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The Hammer Definition of BPR. Radical redesign of business processes What BPR is What BPR is not Hammer, Michael, et al., REENGINEERING THE CORPORATION: A Manifesto for Business Revolution, New York: Harper Collins, Publishers Inc., 1993. Other References on BPR. - PowerPoint PPT Presentation
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The Hammer Definition of BPR Radical redesign of business processes What BPR is What BPR is not Hammer, Michael, et al.,
REENGINEERING THE CORPORATION: A Manifesto for Business Revolution, New York: Harper Collins, Publishers Inc., 1993.
Other References on BPR
Champy, James, REENGINEERING MANAGEMENT, New York: Harper Business, 1995.
Hammer, Michael, et al., THE REENGINEERING REVOLUTION, New York: Harper Business, 1995.
Jacobson, REENGIENEERING WITH OBJECT TECHNOLOGY, 1995.
Taylor, David A., BUSINESS ENGINEERING WITH OBJECT TECHNOLOGY, wILEY, 1995.
Some Common Benefits of BPR
There is enterprise integration Departments are consolidated Several jobs are combined into one job
Workers are empowered There is both horizontal and vertical reorganization Handoffs are eliminated There are fewer rules and less coordination is required
Some Common Benefits of BPR, Cont’d
Number of steps in a process are reduced This is simplification Inspections, checks and controls are reduced or eliminated
The steps are performed in a more natural order
Some Common Benefits of BPR, Cont’d
Like Process Improvement, steps are reassessed Can it be eliminated Can it be taken off line Can it be performed in parallel Can it be combined Is it a bottleneck Can its mean be reduced Can its variance be reduced WHAT IS ITS COST???
Some Common Benefits of BPR, Cont’d
Processes differ by the type of job being processed Not just one process but many are employed depending on
the size of the job
Work is performed where it makes the most sense Wal-Mart moves the replenishment function to its suppliers
Some Common Benefits of BPR, Cont’d
Reconciliation is minimized A case manager provides a single point
of contact Hybrid centralized/decentralized
operations are prevalent IT enables decisions to operate
autonomously
Benefits of elimination of handoffs
No transits No waiting for another operator No waiting in queues No setups No supervision/coordination required
EXAMPLES:
Ford IBM Credit McKesson Pharmacueticals Kodak XEROX Motorola
How information technology provides important business
solutions
Managers must learn to think inductively Information can appear instantaneously
in as many different places as needed Generalists can do the work of experts
with expert systems {{LET’S EXAMINE THESE MORE
CLOSELY}}
Information can appear in as many places as needed
simultaneously
Shared databases make this possible
A generalist can do the work of an expert
Expert systems make this possible
Business can simultaneously reap the benefits of centralization and decentralization
Wide-area, data-communication networks make this possible
Decision-making is part of everyone’s job
Decision support tools (database access combined w/ modeling software)
Field personnel can send and receive information wherever
they are
They don’t need an office at headquarters any more
To receive and send mail, all they need is a notebook with cellular telephone technology modem
Contacts with potential buyers need no longer be personal
E-mail enables detailed interaction Southwestern Bell gets their C++
programmers out of India at $10-$15 per hour
Planning is instantaneous and continuous due to IT
Manufacturers gather data on product sales, raw materials price and
availability, labor supply and produces a master production schedule
This can now be done instantaneously by computer based on real-time data
Planning is instantaneous, Cont’d
Companies must make technology exploitation one of there core competencies if they are to succeed in a period of ongoing technological change
If you can buy it, its not new
Planning is instantaneous, Cont’d
Know what you’re going to do with technology before it becomes available
It is entirely possible to stay three years ahead of the market on technology
Who will re-engineer
Leader Process owner Re-engineering team Steering Committee Re-engineering czar
TASKS of the Re-engineering team
1) determine measures of performance 2) install measures of performance 3) delineate entire existing process in all
its gory detail 4) perform process value analysis and
activity-based costing 5) benchmark processes by comparison
with other processes
TASKS of the Re-engineering team, Cont’d
6) design re-invented process 7) simulate re-invented process 8) prepare report with recommendations 9) install re-invented process 10) measure improvements
Re-engineering Opportunities
Product development: concept to prototype
Sales: prospect to order Order fulfillment: order to payment Service: inquiry to resolution
Symptoms of a sick process Extensive information exchange, data
redundancy -- process fragmentation Inventory buffers and other assets --
slack to cope with uncertainty High levels of checking, inspection and
control -- fragmentation
Symptoms of a sick process, Cont’d
Lots of rework and iteration -- inadequate feedback
Complexity, exceptions and special cases -- accretion onto simplicity
Principles of good process design
Start with a vision Decide upon approach As few people as possible involved in
the final process Lots of involvement, empowerment and
ownership
Principles of good process design, Cont’d
Simplicity, simplicity, simplicity Make it fun, make it easy Focus on outcomes
Shortened cycle times Lower cost Higher quality Higher throughput
Simulate the prototype