Business Process Re Engineering - Part1

8/8/2019 Business Process Re Engineering - Part1

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Business Process Reengineering

Raymond YapPrincipal Consultant

Hutex Management

Consulting

http://www.hutex.com


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Business Process Reengineering

The FUNDAMENTAL rethinking and RADICAL

redesign of business PROCESSES to bring

about DRAMATIC improvements in critical,

contemporary measures of performance, such

as cost, quality, service and speed.

-Hammer, Champy (1993)


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Process: Where and Who?

NE

ED

CUS

T

OMER

PR

OD

UC

T

/SER

VICE


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What is NOT Business Process

Reengineering

TQM

ISO9000 Automation

Downsizing

RestructuringChange Management


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Why BRP?

Do or Die

Minimize threat from rival firms Attain sustainable competitive advantage

Leverage on unprecedented opportunity to

take giant leap forward


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Some of the BPR Objectives

Improve Efficiency e.g reduce time to market,provide quicker response to customers

Increase Effectiveness e.g deliver higherquality

Achieve Cost Saving in the longer run

Provide more Meaningful work for employees Increase Flexibility and Adaptability to

change Enable new business Growth


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Scope of BPR

Intra-functional Small scope within department, least impact

Inter-functional Horizontal view across departments, more impact

Inter-organizational Broad view including entire supply & delivery chain,

most impact


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4 Generic Steps in BPR

Create a Vision

Identify and understand Existing ProcessesRedesign the processes

Implement the redesigned processes


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Readiness Analysis

Is there a compelling business need for strategic

change?

Is the organization prepared to challenge it status quo?

Would it have the courage to create a new vision?

Whats the degree and quality of sponsorship and

commitment of senior management? Are they

prepared to be deeply involved? Do they have theenergy to follow through the entire change process?


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Readiness Analysis

Is the organization prepared to commit resources (time,

energy, money) to undertake BPR project?

What is the overall organizations attitude towards

change?

Is the organization prepared to overcome resistance to

change?


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BPR Team Composition

Top management (e.g. CEO) as SPONSOR

Senior & middle management in EXECUTIVETEAM

Selected senior & junior mgmt/staff to form

PROCESS TEAMS

Enthusiastic and energetic individual as BPR

COORDINATOR


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Case Example: Kodak

In 1987 Kodaks arch-rival, Fuji came up with a new 35mm

single-use camera Kodak has no competitive offering

Kodaks Traditional Product DevelopmentProcess Slow: would take 70 weeks to produce a rival to

Fujis camera!

Result: the new process, ConcurrentEngineering Reduce turnaround time to 38 weeks


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Case Example: Kodak

Key Redesign Strategy Apply innovative use of CAD/CAM + integrated

product design databaseAllow engineer to design at computer workstations

Database collect each engineers work and combines into

overall design

Each morning, problems are resolved immediatelyManufacturing can begin tooling design just 10 weeks into

product design instead of 28 weeks in the past


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Minimize Risk and Ensure Success

Top Management Support and Commitment Show some result quickly Set Stretch Targets for redesign Apply a holistic and disciplined approach to

manage change

Involve people in the change processCommunicate sufficiently to dispel uncertainty

and fear


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Conclusion

BPR is a multi-discipline approach for strategicchange

Methodology provides missing how to thatmust follow the why

BPR must be managed as a project

BPR must be owned by the organization, notdriven by consultants BPR requires constant communication and

feedback

Documents

Business Process Re Engineering - Part1