BPR Reengineering Processes-Characteristics

7/30/2019 BPR Reengineering Processes-Characteristics

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B. M. Jakapure


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Reengineering can be applied to severalprocesses in the business Credit issuance Procurement Product development, etc.

Basically four requisite characteristics emergein any reengineering effort, whichsupplement the definition of reengineering Fundamental rethinking and radical redesign of

business processes to achieve dramaticimprovements in critical , contemporary measuresof performance like Cost, quality, service and speed


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Several themes emerge out from the variouscases of reengineering processes Process orientation

Improvements do not come out by attending narrowly

defined tasks and working within predefinedorganizational boundaries

The improvements come out by looking at the entireprocess that cut across organisational boundaries

Ambition

Minor improvements are not sufficient inreengineering

Company has to aim for breakthroughs to getsubstantial improvements


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Rule-breaking Old traditions and existing rules may need to be

broken for reengineering

Assumption of specialisation, sequentiality, and timing

need to be abandoned Creative use of information technology

Use of modern information technology is essential inorder to reengineer the processes

Information technology acts as enabler that allows

organisations to do work in radically different ways


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In order to meet the demand of quality,service, flexibility and low cost, processesmust be kept simple

Characteristics that apply to reengineeredprocesses Several jobs combined into one

Most basic common feature of reengineeredprocesses is the integration and compression ofmany existing distinct jobs or tasks into one

Present trend in reengineered process of customerservicing is to appoint one man as Case Worker whois responsible for an end-to-end process A customer service representative performs the whole

process of coordination with the various individuals inthe group performing different associated tasks, and

serves as the single point contact for the customer


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Integrated processes also have reduced processadministration overheads

Employees involved in the process assume responsibility formaking sure that customers requirements are met on timeand with no defects

They need less supervision

Improved control is another benefit of integrated processes As they involve fewer people assigning responsibility for

them and monitoring performance is easier.

Workers make decisions

Companies that undertake reengineering empower their

workers to make decisions Instead of separating decision making from real work,

decision making becomes part of the work

The assumption that the people that actual perform workhave neither the time nor the inclination to monitor andcontrol it and that they lack depth of knowledge required to

make decisions has to be discarded


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This results in fewer delays, lower overhead costs,better customer response and greater empowermentfor workers

The steps in the process are performed in a naturalorder

Reengineering processes are freed from the rigid ruleof straight line sequence which imposes an artificialprecedence that slows down work

In reengineered processes, work is sequenced in terms

of what needs to follow what In one manufacturing company , it took five steps to go

from the receipt of a customer order to the installation ofequipment


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First steps to determine the customers requirement,then to translate into internal product codes, toconvey the coded information to various plants andwarehouses, to receive and assemble the componentsand finally to deliver and install the equipment

Each step was done by a different organsiation

In the traditional form, each step was taken only afterthe previous stage was completed which meant stepone which took maximum time for informationgathering which will not be required till last stage heldthe whole further work

In the reengineered version, step 2 begins as soon as

step 1 collects enough information to get it started While steps 2,3,4 operate, step 1 continues to gather

information needed for the last step

In this way company reduced the time it took to fill thecustomer order by more than 60%


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Processes have multiple versions Effectively meaning end of standardisation

Traditionally, mass manufacturing was to cater for massmarkets and as such uniformity of production provedeconomical

To meet todays environment, we need multiple versionsof the same process, each one tuned to the requirementsof different markets, situations or inputs

Also, these new processes must have the sameeconomies of scale that result from mass production

Work is performed where it makes the most sense This involves shifting the work across organisational

boundaries

traditionally, work is organised around specialists

An accountant to count numbers, a purchase clerk toorder things etc.

Reengineering Processes-

Characteristics


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This kind of process is expensive, since it involves avariety of departments plus the overheads that isassociated with tracking all the paper and fitting all thepieces together

In the reengineered process, some of the responsibility

is passed on to the process customer himself The accountant needing a pencil can directly order and get

a pencil from a supplier approved by the purchaser at afixed rate without involving any other department

This results in saving of time and cost


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Checks and controls are reduced Checking and control being a non-value adding

activity gets reduced in a reengineered process

These processes use controls only to the extent thatthey make economic sense

Reconciliation is minimised This being another non-value adding activity is

minimised in the reengineered processes

This is done by cutting back the number of externalcontact points that a process has, thereby Reducing the chances that inconsistent data requiring

reconciliation will be received

This results in reduction of staff, and also saving incost


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A case manager provides a single point of contact

Reengineered processes will appoint a single person as aCase Manager to be responsible to a customer for all his

problems This is useful when

The steps of the process either are so complex, or

Are dispersed in such a way that integrating them for asingle person or even a small team is impossible

To be able to answer the customers questions and solvecustomers problems, the case manager needs

Access to all the information systems that the people areactually performing the process use, and

Requests for further assistance when necessary


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Hybrid centralised/decentralised operations are prevalent Reengineered processes have shown the ability to combine the

advantages of both types of operations in the same process

Information technology enables companies to operate as thoughtheir individual units were fully autonomous, while the

organisation still enjoys the economies of scale thatcentralisation creates

Equipping field staff with notebook computers gives themaccess to the data of the centralised office or to corporateheadquarters

Benefits of expertise in the decentralised units can be used to

advantage without the accompanying problems of multiplicationof staff, excessive overheads etc.


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It should be appreciated that the above arenot necessarily the essential features of anyreengineered process

Each organisation will display thecharacteristics that are applicable to it thebest


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Reengineering the Corporation :Michael and James Champy

Essence of Business Process Reengineering:Joe Peppard / Philip Rowland

Google Website


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BPR Reengineering Processes-Characteristics

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