Podcast
Questions and Answers
Identifying bottlenecks in a process primarily helps in understanding which aspect?
Identifying bottlenecks in a process primarily helps in understanding which aspect?
Which of the following represents a non-value-adding activity?
Which of the following represents a non-value-adding activity?
High volume, low margin activities often lead to which of the following challenges?
High volume, low margin activities often lead to which of the following challenges?
What is a potential impact of obsolete technology on current processes?
What is a potential impact of obsolete technology on current processes?
Signup and view all the answers
Which activity is most likely to be time-intensive yet deliver high rewards?
Which activity is most likely to be time-intensive yet deliver high rewards?
Signup and view all the answers
What effect do processes built around obsolete technology typically have on an organization?
What effect do processes built around obsolete technology typically have on an organization?
Signup and view all the answers
Which of the following activities would likely benefit the least from reengineering due to their complexity?
Which of the following activities would likely benefit the least from reengineering due to their complexity?
Signup and view all the answers
What is a likely characteristic of high defect, high reward activities in relation to obsolete technology?
What is a likely characteristic of high defect, high reward activities in relation to obsolete technology?
Signup and view all the answers
Which type of activity often has a significant impact due to its dependence on technology?
Which type of activity often has a significant impact due to its dependence on technology?
Signup and view all the answers
Which statement accurately describes an implication of processes built around changing technology?
Which statement accurately describes an implication of processes built around changing technology?
Signup and view all the answers
How can obsolete technology affect business operations?
How can obsolete technology affect business operations?
Signup and view all the answers
Which of the following is a consequence of relying on a legacy system?
Which of the following is a consequence of relying on a legacy system?
Signup and view all the answers
What kind of activities are impacted by obsolete technology in a production environment?
What kind of activities are impacted by obsolete technology in a production environment?
Signup and view all the answers
What is an example of a limitation imposed by outdated production management systems?
What is an example of a limitation imposed by outdated production management systems?
Signup and view all the answers
Which category of business operations is likely to suffer the most from an inability to adapt due to obsolete technology?
Which category of business operations is likely to suffer the most from an inability to adapt due to obsolete technology?
Signup and view all the answers
Study Notes
Modern ERP
- Modern ERP systems are advanced business systems designed to be selected, implemented, and used effectively
Chapter 3: ERP and Business Process Reengineering
Business Process Reengineering (BPR)
- BPR is a fundamental and radical redesign of business processes to dramatically improve key performance measures such as cost, quality, speed, and service
- The focus is not on how a process is done but why it is done
- Involves identifying, designing, implementing, and reviewing process improvements
- BPR aims to achieve significant improvements through process redesign, not just incremental adjustments
Example of BPR
- A manufacturing company struggling with long production lead times might use BPR to redesign its production processes
- Following analysis of the current state, the company might introduce automated systems to manage inventory, reallocate resources, and eliminate bottlenecks in the supply chain
Steps in Business Process Reengineering
- Identify and map current processes to understand pain points, inefficiencies, and redundancies
- Define objectives and goals such as reducing lead times, improving quality, or enhancing customer experience
- Analyze processes for improvement by identifying bottlenecks, redundancies, and non-value-adding activities
- Design and model new processes to optimize efficiency, eliminate waste, and incorporate automation and new technologies
- Implement changes by rolling out new processes, often supported by new technologies, training programs, and change management initiatives
- Monitor and optimize the redesigned processes by continuously assessing effectiveness and making necessary adjustments
Benefits vs. Challenges of BPR
-
Benefits:*
-
Cost reductions
-
Improved customer satisfaction
-
Improved agility
-
Increased profitability and reputation
-
Challenges:*
-
Resistance from employees
-
Cost losses
-
Job losses
-
Traditional and cultural issues
-
Time requirements
-
Lack of management support
-
Risks to managers
-
Retraining
Types of Reengineering
-
Clean Slate Reengineering:*
-
Process design starts with a clean slate, often referred to as "starting from scratch"
-
Theoretically, there are no limits
-
Technology-Enabled Reengineering:*
-
A particular technology (or portfolio of technologies) is chosen as a tool to facilitate reengineering
-
The technology itself drives the reengineering process
Clean Slate Reengineering - Advantages and Disadvantages
-
Advantages:*
-
Not constrained by a particular tool
-
Not constrained to a limited set of processes
-
Evolution is not limited by a particular technology
-
Can result in unique processes, providing a competitive advantage
-
Encourages a free flow of ideas
-
Disadvantages:*
-
Costly
-
Requires significant time and resources, making it challenging for smaller companies
Technology-Enabled Reengineering - Advantages and Disadvantages
-
Advantages:*
-
ERP systems provide the tools and structure for change, leading to less time
-
ERP bounds the design, eliminating difficult decisions
-
Design is feasible and proven
-
Less risk
-
Disadvantages:*
-
Constrained by the technology chosen
-
May not be unique, potentially lacking competitive value
-
Other companies may have access to a similar design
Business Process Reengineering Principles
- Those who use the output perform the process
- Workers are empowered
- Geographically dispersed resources are treated as centralized
- Parallel activities link instead of integrating results
- Organize around processes, not tasks or functional areas
- Self-service is implemented
- Decision making takes place where work is performed, integrating controls into the process
- Information is captured once at the source
Targets for Reengineering
- Processes as Part of a Core Competency
- Key Performance Indicators
- High Volume, Low Margin Activities
- High Defect, High Reward Activities (and Quality Controls)
- High Skill, Time-Intensive Activities
- High Complexity, Specialized Resource Activities (KISS)
- Processes Built around Obsolete or Changing Technology
Lessons Learned through BPR
- Low-cost labor
- Scalability (up and down)
- Thinking outside the functional box to connect silos
- Learning from other companies with similar processes
- Recognizing that a process is just one aspect of success
- Delivering sooner rather than later, focusing on short-term goals
Reengineering Challenges
- Employee resistance
- Cost
- Job losses
- Tradition and culture
- Time requirements
- Lack of management support
- Risks to managers
- Retraining
Constituents for Reengineering
- Customers
- Employees
- Information Technology Staff
- Business Partners
- Upstream Supply Chain
- Auditors
- Regulators
- Interested Parties
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore Chapter 3 of Modern ERP, focusing on Business Process Reengineering (BPR). Understand the critical aspects of redesigning business processes to enhance performance measures like cost, quality, and service. This quiz will delve into the principles and examples of BPR in modern business systems.
