Chapter 4 Sreekanth Bpr

7/25/2019 Chapter 4 Sreekanth Bpr

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Chapter 4

Big R Small r reengineering

Role of BPR in ERP implementation

The need to have a strong rational for moving from a legacy

system to an integrated ERP system is very important. The success and failure of ERP

implementation depends on how the organization handles it.

Often a result of using business process reengineering (BRP to streamline

processes and procedures to create a competitive advantage.

ERPs and BRP have become lin!ed over the years. ERP vendors have wor!ed

to include "best practices# in the system within a given industry$ whereas BPR

identifies current processes and the change re%uirement to implement "best practice#.

BPR is a set of logically related tas!ed performed to achieve a well defined

business outcome. The process involves dismantling e&isting processes into individual

activities and puts them bac! together in a new set of business flows or sets of

business flows.

't helps in ERP implementation because it loo!s at the overall current process

within the organization by going through the stages of preparation$ as is) process$ to

be) process$ testing and measuring the new process and re*evaluating the whole

process to either ad+ust or improve it.

The steps involved in BRP and how they are closely related to ERP

implementation

,. Preparation

The drive behind the need for BPR is to implement an ERP system to help

improve customer service$ streamline current processes$ reduce costs and address


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accountability. This improvement can be identified by setting goals$ identify teams$

and develop an inventory of processes.

-. efine the as is) process

/ith the identified goals$ the functional teams must define e&isting processes.

0. 1ap out to be) process

2ddresses the timing of processes and the changes needed to meet the goals.

3. Test and measure new processes

The phase is to ensure that there is no step that have been missed or that a

process was not achievable.

4. Reevaluation

This phase is to ma!e sure that the organization can learn from their mista!es

if the implementation did not go well. 't will also give the organization a chance to

review the whole process and indicate a change or update in the implementation

process.

5onclusively$ the benefits of BPR are enormous. They include the

following$ but not limited to

,. Business process is streamlined.

-. Business process is optimized and more efficient.

0. 6trict controls can be enforced and monitored.

3. Best practices can be adhered to.

4. Time and cost saving as a result of eliminated redundant tas!s.


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Business process visualization

The term business process visualization is ambiguous$ because people don)t

understand what the word business process refers to. /hat will be visualized will be

clarified$ once we dig down the meaning of the word business process) from three

aspects.

,. Rule

-. Progress

0. Results

7isualize

7isualize

,. 7isualization of business process rule

To clarify the business process rule$ and to share the rule with all the people

who are involved in it. This is also called standardization business process

By defining the business process rules in to a visual form$ such as business manuals or

a Business process diagram (/or! 8low 5hart$ and ma!e them referable by hanging

on the wall$ this will enable everybody to share )how to proceed correctly)$ how to

proceed with high efficiency)$ and $how to proceed without ma!ing any mista!es).

-. 7isualization of progress

Business

Result

Progress

Rule


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To ma!e it possible to grasp the current situation of the operations which are

being processed based on the Business process diagram or Business manuals.

6pecifically$ it is to be able to detect delays)$ mista!es) and wor!load of staff) on

each and operation in real time

0. 7isualization of result

To understand the result of completed operations. Being able to review the

way past operations were processed. 8or e&ample$ to be able to chec! the number of

processes during a certain period$ or the average time to carry out the process.

BP1 activity includes the following three activities.

Defining the business process.

Executing the tas!s e&actly along the business processes .

Analyzingthe results of performance.

8or the visualization of business process the following must be provided in order9

7isualization of business rule$ 7isualization of business progress$

7isualization of business result. 2nd based on the finding of these three views$ each

visualization will be repeated again and again.

The cycle of the visualization of the three aspects of business$ and the cycle of three

steps of BP1 activity do not necessarily have a one*to*one correspondence. The

following figure shows the similarities among them.

Cycle of BPMCycle of

Visualization of

business processDenition of

problemRule

Execution

AnalysisResult

Progress


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The result of se%uentially processing the visualization of business process activities

from the three aspects is to do BP1 activity.

2dvantages of Business process visualization are9

Simplicity9 The comple&ity of a process model has a significant negative influence on

its comprehensibility as well as its aesthetic appearance. Therefore$ the visualization

of process models must be intuitive and simple.

Appeal9 The graphical representation of a process model should support the user:s

perception of the entire process. 'n particular$ users should feel comfortable when

wor!ing with process models in order to foster their willingness to reuse the models.

To achieve this goal$ the visualization of process models should be appealing.

Structure9 6mall variations in process models might lead to significant differences in

respect to their comprehensibility. 2mongst others$ the structuring of a process model

was identified as a factor positively influencing comprehensibility and aesthetic

appearance.

Business process simulation

Business process simulation plays an important role in the continuousimprovement approach to business process management (BP1. By running business

process simulations$ companies can predict how business process performs under

specific conditions. 6imulations can also be used to test process design$ measure

performance$ identify bottlenec!s and test changes. ;ltimately$ process simulation can

identify the most effective process flow and help prevent problems from cropping up

during process e&ecution. 6imulation model can be very simple or highly comple&.

There are several characteristics of simulation that ma!e this method suitable

for business process modeling9

2 process approach in simulation modeling terminology relates to a time*

ordered se%uence of interrelated events which describes the entire e&perience

of an entity as it flows through the system.

6imulation models can be easily modified to follow changes in the real system

and as such can be used as a decision support tool for continuous process

improvement.


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2 simulation model of non*e&isting business process can be developed and

used for process design.

6imulation model can capture the behavior of both human and technical

resources in the system.

6imulation model can incorporate the stochastic nature of business processes

and random behavior of their resources.

The visual interactive features of many situation pac!ages available on the

mar!et enable a graphical display of the dynamic behavior of model entities$

showing dynamic changes in state within processes.

The benefits of simulation in business processes

Organization can react more %uic!ly to mar!et changes$ because simulating

the effect of redesigned processes before implementation can improve the

chances of getting the processes right at the first attempt.

7isual interactive simulation bac!ed up by a variety of geographical output

reports can show the benefits of redesigned processes.

6imulation can be used for focusing "Brain storming# meetings.

2 simulation model of business processes can determine a potential bottlenec!

area and ascertain which resources are critical.

2 frame wor! for carrying out business process simulation consists of the

following steps 5aptures system dynamics but avoids disturbances of current process.

> 5an capture interactions between sub*processes.

? 1itigates the ris! of sub*optimization


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> =raphical reporting features promote better process understanding and

facilitate communication.

> The %uantitative nature brings a sense of ob+ectivity into the picture.

Business process prototyping

Pre*production model of a product$ engineered for full service test. 5hanges

based on test results are incorporated into the prototype which undergoes the same

tests again. On achieving the desired results$ the product is approved for volume

production.

Business process prototyping is the activity of creating prototypes of business

processes$ i.e.$ incomplete versions of business process being reengineered.

The process involved in the business process prototyping

,dentify a#ic reuirement#

etermine basic re%uirements including the inputs and output in

formations desired. etails such as security$ can typically be ignored.

De"elop initial prototype

The initial prototype is developed that includes only user interfaces.

Re"ie.The customers including end users e&amine the prototype and provide

feedbac! on additions or charges.

Re"i#e and enhance the prototype

;sing the feedbac! both the specifications and prototype can be

improved.

2dvantages of prototyping

There are many advantages to using prototyping in business processes they

are9

Reduced time and co#t#9

Prototyping can improve the %uality of re%uirements and specifications

provided to developers. Because changes cost e&ponentially more to

implement as they are detected later in development.

,mpro"ed and increa#ed u#er in"ol"ement

Prototyping re%uires user involvement and allows them to see and

interact with prototype allowing them to provide better and more

complete feedbac! and specifications$


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isadvantages of prototyping

,n#ufficient analy#i#

The focus on a limited prototype can distract developers from properlyanalyzing the complete pro+ect. This can lead to overloo!ing better

solution preparation of incomplete specifications or the conversion of

limited prototypes into properly engineered final pro+ects.

/#er confu#ion of prototype and fini#hed #y#tem

;sers can begin to thin! that the prototype intended to be thrown away$

is actually a final system that merely needs to be finished or polished.

De"eloper# mi#under#tanding of u#er o!ecti"e#

evelopers may assume that users share their ob+ectives$ without

understanding wider commercial activities. ;sers might believe they

can demand auditing on every field$ whereas developers might thin!

this is feature creep because they have made assumptions about the

e&tent of user re%uirements.

De"eloper attachment to prototype

evelopers can also become attached to prototypes they have spent a

great deal of effort producing$ this can lead to problems li!e attempting

to convert a limited prototype into a final system when it does not have

an appropriate underlying architecture.

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Chapter 4 Sreekanth Bpr