Business Process Reengineering Principles (Chapter 3)

Example of BPR A manufacturing company struggling ‫تعاني‬with long production lead times might use BPR to redesign its production processes. After analyzing the current state, they may introduce automated systems for: 1. inventory management 2. reallocate resources 3. eliminate bottlenecks in the...

Example of BPR A manufacturing company struggling ‫تعاني‬with long production lead times might use BPR to redesign its production processes. After analyzing the current state, they may introduce automated systems for: 1. inventory management 2. reallocate resources 3. eliminate bottlenecks in the supply chain. By reengineering the process, they can achieve faster production cycles, reduce costs, and improve overall efficiency. Steps in Business Process Reengineering Identify and Map Current Processes: Document and analyze existing workflows to understand pain points, inefficiencies, and redundancies. Define Objectives and Goals: Establish clear objectives, such as reducing lead times, improving quality, or enhancing customer experience. Analyze Processes for Improvement: Look for bottlenecks, redundancies, and non-value-adding activities in current processes. Design and Model New Processes: Create reimagined‫تدفقات‬ workflows that optimize efficiency, eliminate waste, and may incorporate ‫تتضمن‬automation and new technologies. Implement Changes: Roll out the new processes, often supported by new technologies, training programs, and change management initiatives. Monitor and Optimize: Continuously assess the effectiveness of the redesigned processes, and make adjustments as necessary to ensure goals are met. Business Process Reengineering Principles(cont.) 1) Have those who use the output of the process perform the process In other words, "work should be carried out where it is", makes the most sense ‫اكثر منطقية‬to do it.This results in people closest to the process actually performing the work, which shifts work across traditional intra and inter-organisational boundaries.For instance, employees can make some of their purchases without going through the purchasing department.Customers can perform simple repairs themselves and suppliers can be asked to manage parts inventory. 2)Empower Workers empowering workers refers to giving employees more authority, responsibility, and the necessary tools to make decisions and take actions within their roles. Instead of being limited to narrowly defined tasks or relying on multiple layers of approval, empowered workers are equipped to handle a wider range of tasks and have the autonomy to make decisions that directly impact their work. Business Process Reengineering Principles(cont.) 4)Link parallel activities instead of integrating their results "link parallel activities rather than integrating their results" refers to a process design approach where activities that can be done concurrently are connected or coordinated in real-time, rather than being performed separately and then combined later. allowing teams to share progress, feedback, and updates throughout the process. This real-time coordination helps reduce redundancies, identify potential issues sooner, and increase efficiency, as teams can adjust their work based on immediate feedback. ‘The concept of only integrating the outcome of parallel activities that must eventually come together is the primary Business Process Reengineering Principles(cont.) 3) Treat geographically dispersed resources as though they work centralized Centralised databases and telecommunication networks allow companies to link separate units or individual field personnel, providing them with economies of scale while maintaining their individual flexibility and responsiveness to customers. Business Process Reengineering Principles(cont.) 5) Organize around outcomes, Not tasks Several specialized tasks previously performed by different people should be combined into a single job. The new job created should involve all the steps in a process that creates a well-defined outcome. Organizing around outcomes eliminates the need for hand-offs, resulting in greater speed, productivity and customer responsiveness. 6)Self Service self-service refers to empowering customers, employees, or partners to complete certain tasks on their own without needing assistance from the organization. This is achieved by providing user-friendly, accessible tools and interfaces that allow users to independently handle their own needs, from accessing information to completing transactions. Business Process Reengineering Principles(cont.) 7) Put the decision point where the work is performed and build control into the process Decision-making should be made part of the work performed. This 'is possible today with a more educated and knowledgeable workforce plus decision-aiding technology. Controls are now made part of the process. 8)Capture information once - at the source Information should-be collected and captured in the company's on-line information system only once at the source where it is created. This approach avoids erroneous data entries and costly re-entries Targets for Reengineering (Cont.) 1)Process as Part of Core Competency process as part of core competency means designing and focusing on specific processes that give an organization a competitive edge and form part of its unique strengths. These processes are essential to delivering exceptional value to customers, achieving business goals, and differentiating the company from competitors Core competency:processes that gives an organization a distinct competitive advantage FedEx: Logistics and overnight delivery capabilities that make it a leader in fast and reliable global shipping. Netflix: Content recommendation algorithms and content creation capabilities, allowing it to personalize user experiences and create popular original content. Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively an organization, department, or individual is achieving key business objectives. KPIs are used to evaluate success at reaching targets and help organizations assess their performance over time Targets for Reengineering (Cont.) 2)"High Volume, Low Margin Activities" refers to processes or operations within an organization that handle a large quantity of transactions or outputs but generate minimal profit per transaction or unit. Understanding this concept is important in BPR because it highlights areas where organizations can streamline processes, improve efficiency, and reduce costs to enhance overall profitability. Examples: Fast Food Chains: Fast food restaurants serve large volumes of customers with low-priced menu items. BPR can streamline kitchen processes, improve order accuracy, and enhance customer service. E-commerce: Online retailers selling high volumes of low-margin items (like household goods) can benefit from BPR by optimizing Targets for Reengineering (Cont.) 3) high defect, high reward activities refer to processes or operations that have a significant potential for profit or benefits but also come with a high risk of errors, defects, or failures. These activities often require careful management and oversight to maximize rewards while minimizing defects. Examples: Market Expansion: Entering a new geographical market with high growth potential but facing regulatory challenges and cultural misunderstandings. Software Development: Creating a new application that addresses a gap in the market but may have bugs or performance issues during initial launches. Targets for Reengineering (Cont.) 4) high skill, time-intensive activities refer to processes that require a significant level of expertise and specialized skills, often taking considerable time to execute effectively. These activities are usually critical to the organization's operations and can significantly impact quality, efficiency, and customer satisfaction. Business Process Reengineering, organizations can optimize these activities to achieve greater efficiency, improved quality, and enhanced customer satisfaction. 5) high complexity, specialized resource activities refer to processes or tasks that involve intricate and detailed procedures requiring specialized skills, knowledge, and resources. These activities typically have significant impacts on the organization's performance and outcomes due to their complexity and the specific Targets for Reengineering (Cont.) 6)processes built around obsolete or changing technology refer to organizational workflows and procedures that rely on outdated or insufficient technology to function. This situation can severely impact the efficiency, effectiveness, and adaptability of business operations. Example : A manufacturing company may rely on a legacy production management system that cannot communicate with newer inventory tracking software. This disconnection can lead to delays in production planning and order fulfillment, prompting the need for a BPR initiative to redesign processes around more modern, integrated technology solutions. The upstream supply chain refers to the part of the supply chain that involves the processes and activities related to sourcing and obtaining raw materials, components, and other inputs necessary for production. References https://slideplayer.com/slide/12730963/