Business process Reengineering

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Business Process & Reengineering:

Business Process & Reengineering


Objectives Understanding business engineering Significance and principles of business engineering What is BPR? Features of BPR Problems of Functional Division.

Business Engineering:

Business Engineering It is the concept of engineering the existing business process to newer dimension. It revolves around Information technology and reengineering. The major parameters with BE are speed, quality and output of materials.

Significance of Business Engineering:

Significance of Business Engineering Reliability Flexibility Feasibility Operability Helps to face the competition

Principles of Business Engineering:

Principles of Business Engineering Should convert the existing process Should provide guidance to control and monitor the existing process To make it user friendly Customer satisfaction as the goal

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Business Process Reengineering A Process of changing the method of a task with the use of current technology and meeting the demand of current environment. BPR seeks improvements of Cost Quality Service Speed

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Key Characteristics Systems Philosophy Global Perspective on Business Processes Radical Improvement Integrated Change People Centred Focus on End-Customers Process-Based

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Features of BPR Process orientation Project goals Rule breaking Creative use of technology Integration Decentralization of decision making Multiple versions of processes Checks and controls are reduced A single point of contact for a customer.

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Problems of Functional Division Process Departmentalization It refers to purchasing, manufacturing and sales. Purpose Departmentalization It refers to the arrangement of work around product geographic locations or specific customers. The structure which focuses on the organizational output rather than on the processes is also known as “Divisionalized Organization”.

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BPR and Functional Division According to philosophy hierarchical and functional structure leads to inflexibility of organizations. It makes slow, blamed for low productivity, long cycle times and high costs. Common database Customer interaction Productivity Goal congruence Externalized

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Division of Labour Organization is concerned with division of labour within departments also. Work is divided into smaller units and encourages specialization and high skills within functional area in turn increases the output. Reduce communication delays Improve decision making

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BPR and Division of Labour BPR ensures integrity among members through its span of data among departments. Task force team solves inter-departmental problems. Enables decision making at the lower levels of hierarchy. It prescribes self-managing teams comprising empowered members as the solution to the problem.

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Summary Business Engineering and its principles. Features of BPR Problems of Functional BPR.

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