Business Process Reengineering Business Process

Transcript:Business Process Reengineering Business Process:
Business Process Reengineering Business Process Unit – III MCA I Year 1 Roy Antony Arnold G Lecturer / CSE Infant Jesus College of Engineering Tuticorin, Tamilnadu, India 2 What is a Business Process? “A business process is a collection of activities which together produce something of value to a customer” – e.g. Customer Order Entry 3 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. 4 5 What to reengineer? BPR changes processes, and not functions, departments, geographies or tasks. What it is not? Reengineering is not reorganizing. Modifying how an organization is structured and redesigning an organization’s business processes are two different things. An organizational structure should be designed so that it best supports redesigned business processes. Reengineering is not downsizing either. Downsizing focuses on the reduction of workforce to achieve short-term cost savings. Reengineering, on the other hand, focuses on rethinking from the ground up, finding more efficient ways of working including eliminating work that is unnecessary. 6 Reasons for Reengineering 7 Examples 8 Examples 9 Benefits of Reengineering The rewards of reengineering are many including: empowering employees; eliminating waste, unnecessary management overhead, and obsolete or inefficient processes; producing often significant reductions in cost and cycle times; enabling revolutionary improvements in many business processes as measured by quality and customer service; and helping top organizations stay on top and low-achievers to become effective competitors. 10 Business Process Reengineering Imperative for Survival Methodology Steps 11 Reengineering – survival study Introduction: The number of firms is increased to close – because of a) Inefficiency b) too Inward Looking c) inflexibility 12 - continued Similar changes occurred in developed and developing nations also and still facing a similar challenge. Example: Ford Motor Company faced business extinction at one time and found the paths to renewed success and inspires others. Business Reengineering – Process thro’ which the continuous success and survival is indicated (by Americans). Term is invented by Michael Hammer. 13 Reengineering Imperative in USA The business climate made reengineering necessary in the United States. US gave great industrial philosophers like Adam Smith and Henry Ford. But at one time their business was also in trouble. This situation arises because of three main reasons. They are, a) The Assembly line model of production, where customer waited in line for delivery b)