
assumption, every reason, every activity – is
challenged by asking why it should be continued.
The implication is that nothing should be accepted as
sacred. Over time, practices that were once required
become obsolete and need to be removed.
1. FUNDAMENTAL
• Do not try to improve the existing situation, invent
completely new ways of accomplishing work.
2. RADICAL
4. • Do not use business process redesign to obtain
marginal improvements, aim at order-of-
magnitude improvements (ten times). If the
marginal gains – 5 to 10 percent – are the goal,
then continuous improvement is a more
appropriate path than reengineering.
DRAMATIC
• Focus on the business processes instead of
organizational structures.
PROCESS
5. •It is an automatic, as opposed to human, operation
or control of a process, equipment or a system; or
the techniques and equipment used to achieve this.
Automation
•It is the reduction of expenditures in order to
become financial stable. Those expenditures could
include but are not limited to the total number of
employees at a company, retirements, or spin-off
companies.
Downsizing
•Involves paying another company to provide the
services a company might otherwise have employed
its own staff to perform. Outsourcing is readily
seen in the software development sector.
Outsourcing
•Emphasizes small and measurable refinements to
an organization's current processes and systems.
Continuous improvements’ origins were derived
from total quality management (TQM) and Six
Sigma.
Continuous
improvement
6. A group of logically
related tasks that use
the firm's resources
to provide customer
oriented results in
support of the
organization's
objectives
7. Marketing
& Sales
Purchase Production Distribution Accounting
CEO
Supplier
Customer/
Markets
Needs
Value-added
Products/
Services to
Customers
"Manage the white space on the organization chart!"
"We cannot improve or measure the performance of a
hierarchical structure. But, we can increase output quality
and customer satisfaction, as well as reduce the cost and
cycle time of a process to improve it."
8. Obliterate what you have
now and start from scratch.
Transform every aspect of
your organization.
12. Key Steps
Execute Plan
Identify Action Plan
Develop & Communicate Vision Of Improved Process
Understand The Current Process
Select The Process & Appoint Process Team
13. Assists the Implementation of
Business Processes
Enables Product & Service
Innovations
Improve Operational
Efficiency
Coordinate Vendors &
Customers in the Process Chain Information
Technology
Business
Reengineering
Business-pulled
Technology-driven
16. More than 500 accounts payable clerks matched
purchase order, receiving documents, and
invoices and then issued payment.
It was slow and cumbersome.
Mismatches were common
17. When goods arrive at the loading dock at Mazda:
Use bar-code reader is used to read delivery data.
Inventory data are updated.
Production schedules may be rescheduled if
necessary.
Send electronic payment to the supplier.
19. Reengineer “procurement” instead of AP process.
The new process cuts head count in AP by 75%.
Invoices are eliminated.
Matching is computerized.
Accuracy is improved.
