2. What is Re-engineering?
• 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.
3. Why Re-engineering?
• It is focused on break through
improvement to dramatically improve the
quality and speed of work and to reduce
its cost by fundamentally changing the
processes by which work gets done.
4. History and development of
Business Process Reengineering
• Manufacturer’s made significant improvement in
their internal operations during 1980s.
• Excellence in Manufacturing has not always
translated to superior sustainable results in the
market place.
• In 1990 two Americans ,James Champy and
Michel Hammer presented the idea of BPR in
their book “ Reengineering the Corporations"
published in 1993.
5. Principles of Re-engineering
• Organize around outcomes, Not tasks
• Have those who use the output of the process perform
the process
• Merge information processing work into real work that
produces the information
• Treat Geographically dispersed resources as though
they work Centralized
• Link parallel activities instead of integrating their results
• Put the decision point where the work is performed and
build control into the process
• Capture information once – at the source
6. Application of Re-engineering
• Develop business vision and process
objectives
• Identify the processes to be re-designed
• Understand and measure existing
processes
• Identify information Technology levels
• Design and build a prototype of the
process
8. Requirement of Re-engineering
Processes
• Critical processes
• Strong leadership
• Cross-functional teams
• Information Technology
• Clean slate Philosophy
• Process Analysis
9. Salient features for Re-engineering
in Service Industry
• Make the Customer the starting point for
Change
• Design work processes in light of
Organizational Goals
• Restructure to support front line
performance
10. Impact of Re-engineering on
Service Industry
• The Human Dimension
• The work process dimension
• The Technology dimension
11. Steps for implementation of Re-
engineering Process
• State a case for action
• Identify the process for Re-engineering
• Evaluate enablers for reengineering
• Understand the current process
• Create a new process design
• Implement the reengineered process
12. Process Redesign Tools and
Techniques
• Inductive thinking
• Flowcharting
• Creative Process redesign
• Process Benchmarking
• Simulation
• Reengineering Software
13. Approaches to Integrating process
improvement and Re-engineering
activities
• Sequencing change initiatives
• Creating a portfolio of process change
programme
• Limiting the scope of work design
• Undertaking improvement through
innovation
14. Integrating Reengineering &
Process Improvement
• Sequencing Change initiatives suggests
Cycling through process stabilization,
Process reengineering and Continuous
Improvement
• Creating a Portfolio of Process change
programmes involving categorization of all
Processes and Sub-processes
15. Integrating Reengineering &
Process Improvement(Contd)
• Limiting the scope of work design in which
high level processes are designed by the
responsible reengineering teams and the
workers design the detail work process.
• Undertake Improvement through
innovation
16. Benefits of Reengineering
• By Reengineering, an Organization can achieve
radical improvement in performance like
Cost,Quality,Cycle time
• It boosts Competitiveness through leaner and
more productive processes
• Reengineering encourages revolutionary
thinking in an Organization
• Reengineering encourages abandoning of
Conventional approaches in favor of problem
solving
17. Benefits of Reengineering(Contd)
• Reengineering promotes break-through
improvements
• Reengineering transform a rule driven, job
centered Organization to Customer
focused Organization
• Reengineering generally results in
radically new Organization designs that
helps Companies to respond well to
Competitive pressure
18. Benefits of Reengineering(Contd)
• Reengineering helps to radically change
the Corporate Culture
• Reengineering encourages workers at all
level to make their suggestion for
improvement
• Reengineering helps to create more
Challenging and more rewarding jobs for
employees
19. Beyond Business Process
Reengineering
• HOLONIC BUSINESS SYSTEM allows
business continuously to de-invent and re-
invent themselves as they face
increasingly ambiguous markets
• A holonic network is a set of companies
that acts integrated and organically, it is
constantly configured to manage each
business opportunity a customer presents.
20. Beyond Business Process
Reengineering(Contd)
• Holonic Business System is market and
opportunity driven and Customer focused
• Continuous improvement occurs at the
network level
21. Types of Holonic Networks
• Vertical Networks
• Horizontal Networks
• Regional Networks
• Out of necessity Networks
• Self promoted Networks
22. Advantage of Holonic Business
System
• Leverage
• Speed
• Flexibility
• Shared Risk
• Independence
• Faster Growth
23. Advantage of Holonic Business
System(Contd)
• Increased Profits
• Sustainable Customers
• Less Capital required
• Quick failure recognition
• Increased ability to deal with inevitable
change
