vivek sharma business process reengineering presentation
Post on 24-Jul-2015
146 Views
Preview:
TRANSCRIPT
BUSINESS PROCESS
REENGINEERING
Presented By:
Vivek Sharma
What Is BPR ?
• The fundamental rethinking and radical redesign of core business processes to achieve dramatic improvements in critical performance measures such as quality, cost, and cycle time.
Business Process Reengineering:
This Definition Contains Four Key Words:
• Fundamental implies that everything – every assumption, every reason, every activity – is challenged by asking why it should be continued. The implication is that nothing should be accepted as sacred. Over time, practices that were once required become obsolete and need to be removed.
1. FUNDAMENTAL
• Do not try to improve the existing situation, invent completely new ways of accomplishing work.
2. RADICAL
This Definition Contains Four Key Words:
• Do not use business process redesign to obtain marginal improvements, aim at order-of-magnitude improvements (ten times). If the marginal gains – 5 to 10 percent – are the goal, then continuous improvement is a more appropriate path than reengineering.
DRAMATIC
• Focus on the business processes instead of organizational structures.
PROCESS
Business Process Reengineering Is Not:
• It is an automatic, as opposed to human, operation or control of a process, equipment or a system; or the techniques and equipment used to achieve this.
Automation
• It is the reduction of expenditures in order to become financial stable. Those expenditures could include but are not limited to the total number of employees at a company, retirements, or spin-off companies.
Downsizing
• Involves paying another company to provide the services a company might otherwise have employed its own staff to perform. Outsourcing is readily seen in the software development sector.
Outsourcing
• Emphasizes small and measurable refinements to an organization's current processes and systems. Continuous improvements’ origins were derived from total quality management (TQM) and Six Sigma.
Continuous improvement
A group of logically related tasks that use the firm's resources to provide customer oriented results in support of the organization's objectives
What Is Business Process ?
M arketing& S ales
P urchase P roduc tion D is tribution A ccounting
C E O
Supplier
Customer/MarketsNeeds
Value-addedProducts/Services toCustomers
"Manage the white space on the organization chart!"
"We cannot improve or measure the performance of a hierarchical structure. But, we can increase output quality and customer satisfaction, as well as reduce the cost and cycle time of a process to improve it."
Processes Are Often Cross Functional Areas
What Is Re-engineering ?
Obliterate what you have now and start from scratch.
Transform every aspect of your organization.
Reengineering Example
Which line is shorter and faster?
1 2 3 4
Key Concept: • One queue for multiple
service points• Multiple services
workstation
Reengineering Example
The C’s related toOrganization Re-engineering
Customers
CompetitionChange
Commitment
CooperationCoordination
Contribution
The 3C’s of organization Re-engineering:
The 4C’s of effective teams
Key StepsKey Steps In Business Process
Re-engineering
Execute Plan
Identify Action Plan
Develop & Communicate Vision Of Improved Process
Understand The Current Process
Select The Process & Appoint Process Team
Benefits From Information Technology
Assists the Implementation of Business Processes
Enables Product & Service Innovations
Improve Operational Efficiency
Coordinate Vendors & Customers in the Process Chain Information
Technology
BusinessReengineering
Business-pulled
Technology-driven
Example Of Business Process Re-Engineering
Ford
Accounts Payable Process
Accounts Payable
Accounts Payable
VendorVendor
GoodsReceivingReceiving
Payment
Invoice
Receiving document
PurchasingPurchasingPurchase order
Copy ofpurchase order
PO = Receiving Doc. = Invoice
? ?
Ford Accounts Payable Process
Drawback Of This Account Payable Process
More than 500 accounts payable clerks matched purchase order, receiving documents,
and invoices and then issued payment.
It was slow and cumbersome.
Mismatches were common
Trigger for Ford’s Account Payable Reengineering
When goods arrive at the loading dock at Mazda:
Use bar-code reader is used to read delivery data.
Inventory data are updated.
Production schedules may be rescheduled if necessary.
Send electronic payment to the supplier.
Ford Procurement Process
AccountsPayable
AccountsPayable
VendorVendor
GoodsReceivingReceiving
Payment
Goods received
PurchasingPurchasingPurchase order
Purchase order
Data base
Ford Accounts Payable
Reengineer “procurement” instead of AP process.
The new process cuts head count in AP by 75%.
Invoices are eliminated.
Matching is computerized.
Accuracy is improved.
top related