businessprocessreengineering-complete-090630101141-phpapp01.pptx

7/30/2019 businessprocessreengineering-complete-090630101141-phpapp01.pptx

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BUSINESS PROCESS

REENGINEERING

Business Process

Unit III

MCA I Year

1

Roy Antony Arnold G

Lecturer / CSE

Infant Jesus College of Engineering

Tuticorin, Tamilnadu, India


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WHATISA BUSINESS PROCESS?

A business process is a collection of

activities which together produce

something of value to a customer

e.g. Customer Order Entry

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DEFINITION

Reeng ineer ing is the fundamentalreth ink ing

and radica l redesign o f business p rocessesto

achieve dramat ic improvements in c r i t ica l,

con tempo rary m easures of per formance, such

as cost, qual i ty, serv ice, and speed.

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WHAT

TO

REENGINEER

?

BPRchanges processes, and

not

functions, departments,geographies or tasks.


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WHATITISNOT?

Reengineering is not reorganizing.

Modifying how an organization is structured and

redesigning an organizations business processes are

two different things.

An organizational structure should be designed so that itbest supports redesigned business processes.

Reengineering is not downs izing either.

Downsizing focuses on the reduction of workforce to

achieve short-term cost savings. Reengineering, on the other hand, focuses on rethinking

from the ground up, finding more efficient ways of

working including eliminating work that is unnecessary.6


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REASONSFOR REENGINEERING

Old Era New Era

Efficiency

Control

High Demand High Competition

Innovation

Speed

Service &Quality

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EXAMPLES

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EXAMPLES

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BUSINESS PROCESS

REENGINEERING

Imperative for Survival

Methodology

Steps

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EENGINEERING SURVIVAL


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EENGINEERINGSURVIVALSTUDY

Introduction:

The number of firms is increased to close

because of

a) Inefficiencyb) too Inward Looking

c) inflexibility

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- CONTINUED

Similar changes occurred in developed and developingnations also and still facing a similar challenge.

Example:

Ford Motor Company faced business extinction at one

time and found the paths to renewed success andinspires others.

Business Reengineering

Process thro which the continuous success and survivalis indicated (by Americans).

Term is invented by Michael Hammer.

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REENGINEERING IMPERATIVEIN USA The business climate made reengineering necessary in

the United States. US gave great industrial philosophers like Adam Smith

and Henry Ford. But at one time their business wasalso in trouble.

This situation arises because of three main reasons.

They are,a) The Assembly line model of production,

where customer waited in line for delivery

b) Competition within the country is very low.

c) Global competition was largely non-existent.

To recover from this situation, FORD changed from theirProduction Supremacy to Supplier primacy, when theModel T Ford released in the market.

Henry Ford said I will give the customer any color of

car he wantsso long as its black.

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-CONTINUED

Japanese organizations entered into

America (after War)Japanese were too smart, they move smallmarket into world markets withextraordinary quality and manufacturingphilosophy. They cut out unnecessarywaste such as,1. Safety stock Inventories

2. Multiple suppliers3. External Inspection

4. High Quality

5. Low cost in regular basis15


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US adopted the Japanese paradigm because of :

1. They recognized that economy of scale is notas important as economy of time. So, theentire approach was to be flexible and respond

quickly to changing customer needs.

2. They opted for flexibility and multi- skillingtechniques in work culture and this created theability to respond. i.e. discard old and narrow

focused to new innovations in work.3. Customers response become the primary

objective rather than the growth alone.

JAPANESE PARADIGM

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EUROPE

In Europe,- Quiet Transformations are taking place vitally.

For example,(eg1):

- Lubricants division of a large oil company has cut its orderdelivery time to 40% ( from 6weeks to 19 days).

- Eliminated $200 millions in inventory and doubled itsprofits.

- It aims in overall reduction in operating expenses to 35%.

For example (eg2:) :

In Rovercar company,

- aims to fulfill 90% of customer orders.

- He used around nine key business processes.

- New product introduction

- Only European car-maker to reverse the falling output and

sales trends during first five months of 1993.

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IMPERATIVEIN INDIA

The first country realized the value of destruction and

destroyer.

Quality competitions by ISO 9000 and TQM

Computerization of processes

Many reasons for lacking: Blaming technology by system professionals

Users blame technology and system professionals

Top management blames both users and systemprofessionals.

Consultants blame all others.

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Gl b l i t i lli I di i ti i t


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Global environment is pulling Indian organizations into

- Customer orientation

- quick response time

- quality imperatives- cost minimization

Conclusion:

- environmental pull

- technology push

- Economic liberalization

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Cant do redefine their mission and objectives

clinically reassess the key business processes

achieve improvements in process efficiency andeffectiveness thro BPR.

Examples:

- HP, Pepsi abroad, Federal Express

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INSTANCESOF RE IN INDIAN ORG

In year 1997,Major BPR in customer ordering , services

functionsManufacturing and marketingOrganizing market research once in six

months to know customer feedback on theirproducts and general view on market needs Performance levels of 3 major process:

- Customer orders- Customer service- Customer feedback

Three points of customers:- Sales executive- Installation technician- Market Researcher

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INSTANCESIN RE IN INDIA

Leasing and financing company

Manufacturing company

News paper publishers

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