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Business Process Reengineering
Business Process Reengineering (BPR) is
the means by which an organization
achieves radical changein performance as
measured by cost, cycle time, service, and
quality, by the application of a variety oftools that focus on a set of customer-
oriented core business processes.
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Types of Reengineering
Type 1 - Process Improvement;
cost-reduction focus
Type 2 - To achieve parity, or best-in-
class; competitive focus
Type 3 - Searching core business for
breakpoints; rewriting the rules
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BPR Process(1 of 2)
Frame the project
Create the vision, values and goals
Redesign the business operation
Conduct proof of concept
Andrews & Stalick, Business Reengineering: The
Survivors Guide
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BPR Process(2 of 2)
Plan the implementation
Obtain implementation approval
Implement the redesign
Transition to a continuous improvement
state
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The Dimensions of Business Process
Reengineering- Andrews & Stalick (1 of 3)
Physical/Technical Layer
Process structure
Technical structure
Organization structure
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The Dimensions of Business
Process Reengineering
(2 of 3)
Infrastructure Layer
Reward structure
Measurement systems
Management methods
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The Dimensions of Business
Process Reengineering(3 of 3)
Value Layer
Organizational culture
Political power
Individual belief systems
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The Top Ten Ways to Fail at
Reengineering(1 of 2)
1. Dont reengineer but say that you are.
2. Dont focus on processes.
3. Spend a lot of time analyzing the current
situation.
4. Proceed without strong executive leadership.5. Be timid in redesign.
Hammer & Champy, The Reengineering Revolution, 1995
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The Top Ten Ways to Fail at
Reengineering(2 of 2)
6. Go directly from conceptual design to
implementation.
7. Reengineer slowly.
8. Place some aspects of the business off-
limits.
9. Adopt a conventional implementation style.
10. Ignore the concerns of your people.
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Benchmarking
Benchmarking is the search for the
best practices that will lead to
superior performance of an
organization.
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Benchmarking is NOT
A cure for all organizational ills
A means to justify blatant personnel cuts
A one-shot program
A process cookbook with no creativity
A process to conduct industrial espionage
A one-way information flow
An improvement tool requiring little cost or effort
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Benchmarking pproaches
Performance benchmarking
To identify candidates for conductingbenchmarking studies
Process benchmarking
To identify the best practices
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Types of Benchmarking( 1 of 3)
Internal
Comparing yourself against a similar
process, product, or service withinyour
own organization
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Types of Benchmarking(2 of 3)
Competitive
Comparing yourself against the toughest
externalcompetitor or against world-
class companies in your industry
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Types of Benchmarking(3 of 3)
Generic/Functional
Comparing yourself against a world-class company that is not even in your
industry, but that uses a process similar
to yours
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Benchmarking Process( 1 of 6)
1. Getting Organized
Obtain management buy-in
Communicate and educate benchmarkingconcepts
Plan the overall benchmarking process
Address fear and concerns
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Benchmarking Process(2 of 6)
2. Preparing to Benchmark
Identify process to benchmark
Establish benchmark team
Understand existing process
Determine process metrics
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Benchmarking Process(3 of 6)
3. Conduct Research
Who performs similar processes
Who performs the best What information is needed
4. Select the organization to Benchmark
Establish a relationship Reach an agreement on the exchange
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Benchmarking Process(4 of 6)
5. Collect Data and Information
Identify sources of data/information
Site visitsInterviewsThird partiesDocuments
Plan and collect data/information
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Benchmarking Process(5 of 6)
6. Analyze and Adapt the Process
Compare the data/information
Determine process gaps
Establish improvement goals
Design the improved process
Estimate the improvement
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Benchmarking Process(6 of 6)
7. Implement the New Process
Train the affected staff
Implement the process on a trial basis Monitor the results
Adjust and adapt
Adopt the process Celebrate