Simplified four major steps in the business process re-engineering measure that can be applied in an organizational system

Business process re-engineering a working definition

1. Fundamental rethinking and radical redesign of an enterprise business
2. Processes from the customer’s perspective to achieve dramatic business
3. Performance improvements in measures such as cost, quality service and speed

In the BPR process the following elements must CHANGE :

• Business processes
• Job definitions
• Organization structure
• Policies, measurement system and reward system

NOTE: the above changes will result in changes in the followings:

1. Culture of the enterprises
2. Beliefs and behaviours of involved personnel

To understand the concept of a process( i.e the work that transforms input to output ) .start with narrower or fewer complex processes as a case study. As the proper approach is learned. process mapping can be a rightful tool applicable to understand the process in an organizational system.

Different methods or options for performance improvement measures:

1. Business process re-engineering
2. Continuous improvement
3. Outsourcing
4. Elimination etc

Explanation of simplified four major phases in the Business process re-engineering for performing improvement measures that can be applied in an organizational system

 Initiation

• Define the necessary steps to initiate, organize and scope a re-engineering effort:
• Establish the need for Business process re-engineering
• Identify executive sponsor
• Organize and train the Business process re-engineering team
• Define the opportunity and scope of BPR
• Develop a work plan
• Define customer needs
• Establish a case for action and goals
• Develop executive buy-in and commitment

Define the As-is Process Model

• Outline the approach to capture and develop a basic understanding of current performance
• Define data collection methods
• Define and map the current process
• Identify sub-processes, activities, technologies and systems
• Define performance measures and current capabilities
• Define cycle times and process costs
• Perform organizational, skills and cultural assessments
• Identify improvement opportunities
• Surface and test assumptions as a source of additional improvement opportunities
• Define and implement ”quick wins”

Development of the ”As-is” Process Map

• Map the As-is process
• Determine related benefits and deficiencies (including costs)
• Identify improvement opportunities including available technology
• Surface assumptions – test
• Define policy issues and needs
• Implement  ”quick wins”

Development of the ”To-be” Model

• Fully understand the ”As-Is” as well as associated assumptions, opportunities, confusion, etc.
• Using stretch goals, customer needs/values, assumptions, and targets for redesign, high-level scenarios are created that identify the ”perfect world”.
• Manufacturing cycle time will be fully aligned with customer order cycle time requirements – everything is made to order
• All complaints will be fully resolved (customer satisfaction) within two days
• All customer quotations will be issued within 2 days.

Development of the ”To-be” Model (cont.)

• A series of ”To-be” workshops are conducted to begin to generate ideas for the ”To-be” model.
• A full exploration of customer needs and values
• Best practices review
• Technology enables assessment
• Assumption breaking
• Paradigm breaking
• Brainstorming (blue-sky thinking) technique
• Development of alternate scenarios
• Selection of preferred scenarios
• Map the preferred scenarios

Develop the To-be Process Model

• Outline the approach to develop, validate, justify and plan the future state
• Identify best practice
• Explore key technology enablers
• Develop to To -be a process

*Vision

*Descriptions

*Cost

• Performance measures and standards
• Perform gap analysis and impact
• Simulate To-Be model
• Perform cost, benefit and risk analysis

Developing the To-be Process

• The activity is driven by stretch goals that are usually based on changing (more demanding) customer values and needs.
• Assumptions Business process re-engineering developed during the As-Is phase are now going to be challenged – breaking these artificial constraints usually present opportunities for great benefit.
• Targets for redesign should have been identified during the As-Is phase as leverage points for significant improvement.

Some of the best approaches to developing innovative improvements are:

• Best practices
• Technology enablers
• Paradigm shifts
• Imagineering
• Brainstorming techniques
• Define the ”perfect world”

Do not refer to the As-Is model during any creative exercise because it can easily inhibit free-thinking and paradigm shifts.

The Gaps between the ”As-is” and the ”To-be”

• Identify all of the key characteristics of both the ”As-Is” and ”To-be” models
• Identify gaps by comparing the ”As-Is” and ”To-be” models
• Activities and tasks
• Technology
• Environmental
• Organizational
• Business process re-engineering (policies, etc.)
• Cultural
• Analyze the impact of the gaps and determine strategies to get from the ”As-Is” to the ”To-be”.

Costs, Benefits, and Risks associated with moving to the ”To-be”.

• The effort required and the risk resulting from associated change must be justified by the benefits
• Would a prototype or pilot help verify cost and benefits while minimizing the risk?
• Change is more than simply installing some new equipment and publishing new procedures – change management issues can be significant and must be addressed.

A full implementation plan must be developed

• Tasks, responsibilities, timing and milestones must be fully defined and accepted
• Process performance measures (metrics) must be defined so standards of performance are well defined in advance so the process can be managed to these standards at start-up
• A project management structure must be put in place to address the major aspects of project implementation.

Transformation

• The To-be process is prototyped whenever possible
• Process, costs, benefits and risks are refined based on prototype experience
• Gaps between the To-be and As-is processes are defined, as are barriers to be overcome
• The transformation or implementation plan (the means for overcoming gaps and barriers) is usually separated into three sub-plans:

1) Process

1. -Definition and implementation of sub-processes and activities
2. -Measurement and corresponding goals that will drive behaviour, monitor progress
3. -Continuous improvement

2)Technology

1. -Architecture: data, infrastructure, applications
2. – Staff and skills
3. – Risk and recovery

3)Human resources

1. – Communicate
2. – Redesign organization structure and job descriptions
3. – Obtain needed skills set through training, hiring, redeployment
4. – Redesign rewards and management systems
5. – Train and monitor training effectiveness

• Transformation is structured in manageable releases to deliver benefits in the short term as the ultimate long term solution is approached.
• Implementation is fully developed and conducted
• The new, To-Be state is formalized
• On-going performance is evaluated, adjustment is made.

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