Business Process Reengineering is a discipline in which extensive research has been carried out and numerous methodologies churned out. But what seems to be lacking is a structured approach. In this paper we provide a review of BPR and present ‘best of breed ‘ methodologies from contemporary literature and introduce a consolidated, systematic approach to the redesign of a business enterprise. The methodology includes the five activities: Prepare for reengineering, Map and Analyze As-Is process, Design To-be process, Implement reengineered process and Improve continuously.
Keywords: Business Process Reengineering, Methodology, Improvement 1.0 Introduction:
In today’s ever-changing world, the only thing that doesn’t change is ‘change’ itself. In a world increasingly driven by the three Cs: Customer, Competition and Change, companies are on the lookout for new solutions for their business problems. Recently, some of the more successful business corporations in the world seem to have hit upon an incredible solution: Business Process Reengineering (BPR). Some of the recent headlines in the popular press read, “Wal-Mart reduces restocking time from six weeks to thirty-six hours.”” Hewlett Packard’s assembly time for server computers touches new low- four minutes.” “Taco Bell’s sales soars from $500 million to $3 billion.” The reason behind these success stories: Business Process Reengineering!
2.0 What is reengineering?
“Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed.” The key words in the preceding definition are the italicized ones. BPR advocates that enterprises go back to the basics and reexamine their very roots. It doesn’t believe in small improvements. Rather it aims at total reinvention. As for results: BPR is clearly not for companies who want a 10% improvement. It is for the ones that need a ten-fold increase. According to Hammer and Champy , the last but the most important of the four key words is the word-‘process.’ BPR focuses on processes and not on tasks, jobs or people. It endeavors to redesign the strategic and value added processes that transcend organizational boundaries. 3.0 What to reengineer? :
According to many in the BPR field reengineering should focus on processes and not be limited to thinking about the organizations. After all the organization is only as effective as its processes[4,6] So, what is a process? “A business process is a series of steps designed to produce a product or a service. It includes all the activities that deliver particular results for a given customer(external or internal).” Processes are currently invisible and unnamed because people think about the individual departments more often than the process with which all of them are involved. So companies that are currently used to talking in terms of departments such as marketing and manufacturing must switch to giving names to the processes that they do such that they express the beginning and end states. These names should imply all the work that gets done between the start and finish. For example, order fulfillment can be called order to payment process . Talking about the importance of processes just as companies have organization charts, they should also have what are called process maps to give a picture of how work flows through the company. Process mapping provides tools and a proven methodology for identifying your current As-Is business processes and can be 2
used to provide a To-Be roadmap for reengineering your product and service business enterprise functions. It is the critical link that your reengineering team can apply to better understand and significantly improve your business processes and bottom-line performance[4,6].
Having identified and mapped the processes, deciding which ones need to be reengineered and in what...