Contributed on January 14, 2014

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Business Process Re-engineering

Description

Business Process Re-engineering! WHY BPR needed & HOW it can be implement in the organization to gain its benefits.

Transcript

Presented by: Dhaval Modi

Presented by: Dhaval Modi

 To

make audience aware WHY BPR needed &
HOW it can be implement in the organization
to gain its benefits.

 Is






your business suffering with
High operational costs
Low quality offered to customers
High level of ”bottleneck” processes at pick
seasons
Poor performance of middle level managers
Inappropriate distribution of resources and jobs
in order to achieve maximum

 BPR

is required in those organizations whose
existing business processes cease to perform
at acceptable levels or become irrelevant
with the availability of electronic integration
facilities.

 BPR

is process of fundamental re-thinking
and radical re-design of business processes to
achieve
a
dramatic
revolutionary
improvement performance.
 Performance measured by response time,
quality & cost.
 Its about business re-invention, not business
improvement, enhancement or modification.

 Its





all about asking lots of right questions.

why customer order should takes 5 days for us to
acknowledgement?
Why a purchase order be prepared every time?
Why there should always be store receipt report
to pass a supplier’s bill?

 It

should be clear that automation or
computerization helps to carry out existing
INEFFECTIVE jobs faster – but do not
eliminate the jobs.
 BPR is not fixing anything. It is starting from
a scratch. It can not be carried out in small
caution steps.

 Not

usual 10-20% but in the range of 50 –
500% improvements
 The NVA time & cost would be reduced
significantly
 duplication elimination
 Quality improvements
 Customer satisfaction
 Response time reduce
 Inventory reduce
 Receivable reduction
 Paperwork elimination

 Continuous

Evaluation
 Eliminating Jobs
 Failure rate as high as 75-85%
 Improperly aligned BPR and IT
 Expensive
 Organizational resistance
“Every act of creation is first of all an act of
destruction”

IBM credit corporation’s Old
Process

IBM’s New Process

Ford Reengineers Its Payables Process
•

Old process:
–

The receiving department accepted orders that
did NOT match the purchasing order
•

•

Lots of overhead to reconcile the inconsistencies

New process:
–

–

ONLY shipments that match the purchase order
are accepted
The information is entered into a shared
database

Ford’s Process Redesign

 An

Example – Bank

Customer deals with a single point of contact, the
account manager
 Account manager is responsible for all bank services,
and provides all services to the customer, who
receives a single statement for all accounts
 IT provides account manager with expert advice on
specialized topics, such as loans
 By allowing easy access to the different databases,
the account manager can answer queries, plan, and
organize the work with customers


Thank You !
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