Business process re-engineering a working definition
- Fundamental rethinking and radical redesign of an enterprise business
- Processes from the customer’s perspective to achieve dramatic business
- 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:
- Culture of the enterprises
- 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:
- Business process re-engineering
- Continuous improvement
- 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
- 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
- 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
- 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
- Business process re-engineering (policies, etc.)
- 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.
- 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:
- -Definition and implementation of sub-processes and activities
- -Measurement and corresponding goals that will drive behaviour, monitor progress
- -Continuous improvement
- -Architecture: data, infrastructure, applications
- – Staff and skills
- – Risk and recovery
- – Communicate
- – Redesign organization structure and job descriptions
- – Obtain needed skills set through training, hiring, redeployment
- – Redesign rewards and management systems
- – 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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