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�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
�2004© Dr A Albadvi
�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
�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
�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
�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
�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
�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
�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
�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
�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
�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
�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
�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
�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