BUSINESS PROCESS REENGINEERING

1. BUSINESS PROCESS REENGINEERING • Reengineering definition • Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical,contemporary measures of performance such as cost,quality,service and speed.Business process is defined as a collection of activities that takes one or more kind of inputs and creates output that is of value to the customer.it usually concentrates on the selected vital processes,which create or add value by increasing company’s capability and competitiveness.

2. BPR refers to the analysis and redesign of work flows and processes within and between organisations The objective is to obtain quantum leaps in performance of the process in terms of time,cost,output ,quality and responsiveness to customers.Redesign effort aims at simplifying and streamlining a process by eliminating all reduntant and non value adding steps,activities and transactions reducing drastically the no. of stages of transfer points of work and speeding up the workflow through use of information technology.

3. Need for BPR • Here To There • Inflexibility flexible,lean, • Unresponsiveness Nimble, • absence of customer responsiveness • Focus competitive, • Bureaucratic Innovative,effective • Paralysis.lack of customer focussed • Innovation,high profitable. • Overheads • Legacy of 100 yrs • Of Industrial leadership • Mass Mentality Lean & Virtual mentality

4. Rationale of BPR • BPR does not aim at improving exisiting processes,it aims to achieve breakthrough in performance by redesigning them radically and entirely. • The BPR approach holds that exisiting rules and form of work design are based on assumptions about technology,people and organisational goals that are no longer valid. • The BPR approach requires viewing a process from cross-functional perspective.The redesign must be broad based in its focus and scope.BPR uses IT to enable and actualise a new process. • BPR effort involves managing massive organisational change.The change involves not a just process itself bit also new forms and modes of jobs,procedures,management systems,career paths,recruitment.infrastructural facilities and so on. • The effective implementation of BPR effort is bound up with the vision,commitment,persistence,and determination of the managerial leadership to see the effort through toward completion.

5. Advantages • 1 Improvement in the entire organisation as a whole.2Better systems an management improvements in the areas of Products and Services (ii)Design and operations(iii)Improved system operations .(3)Take advantage of improved technology.(4)Improved application of Industrial engineering in the areas of : • (i)Organisation strategies(ii)Management functions (iii)Plant utilisation (iv)Quality improvement (v)creativity and innovation (vi)confidence in competition. • 5 Improvement in customer satisfaction

6. Steps in Reengineering • 1 Prioritize Processes for Reengineering • 2 Organise and educate. • 3 Document the current process • (i)flow charts indicate what happens to information an materials as it moves through a process.(ii)Performance measures indicate the effectiveness of the process.This documentation ,if well done,can be used as a baseline from which to measure the impact of reengineering team. • 4 Develop vision for the future process. • 5 Starting with the current process,design the future process. • 6 Develop an implementation plan. • 7 Implement the Plan. • 8 Measure,evaluate and report results.

7. Reengineering • Reviewing the exisiting methods for carrying out operations and changing the business process itself. • Increase in sales with the improvement of customer satisfaction. • Wide ranging cost reduction as a result of overall optimisation • Achieving world class performance level. • Engineering –Value is added to the technique by combination of few elements. • Re-engineering --- Value is added to the technique by rearranging a few elements. • BPR----- Adding value by rearranging the Business processes.