Post on 21-Jan-2015
description
transcript
Business Process Re-engineeringBusiness Process Re-engineering
Name : UBAID UR RAHMANRoll No : FA11-MS-0065Subject : BPR (Business Process Re-EngineeringTeacher/By : Zulfiqar Ahmed Farhan
By: Zulfiqar Ahmed Farhan
Change Becomes ConstantChange Becomes Constant
• Change has become both pervasive and persistent
• The pace of change has accelerated due to globalization of the economy and technological advancements
• What’s driving this?– E-commerce
By: Zulfiqar Ahmed Farhan
Managing ChangeManaging Change• The ability to manage change is
critical to the success of systems development. – The new or modified systems created
during systems development will inevitably cause change.
– Managing change requires the ability to recognize existing or potential problems.
By: Zulfiqar Ahmed Farhan
All this leads to the need for change
All this leads to the need for change
• Business Process Reengineering is 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.
By: Zulfiqar Ahmed Farhan
BUSINESS PROCESSESBUSINESS PROCESSESBusiness Process Redesign
Six principles for redesigning business processes:
1. Organize business processes around outcomes, not tasks
2. Assign those who use the output to perform the process
3. Integrate information processing into the work that produces the information
By: Zulfiqar Ahmed Farhan
BUSINESS PROCESSESBUSINESS PROCESSESBusiness Process Redesign
Six principles for redesigning business processes:
4. Create a virtual enterprise by treating geographically distributed resources as though they were centralized
5. Link parallel activities instead of integrating their results
6. Have the people who do the work make all the decisions, and let controls built into the system monitor the process
By: Zulfiqar Ahmed Farhan
Four Key Wordsfor ReengineeringFour Key Words
for Reengineering
• Fundamental
• Radical
• Dramatic
• Process
By: Zulfiqar Ahmed Farhan
FundamentalFundamental
• Why do we do what we do?
• Why do we do it the way we do?
By: Zulfiqar Ahmed Farhan
RadicalRadical
• Getting to the root of things: not making superficial changes or fiddling with what is already in place
• Disregarding all existing structures and procedures and inventing completely new ways of accomplishing work
By: Zulfiqar Ahmed Farhan
DramaticDramatic
• Dramatic improvement demands blowing up the old and replacing it with something new
By: Zulfiqar Ahmed Farhan
ProcessProcess
• Collection of activities that takes one or more kinds of input and creates an output that is of value to the customer
By: Zulfiqar Ahmed Farhan
BPR Versus Continuous Improvement
BPR Versus Continuous Improvement
Process Reengineering
Radical TransformationPeople & Technology Focus
High InvestmentRebuild
Champion Driven
Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove ExistingWork Unit Driven
By: Zulfiqar Ahmed Farhan
BPR Versus Process SimplificationBPR Versus Process Simplification
Process Reengineering
Radical TransformationVision-Led
Change Attitudes & BehavioursDirector-Led
Limited Number of Initiatives
Process Simplification
Incremental ChangeProcess-Led
Assume Attitudes & BehavioursManagement-Led
Various Simultaneous Projects
(Source Coulson-Thomas, 1992)
By: Zulfiqar Ahmed Farhan
Common Benefits of BPRCommon Benefits of BPR
• Enterprise integration
– Departments are consolidated
– Several jobs are combined into one job
By: Zulfiqar Ahmed Farhan
Common Benefits of BPRCommon Benefits of BPR
• Worker empowerment
– There is both horizontal and vertical reorganization
– Handoffs are eliminated
– There are fewer rules and less coordination is required
By: Zulfiqar Ahmed Farhan
Common Benefits of BPRCommon Benefits of BPR
• The steps are performed in a more natural order
– Many tasks can be done simultaneously – In reengineered process, work is sequenced in terms of what needs to follow what
• Processes have multiple versions
– Not just one process but many are employed depending on the size of the job
– Which version works best in a given situation (for simpler process short version)
• Work is performed where it makes the most sense
– Wal-Mart moves the replenishment function to its suppliers
By: Zulfiqar Ahmed Farhan
Common Benefits of BPRCommon Benefits of BPR
• Reconciliation is minimized – Inconsistent data
• Checks and controls are reduced
• A case manager provides a single point of contact
• Hybrid centralized/decentralized operations are prevalent
– IT enables decisions to operate autonomously
By: Zulfiqar Ahmed Farhan
Information Technology & BPRInformation Technology & BPR
By: Zulfiqar Ahmed Farhan
Benefits From ITBenefits From IT
• Assists the Implementation of Business Processes– Enables Product & Service Innovations– Improve Operational Efficiency– Coordinate Vendors & Customers in the
Process Chain – Improve monitoring– Centralization– Uniformity
By: Zulfiqar Ahmed Farhan
Computer Aided BPR (CABPR)Computer Aided BPR (CABPR)
• Focus– Business Processes– Process Redesign– Process Implementation
By: Zulfiqar Ahmed Farhan
BPR ChallengesBPR Challenges
By: Zulfiqar Ahmed Farhan
Common ProblemsCommon Problems
• Process Simplification is Common - True BPR is Not
• Desire to Change Not Strong Enough
• Start Point the Existing Process Not a Blank Slate
• Commitment to Existing Processes Too Strong
By: Zulfiqar Ahmed Farhan
Common Problems with BPRCommon Problems with BPR
• Process under review too big or too small
• Reliance on existing process too strong
• The Costs of the Change Seem Too Large
• BPR Isolated Activity not Aligned to the Business Objectives
• Allocation of Resources
• Poor Timing and Planning
• Keeping the Team and Organization on Target
By: Zulfiqar Ahmed Farhan
Phases of BPR
By: Zulfiqar Ahmed Farhan
Phases of BPR Phases of BPR
• Phase 1
• Trigger: – Performance problem
– Competitive e-Business move
– Supply chain partner pressure
• Deliberation / Discussion
• Proposal
• Management go-ahead
By: Zulfiqar Ahmed Farhan
Phases of BPRPhases of BPR
Phase 2
• Project leader
• Core team
• Preliminary assessment of IT-infrastructure around processes
• BPR Plan & Budget
By: Zulfiqar Ahmed Farhan
Phases of BPRPhases of BPR
• Phase 3
• Process is redesigned
• Performance comparison – Benchmarking
• Prepare for implementation
By: Zulfiqar Ahmed Farhan
Phases of BPRPhases of BPR
• Phase 4
• Implementation and organization transformation phase
• Introducing and instituting new process
– Org. design changes
– Training
– Political & human problems
By: Zulfiqar Ahmed Farhan
Phases of BPRPhases of BPR
• Phase 5
• Continuous monitoring
• Modified as needed.
By: Zulfiqar Ahmed Farhan
BPR is Not?BPR is Not?
• Automation
• Downsizing
• Outsourcing
• Business Improvement
• Restructuring
• TQM
By: Zulfiqar Ahmed Farhan
SummarySummary
• Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements
• BPR has emerged from key management traditions such as scientific management and systems thinking
• Rules and symbols play an integral part of all BPR initiatives
By: Zulfiqar Ahmed Farhan
SummarySummary
• Don’t assume anything - remember BPR is fundamental rethinking of business processes
By: Zulfiqar Ahmed Farhan
TransformationInputs Outputs
Feedback
Environment
Systems PerspectiveSystems Perspective
By: Zulfiqar Ahmed Farhan
BPR SymbolsBPR Symbols
By: Zulfiqar Ahmed Farhan
Business Process Flowchart Symbols
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
By: Zulfiqar Ahmed Farhan
Business Process Flowchart Symbols
Business Process Flowchart Symbols
A Predefined Process
The Start of a Process
The End of a Process
Representing a Relation
Start
End
By: Zulfiqar Ahmed Farhan
Business Process Flowchart Symbols
Business Process Flowchart Symbols
Continuation of the process at the same page at an equal symbol with the same number. Usedwhen a relation arrow crosses another relation arrow
Off-Page Connector - Process will continue on the next page
Integration Relation - A relation to another module is identified and described
By: Zulfiqar Ahmed Farhan
Data Flowchart SymbolsData Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
By: Zulfiqar Ahmed Farhan
Data Flowchart SymbolsData Flowchart Symbols
Manual Data Item
A Database File
Representing a Relation
Continuation
Off-Page Connector
By: Zulfiqar Ahmed Farhan
BPR & ERP BPR & ERP
• Just automating the existing business practices will not help ERP to achieve the anticipated results
• Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup
• Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup
• BPR may be time consuming but the scope can be restricted & controlled by the Management
By: Zulfiqar Ahmed Farhan
Impact on ERP Impact on ERP
• If poor BPR is conducted, or if vendor system adopted without consideration of organizational requirements
– Will discard processes in which organization has developed competitive advantage
– Even when BPR beneficial, there will be a transition period where
employee performance degrades while learning new system