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2004© Dr A Albadvi Business Process Re-Engineering (BPR) Dr. A. Albadvi Dr. A. Albadvi Asst. professor of IT Asst. professor of IT Tarbiat Tarbiat Modarres Modarres University University School of Engineering, Information Technology Dept. School of Engineering, Information Technology Dept. e e - - mail: mail: [email protected] [email protected] Sharif Sharif University of Technology University of Technology School of Management and Economics School of Management and Economics 5

Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

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Page 1: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Business Process Re-Engineering  (BPR)

Dr. A. AlbadviDr. A. AlbadviAsst. professor of ITAsst. professor of IT

TarbiatTarbiat ModarresModarres UniversityUniversitySchool of Engineering, Information Technology  Dept.School of Engineering, Information Technology  Dept.ee--mail: mail: [email protected]@albadvi.net

SharifSharif University of TechnologyUniversity of TechnologySchool of Management and EconomicsSchool of Management and Economics

5

Page 2: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Page 3: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Business Process Design (optimization)

ï Benchmarkingï Optimization Tacticsï Optimization Tools, Process Mapping (self-

study through case study: Chapter 16 e-book)

ï Business process optimization & Six Sigma concept

Page 4: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Principle # 0: STREAMLINE

ï Ground zero common sense principle!

Remove Remove wastewasteSimplifySimplifyConsolidate Consolidate similar similar activitiesactivities

Business Process Optimization TacticsBusiness Process Optimization Tactics

Page 5: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

3 Types of Redesign Principles

Reengineering Reengineering principlesprinciples

RestructingRestructing & & reconfiguring around reconfiguring around processesprocesses

Changing Changing information flows information flows around processesaround processes

Changing Changing knowledge knowledge management management around processesaround processes

1.1. Lose WaitLose Wait2.2. OrchestrateOrchestrate3.3. Mass CustomizeMass Customize4.4. SynchronizeSynchronize

5.5. Digitize & PropagateDigitize & Propagate6.6. VitrifyVitrify7.7. SensitizeSensitize

8.8. Analyze & SynthesizeAnalyze & Synthesize9.9. Connect, Collect, & CreateConnect, Collect, & Create10.10.PersonalizePersonalize

TYPESTYPES PRINCIPLESPRINCIPLES

Page 6: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Restructure & Reconfigure them!Principle #1: LOSE WAIT

ï Common Tactics:ñ Redesign time-sequential activities to be executed concurrently Create closed-loop teams for quicker flexible interaction

ñ Do NOT allow a support activity to gate a core value-adding process

ñ Design for continuous flow rather than stop-start batches

ñ Modify upstream practice to relieve downstream bottlenecks.

Squeeze out Squeeze out waiting time waiting time in process in process links to links to create valuecreate value

Page 7: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Restructure & Reconfigure them!Principle #2: ORCHESTRATE

ï Common Tactics:ñ Partner a process with another enterprise Outsource a process to another enterprise 

ñ Insource a process back into the enterprise www.ups.com

ñ Route the process through an infomediary

Let the Let the swiftest and swiftest and most ablest most ablest enterprise enterprise executeexecute

Page 8: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Restructure & Reconfigure them!Principle #3: MASS-CUSTOMIZE

ï Common Tactics:ñ Flex access by expanding the time window for the process

ñ Flex access by migrating the physical space in which the process happens 

ñ Create modular process platforms

ñ Push customization to occur closest to the customer

ñ Enable dynamic customization of product offerings www.dell.com

Flex the Flex the process for process for ANY TIME, ANY TIME, ANY PLACE, ANY PLACE, ANY WAYANY WAY

Page 9: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Restructure & Reconfigure them!Principle #4: Synchronize

ï Common Tactics:ñ Match the offerings on the physical and virtual parts of the process 

ñ Create common process platforms for physical and electronic processes 

ñ Track the movement of physical products electronically

ï Examples:ñ FORD Corporation

Synchronize Synchronize the physical the physical and virtual and virtual parts of the parts of the processprocess

Page 10: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Informate them!Principle #5: DIGITIZE and PROPAGATE

ï Common Tactics:ñ Shift data entry to customers and digitize it

ñ Make the process as paperless as possible as early as you can www.microsoft.com

ñ Make information more easily accessible upstream and downstream to those who need it www.walmartstores.com

ñ Shrink the distance between the information and the decision

ï Examples:ñ E-walletsñ Microsoft: job application processñ Swedish police: issuance of passports

Capture Capture information information digitally at digitally at the source the source Propagate it Propagate it throughout throughout the processthe process

Page 11: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Informate them!Principle #6: Vitrify

ï Common Tactics:ñ Provide on-demand tracking information for customers of the process

ñ Provide reporting capabilities that provide on-the-fly analysis

ñ Design standard partner interface processes for seamless exchange of information

ï Examples:ñ FEDEX: shipping processñ MISQ: review process

Provide glassProvide glass--like visibility like visibility through through fresher & fresher & richer richer information information about the about the processprocess

Page 12: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Informate them!Principle #7: SENSITIZE

ï Common Tactics:ñ Build in customer feedback loops to detect  process dysfunction

ñ Enable software smarts to trigger quick business reflexes

ñ Attach environmental probes to the process to monitor change

ï Examples:ñ HERTZ: Pricing process www.hertz.com

Fit the process with Fit the process with vigilant sensors and vigilant sensors and feedback loops that feedback loops that can prompt actioncan prompt action

Page 13: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Mind them!Principle #8: ANALYZE and

SYNTHESIZEï Common Tactics:

ñ Provide ì what-ifîcapabilities to analyze decision options

ñ Provide ì slice and diceîdata analysis capabilities that detect patterns

ñ Provide intelligent integration capabilities across multiple information sources

ï Examples:ñ Amazon  www.amazon.com

Augment the Augment the interactive interactive analysis and analysis and synthesis synthesis capabilities capabilities around a around a process to process to generate value generate value addedadded

Page 14: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Mind them!Principle # 9: CONNECT, COLLECT, &

CREATEï Common Tactics:

ñ Create a community of practice around the process

ñ Create expertise maps and ì yellow pagesî related to the process

ñ Build knowledge repositories that can be reused to enhance the performance of the process

ñ Develop a FAQ database through the doers of the process

ñ Embed knowledge-sharing spaces for interactive dialogues around the process

ï Examples:ñ DaimlerChrysler www.daimlerchrysler.com

Grow Grow intelligently intelligently reusable reusable knowledge knowledge around the around the process process through all through all who touch itwho touch it

Page 15: Business Process (BPR)sharif.edu/~Albadvi/Bprses5.pdf3 Types of Redesign Principles Reengineering principles Restructing & reconfiguring around processes Changing information flows

�2004© Dr A Albadvi

Mind them!Principle # 10: PERSONALIZE

ï Common Tactics:ñ Learn preferences of customers and doers of the process through profiling

ñ Insert business rules in process that are triggered based on dynamic personal profile

ñ Use automatic collaborative filtering techniques

ñ Keep track of personal process execution habits

ï Examples:ñ Ritz-Carlton Hotels www.ritzcarlton.com

ñ American Airlines www.aa.comñ Amazon.com; Barnes & Noble www.barnesandnoble.com

Make the process Make the process intimate with the intimate with the preferences and preferences and habits of habits of participantsparticipants