Business Process, Anna University Syllabus, MCA

1. Five step Methodology to
implement BPR
Roy Antony Arnold G
Lecturer/CSE
Infant Jesus College of Engineering
Tuticorin, Tamilnadu, India

2. Performance Levels of 3 major process:
 Customer Orders – Took too long to procure,
record and transmit for execution
 Customer Service – Was error-prone, time
consuming and suffered from stock-out problems.
 Customer Feedback – Was not regular, and
even when it did take place was done only on
sampling basis.

3. Changes to be made…
 Instead of having three points of contact with the customer,
namely Sales Executive, the Service and Installation
Technician and the Market Researcher, there will be only
a Customer Executive who will perform all the functions.
 Instead of an expensive and time consuming hierarchy involving
branch offices, regional offices and then several layers
at the Corporate Office, there will only be Office-Cum-
Depots having direct communication with the
Marketing Manager at the Corporate Office.
 All Customer Executives are being provided with handheld
computers which can be used for booking orders, for
providing help during installation and service and for
recording customer responses and feedback.

4. This is no
longer a
choice, it is an
imperative for
survival

5. Principles of BPR
 Organize around Outcomes, not the task.
 Identify all Processes and Prioritize them in order of redesign.
 Integrate information processing work into real work that
produces the information.
 Treat geographically dispersed resources
 Link Parallel activities to integrate the results.
 Put the decision point where the work is performed, and build
the control into the process.
 Capture information once and at the source .

6. Develop and determine process Develop Vision
1 objectives
Define the processes to be
Define Process
reengineered
2
Understanding and
measuring the existing Measure Process
3 processes
Identifying the IT Levers
4 Identify IT Lever
Designing the prototype,
5 implement Prototype

7. Step – 1: Developing Process Vision and
Determining Process Objectives

8. Step – 1: Developing Process Vision and
Determining Process Objectives
 The organization should focus on the future competition, products
and customer expectations, and the plan model to succeed in the
environment.
 This first step recognizes following:
 Market/Customer driven Business Vision and Goals
 Achievement of business vision may involve reengineering of more
than one process
 Process attributes (cost, quality, time etc.) and process measures (half
the cost, in a day etc) need to be derived.
 At the end of this step, we would be clear on
 What are the key process? (Identification)
 How will they reengineered process perform qualitatively and
quantitatively? (Vision & Objectives)

9. 2: Defining the Process to be
Reengineered

10. 2: Defining the Process to be
Reengineered
 Develop and establish a common understanding of each
process across all executives, clerks and workers involved in the
execution of the respective processes.
 Ask probing questions in order to obtain clarity on
what we mean by an order fulfillment process.
 Control and ensure the process outcome
 Amber alert (x days) to division head for unfilled orders
 Red alert (y days) to CEO for unfilled orders
 Spare lie in stock for more than z months, red alert to
CEO

11. Order Fulfillment
Process
Di
s
Lo trib
gi uti
st on
ic
s

12. Step 2: Contd…
 Performance metrics are measured..
 Planning – lead time committed for orders,
percentage of delayed deliveries
 Production – yields and efficiency, capacity
utilization
 Shipment – Cost of shipment
 If no value to customer – No reengineering
 This step helps to create an early vision of the
reengineered process for the departments covered by the
process.

13. 3: Understanding and Measuring
Existing Processes

14. 3: Understanding and Measuring
Existing Processes
 Go through a presentation of how the existing system
works, and find, whenever possible, the current
process measures available.
 Otherwise, poor performance levels of the existing process may
inhibit us.
 Example: 50% of the orders were termed complex or special. It
took 12 to 18 weeks to be shipped.
 This step forces the enterprise to obtain a common understanding
of terms like,
 Waiting time, Response time, etc.,
 If it is first time, the result of performance measures on the
existing system may lead to dissatisfaction.

15. 4: Identifying IT Levers

16. 4: Identifying IT Levers
 Every effort in reengineering is also an initiative in process
improvement.
 Reengineering can be differentiated on the basis of two factors:
1. Reengineering should lead to a dramatic
improvement in process performance on the
selected measures.
2. Reengineering should end up achieving process
destruction through effective or innovative
deployment of IT.
 Need to visualize scenarios where IT could be wisely
deployed to drastically simplify the process.
 Example: Using bar-code scanners

17. 5: Designing & Building
Prototype

18. 5: Designing & Building
Prototype
 In any reengineering activity “Ideas are Acts”.
 When the core group of the organization spends valuable time and
invaluable thoughts on visualizing the reengineered processes,
simultaneously, owners who would construct the reengineered
processes are created. This is action.
 This final stage of implementation is unique to each organization and
project because it involves issues that are multi-dimensional in
nature -
 Issues relating to managing technology
 Changing people’s attitudes and mindsets
 Creating new organization structures and
 Managing the entire change process

19. Contd…
 It would be difficult for people who were managing the earlier
system to adapt themselves to a new “revolutionary way
of doing things”.
 Prototype prove to be very valuable in working on mindsets
as they provide a “learning environment” for people to
adapt to the new system.
 Prototypes always need tuning, more tuning, and still
more tuning and that makes the job of implementation
considerably easy and smooth.

21. BPR Drivers
 ICT Developments (info, commu, tech)
 Broken Processes.
 Local, Global & Faster Competition
 Rising overhead costs.
 Shorter product life cycles
 Stagnant business conditions
 Unsatisfied Customers.

22. Why Organizations Don’t Reengineer?
 Complacency( Satisfaction)
 Political Resistance
 New Developments
 Fear of Unknown and Failure

23. Eight Decision Points in any BPR
Project
o Do we need to reengineer this business operation?
p What is the end vision of the results of our reengineering?
e What is the detailed design for our reengineered business
operation?
e Will our new design for the business operation is suitable?
s What is the plan for getting that design implemented?
s Should we fund the implementation of the business
reengineering design?
s Is the implementation going as planned?
a Is the reengineered business operation ready to take on
responsibility for continuous improvement to
the process?

24. Continuous Process Improvement
Model
This method for improving business processes is
effective to obtain gradual, incremental improvement

25. Break through Reengineering
Model
•Defining the scope and objectives of your reengineering project,
•Learning process (with your customers, your employees, your
competitors and non-competitors, and with new technology).
•Create a vision for the future and design new business processes.
("to be" state)
•Create a plan of action based on the gap between your current
processes, technologies and structures.
•Implementing your solution.

26. Implementing a BPR Strategy
Key Steps
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of Improved Process
Identify Action Plan
Execute Plan