The analysis and redesign of workflow within the organisation .

1. BUSINESS PROCESS
REENGINEERING
Presented by
Ramji
Divya
Uthirarajan
Anitha
Thevasena
John paul

2. SIMPLE DEFINITION OF BPR
Means: “Starting Over”
Does not mean: Tinkering with
what already exists or making
incremental changes
Ask: “IF I were recreating the
company today, given what I know
and given current technology, what
would it look like?”

3. Business Process Re-engineering or BPR is
the analysis and redesign of workflow and
processes within and between Organizations
- Michael Hammer & James Champy, 1993
BPR is the Fundamental rethinking and
Radical redesign of Business Processes to
achieve Dramatic improvements in critical
measures of performance
.. such as Cost, Quality, Service and Speed

4. THE NEED FOR BPR
Customers
Competition
Change
Techniques lag behind technology
Problem of the stovepipe
Fragmented piecemeal systems
Integration

5. BPR PROCESS (1 OF 2)
Frame the project
Create the vision, values and goals
Redesign the business operation
Conduct proof of concept

6. BPR PROCESS (2 OF 2)
Plan the implementation
Obtain implementation approval
Implement the redesign
Transition to a continuous
improvement state

7. VALUE METRICS
A Value metric is that which
determines an organization's behaviour
and performance.
Quality
Service
Cost
Cycle Time

8. VALUE METRICS
Value =
Quality X Service
Cost X Cycle Time

9. CHARACTERISTICS OF
BUSINESS PROCESS
REENGINEERING (1 OF 2)
Several jobs are combined into one
Employees make decisions
Steps in business process: natural
order
Process may have multiple versions
Work is performed where it makes
the most sense

10. CHARACTERISTICS OF
BUSINESS PROCESS
REENGINEERING (2 OF 2)
Controls, checks, other non value
added work is minimized
Reconciliation is minimized -
minimize external contact points
Hybrid centralized / decentralized
operation is used
A single point of contact is provided
for the customer

11. BPR & RESTRUCTURING THE
ORGANIZATION
Redesign of processes
From mass production to mass
customization
Cycle time reduction
Restructuring organizations

12. THE 7 NEW QUALITY TOOLS
General Planning
Affinity Diagram
Interrelationship Diagram
Intermediate Planning
Tree Diagram
Matrix Diagram
Matrix Data Analysis
Detailed Planning
Process Decision Program Chart
Arrow Diagram

13. AFFINITY DIAGRAM
Gathers large amounts of data and organizes
it into groups based on the natural
relationship between each item.

14. INTERRELATIONSHIP
DIAGRAPM

15. TREE DIAGRAM
Systematically maps out the full range of
tasks/methods needed to achieve goal.

16. MATRIX DIAGRAM
Displays the relationship between necessary
tasks and people or other tasks, often to show
responsibility for tasks.

17. DATA MATRIX ANALYSIS
Temp
Humidity

18. PROCESS DECISION
PROGRAM CHART (PDPC)
Maps out every conceivable event and
contingency that can occur when moving from a
problem statement to possible solutions.
Problem Statement
Solution x
Things that can go wrong
Countermeasures
Solved

19. ARROW DIAGRAM

20. ADDITIONAL
TOOLS/METHODS
Benchmarking
Process Simplification
Concurrent Engineering
Demand Flow Technology
Activity Based Costing
Eliminate Non-Value Added
Activities

21. 9 CHANGES OCCASIONED BY BPR (1
OF 2)
 Work Units change
o from functional departments to
process teams
 Jobs change
o from simple tasks to multi-dimensional
work
 People’s roles change
o from controlled to empowered
 Job preparation changes
o from training to education

22. 9 CHANGES OCCASIONED BY BPR (2
OF 2)
 Measures of Performance &
compensation change
o from activity to results
 Criteria for career advancement
change
o from performance to ability
 Values change
o from protective to productive
 Organizational Structures change
o from hierarchical to flat
 Executives change
o from scorekeepers to leaders 4-22

23. CHALLENGES IN A BPR
EXERCISE
1. Identifying Customer Needs &
Performance Problems in the current
Processes
2. Reassessing the Strategic Goals of the
Organization
3. Defining the opportunities for Re-engineering
4. Managing the BPR initiative
5. Controlling Risks
6. Maximizing the Benefits
7. Managing Organizational Changes
8. Implementing the re-engineered Processes

24. CRITICAL SUCCESS FACTORS IN
BPR
1. Clear Vision for Transformation
2. Top management commitment
3. Identification of Core Processes for
BPR
4. Ambitious BPR team
5. Knowledge of Reengineering
techniques
6. Engaging external consultants
7. Tolerance of “genuine failures"
8. Change Management

25. CRITICAL FAILURE FACTORS IN
BPR
1. Trying to Fix a process instead of
Changing it
2. Lack of focus on Business-critical Processes
3. Lack of holistic approach
4. Willingness to settle for minor results
5. Quitting too early
6. Limiting the scope of BPR by existing
constraints
7. Dominance of existing corporate culture
8. Adopting bottom-up approach
9. Poor leadership
10. Trying to avoid making anyone unhappy
11. Dragging the BPR exercise too long.

26. THANK YOU